Revenue grew 18.7% year over year to $206.1M in 2026Q3 with gross margin near 75%, but operating margin of only 0.7% and net margin swings from -31.1% to 20.5% across recent quarters indicate earnings quality remains inconsistent.
The RealReal, Inc. (REAL) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Sales/Revenue | 782.45M | 692.85M | 600.48M | 549.3M | 603.49M | 467.69M | 299.95M | 316.35M | 207.38M | 137.52M |
| Revenue Growth % | 18.05% | 15.38% | 9.32% | -8.98% | 29.04% | 55.92% | -5.19% | 52.55% | 50.8% | - |
| Cost of Goods Sold | 214.57M | 209.03M | 152.96M | 173.03M | 254.8M | 194.22M | 112.38M | 114.83M | 70.46M | 49.88M |
| COGS % of Revenue | - | 30.17% | 25.47% | 31.5% | 42.22% | 41.53% | 37.47% | 36.3% | 33.98% | 36.27% |
| Gross Profit | 567.88M | 483.82M | 447.52M | 376.28M | 348.69M | 273.48M | 187.57M | 201.52M | 136.92M | 87.64M |
| Gross Margin % | 72.58% | 69.83% | 74.53% | 68.5% | 57.78% | 58.47% | 62.53% | 63.7% | 66.02% | 63.73% |
| Gross Profit Growth % | - | 8.11% | 18.93% | 7.91% | 27.5% | 45.8% | -6.93% | 47.19% | 56.22% | - |
| Operating Expenses | 564.7M | 507.75M | 504.02M | 542.57M | 537.85M | 488.38M | 360.38M | 301.63M | 210.82M | 139.43M |
| OpEx % of Revenue | - | 73.29% | 83.94% | 98.77% | 89.12% | 104.42% | 120.15% | 95.35% | 101.66% | 101.39% |
| Selling, General & Admin | 285.77M | 264.84M | 242.99M | 499.11M | 258.33M | 239.17M | 196.57M | 158.4M | 105.89M | 80.75M |
| SG&A % of Revenue | - | 38.22% | 40.47% | 90.86% | 42.81% | 51.14% | 65.54% | 50.07% | 51.06% | 58.72% |
| Research & Development | 196.15M | 242.91M | 227.73M | 225.35M | 0 | 212.3M | 144.96M | 0 | 104.93M | 58.68M |
| R&D % of Revenue | - | 35.06% | 37.92% | 41.02% | - | 45.39% | 48.33% | - | 50.6% | 42.67% |
| Other Operating Expenses | 2M | 0 | 33.3M | -181.88M | 279.52M | 36.92M | 18.84M | 143.23M | 0 | 0 |
| Operating Income | 3.19M | -23.93M | -56.49M | -166.29M | -189.16M | -214.91M | -172.82M | -100.11M | -73.9M | -51.78M |
| Operating Margin % | 0.41% | -3.45% | -9.41% | -30.27% | -31.34% | -45.95% | -57.62% | -31.64% | -35.64% | -37.66% |
| Operating Income Growth % | - | 57.64% | 66.03% | 12.09% | 11.98% | -24.36% | -72.63% | -35.45% | -42.72% | - |
| EBITDA | 35.34M | 9.07M | -23.39M | -134.6M | -161.49M | -191.38M | -153.97M | -86.7M | -64.61M | -46.15M |
| EBITDA Margin % | 4.52% | 1.31% | -3.9% | -24.5% | -26.76% | -40.92% | -51.33% | -27.41% | -31.16% | -33.56% |
| EBITDA Growth % | 252.19% | 138.77% | 82.62% | 16.65% | 15.61% | -24.29% | -77.6% | -34.18% | -40.01% | - |
| D&A (Non-Cash Add-back) | 32.16M | 33M | 33.1M | 31.7M | 27.67M | 23.53M | 18.84M | 13.41M | 9.29M | 5.63M |
| EBIT | 18.69M | -13.73M | -112.54M | -157.49M | -185.8M | -214.52M | -170.47M | -97.61M | -74.51M | -51.49M |
| Net Interest Income | -25.58M | -23.44M | -13.44M | -1.9M | -7.28M | -21.17M | -2.75M | 3.98M | -106K | -407K |
| Interest Income | 3.71M | 4.26M | 7.94M | 8.8M | 3.19M | 365K | 2.52M | 4.59M | 1.05M | 355K |
| Interest Expense | 29.28M | 27.7M | 21.38M | 10.7M | 10.47M | 21.53M | 5.26M | 616K | 1.15M | 762K |
| Other Income/Expense | -13.79M | -17.5M | -77.43M | -1.9M | -7.11M | -21.14M | -2.92M | 1.88M | -1.76M | -467K |
| Pretax Income | -10.6M | -41.44M | -133.93M | -168.19M | -196.27M | -236.05M | -175.73M | -98.23M | -75.67M | -52.25M |
| Pretax Margin % | -1.35% | -5.98% | -22.3% | -30.62% | -32.52% | -50.47% | -58.59% | -31.05% | -36.49% | -37.99% |
| Income Tax | 475K | 363K | 276K | 283K | 172K | 56K | 101K | 199K | 99K | 57K |
| Effective Tax Rate % | -4.48% | -0.88% | -0.21% | -0.17% | -0.09% | -0.02% | -0.06% | -0.2% | -0.13% | -0.11% |
| Net Income | -11.07M | -41.8M | -134.2M | -168.47M | -196.44M | -236.11M | -175.83M | -98.43M | -75.77M | -52.31M |
| Net Margin % | -1.42% | -6.03% | -22.35% | -30.67% | -32.55% | -50.48% | -58.62% | -31.11% | -36.54% | -38.04% |
| Net Income Growth % | 84.51% | 68.85% | 20.34% | 14.24% | 16.8% | -34.28% | -78.64% | -29.91% | -44.84% | - |
| Net Income (Continuing) | -11.07M | -41.8M | -134.2M | -168.47M | -196.44M | -236.11M | -175.83M | -98.43M | -75.77M | -52.31M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.09 | -0.70 | -1.24 | -1.65 | -2.05 | -2.58 | -2.03 | -1.19 | -1.35 | -0.88 |
| EPS Growth % | 6.85% | 43.55% | 24.85% | 19.51% | 20.54% | -27.09% | -70.59% | 11.85% | -53.41% | - |
| EPS (Basic) | - | -0.36 | -1.24 | -1.65 | -2.05 | -2.58 | -2.03 | -1.19 | -1.35 | -0.88 |
| Diluted Shares Outstanding | 128.15M | 116.51M | 107.88M | 101.81M | 95.92M | 91.41M | 87.59M | 85.87M | 62.53M | 62.53M |
| Basic Shares Outstanding | 122.12M | 114.87M | 107.88M | 101.81M | 95.92M | 91.41M | 87.59M | 85.87M | 62.53M | 62.53M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying REAL stock.
For fiscal year 2025, The RealReal, Inc. (REAL) reported total revenue of $692.8M. This represents a 403.8% increase compared to $137.5M in 2017.
The RealReal, Inc. (REAL) reported a net loss of $41.8M for the fiscal year ending 2025.
The RealReal, Inc. (REAL) reported an operating income of $-23.9M, resulting in an operating profit margin of -3.5%. This margin reflects the operational efficiency of the business before interest and taxes.
The RealReal, Inc. (REAL) generated $483.8M in gross profit for the year, representing a gross profit margin of 69.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent operating losses despite growth
Metrics are mathematically derived from official filings.
GMV Momentum Driving Sustained Top-Line Expansion
Based on reported quarterly figures, REAL's revenue reached $206.1M in 2026Q3, up 18.7% year over year, with growth holding in the high teens across the most recent quarters and suggesting the expansion is durable rather than episodic.
The consistency of 16 to 20 percent growth across the last several quarters, following a deceleration to roughly 11 percent in 2024, indicates that the marketplace has re-accelerated from a weaker base. The reported figures do not separate volume from pricing effects, so investors should monitor whether growth continues to rely on higher average order values or on broader buyer and consignor participation. The durability of this trajectory will depend on whether unit growth holds once comparisons toughen.
Gross Margin Holding Near Seventy-Five Percent
According to reported income statement data, REAL's gross margin stood at 74.9% in 2026Q3 versus 68.6% in 2024Q2, a material structural improvement that suggests a shift toward higher-take-rate consignment mix.
The gross margin expansion of roughly six points over the period appears consistent with the company's stated move toward consignment over direct inventory ownership, which reduces markdown and write-down exposure. Margin volatility quarter to quarter, such as the dip to 70.2% in 2026Q1 and 70.6% in 2025Q4, may reflect mix shifts or seasonal fulfillment costs. Investors should monitor whether this margin level can be sustained as the company scales its physical processing operations.
Operating Leverage Emerging But Not Yet Proven
Based on reported figures, REAL's operating margin improved from -13.0% in 2024Q2 to +0.7% in 2026Q3, with SG&A held near $74M while gross profit grew, indicating early but not yet durable operating leverage.
Gross profit has grown faster than SG&A in recent quarters, which is the pattern expected when fixed overhead is spread over a larger revenue base. The swing to a marginally positive operating income in 2026Q3 is encouraging, yet it followed a negative quarter in 2026Q2 and a positive quarter in 2025Q4 that was not sustained, so the inflection appears fragile. Operating income remains highly sensitive to a few million dollars of cost movement.
Net Income Swings Diverge From Operating Trend
As reported in financial statements, REAL posted net income of $16.0M in 2026Q3 against operating income of only $1.5M, and a $62.4M profit in 2025Q1 despite a $12.8M operating loss, indicating net results are driven heavily by non-operating items.
The gap between operating and net results in several quarters suggests that non-operating items, potentially including tax effects or valuation adjustments, materially influence reported EPS. The 2025Q1 profit against an operating loss is a clear example that warrants further investigation rather than being read as earnings power. Stock-based compensation of roughly $6-8M per quarter also represents a recurring cost that management's adjusted metrics may exclude.
Growth Quality and Path to Profit Questioned
Based on reported figures, REAL remained loss-making at the net level in most recent quarters, with 2026Q2 net margin at -14.1%, suggesting profitability may depend on sustaining growth that has not yet translated into consistent earnings.
A bear case would focus on the fact that net income has been negative in most quarters despite revenue approaching $200M per quarter, which raises questions about the unit economics of physical authentication at scale. If growth decelerates toward the low teens or labor costs rise, the operating margin could revert to negative territory quickly. Investors should monitor whether the apparent gross margin gains persist as the company faces intensifying competition from brand-certified resale programs.