RealReal’s Q1 revenue guidance falls short of consensus

Published 10/02/2025, 15:04
RealReal’s Q1 revenue guidance falls short of consensus

Investing.com-- Luxury consignment platform RealReal Inc. (NASDAQ:REAL) reported preliminary fourth-quarter results that exceeded expectations but saw its shares slip 1% after its first-quarter revenue forecast missed analyst estimates.

The company anticipates revenue for the fourth quarter to be between $163.1 million and $164.1 million, surpassing the analyst consensus of $162.8 million. Adjusted EBITDA is expected to range from $10.7 million to $11.2 million, well above the $8.63 million estimate. Gross merchandise value (GMV) is projected to reach $503.5 million, outperforming the $491.3 million forecast.

However, RealReal’s guidance for the first quarter of 2025 fell short of expectations. The company forecasts revenue between $157 million and $161 million, below the $161.5 million analyst estimate. Adjusted EBITDA is expected to be $3.0 million to $4.5 million, surpassing the $1.37 million estimate.

For the full year 2025, RealReal projects revenue of $645 million to $660 million, in line with the $652.3 million analyst consensus. The company expects adjusted EBITDA of $20 million to $30 million and GMV between $1.96 billion and $1.99 billion.

CEO Rati Sahi Levesque commented, "We look forward to continuing this momentum in 2025, expanding Adjusted EBITDA margin through the combination of our growth playbook and operational efficiencies driven by our data, technology, and AI capabilities."

The company also announced the completion of a debt exchange transaction, issuing approximately $147 million in new convertible senior notes due 2031 in exchange for about $183 million of its 2028 notes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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