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REAL Jumps 22.8% in a Month as Growth Improves but Key Risks Persist
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Key Takeaways
The RealReal's second-quarter GMV surged 22% to $617 million, while revenues grew 17% to $193.3 million.
REAL raised 2026 revenue outlook to $788-$797 million and adjusted EBITDA guidance to $66-$69 million.
REAL's take rate fell 200 bps to 35.9%, while debt, interest costs and marketing expenses remain concerns.
The RealReal, Inc.REAL has regained investor attention as operating trends improve. The luxury resale marketplace delivered record second-quarter gross merchandise value, stronger buyer engagement and wider adjusted EBITDA margins, while management raised its 2026 outlook.
The rebound comes with trade-offs. Higher-ticket merchandise is lifting transaction economics but lowering the company’s take rate, while debt, interest costs and heavier marketing spending remain constraints.
Second-quarter gross merchandise value reached $617 million, up 22% year over year, marking the fourth straight quarter of growth above 20%. Revenues increased 17% to $193.3 million. Orders rose 8%, while average order value climbed 13% to $659, showing that growth came from both transaction activity and higher customer spending.
Image Source: Zacks Investment Research
Management raised its 2026 outlook to gross merchandise value of $2.535-$2.565 billion and revenues of $788-$797 million. Adjusted EBITDA is now projected at $66-$69 million, implying an adjusted EBITDA margin of about 8.5% at the midpoint, roughly 240 basis points above 2025.
Supply remains an important part of the growth case. Supply per sales representative increased 15% year over year in the first six months of 2026. The Real Partners program is attracting sellers who consign four times the value of the average new consignor, while 44% of new consignors in the second quarter came from the active buyer base, up from 40% two quarters earlier.
Automation is helping REAL translate marketplace growth into better operating leverage. Its AI-enabled Athena intake platform remains on track to process nearly 50% of items fully through the system by year-end. In the second quarter, total operating expenses leveraged about 470 basis points, while adjusted EBITDA margin expanded 290 basis points to 7%.
The resale market also includes broader platforms such as eBay Inc. (EBAY - Free Report) . eBay said its second-quarter 2026 gross merchandise volume increased 15% year over year and it expanded Authenticity Guarantee coverage to more than 100 fashion brands in the United States and United Kingdom, reinforcing its presence in luxury resale.
ThredUp Inc. (TDUP - Free Report) provides another resale comparison. The apparel resale platform reported second-quarter 2026 revenue growth of 17% and active-buyer growth of 21%, showing that secondhand demand remains active beyond luxury-focused marketplaces.
REAL’s growth mix still creates pressure. Sales of items priced above $1,000 increased 36% in the first half of 2026, but those products carry lower percentage take rates. The second-quarter take rate declined 200 basis points to 35.9%, causing consignment revenue growth of 15% to lag the 22% rise in gross merchandise value.
Financial flexibility is another concern. As of June 30, 2026, REAL had $231.5 million of convertible senior notes and $144.3 million of non-convertible notes, compared with $119.1 million of cash and cash equivalents. Second-quarter interest expense rose 4% year over year to $7.3 million. Marketing expense also increased about 18% to $18.4 million as the company invested in brand and performance channels.
Its Growth Score of A supports the improving growth profile, while the VGM Score of B indicates a favorable combined reading across value, growth and momentum factors. The Value Score of D and Momentum Score of C are less supportive, underscoring that the recent price strength does not remove valuation and execution risks.
REAL’s operating trajectory is improving, but the next phase depends on converting faster gross merchandise value growth into revenues and cash while maintaining margin progress. The Zacks Rank and favorable Growth and VGM Scores point to constructive near-term prospects, though take-rate pressure, leverage and discretionary-spending sensitivity warrant continued attention.
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REAL Jumps 22.8% in a Month as Growth Improves but Key Risks Persist
Key Takeaways
The RealReal, Inc. REAL has regained investor attention as operating trends improve. The luxury resale marketplace delivered record second-quarter gross merchandise value, stronger buyer engagement and wider adjusted EBITDA margins, while management raised its 2026 outlook.
The rebound comes with trade-offs. Higher-ticket merchandise is lifting transaction economics but lowering the company’s take rate, while debt, interest costs and heavier marketing spending remain constraints.
Second-quarter gross merchandise value reached $617 million, up 22% year over year, marking the fourth straight quarter of growth above 20%. Revenues increased 17% to $193.3 million. Orders rose 8%, while average order value climbed 13% to $659, showing that growth came from both transaction activity and higher customer spending.
Image Source: Zacks Investment Research
Management raised its 2026 outlook to gross merchandise value of $2.535-$2.565 billion and revenues of $788-$797 million. Adjusted EBITDA is now projected at $66-$69 million, implying an adjusted EBITDA margin of about 8.5% at the midpoint, roughly 240 basis points above 2025.
Supply remains an important part of the growth case. Supply per sales representative increased 15% year over year in the first six months of 2026. The Real Partners program is attracting sellers who consign four times the value of the average new consignor, while 44% of new consignors in the second quarter came from the active buyer base, up from 40% two quarters earlier.
Automation is helping REAL translate marketplace growth into better operating leverage. Its AI-enabled Athena intake platform remains on track to process nearly 50% of items fully through the system by year-end. In the second quarter, total operating expenses leveraged about 470 basis points, while adjusted EBITDA margin expanded 290 basis points to 7%.
The resale market also includes broader platforms such as eBay Inc. (EBAY - Free Report) . eBay said its second-quarter 2026 gross merchandise volume increased 15% year over year and it expanded Authenticity Guarantee coverage to more than 100 fashion brands in the United States and United Kingdom, reinforcing its presence in luxury resale.
ThredUp Inc. (TDUP - Free Report) provides another resale comparison. The apparel resale platform reported second-quarter 2026 revenue growth of 17% and active-buyer growth of 21%, showing that secondhand demand remains active beyond luxury-focused marketplaces.
REAL’s growth mix still creates pressure. Sales of items priced above $1,000 increased 36% in the first half of 2026, but those products carry lower percentage take rates. The second-quarter take rate declined 200 basis points to 35.9%, causing consignment revenue growth of 15% to lag the 22% rise in gross merchandise value.
Financial flexibility is another concern. As of June 30, 2026, REAL had $231.5 million of convertible senior notes and $144.3 million of non-convertible notes, compared with $119.1 million of cash and cash equivalents. Second-quarter interest expense rose 4% year over year to $7.3 million. Marketing expense also increased about 18% to $18.4 million as the company invested in brand and performance channels.
The RealReal, Inc. Price and Consensus
The RealReal, Inc. price-consensus-chart | The RealReal, Inc. Quote
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its Growth Score of A supports the improving growth profile, while the VGM Score of B indicates a favorable combined reading across value, growth and momentum factors. The Value Score of D and Momentum Score of C are less supportive, underscoring that the recent price strength does not remove valuation and execution risks.
REAL’s operating trajectory is improving, but the next phase depends on converting faster gross merchandise value growth into revenues and cash while maintaining margin progress. The Zacks Rank and favorable Growth and VGM Scores point to constructive near-term prospects, though take-rate pressure, leverage and discretionary-spending sensitivity warrant continued attention.