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REAL Gears Up to Report Q3 Earnings: What Should Investors Expect?
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Key Takeaways
REAL's Q3 revenues are projected to rise 13.1% to $196.2 million, with EPS expected to reach a penny.
Luxury handbags, jewelry and watches, alongside stronger sourcing, may support The RealReal's Q3 sales.
REAL's AI-powered Athena system and pricing tools could boost efficiency and support profitability.
The RealReal, Inc. (REAL - Free Report) is likely to register growth in both top and bottom lines when it reports third-quarter 2026 earnings on Oct. 29, 2026, after market close. The Zacks Consensus Estimate for third-quarter revenues is pegged at $196.2 million, indicating 13.1% growth from the same period last year.
The consensus mark for earnings has remained unchanged over the past 30 days at a penny per share, indicating a sharp improvement from the loss of 49 cents reported in the year-ago quarter.
In the last reported quarter, the leading online marketplace for authenticated, pre-owned luxury goods company’s earnings beat the Zacks Consensus Estimate by 50%. RealReal delivered a negative trailing four-quarter average earnings surprise of 37.5%.
The RealReal, Inc. Price, Consensus and EPS Surprise
RealReal's third-quarter performance is likely to have benefited from sustained demand for higher-value luxury merchandise, including handbags, fine jewelry and watches. Its trusted authentication services, broad assortment of designer products and compelling combination of luxury and value may have supported customer spending and average order value. Growing engagement among Gen Z and millennial shoppers is also expected to have strengthened demand. Meanwhile, investments in brand and performance marketing, supported by the "Be a RealRealer" campaign, may have helped attract high-quality buyers and encouraged more customers to become consignors, reinforcing the company's marketplace flywheel.
On the supply front, The RealReal's expanding sourcing capabilities are likely to have supported third-quarter sales. Improved sales-team productivity, deeper relationships with existing consignors and referrals through its Real Partners program may have helped secure a steady flow of desirable luxury merchandise. Its retail stores are also expected to have strengthened consignor engagement and facilitated access to high-value products. Additionally, international dropshipping partnerships with vendors in Japan and Europe may have broadened merchandise availability and unlocked incremental supply. Supported by these trends, management projected third-quarter gross merchandise value of $610-$620 million and revenues of $194-$198 million.
The company's ongoing investments in artificial intelligence and digital capabilities may have further supported marketplace performance. AI-powered conversational shopping tools and richer product listings are expected to have improved product discovery, helping customers find relevant merchandise more easily.
On the profitability front, the continued expansion of Athena, The RealReal's AI-enabled intake system, is likely to have streamlined merchandise processing, reduced manual intervention and accelerated product availability for sale. Greater automation, improved workforce productivity and disciplined overhead spending may have helped the company manage higher transaction volumes with limited additional staffing. The shift toward higher-value merchandise, which generates stronger profit dollars per transaction despite lower take rates, is expected to have supported unit economics. These efficiencies, alongside operating leverage, may have contributed to improved profitability, supporting management's third-quarter adjusted EBITDA guidance of $13.5-$14.5 million.
Earnings Whispers for REAL Stock
Our proven model does not conclusively predict an earnings beat for RealReal this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
RealReal has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
REAL’s Price Performance & Valuation
The recent market movements show that RealReal’s shares have lost 6.6% over the past six months against the industry's 12.7% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, REAL trades at a forward 12-month price-to-sales (P/S) multiple of 1.57X, below the industry average of 3.35X, suggesting that the stock is relatively undervalued.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the right combination to beat on earnings this time around.
The Zacks Consensus Estimate for Tapestry’s upcoming quarterly revenues is pegged at $1.84 billion. The figure indicates a 7.9% increase from the prior-year quarter. The Zacks Consensus Estimate for Tapestry’s quarterly earnings per share is pegged at $1.55, suggesting a 12.3% rise from the year-ago period figure. TPR delivered a trailing four-quarter earnings surprise of 16%, on average.
Ralph Lauren Corp. (RL - Free Report) currently has an Earnings ESP of +0.56% and a Zacks Rank of 2. The consensus estimate for the quarterly revenues is pegged at $2.13 billion, which indicates an increase of 6.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Ralph Lauren’s upcoming quarter’s EPS is pegged at $4.22, which implies a 11.4% increase year over year. RL delivered a trailing four-quarter earnings surprise of roughly 8.7%, on average.
FIGS, Inc. (FIGS - Free Report) currently has an Earnings ESP of +5.00% and a Zacks Rank of 2. The company is likely to register growth in top and bottom line when it reports third-quarter 2026 figures.
The Zacks Consensus Estimate for FIGS’ quarterly revenues is pegged at $181.2 million, indicating an increase of 19.5% from the figure reported in the prior-year quarter. The consensus estimate for FIGS’ quarterly earnings of 7 cents per share implies a 40% rise from the year-ago quarter’s level. FIGS has a trailing four-quarter earnings surprise of 201.8%, on average.
View the Zacks #1 Rank List
Image: Bigstock
REAL Gears Up to Report Q3 Earnings: What Should Investors Expect?
Key Takeaways
The RealReal, Inc. (REAL - Free Report) is likely to register growth in both top and bottom lines when it reports third-quarter 2026 earnings on Oct. 29, 2026, after market close. The Zacks Consensus Estimate for third-quarter revenues is pegged at $196.2 million, indicating 13.1% growth from the same period last year.
The consensus mark for earnings has remained unchanged over the past 30 days at a penny per share, indicating a sharp improvement from the loss of 49 cents reported in the year-ago quarter.
In the last reported quarter, the leading online marketplace for authenticated, pre-owned luxury goods company’s earnings beat the Zacks Consensus Estimate by 50%. RealReal delivered a negative trailing four-quarter average earnings surprise of 37.5%.
The RealReal, Inc. Price, Consensus and EPS Surprise
The RealReal, Inc. price-consensus-eps-surprise-chart | The RealReal, Inc. Quote
Factors Likely to Impact REAL’s Q3 Results
RealReal's third-quarter performance is likely to have benefited from sustained demand for higher-value luxury merchandise, including handbags, fine jewelry and watches. Its trusted authentication services, broad assortment of designer products and compelling combination of luxury and value may have supported customer spending and average order value. Growing engagement among Gen Z and millennial shoppers is also expected to have strengthened demand. Meanwhile, investments in brand and performance marketing, supported by the "Be a RealRealer" campaign, may have helped attract high-quality buyers and encouraged more customers to become consignors, reinforcing the company's marketplace flywheel.
On the supply front, The RealReal's expanding sourcing capabilities are likely to have supported third-quarter sales. Improved sales-team productivity, deeper relationships with existing consignors and referrals through its Real Partners program may have helped secure a steady flow of desirable luxury merchandise. Its retail stores are also expected to have strengthened consignor engagement and facilitated access to high-value products. Additionally, international dropshipping partnerships with vendors in Japan and Europe may have broadened merchandise availability and unlocked incremental supply. Supported by these trends, management projected third-quarter gross merchandise value of $610-$620 million and revenues of $194-$198 million.
The company's ongoing investments in artificial intelligence and digital capabilities may have further supported marketplace performance. AI-powered conversational shopping tools and richer product listings are expected to have improved product discovery, helping customers find relevant merchandise more easily.
On the profitability front, the continued expansion of Athena, The RealReal's AI-enabled intake system, is likely to have streamlined merchandise processing, reduced manual intervention and accelerated product availability for sale. Greater automation, improved workforce productivity and disciplined overhead spending may have helped the company manage higher transaction volumes with limited additional staffing. The shift toward higher-value merchandise, which generates stronger profit dollars per transaction despite lower take rates, is expected to have supported unit economics. These efficiencies, alongside operating leverage, may have contributed to improved profitability, supporting management's third-quarter adjusted EBITDA guidance of $13.5-$14.5 million.
Earnings Whispers for REAL Stock
Our proven model does not conclusively predict an earnings beat for RealReal this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
RealReal has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
REAL’s Price Performance & Valuation
The recent market movements show that RealReal’s shares have lost 6.6% over the past six months against the industry's 12.7% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, REAL trades at a forward 12-month price-to-sales (P/S) multiple of 1.57X, below the industry average of 3.35X, suggesting that the stock is relatively undervalued.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the right combination to beat on earnings this time around.
Tapestry, Inc. (TPR - Free Report) currently has an Earnings ESP of +0.43% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tapestry’s upcoming quarterly revenues is pegged at $1.84 billion. The figure indicates a 7.9% increase from the prior-year quarter. The Zacks Consensus Estimate for Tapestry’s quarterly earnings per share is pegged at $1.55, suggesting a 12.3% rise from the year-ago period figure. TPR delivered a trailing four-quarter earnings surprise of 16%, on average.
Ralph Lauren Corp. (RL - Free Report) currently has an Earnings ESP of +0.56% and a Zacks Rank of 2. The consensus estimate for the quarterly revenues is pegged at $2.13 billion, which indicates an increase of 6.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Ralph Lauren’s upcoming quarter’s EPS is pegged at $4.22, which implies a 11.4% increase year over year. RL delivered a trailing four-quarter earnings surprise of roughly 8.7%, on average.
FIGS, Inc. (FIGS - Free Report) currently has an Earnings ESP of +5.00% and a Zacks Rank of 2. The company is likely to register growth in top and bottom line when it reports third-quarter 2026 figures.
The Zacks Consensus Estimate for FIGS’ quarterly revenues is pegged at $181.2 million, indicating an increase of 19.5% from the figure reported in the prior-year quarter. The consensus estimate for FIGS’ quarterly earnings of 7 cents per share implies a 40% rise from the year-ago quarter’s level. FIGS has a trailing four-quarter earnings surprise of 201.8%, on average.