The RealReal Reports 14% Revenue Growth to $165.2 Million for Q2 2025

The RealReal, Inc. reported a total revenue of $165.2 million for the three months ended June 30, 2025, marking a 14% increase from $144.9 million in the same period last year. The growth was primarily driven by a 14% rise in consignment revenue, which reached $128.6 million, up from $112.7 million. Direct revenue also saw a significant increase of 23%, totaling $20.5 million compared to $16.7 million in the prior year. Shipping services revenue increased by 4%, amounting to $16.1 million. Despite the revenue growth, the company reported a net loss of $11.4 million for the quarter, an improvement from a loss of $16.7 million in the same quarter of 2024.

For the six months ended June 30, 2025, The RealReal's total revenue was $325.2 million, up 13% from $288.7 million in the first half of 2024. The company achieved a net income of $51.0 million during this period, a significant turnaround from a loss of $47.8 million in the previous year. This positive shift was attributed to a gain on extinguishment of debt amounting to $37.1 million, alongside improved operational efficiencies that contributed to a gross profit of $242.7 million, compared to $214.7 million in the prior year.

Operationally, The RealReal reported a total of 1 million active buyers as of June 30, 2025, maintaining the same number as the previous year. The average order value (AOV) increased to $581 from $538, reflecting a stronger sales mix. The company also noted a 6% increase in the number of orders processed, totaling 868,820 for the quarter. The take rate, which represents the percentage of sales retained from consignment transactions, slightly decreased to 37.9% from 38.5% year-over-year, attributed to a shift towards higher-value items.

In terms of strategic developments, The RealReal has been actively managing its debt structure. The company completed a significant debt exchange in February 2025, converting $183.3 million of its 2028 Notes into $146.7 million of 2031 Notes, which has extended the maturity of its debt. As of June 30, 2025, the company had cash and cash equivalents of $94.3 million, down from $172.2 million at the end of 2024, alongside restricted cash of $14.9 million. The company anticipates that its existing cash reserves will be sufficient to meet its operational needs for at least the next 12 months, although it may seek additional financing to support future growth initiatives.

Looking ahead, The RealReal aims to continue expanding its marketplace for authenticated luxury goods while enhancing its technology and operational efficiencies. The company remains focused on attracting new consignors and buyers, leveraging its proprietary technology to streamline operations, and investing in marketing to drive growth. However, it acknowledges the potential challenges posed by macroeconomic conditions and competition in the luxury resale market.