Short answer
TheRealReal, Inc. (REAL) filed its fiscal 2025 10-K annual report with the SEC on Feb 26, 2026. It reported revenue of $693M (+15.4% year over year) and net income of −$42M.
- Top risk flagged: Regulatory risk: Compliance with data privacy laws affecting personal information processing, including potential fines and governmental enforcement actions
FY2025 key financial metrics · XBRL
- Revenue
- $693M
- +15.4% YoY
- Net income
- −$42M
- +68.9% YoY
- Operating margin
- -3.5%
- +6.0 pp YoY
- Gross margin
- 74.6%
- +0.1 pp YoY
- EPS (diluted)
- −$0.70
- +43.5% YoY
- ROE
- 10.1%
- −22.9 pp YoY
- Operating cash flow
- $37M
- +37.9% YoY
Source: XBRL data from the TheRealReal, Inc. (REAL) FY2025 10-K on SEC EDGAR. USD.
TheRealReal, Inc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Online marketplace for authenticated resale luxury goods with end-to-end consignment services worldwide
- Emphasized multi-channel retail with neighborhood stores (1,800-3,500 sq ft) and flagship stores (8,000-10,000 sq ft) to enhance customer and consignor engagement
- Strategic focus on technology, automation, proprietary data to drive operational efficiency and growth via network effects between consignors and buyers
- Network effect creates flywheel; high-quality supply attracts buyers, boosting sales velocity and consignor commissions
- Retail stores drive increased average order value, lifetime value, lower return rates, and accelerated brand awareness in 2026 filing year
Management Discussion & Analysis
- Revenue not explicitly stated; net loss improved to $41.8M in 2025 from $134.2M in 2024 and $168.5M in 2023
- Adjusted EBITDA $42.1M in 2025 vs $9.3M in 2024 and ($55.2M) in 2023, indicating profitability improvement
- Operating segment performance not detailed by revenue; primary cash uses include operating lease obligations, compensation, marketing
- Net cash from operating activities $37.0M in 2025 vs $26.8M in 2024; investing cash outflows $29.2M including $18.6M capex and $12.9M software; financing outflows $28.9M mainly debt repayment
- Management highlights convertible note exchanges reducing debt burden with gains on extinguishment $40.8M in 2025; key risks include lease and debt obligations of $281.3M and $213.6M respectively, and warrant fair value volatility impacting earnings
Risk Factors
- Regulatory risk: Compliance with data privacy laws affecting personal information processing, including potential fines and governmental enforcement actions
- Macroeconomic threat: Exposure to reduced consumer discretionary spending due to inflation, recessions, and geopolitical instability from Russia-Ukraine and Israel-Hamas conflicts
- Operational vulnerability: Dependence on specialized sales professionals to secure consignor supply amid intense employee competition and turnover risks
- Competitive risk: Challenges from national retailers setting competitive prices on new luxury goods, impacting the resale value proposition
- Financial risk: Large accumulated deficit of $1,295.6 million as of December 31, 2025, with net losses of $41.8 million in 2025 signaling ongoing profitability challenges
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