# The RealReal, Inc. (REAL)

> Source: Nexqual · https://nexqual.com/REAL · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, The RealReal, Inc. (REAL), nexqual.com/REAL" · informational, not investment advice.

**Price:** USD 10.48 (-1.41% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 10.63 · day 10.24–10.74 · 52w 8.05–17.39 · market cap $1.28B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $750M, net income -$81.1M (-10.8% margin), free cash flow $36.2M (SEC filings).
- 1 of 80 tracked superinvestors hold REAL (13F, Q2 2026): 0 new, 1 added, 0 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 10 Form 4 filings, $3.4M; 10 not under a Rule 10b5-1 plan ($3.4M); 0 by opportunistic insiders, 2 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 2.22 on a 1–5 scale) (9 analysts), mean target USD 17.75 (range 14–20).
- Total return with dividends: 1Y -13.0% vs S&P 500 +14.9%; 5Y -15.4% vs S&P 500 +80.3%.
- Next earnings: 2026-10-29, EPS estimate USD 0, revenue estimate $197M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $468M | $603M | $549M | $600M | $693M | $750M |
| Gross profit | $273M | $349M | $376M | $448M | $517M | — |
| Operating income | -$215M | -$189M | -$166M | -$56.5M | -$23.9M | -$5.8M |
| Net income | -$236M | -$196M | -$168M | -$134M | -$41.8M | -$81.1M |
| EPS (diluted) | -$2.58 | -$2.05 | -$1.65 | -$1.24 | -$0.70 | — |
| Free cash flow | -$180M | -$114M | -$90.4M | $12.6M | $18.4M | $36.2M |
| Gross margin | 58.5% | 57.8% | 68.5% | 74.5% | 74.6% | — |
| Operating margin | -46.0% | -31.3% | -30.3% | -9.4% | -3.5% | -0.8% |
| Net margin | -50.5% | -32.6% | -30.7% | -22.3% | -6.0% | -10.8% |
| Revenue growth | +55.9% | +29.0% | -9.0% | +9.3% | +15.4% | — |
| Cash + short-term investments | $418M | — | — | $172M | $151M | — |
| Total debt | $348M | $450M | $452M | $277M | $231M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/S 1.7x · EV/EBITDA 52.5x · EV/Sales 1.9x · P/FCF 35.2x · FCF yield 2.84% · Earnings yield -6.36% · Net debt $112M · EV $1.39B

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold REAL. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Polen Capital | Polen Capital Management | 0.05% | $5.9M | Added +123.8% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 10 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-08-21 | Madan Gopal Ajay | Chief Financial Officer | 36,418 | $400K | 3.2% | No | Too little history (no open-market trades in 2023 or 2024) |
| 2026-08-21 | Friang Luke Thomas | Chief Product & Tech Officer | 22,028 | $242K | 4.2% | No | Too little history (no open-market trades in 2023) |
| 2026-08-21 | Lo Steve Ming | Chief Accounting Officer | 12,559 | $138K | 6.6% | No | Too little history (no open-market trades in 2023) |
| 2026-08-21 | Suko Todd A | Chief Legal Officer and Secret | 17,567 | $193K | 2.9% | No | Too little history (no open-market trades in 2023) |
| 2026-08-21 | Sahi Levesque Rati | Chief Executive Officer | 84,432 | $927K | 5.3% | No | Routine (sold in Aug each year 2023–2025) |
| 2026-05-21 | Madan Gopal Ajay | Chief Financial Officer | 35,023 | $324K | 3% | No | Too little history (no open-market trades in 2023 or 2024) |
| 2026-05-21 | Lo Steve Ming | Chief Accounting Officer | 12,077 | $112K | 6% | No | Too little history (no open-market trades in 2023) |
| 2026-05-21 | Suko Todd A | Chief Legal Officer and Secret | 17,353 | $161K | 2.8% | No | Too little history (no open-market trades in 2023) |
| 2026-05-21 | Friang Luke Thomas | Chief Product & Tech Officer | 21,183 | $196K | 3.8% | No | Too little history (no open-market trades in 2023) |
| 2026-05-21 | Sahi Levesque Rati | Chief Executive Officer | 81,194 | $751K | 4.9% | No | Routine (sold in Aug each year 2023–2025; this trade is outside those months) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 2.22 on a 1–5 scale), 9 analysts; mean target USD 17.75 (low 14, high 20).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-22 | UBS | Target lowered | Neutral | $16 → $14 |
| 2026-10-16 | Roth Capital | Reiterated | Buy | $19 |
| 2026-09-17 | BTIG | Reiterated | Buy | $17 |
| 2026-08-07 | UBS | Target raised | Neutral | $14 → $16 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -13.0% | -15.4% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -13.1% | -3.3% |
| Volatility (annualized) | 69.2% | 91.2% |
| Max drawdown | -52.0% (Jan 2026→Mar 2026) | -93.3% (Nov 2021→Dec 2022) |

## Peers (Luxury Goods)
LUXE (LuxExperience B.V.) USD 9.59 +0.63% · CPRI (Capri Holdings Limited) USD 16.36 +4.20% · MOV (Movado Group Inc.) USD 32.28 -0.43% · SIG (Signet Jewelers Limited) USD 116.94 +1.89% · ELA (Envela Corporation) USD 11.54 -2.45% · TPR (Tapestry, Inc.) USD 113.92 -1.08%

## More
Full page: https://nexqual.com/REAL · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in REAL's own 10-K filed 2026-02-26 (https://www.sec.gov/Archives/edgar/data/1573221/000157322126000010/real-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Customer | Wayfair Inc. (W) | "Wayfair, Inc. et al ("Wayfair"), that online sellers can be required to collect sales tax despite not having a physical presence in the state of the customer." |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Consignment revenue | $148.2M | 77.0% | +15.2% |
| Direct revenue | $25.8M | 13.4% | +25.8% |
| Shipping services revenue | $18.6M | 9.6% | +15.5% |
| Total revenue | $192.6M | 100% | — |

## Company outlook (8-K filed 2026-08-06)

- "Following Second Quarter Results Above the High End of Outlook with Record Quarterly GMV and Meaningful Margin Expansion SAN FRANCISCO, August 6, 2026 -The RealReal, Inc."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.00 | $-0.01 | -122.5% | $196.9M | 6 |
| Next quarter (ends 2026-12-31) | $0.11 | $0.10 | +11.0% | $216.7M | 6 |
| Current fiscal year (ends 2026-12-31) | $0.10 | $0.06 | +67.1% | $795.9M | 6 |
| Next fiscal year (ends 2027-12-31) | $0.30 | $0.22 | +34.8% | $883.7M | 6 |