| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 28 | — | 17.8x | Bottom tier | |
Growth | 72 | 17.7% | 7.1% | Top tier | |
Quality | 63 | -5.6% | 4.5% | Around median | |
Safety | 24 | 13.0x | 2.6x | Bottom tier | |
Capital Return | 77 | — | 2.12% | Top tier | |
Momentum | 36 | 56.1% | 2.9% | Bottom tier | |
Sentiment | 36 | 5 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The RealReal operates a marketplace for authenticated luxury resale goods, with an assortment spanning fine jewelry, watches, handbags, and ready-to-wear across more than one million unique items listed and more than 40 million members. The company takes possession of each item and handles authentication, pricing, and marketing, providing sellers with an end-to-end consignment experience and buyers with assurance that many marketplaces that do not hold inventory cannot offer. It generates revenue primarily from consignment commissions, alongside direct revenue, and its take rate was 35.9% in Q2 FY2026.
In Q2 FY2026, revenue reached $192.6 million, up 17% year over year, while consignment revenue rose 15% and direct revenue increased 26%. Gross merchandise value reached a record $617 million, growing 22%, with orders up 8% and average order value rising 13% to $659. Gross profit was $143.2 million, with a gross margin of 74.4% compared with a year-over-year expansion of 10 basis points, but the net result under EDGAR remained a loss of $27.2 million and earnings per share were negative $0.23.
Adjusted operating profitability improved in Q2 FY2026, with adjusted EBITDA reaching $13.5 million, or 7% of revenue, and its margin expanding 290 basis points year over year. Automation and the Athena initiative helped reduce labor intensity, while operating expenses as a percentage of revenue improved by approximately 470 basis points. The company ended the period on June 30, 2026 with $134 million in cash and restricted cash and generated positive operating cash flow of $2 million, despite the continued net accounting loss.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $15.75 within a wide range of between $13 and $19, and the consensus rates the stock a Buy; the average is below the 52-week high of $17.392, while the upper end of the target range exceeds that high. A price-to-earnings multiple is unavailable because of the FY2026 trailing-twelve-month loss of $81.1 million, so the valuation rationale depends on converting gross merchandise value growth and adjusted EBITDA improvement into sustainable earnings and cash flows. The divergence among analyst targets and the 52-week range of between $7.30 and $17.392 highlight the degree of uncertainty surrounding the speed of this transition.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
The RealReal takes possession of goods, authenticates, prices, and markets them, and then sells them through its platform, generating most of its economics from consignment commissions alongside direct revenue. The take rate was 35.9% in Q2 FY2026, down 200 basis points year over year due to the increased weighting of higher-priced items. Consignment revenue grew 15% and direct revenue increased 26% during the same period. Total revenue was $192.6 million against gross merchandise value of $617 million.
Gross merchandise value grew 22% to a record $617 million, and revenue increased 17% to $192.6 million. Orders rose 8%, average order value increased 13% to $659, and trailing-twelve-month active buyers exceeded 1.1 million, growing 11%. Gross profit reached $143.2 million at a 74.4% margin, while adjusted EBITDA reached $13.5 million at a 7% margin. Nevertheless, net income remained negative, with a loss of $27.2 million.
The Athena system uses artificial intelligence to automate item intake and processed approximately 35% of items by the end of FY2025, with a target of approximately 50% by the end of FY2026. Management says the system reduces processing costs by several dollars per unit and accelerates the listing of items for sale. The pricing algorithm also relies on more than 100 data points, including item category, views, and Obsessions signals, to set the initial price and manage discounts. The company is also testing a conversational agent with Google to help buyers search across more than one million unique listings.
Management expects gross merchandise value of between $2.535 billion and $2.565 billion, representing annual growth of between 19% and 20%. The revenue range is between $788 million and $797 million, representing growth of between 14% and 15%, while adjusted EBITDA is expected to be between $66 million and $69 million. The midpoint of the adjusted EBITDA range represents an 8.5% margin and an improvement of approximately 240 basis points from FY2025. For Q3 FY2026, the company expects revenue of between $194 million and $198 million and adjusted EBITDA of between $13.5 million and $14.5 million.
Adjusted EBITDA reached $13.5 million in Q2 FY2026, and its margin expanded 290 basis points to 7%. The company also generated $2 million in operating cash flow, a year-over-year improvement of $5 million, while free cash flow improved by $9 million. In contrast, the EDGAR financial statements recorded a quarterly net loss of $27.2 million, and the trailing-twelve-month loss reached $81.1 million. Management is targeting an adjusted EBITDA margin of between 15% and 20% over the medium term, but sustainable net profitability has not yet appeared in the figures provided.
Sales of items valued above $1,000 increased 36% in the first half of FY2026, with growth spanning fine jewelry, watches, handbags, and ready-to-wear. This shift helped increase average order value by 13% to $659 in Q2 FY2026. Higher-priced items generate greater profit per transaction and stronger unit economics, according to management. However, they carry a relatively lower take rate, which contributed to the decline in the overall take rate to 35.9% and the widening gap between gross merchandise value growth and revenue growth.
