RealReal Q3 revenue beats analyst estimates on order growth

Overview

• US luxury resale marketplace's Q3 revenue rose 19%, beating analyst expectations

• Company posted positive net income and expanded gross margin in Q3

• Company raised full-year outlook after record GMV, revenue and order growth

Outlook

• Company raises full-year 2026 revenue outlook to $806 mln-$810 mln

• Company expects Q4 2026 revenue of $218 mln-$222 mln

• Company forecasts full-year 2026 adjusted EBITDA of $71.1 mln-$72.6 mln

Result Drivers

• ACTIVE BUYER GROWTH - Co said 13% increase in active buyers drove record GMV, revenue and order growth

• ORDER GROWTH - Co reported strongest quarterly order growth since 2022, up 15% versus last year

• MARGIN EXPANSION - Gross margin improved 64 basis points to 74.9% in Q3, attributed to platform and operational improvements

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy"

• Wall Street's median 12-month price target for The RealReal, Inc. is $18.00, about 62.7% above its October 28 closing price of $11.06

• The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 80 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)