(REAL) TheRealReal - Overview
Sector: Consumer Cyclical | Industry: Luxury Goods | Exchange: NASDAQ (USA) | Market Cap: 1.095m USD | Total Return: 75.6% in 12m
Avg Turnover: 34.8M
Qual. Beats: 2
Rev. Trend: 91.6%
Qual. Beats: 0
Warnings
Negative Equity with losses - insolvent profile
Share dilution 184.8% YoY
Interest Coverage Ratio -3.0 is critical
Altman Z'' -14.48 < 1.0 - financial distress zone
Choppy Below Avwap Earnings
Tailwinds
Confidence
The RealReal, Inc. (REAL) operates a specialized e-commerce platform dedicated to the authenticated resale of luxury goods. The company utilizes a multi-channel distribution strategy, facilitating transactions through its proprietary website, mobile application, and physical retail locations. Its inventory spans high-value categories including designer apparel, fine jewelry, and luxury watches.
The business model relies on a consignment structure, where the company manages the authentication, photography, and fulfillment processes for secondary market goods. This approach addresses a critical barrier in the luxury resale sector: ensuring product provenance and mitigating the risk of counterfeit items. As circular economy initiatives gain traction, the luxury resale market continues to expand as a distinct segment within the broader apparel retail industry.
For a deeper look into the companys valuation metrics, consider reviewing the comprehensive data available on ValueRay. The RealReal is headquartered in San Francisco and has been a publicly traded entity since 2011.
- Gross Merchandise Volume growth in high-margin jewelry and watches categories
- Consignment take rate improvements drive path toward consistent GAAP profitability
- Direct inventory reduction strategy shifts focus to capital-light marketplace model
- Luxury resale demand sensitivity to high-income consumer discretionary spending trends
- Operational cost efficiencies in authentication centers impact quarterly EBITDA margins
| Net Income: -65.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 8.16 > 1.0 |
| NWC/Revenue: -5.28% < 20% (prev -5.16%; Δ -0.11% < -1%) |
| CFO/TA 0.11 > 3% & CFO 43.7m > Net Income -65.3m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 0.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (314.3m) vs 12m ago 184.8% < -2% |
| Gross Margin: 72.23% > 18% (prev 0.73%; Δ 7.15k% > 0.5%) |
| Asset Turnover: 183.8% > 50% (prev 154.0%; Δ 29.75% > 0%) |
| Interest Coverage Ratio: -2.97 > 6 (EBITDA TTM -47.9m / Interest Expense TTM 28.6m) |
| A: -0.10 (Total Current Assets 203.0m - Total Current Liabilities 241.1m) / Total Assets 385.9m |
| B: -3.26 (Retained Earnings -1.26b / Total Assets 385.9m) |
| C: -0.22 (EBIT TTM -84.8m / Avg Total Assets 393.1m) |
| D: -1.69 (Book Value of Equity -1.26b / Total Liabilities 745.3m) |
| Altman-Z'' = -14.48 = D |
| DSRI: 0.77 (Receivables 24.9m/27.8m, Revenue 722.5m/616.7m) |
| GMI: 1.02 (GM 72.23% / 73.32%) |
| AQI: 1.05 (AQ_t 0.05 / AQ_t-1 0.05) |
| SGI: 1.17 (Revenue 722.5m / 616.7m) |
| TATA: -0.28 (NI -65.3m - CFO 43.7m) / TA 385.9m) |
| Beneish M = -3.34 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 9.27 with a total of 2,848,578 shares traded.
Over the past week, the price has changed by +1.55%,
over one month by -24.84%,
over three months by -16.13% and
over the past year by +75.57%.
TheRealReal has received a consensus analysts rating of 3.57. Therefore, it is recommended to hold REAL.
- StrongBuy: 3
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 17.3 | 86.1% |
P/S = 1.5158
P/B = 4.839
Revenue TTM = 722.5m USD
EBIT TTM = -84.8m USD
EBITDA TTM = -47.9m USD
Long Term Debt = 375.3m USD (from longTermDebt, last quarter)
Short Term Debt = 22.4m USD (from shortTermDebt, last quarter)
Debt = 553.7m USD (from shortLongTermDebtTotal, last quarter) + Leases 89.2m
Net Debt = 429.8m USD (calculated: Debt 553.7m - CCE 124.0m)
Enterprise Value = 1.53b USD (1.10b + Debt 553.7m - CCE 124.0m)
Interest Coverage Ratio = -2.97 (Ebit TTM -84.8m / Interest Expense TTM 28.6m)
EV/FCF = 121.1x (Enterprise Value 1.53b / FCF TTM 12.6m)
FCF Yield = 0.83% (FCF TTM 12.6m / Enterprise Value 1.53b)
FCF Margin = 1.74% (FCF TTM 12.6m / Revenue TTM 722.5m)
Net Margin = -9.03% (Net Income TTM -65.3m / Revenue TTM 722.5m)
Gross Margin = 72.23% ((Revenue TTM 722.5m - Cost of Revenue TTM 200.7m) / Revenue TTM)
Gross Margin QoQ = 70.23% (prev 70.62%)
Tobins Q-Ratio = 3.95 (Enterprise Value 1.53b / Total Assets 385.9m)
Interest Expense / Debt = 5.17% (Interest Expense 28.6m / Debt 553.7m)
Taxrate = 0.28% (108k / 39.0m)
NOPAT = -84.6m (EBIT -84.8m * (1 - 0.28%)) [loss with tax shield]
Current Ratio = 0.84 (Total Current Assets 203.0m / Total Current Liabilities 241.1m)
Debt / Equity = -1.54 (negative equity) (Debt 553.7m / totalStockholderEquity, last quarter -359.4m)
Debt / EBITDA = -8.98 (negative EBITDA) (Net Debt 429.8m / EBITDA -47.9m)
Debt / FCF = 34.13 (Net Debt 429.8m / FCF TTM 12.6m)
Total Stockholder Equity = -374.5m (last 4 quarters mean from totalStockholderEquity)
RoA = -16.60% (Net Income -65.3m / Total Assets 385.9m)
RoE = -7.40% (Net Income TTM -65.3m / Total Stockholder Equity 882.1m)
RoCE = -6.75% (EBIT -84.8m / Capital Employed (Equity 882.1m + L.T.Debt 375.3m))
RoIC = -195.5% (out of range, set to none) (NOPAT -84.6m / Invested Capital 43.3m)
WACC = 11.63% (E(1.10b)/V(1.65b) * Re(14.90%) + D(553.7m)/V(1.65b) * Rd(5.17%) * (1-Tc(0.00)))
Discount Rate = 14.90% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 71.91 | Cagr: 63.53%
[DCF] Terminal Value 64.86% ; FCFF base≈12.6m ; Y1≈12.6m ; Y5≈13.4m
[DCF] Fair Price = N/A (negative equity: EV 133.8m - Net Debt 429.8m = -296.0m; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 2.65 | # QB: 2
Revenue Correlation: 91.65 | Revenue CAGR: 9.78% | SUE: 0.51 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.02 | Chg30d=N/A | Revisions=+50% | Analysts=6
EPS next Quarter (2026-09-30): EPS=-0.01 | Chg30d=N/A | Revisions=+33% | Analysts=6
EPS current Year (2026-12-31): EPS=0.06 | Chg30d=+49.01% | Revisions=+33% | GrowthEPS=+150.4% | GrowthRev=+12.7%
EPS next Year (2027-12-31): EPS=0.22 | Chg30d=+9.67% | Revisions=-20% | GrowthEPS=+271.3% | GrowthRev=+10.4%
[Analyst] Revisions Ratio: +50%