The RealReal reports strong Q1 sales and profits, but stock drops in after-hours trading.

From Yahoo Finance: 2025-05-08 17:17:00

The RealReal Inc. reported a strong first quarter, with revenues up 11% to $160 million and net income of $62 million. Gross merchandise volume reached $490 million, and active buyer count rose 7% to 985,000. CEO Rati Levesque reaffirmed full-year guidance despite uncertainties from tariffs, expecting revenues of $645 million to $660 million.

However, despite the positive results, shares of The RealReal Inc. fell 10.8% to $6.50 in after-hours trading as investors sought more. The company’s adjusted EBITDA for the quarter was $4.1 million, reflecting a significant improvement from the previous year’s losses of $31 million.

CEO Rati Levesque stated that the company is well positioned to weather the trade war due to its unique position at the intersection of luxury and value. The company primarily sources its supply from domestic closets, providing flexibility to navigate varying conditions effectively. The brand remains strong, and the company expects adjusted EBITDA of $20 million to $30 million for the year.



Read more at Yahoo Finance: The RealReal’s Sales and Profits Rise in Q1, but Investors Want More