The RealReal achieves record 2 billion dollar GMV amid luxury resale surge

The US-based luxury resale platform The RealReal reported a transformative fiscal year ended December 31, 2025, surpassing the 2.13 billion dollar mark in gross merchandise value (GMV). This represents a 16 percent increase compared to the previous year, while total annual revenue rose 15 percent to 693 million dollars.

Rati Levesque, the president and chief executive officer of The RealReal, highlighted that the company achieved positive adjusted EBITDA in every quarter for the first time, signaling a significant milestone in its growth trajectory and market leadership.

Fourth quarter performance and consumer shifts

The group concluded the year with a strong fourth quarter, where GMV reached 616 million dollars, a 22 percent increase year-over-year. Total revenue for the period rose 18 percent to 194 million dollars, supported by an 11 percent rise in average order value (AOV) to 641 dollars.

Levesque noted a fundamental shift in the luxury market, citing that 47 percent of consumers now consider resale value when making primary luxury purchases. This shifting mindset helped drive a 9 percent increase in trailing 12-month active buyers, which reached 1.06 million by year-end.

Profitability and margin expansion

The RealReal demonstrated disciplined execution of its strategic pillars, resulting in improved profitability metrics. For the full year 2025, adjusted EBITDA reached 42 million dollars, or 6.1 percent of total revenue, marking a 33 million dollar improvement over 2024. The fourth quarter gross margin stood at 74.8 percent, a 40-basis point increase from the prior year.

While the company reported an annual net loss of 42 million dollars, this was a sharp improvement from the 134 million dollar loss recorded in 2024. Notably, the 2025 net loss included a 36 million dollar adjustment related to the change in fair value of warrant liability.

The RealReal 2026 outlook

The company’s financial position strengthened throughout the year, with full-year operating cash flow increasing 10 million dollars to 37 million dollars.

As it enters 2026, the group aims to be the "definitive authority" in luxury resale. For the full year 2026, The RealReal expects GMV to range between 2.39 billion and 2.45 billion dollars, with total revenue projected to reach between 765 million and 780 million dollars. Adjusted EBITDA for the upcoming year is forecast to increase to between 57 million and 65 million dollars.