• eBay for authenticated luxury goods
• ThredUp for high-end designer fashion and luxury items
• Farfetch for pre-owned luxury fashion

• Luxury Consignment Services: Enables individuals to sell their pre-owned luxury fashion, jewelry, watches, and home goods through a managed online and in-store marketplace.
• Direct Buyout Program: Offers immediate payment to sellers for select luxury items that The RealReal purchases directly, bypassing the consignment process.
• Authenticated Luxury Retail: Provides buyers with a curated selection of authenticated pre-owned luxury goods available for purchase online and in physical retail locations.

The RealReal (symbol: REAL) operates primarily as a business-to-consumer (B2C) company. It is an online marketplace for authenticated luxury consignment, facilitating the buying and selling of pre-owned luxury goods (including fashion, jewelry, watches, and home art) between individuals.

Since the company sells primarily to individuals, here are up to three categories of customers it serves:

1. Luxury Shoppers and Value Seekers: These customers desire high-end luxury brands but are motivated by the opportunity to acquire authenticated items at a more accessible price point compared to new retail. They appreciate the discount and the curated selection of premium goods.

2. Fashion-Conscious and Trend Followers: This category includes buyers who want to keep up with current fashion trends, experiment with various styles, or discover unique vintage and hard-to-find pieces. They use RealReal as a source for unique luxury items and enjoy the thrill of discovering new additions to their wardrobe or collection.

3. Sustainability-Minded Consumers: A growing segment of customers who are focused on reducing their environmental impact and supporting the circular economy. They choose luxury consignment as an eco-friendly alternative to purchasing new items, extending the lifecycle of high-quality goods and contributing to more sustainable consumption practices.

Rati Sahi Levesque, President and Chief Executive Officer

Rati Sahi Levesque was announced as CEO of The RealReal on October 28, 2024. She also serves as President. As a co-founder and the company's first employee, she joined Julie Wainwright in 2011 to help bring the vision of a luxury consignment marketplace to life. Levesque is responsible for overseeing all revenue channels and operations, including the authentication center, retail footprints, expert teams, and authentication processes. She also leads the company's merchandising, editorial, and creative vision. She previously served as President and Chief Operating Officer, and as co-interim CEO.

Ajay Gopal, Chief Financial Officer

Ajay Gopal has served as Chief Financial Officer since March 2024. Prior to joining The RealReal, Gopal was the Chief Financial Officer at Outside Interactive, Inc., where he oversaw the finance organization and helped build its portfolio of active lifestyle products. His extensive experience of over 20 years includes previous CFO roles at Good Eggs, Helix, and StubHub. He has also held senior leadership positions at eBay and GE Healthcare.

Todd Suko, Chief Legal Officer and Secretary

Todd Suko has been The RealReal's Chief Legal Officer and Secretary since May 2020, and he also took on the role of Interim Chief People Officer in August 2025. Before joining The RealReal, Suko served as Chief Financial and Legal Officer at OneMarket Limited. His career also includes nearly a decade at Harman International Industries, Inc., where he was Executive Vice President and General Counsel, overseeing all legal affairs. Earlier in his career, he was Vice President, General Counsel, and Secretary at UAP Holding Corp., where he was responsible for environmental health and safety and transportation functions.

Luke Friang, Technology and Product Officer

Luke Friang has served as The RealReal's Technology and Product Officer since January 2023. Prior to this role, he was the Head of Tech & Digital at Lovevery. Friang was also an original member of Zulily's executive team, where he served as Chief Technology and Product Officer. During his tenure at Zulily, he was instrumental in helping the company reach $1 billion in annualized revenue within five years and guided the technology organization through a period of significant growth, including a successful IPO and acquisition by Qurate Retail Group.

1. Authentication Issues and Counterfeit Risk: The RealReal's business model is fundamentally built on the trust that it rigorously authenticates luxury items. However, the company has faced significant scrutiny and criticism regarding the effectiveness of its authentication process, with reports suggesting that counterfeit goods have infiltrated the system. This has led to a class-action lawsuit concerning authentication claims and continuous challenges to the brand's credibility. Any failure in authentication poses an "existential threat" as it directly undermines the company's core value proposition and customer confidence.
2. Persistent Unprofitability and High Operating Costs: Despite efforts, The RealReal has consistently reported significant net losses since its IPO in 2019. The labor-intensive and costly authentication process, coupled with substantial logistics and labor expenses, contribute to high operating costs that impact profit margins. The company has been noted for burning cash at an alarming rate and carries considerable debt. While recent restructuring and cost-cutting measures aim to improve the financial outlook, achieving sustainable GAAP profitability remains a critical challenge.
3. Dependence on the Luxury Market and Macroeconomic Vulnerability: The RealReal's performance is highly dependent on the health of the luxury goods market. Economic downturns, shifts in consumer spending habits, and broader macroeconomic factors such as high interest rates and inflation can significantly impact consumers' willingness to purchase high-end items, thereby adversely affecting the company's revenue streams. The company's recent decline in revenue growth has been directly linked to these wider macroeconomic challenges affecting the luxury segment.

Luxury brands establishing their own certified pre-owned (CPO) programs or partnering directly with other platforms to re-sell their own authenticated goods. This trend is evidenced by initiatives like Rolex's Certified Pre-Owned program, Gucci's pilot with Vestiaire Collective, and other luxury houses exploring or launching direct resale channels. This development threatens RealReal by potentially diverting supply from consignors who might prefer to sell directly to the brand or through brand-sanctioned programs, and by offering consumers an alternative source for authenticated pre-owned luxury goods that carries the direct endorsement and trust of the original brand.

Global Market Size

U.S. Market Size

Market Segmentation by Product Type

1. Growth in Gross Merchandise Value (GMV) and Active Buyers: The company anticipates continued growth in its Gross Merchandise Value (GMV) and an increase in its active buyer base. The RealReal reported a 20% year-over-year increase in GMV, reaching $520 million in Q3 2025, and has raised its 2025 GMV outlook to between $2.10 billion and $2.11 billion. Active buyers on a trailing 12-month basis grew 7% year-over-year to over one million in Q3 2025, marking a new all-time high. This expansion of both the total value of goods sold and the customer base is a fundamental driver of revenue.
2. Enhanced Operational Efficiencies and AI Integration: The RealReal is leveraging data, technology, and AI capabilities to drive operational efficiencies and improve margins. The "growth playbook" and operational excellence, driven by data, technology, and AI, are expected to expand Adjusted EBITDA margin. Specifically, the proprietary "Athena AI" intake process is being scaled and is projected to handle 30-40% of all units by year-end, potentially saving several dollars per item as its rollout expands. These efficiencies contribute to better unit economics and overall profitability, indirectly supporting revenue growth by allowing for more scalable operations.
3. Unlocking Supply through Strategic Initiatives: The company's "growth playbook" is focused on driving supply through its sales team, marketing efforts, and retail stores. A new compensation plan for luxury managers has been implemented to accelerate supply acquisition. The ability to consistently increase the volume of high-quality consigned goods directly fuels the platform's inventory and, consequently, its sales and revenue.
4. Growth in Direct Revenue and Higher Value Categories: The RealReal is experiencing significant growth in its direct revenue segment, which surged by 47% compared to Q3 2024, representing 13% of total revenue in the quarter. Additionally, the company has seen significant growth in higher-value categories like fine jewelry and a 46% rise in first-time watch buyers, indicating a successful focus on segments that can command higher average order values and potentially better take rates.

Share Issuance

• The RealReal's shares outstanding increased from 88.81 million in 2020 to 114.04 million by October 2025.
• The number of shares outstanding grew from 92.63 million in 2021 to approximately 115.24 million as of November 2025.
• In February 2024, the company issued warrants to purchase up to 7,894,737 shares of common stock as part of debt exchange transactions.

Inbound Investments

• In February 2024, The RealReal engaged in debt exchange transactions where holders of convertible senior notes due 2025 and 2028 exchanged them for new senior secured notes due 2029 and warrants to purchase common stock, which strengthened the company's financial position and extended its debt maturity profile.
• The company continued to strengthen its capital structure through debt exchange transactions in August 2025.

Outbound Investments

• The RealReal has made no investments or acquisitions in other companies.

Capital Expenditures

• Capital expenditures for the third quarter of 2025 were $6 million.
• For the full year 2025, capital expenditures on property, plant, and equipment are anticipated to remain within 2%-3% of total revenue.
• The company plans to add 1 to 3 new brick-and-mortar store locations per year.