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TheRealReal (REAL) Q1 2025 earnings results (first quarter 2025)

10-Q filed May 8, 2025

TheRealReal (REAL) reported revenue of $160M for the first quarter 2025 (Q1 2025), +11% from a year earlier and -2% from the quarter before. Operating margin was -8.0%, net earnings $62.4M (39.0% of revenue).

Revenue$160M
Year over year+11%
Quarter over quarter-2%
Operating margin-8.0%
Net earnings$62.4M

TheRealReal, Q1 2025: revenue $160M (+11% year over year), operating margin -8.0%, net earnings $62.4M, operating cash flow −$28.3M. The chart follows the revenue to costs, profit and cash.

Q1 2025AmountQ/QY/Y
Revenue$160M-2%+11%
Operating profit−$12.8M——
Net earnings$62.4M——
Operating cash flow−$28.3M——

What changed

Revenue was $160.0M in Q1 2025, up 11% year over year and down 2% from the previous quarter. Consignment revenue was the largest line at 77% of revenue. Consignment revenue added $8.2M year over year (up 7%), 50% of the total change.

Gross margin was 75.0%, up 0.4 points from a year earlier. Operating costs exceeded revenue by $12.8M, an operating margin of -8.0%. Operating expenses grew 6% against revenue growth of 11%. Net earnings were $62.4M. The effective tax rate was 0.2%. Non-operating items added $75.3M, 120% of pre-tax earnings, so the bottom line overstates operating performance.

Operating cash flow was −$28.3M. Non-cash charges added back $8.4M of depreciation and amortization and $7.4M of share-based compensation. Working capital and other items used $106.4M. Capital expenditures of $4.7M exceeded it, leaving free cash flow of −$33.0M.

Questions

What was TheRealReal's revenue in the first quarter 2025?

TheRealReal (REAL) reported revenue of $160M for the first quarter 2025 (Q1 2025), +11% from a year earlier and -2% from the quarter before.

Was TheRealReal profitable in the first quarter 2025?

Operating loss was $12.8M (-8.0% of revenue) and net earnings $62.4M.

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Source: TheRealReal 10-Q on SEC EDGAR.