Filing Flows › TheRealReal (REAL) › How it makes money
How TheRealReal (REAL) makes money
TheRealReal (REAL) made $206M of revenue in the third quarter 2026 (Q3 2026), +19% from a year earlier. Consignment revenue brought in $159M (77%); Direct revenue brought in $27.4M (13%); Shipping services revenue brought in $19.6M (10%). Of every dollar of revenue, 75¢ was left as gross profit, 1¢ was left as operating profit, 8¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Consignment revenue | $159M | 77.2% | +7% | +18% |
| Direct revenue | $27.4M | 13.3% | +6% | +19% |
| Shipping services revenue | $19.6M | 9.5% | +6% | +21% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $206M | 100.0% |
| Cost of revenue | $51.7M | 25.1% |
| Gross profit | $154M | 74.9% |
| Operating expenses | $153M | 74.2% |
| Operating profit | $1.5M | 0.7% |
| Income tax | $111K | 0.1% |
| Net earnings | $16.0M | 7.8% |
| Operating cash flow | $25.0M | 12.1% |
| Free cash flow | $15.3M | 7.4% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $206M | +19% |
| Q2 2026 | $193M | +17% |
| Q1 2026 | $190M | +18% |
| Q4 2025 | $194M | +18% |
| Q3 2025 | $174M | +18% |
| Q2 2025 | $165M | +14% |
| Q1 2025 | $160M | +11% |
From TheRealReal's 10-Q filed Oct 29, 2026 (on EDGAR).
Questions
How does TheRealReal make money?
TheRealReal (REAL) made $206M of revenue in the third quarter 2026 (Q3 2026), +19% from a year earlier. Consignment revenue brought in $159M (77%); Direct revenue brought in $27.4M (13%); Shipping services revenue brought in $19.6M (10%). Of every dollar of revenue, 75¢ was left as gross profit, 1¢ was left as operating profit, 8¢ was left as net earnings.
What is TheRealReal's biggest business?
Consignment revenue: $159M in the third quarter 2026, 77% of revenue, +18% from a year earlier.
What is TheRealReal's profit margin?
Net earnings were $16.0M, 7.8% of revenue, in the third quarter 2026; the operating margin was 0.7%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.