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Q3 2025 Financial Results November 10, 2025
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Q3 2025 FINANCIAL RESULTS 2 Safe Harbor/Disclosure Statement These materials contain forward-looking statements relating to, among other things, the future performance of The RealReal that are based on the company's current expectations, forecasts and assumptions and involve risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “target,” “contemplate,” “project,” “believe,” “estimate,” “predict,” “intend,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology. These statements include, but are not limited to, statements about future operating and financial results, including our strategies, plans, commitments, objectives and goals, in particular in the context of the recent geopolitical events, and uncertainty surrounding macroeconomic trends, financial guidance, anticipated growth in 2025, the anticipated impact of generative AI, and financial targets, goals and projections. Actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Other factors that could cause or contribute to such differences include, but are not limited to, inflation, macroeconomic uncertainty, geopolitical instability, any failure to generate a supply of consigned goods, pricing pressure on the consignment market resulting from discounting in the market for new goods, failure to efficiently and effectively operate our merchandising and fulfillment operations, labor shortages and other reasons. More information about factors that could affect the company's operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company's most recent Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the company's Investor Relations website at https://investor.therealreal.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements. These materials and the accompanying oral presentations also contain statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to such information. We have not independently verified the accuracy or completeness of the information contained in the industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that information nor do we undertake to update such information after the date of this presentation. In addition to financial information presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation includes the non-GAAP financial measures of Adjusted EBITDA, Free Cash Flow, and Adjusted EBITDA Margin (Adjusted EBITDA as a percentage of revenue). These non-GAAP measures are presented for supplemental information purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of other GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures are included at the end of this presentation. We have not reconciled forward-looking Adjusted EBITDA to the most directly comparable GAAP measures of Net Income (Loss) because we cannot predict with reasonable certainty the ultimate outcomes of certain components of such reconciliations, including payroll tax expense on employee stock transactions, that are not within our control, or other components that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future Net Income (Loss).
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Q3 2025 FINANCIAL RESULTS 3 Changing The Way People Shop For the Better Trusted market leader in luxury resale across diverse categories & brands Rich data and technology expertise driving pricing and authentication Full-service approach reduces friction for consignors and unlocks supply Tenured sales team nurtures highly-engaged community of buyers & consignors Capital-light consignment business model with attractive margins
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Q3 2025 FINANCIAL RESULTSQ2 2025 FINANCIAL RESULTS 4 Clear and Focused Strategy UNLOCK SUPPLY THROUGH GROWTH PLAYBOOK DRIVE OPERATIONAL EFFICIENCY OBSESS OVER SERVICE Q3 2025 FINANCIAL RESULTS SUPPORTED BY PROPRIETARY TECHNOLOGY AND DATA
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Q3 2025 FINANCIAL RESULTS 5 Proprietary Technology and Data Is A Key Differentiator SOPHISTICATED PRICING ALGORITHMS BEST-IN-CLASS AUTHENTICATION AUTOMATED WORKFLOW PERSONALIZED EXPERIENCE PROPRIETARY OPERATIONAL SYSTEMS ADVANCED AI AND ANALYTICS 14+ YEARS OF RICH DATA Including luxury item images and attributes, pricing/transactions, and customer behavior
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Q3 2025 FINANCIAL RESULTS • Delivered 620 bps OpEx leverage YoY • Athena, our proprietary AI-enabled product intake process, scaled to ~27% of all units; on track for 30-40% by year end • My Closet: continue to build on success of Reconsign module • Consignment Gross Margin up 70 bps YoY to 89.3% GROWTH & MARKET LEADERSHIP 6 Q3 2025 Key Highlights STRONG PROFITABILITY & RAISED FY25 OUTLOOK • Q3 Adj. EBITDA of $9.3M; margin expanded 380 bps YoY • Generated $14M in Free Cash Flow • Raising Full-Year 2025 Guidance • FY25 Adj. EBITDA outlook reflects ~400 bps margin expansion vs. 2024 at the guidance midpoint AI-DRIVEN EFFICIENCY AND SCALABILITY • Record quarterly GMV of $520M, up 20% YoY • Active Buyer (trailing 12-months) growth accelerated • Strong Q3 results, a testament to our long term strategy • Supply value per existing Luxury Manager increased +12% YoY driven by new compensation plan and AI investments
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Q3 2025 FINANCIAL RESULTS 7 Q3 Financial Summary GMV ($M) ACTIVE BUYERS (000s) +20% YoY GMV of $520M, increased 20% year-over-year, driven by sustained healthy supply trends Active Buyers expanded to an all-time high of 1.024 million, up 7% on a trailing 12-month basis +7% YoY
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Q3 2025 FINANCIAL RESULTS 8 Q3 Financial Summary REVENUE ($M) ADJUSTED EBITDA ($M) +17% YoY 5.4% of Total Revenue Revenue of $174M increased 17% year-over-year, with Consignment Revenue up 15% and Direct Revenue up 47% YoY Adjusted EBITDA was $9.3M, or 5.4% of Total Revenue increased 380 basis points YoY
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Q3 2025 FINANCIAL RESULTS 9 Q3 Financial Summary GROSS MARGIN -60 bps YoY Gross Margin (GM) declined due to a higher mix of direct revenue. Consignment GM +70 bps and Direct GM +370 bps YoY OPERATING EXPENSES (% of Total Revenue) Total Operating Expenses improved 620 bps YoY as a percent of revenue driven by operating efficiencies, AI and automation, and fixed cost leverage. MARKETING OPERATIONS & TECHNOLOGY SELLING, GENERAL & ADMINISTRATIVE
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Q3 2025 FINANCIAL RESULTS Full Year 2025 Q4 2025 10 2025 Outlook GMV$585M - $595M REVENUE $188M - $191M ADJUSTED EBITDA$17.5M - $18.5M $37.7M - $38.7M $2.099B - $2.109B $687M - $690M
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Q3 2025 FINANCIAL RESULTSQ2 2025 FINANCIAL RESULTS Key Advantages and Differentiators Q3 2025 FINANCIAL RESULTS 11 LEADER IN LUXURY RESALE INDUSTRY scaled platform with strong brand equity and rich data assets DIFFERENTIATED MODEL built on foundation of trust, expertise and unmatched end-to-end service A LARGE AND GROWING TAM supported by unique positioning and strong secular tailwinds FOCUSED STRATEGY & POWERFUL FLYWHEEL unlocking supply, driving efficiencies, and obsessing over service AT AN INFLECTION POINT poised for sustained growth, improved profitability and consistent cash flow
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Customer Spotlight 12
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Q3 2025 FINANCIAL RESULTS 13 Our Customer Flywheel 40M+ Members Convenient end-to-end service Rapid monetization Flexibility Extensive list of brands and product categories accepted Broad member base Unique, highly coveted products World-class authentication Personalized buying experience Entry point to luxury and circular economy CONSIGNORS Provide a Frictionless Experience BUYERS Instill Trust and Access 80%+ of GMV* From Repeat Customers 50%+ of GMV From individuals who are buyers & consignors * *As of 9/30/2025
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Q3 2025 FINANCIAL RESULTS 14 Meet Our Customer Our best customer is stylish and invests in it. They love fashion and switch out their wardrobe season-to-season. They like to look relevant. For them, dressing is a form of creative expression. They now consider what will retain its value when they shop. They justify a higher spend because they know they can resell it…it’s the smart way to shop. The RealReal makes engaging with fashion any other way seem old fashioned. Our customers feel proud to tell people when they’ve bought and sold on The RealReal. FPO
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Q3 2025 FINANCIAL RESULTS 15 We are Changing the Way People Shop Consumer shopping behaviors are shifting… ● 58% of consumers say they prefer shopping the secondary market ● 47% say they consider resale value when making purchasing decisions in the primary market …And we have demographic tailwinds ● Our customer base is over 50% Millennials and Gen Z ● Millennials and Gen Z represent the largest cohort of “Flywheelers,” those who both buy & sell with us *According to CapitalOneShopping.com Thrifting Statistics Report * *
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Appendix 16
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Q3 2025 FINANCIAL RESULTS Handbags Christian Louboutin Manolo Blahnik Jimmy Choo Saint Laurent Tory Burch Miu Miu Branded Jewelry 17 Q3 2025 Obsession Trends RTW Women’s Shoes Tiffany & Co. David Yurman Chanel Cartier Hermes Chanel Louis Vuitton Miu Miu Bottega Veneta Chloe Coach Staud Prada Zimmermann Chanel Dolce & Gabbana Doen Veronica Beard Reformation * Ready to Wear FPO FPO FPO
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Q3 2025 FINANCIAL RESULTS 18 KEY FINANCIAL METRICS
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Q3 2025 FINANCIAL RESULTS 19 INCOME STATEMENT - -
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Q3 2025 FINANCIAL RESULTS 20 BALANCE SHEET 1 of 2
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Q3 2025 FINANCIAL RESULTS 21 BALANCE SHEET 2 of 2 -
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Q3 2025 FINANCIAL RESULTS 22 FREE CASH FLOW RECONCILIATION OF GAAP TO NON-GAAP RESULTS
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Q3 2025 FINANCIAL RESULTS (1) The gain on extinguishment of debt for the three months ended September 30, 2025 reflects the difference between the carrying value of the 2025 Exchanged Notes and the fair value of the 2031 Notes. (2) The change in fair value of warrant liability for the three months ended September 30, 2025 and September 30, 2024 reflects the remeasurement of the Warrants issued by the Company in connection with the 2024 Note Exchange in February 2024. (3) Restructuring and other for the three months ended September 30, 2025 consist of employee severance costs associated with a departmental reorganization, including certain executives, recorded within Marketing and Selling, General and Administrative expenses on the condensed statements of operations. Restructuring and other expenses for the three months ended September 30, 2024 reflect estimated losses related to the fire at one of our New Jersey authentication centers, net of estimated insurance recoveries and employee severance related charges related to the 2023 savings plan, which included the closure of certain retail and office locations and a workforce reduction. 23 ADJUSTED EBITDA RECONCILIATION OF GAAP TO NON-GAAP RESULTS (1) (2) (3) -