Slides
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Q4 2025 Financial Results February 26, 2026
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Q4 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 2026, 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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Q4 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 Duplicate slide to one in the investor deck – we can use the same one in both decks. In the investor deck I left a note asking that we retain the collage format
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Q4 2025 FINANCIAL RESULTSQ2 2025 FINANCIAL RESULTS 4 Clear and Focused Strategy UNLOCK SUPPLY THROUGH GROWTH PLAYBOOK DRIVE OPERATIONAL EFFICIENCY OBSESS OVER SERVICE Q4 2025 FINANCIAL RESULTS SUPPORTED BY PROPRIETARY TECHNOLOGY AND DATA
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Q4 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 ~15 YEARS OF RICH DATA ON >50 MILLION ITEMS Including luxury item images and attributes, pricing/transactions, and customer behavior Duplicate slide to one in the investor deck – we can use the same one in both decks
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Q4 2025 FINANCIAL RESULTS GROWTH & MARKET LEADERSHIP 6 Q4 2025 Key Highlights STRONG PROFITABILITY & FY’26 OUTLOOK • Delivered first year with four quarters of positive Adjusted EBITDA, totaling $42M (6% AEBITDA margin) • Generated $43M in Free Cash Flow in Q4, a $23M improvement YoY • Projecting FY26 GMV of $2.39B–$2.45B and Adjusted EBITDA of $57M–$65M (approx. 8% margin) AI-DRIVEN EFFICIENCY AND SCALABILITY • Achieved year-end goal of 35% of all units fully flowing through Athena, our AI-enabled product intake process • Delivered 600 bps of OpEx leverage YoY as a percent of revenue in Q4 • Deployed new AI search capabilities including natural language search, driving improved conversion • Surpassed $2B GMV milestone: achieved $2.13B in GMV for the full year 2025, up 16% YoY • Trailing 12-month Active Buyers accelerated to +9% YoY • GMV of $616M in the fourth quarter, increased 22% YoY
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Q4 2025 FINANCIAL RESULTS 7 Q4 Financial Summary GMV ($M) ACTIVE BUYERS - TTM (000s) +22% YoY GMV of $616M, increased 22% year-over-year, driven roughly evenly by unit volume and higher average selling prices TTM Active Buyers accelerated sequentially to 9% year-over-year or 1.1M active buyers +9% YoY
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Q4 2025 FINANCIAL RESULTS 8 Q4 Financial Summary REVENUE ($M) ADJUSTED EBITDA ($M) +18% YoY 11.3% of Total Revenue Revenue of $194M increased 18% year-over-year, with Consignment Revenue up 16% and Direct Revenue up 39% YoY Adjusted EBITDA was $21.9M, or 11.3% of Total Revenue increased 450 basis points YoY
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Q4 2025 FINANCIAL RESULTS 9 Q4 Financial Summary GROSS MARGIN +40bps YoY Gross Margin (GM) increased 40 basis points YoY. Consignment GM +60 bps and Direct GM +1200 bps YoY OPERATING EXPENSES (% of Total Revenue) Total Operating Expenses improved 600 bps YoY as a percent of revenue driven by increased use of AI and automation in our operations, sales and retail team productivity, and leverage on fixed costs MARKETING OPERATIONS & TECHNOLOGY SELLING, GENERAL & ADMINISTRATIVE
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Q4 2025 FINANCIAL RESULTS Full Year 2026 Q1 2026 10 2026 Outlook GMV$585M - $600M REVENUE $185M - $189M ADJUSTED EBITDA$11M - $13M $57M - $65M $2.39B - $2.45B $765M - $780M
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Q4 2025 FINANCIAL RESULTSQ2 2025 FINANCIAL RESULTS Key Advantages and Differentiators Q4 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 POWERFUL FLYWHEEL Converting buyers into sellers and accelerating network effects FOCUSED STRATEGY unlocking supply, driving efficiencies, and obsessing over service Duplicate slide to one in the investor deck – we can use the same one in both decks
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Appendix 12
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Q4 2025 FINANCIAL RESULTS Patek Philippe Audemars Piguet Cartier Bvlgari Van Cleef & Arpels 13 Q4 2025 Obsessions: Brands Trending on TRR Gen Z Favorites Gold Rush Miu Miu Jacquemus Staud Cult Gaia Christopher Esber Coach FPO FPO FPO Modern LuxuryVintage Nostalgia Khaite The Row TOTEME Kallmeyer Lemaire Tibi Balenciaga City Bag Chloe Paddington Roberto Cavalli dresses Thierry Mugler jackets Fendi baguettes
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Q4 2025 FINANCIAL RESULTS 14 KEY FINANCIAL METRICS
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Q4 2025 FINANCIAL RESULTS 15 INCOME STATEMENT
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Q4 2025 FINANCIAL RESULTS 16 BALANCE SHEET 1 of 2
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Q4 2025 FINANCIAL RESULTS 17 BALANCE SHEET 2 of 2
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Q4 2025 FINANCIAL RESULTS 18 FREE CASH FLOW RECONCILIATION OF GAAP TO NON-GAAP RESULTS
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Q4 2025 FINANCIAL RESULTS 19 ADJUSTED EBITDA RECONCILIATION OF GAAP TO NON-GAAP RESULTS (2) (3) (1) Interest expense includes $1.5 million of payment in kind (“ PIK”) interest for each of the quarters ended December 31, 2025 and December 31, 2024, which is a non-cash interest expense. PIK interest is added to the principal balance of the 2029 Notes semi-annually. (2) The CEO separation benefits and transition costs for the quarter ended December 31, 2024 consist of severance and benefits payable to John Koryl pursuant to his separation agreement. (3) The change in fair value of warrant liability for the three months ended December 31, 2025 and December 31, 2024 reflects the remeasurement of the Warrants issued by the Company in connection with the 2024 Note Exchange in February 2024. (4) One time expenses for the three months ended December 31, 2024 consists of estimated losses, net of estimated insurance recoveries related to the fire at one of our New Jersey authentication centers. (1) (4)