REAL
A beat-and-raise, but make it complicated
The RealReal just served up the kind of quarterly update companies dream about: a beat, a raise, and a little operating leverage sparkle. GMV growth accelerated again to 24% year over year, and adjusted EBITDA more than tripled as the company kept trimming corporate overhead like it was spring-cleaning season.
So why did the stock drop?
Because the market loves a plot twist. Even with the better numbers, shares fell more than 15%, which suggests investors are still treating this as a “show me more” story. In other words: it’s one thing to post a nice quarter; it’s another to convince Wall Street the glow-up is durable.
Why you should care
For investors, the big question is whether The RealReal is finally turning scale into actual profit power. Faster GMV growth plus a cleaner cost structure is the kind of combo that can change a stock’s personality — from chronically disappointing to maybe-worth-a-second-date.
- GMV growth reaccelerated to 24%, a sign demand is still there even with a tougher macro backdrop.
- Adjusted EBITDA more than tripled, which is management-speak for “the math is getting less ugly.”
- The stock’s double-digit drop says expectations are now doing a lot of the heavy lifting.
Big picture: The RealReal is looking more efficient, more resilient, and a lot less messy than it used to. But until the market buys the story, this turnaround is still in the “promising trailer” phase.