Gross merchandise value (GMV) increased 20% to $520 million compared to the same period in 2024, and revenue rose 17% to $174 million, prompting the company to raise its full-year GMV guidance to more than $2.1 billion.
Resale Moves Into the Mainstream
“Our strong third-quarter results and our full-year outlook for GMV of over $2 billion are a testament to our long-term strategy, which has solidified our position as the market leader in luxury resale,” Chief Executive Officer Rati Saha Levesque said. “We are changing the way people shop, making resale a primary option.”
She noted that Vogue used search data from The RealReal during the fall fashion season to gauge brand momentum, underscoring how the platform’s analytics now inform the broader luxury market.
The company’s internal report found fine jewelry as its fastest-growing category, first-time watch buyers up 46%, and searches for wedding dresses rising 247% from a year earlier. Handbag searches for fair-condition items grew 32%, reflecting a broader shift toward practicality and value retention.
Economic conditions continue to shape consumer behavior. A PYMNTS Intelligence study found that nearly 7 in 10 Americans live paycheck to paycheck, and 1 in 4 struggled to pay bills in recent months. Another PYMNTS study found that nearly half of U.S. shoppers now buy secondhand as frequently as they do new, signaling that resale has become part of regular purchasing behavior rather than a niche choice.
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For The RealReal, that normalization of the secondary market is expanding both supply and demand at once as shoppers sell to unlock value and buy to stretch spending power.
Operations and Data-Driven Supply
The company said its growth strategy focuses on supply quality and operational discipline. A revised compensation plan emphasizing value over volume lifted average supply value per luxury manager by 12%. The “Smart Sales” system, an internal analytics tool, and an AI-based “Smart Prospecting Engine” helped improve lead targeting and consignor conversion.
The RealReal’s AI-enabled intake system, Athena, handled 27% of all items during the quarter and is expected to reach 40% by year end. The system automates authentication and listing while shortening processing times from 14 days toward a goal of seven. Chief Financial Officer Ajay Gopal said Athena remains a “key contributor to cost leverage across operations.”
The company operates 18 stores nationwide and plans to add one to three per year. About 25% of new consignors come through retail locations, where in-house specialists authenticate and appraise inventory.
What Else Stood Out
- Flywheelers, users who both buy and consign, are two to three times more valuable than single-side participants and drive higher transaction frequency and long-term loyalty.
- Executives said that its AI-driven pricing algorithm continues to expand coverage across product categories, capturing higher realized prices for sellers and improving sell-through rates.
- More than half of The RealReal’s customers are millennials or Gen Z, a cohort the company said is driving long-term engagement as resale becomes part of their standard purchase cycle.
The RealReal’s high-value pop-up events in retail locations, such as Newport Beach, California, and Tysons Corner, Virginia, generated more than $2.6 million in supply over a few days, signaling strong engagement with luxury consignors.
By the Numbers
Gross profit rose 16% to $129 million, supported by higher-value sales and automation gains. Consignment margins improved to 89%, and direct-sales margins rose to 21%. Operating expenses declined 6% as a share of revenue, reflecting continued cost discipline. The company ended the quarter with $123 million in cash and has reduced its debt by $86 million since early 2024.
For the fourth quarter, The RealReal expects GMV between $585 million and $595 million, up about 17%, and revenue between $188 million and $191 million, up roughly 16%. Management said efficiency improvements and sustained consumer demand for secondhand luxury are expected to support steady growth into 2026.
