# TheRealReal, Inc. (REAL) Informational only - not investment advice. CIK: 0001573221 SIC: 5900 Retail-Miscellaneous Retail SIC breadcrumb: [Retail Trade](/division/G/) > [Miscellaneous Retail](/major-group/59/) > [SIC 5900 Retail-Miscellaneous Retail](/industry/5900/) Latest 10-K filed: 2026-02-26 SEC page: https://www.sec.gov/edgar/browse/?CIK=1573221 Filing source: https://www.sec.gov/Archives/edgar/data/1573221/000157322126000010/real-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-26 · accession 0001573221-26-000010 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001573221.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 692,845,000 USD | 2025 | verified | | Net income | -41,799,000 USD | 2025 | verified | | Assets | 409,033,000 USD | 2025 | verified | | Free cash flow | 18,366,000 USD | 2025 | computed | | Net margin | -6.03% | 2025 | computed | | Operating margin | -3.45% | 2025 | computed | | Revenue YoY | +15.38% | 2025 | computed | Stockholders' equity was not positive at FY2025 year-end (-415,518,000 USD, as filed); ROE and liabilities / equity are omitted rather than computed. Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | REAL | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | -6.0% | 2.7% | 13 | 32 | | Operating margin | -3.5% | 4.5% | 17 | 30 | | Revenue growth | 15.4% | 6.6% | 87 | 32 | | FCF margin | 2.7% | 3.7% | 37 | 31 | | ROA | -10.2% | 4.9% | 13 | 32 | | Current ratio | 0.86 | 1.41 | 6 | 32 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 59 Miscellaneous Retail, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 692845000 | USD | 2025 | 2026-02-26 | | Net income | -41799000 | USD | 2025 | 2026-02-26 | | Assets | 409033000 | USD | 2025 | 2026-02-26 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001573221.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 137,521,000 | 213,732,000 | 316,354,000 | 299,949,000 | 467,692,000 | 603,493,000 | 549,304,000 | 600,484,000 | 692,845,000 | | Net income | | -52,308,000 | -75,765,000 | -98,429,000 | -175,832,000 | -236,107,000 | -196,445,000 | -168,472,000 | -134,202,000 | -41,799,000 | | Operating income | | -51,784,000 | -73,904,000 | -100,105,000 | -172,816,000 | -214,908,000 | -189,163,000 | -166,293,000 | -56,495,000 | -23,934,000 | | Gross profit | | 87,642,000 | 136,918,000 | 201,523,000 | 187,567,000 | 273,477,000 | 348,691,000 | 376,278,000 | 447,521,000 | 516,822,000 | | Diluted EPS | | | | -2.14 | -2.01 | -2.58 | -2.05 | -1.65 | -1.24 | -0.70 | | Operating cash flow | | -38,574,000 | -47,195,000 | -54,490,000 | -134,419,000 | -142,151,000 | -91,557,000 | -61,268,000 | 26,846,000 | 37,010,000 | | Capital expenditures | | 11,599,000 | 13,392,000 | 24,761,000 | 18,253,000 | 37,470,000 | 22,861,000 | 29,177,000 | 14,248,000 | 18,644,000 | | Assets | | | 135,417,000 | 465,247,000 | 605,109,000 | 754,944,000 | 615,641,000 | 446,923,000 | 423,095,000 | 409,033,000 | | Liabilities | | | 98,907,000 | 128,002,000 | 413,816,000 | 681,816,000 | 785,733,000 | 750,222,000 | 830,471,000 | 824,551,000 | | Stockholders' equity | -122,924,000 | -176,986,000 | -257,690,000 | 337,245,000 | 191,293,000 | 73,128,000 | -170,092,000 | -303,299,000 | -407,376,000 | -415,518,000 | | Cash and cash equivalents | | 16,486,000 | 34,393,000 | 154,446,000 | 350,846,000 | 418,171,000 | 293,793,000 | 175,709,000 | 172,212,000 | 151,231,000 | | Free cash flow | | -50,173,000 | -60,587,000 | -79,251,000 | -152,672,000 | -179,621,000 | -114,418,000 | -90,445,000 | 12,598,000 | 18,366,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | -38.04% | -35.45% | -31.11% | -58.62% | -50.48% | -32.55% | -30.67% | -22.35% | -6.03% | | Operating margin | | -37.66% | -34.58% | -31.64% | -57.62% | -45.95% | -31.34% | -30.27% | -9.41% | -3.45% | | Return on assets | | | -55.95% | -21.16% | -29.06% | -31.27% | -31.91% | -37.70% | -31.72% | -10.22% | | Current ratio | | | 1.01 | 3.43 | 2.84 | 2.75 | 1.79 | 1.25 | 0.94 | 0.86 | ## As-reported value updates 2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/REAL/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001573221.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | -0.49 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | -0.83 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | -0.41 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 133,172,000 | -22,949,000 | -0.22 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 143,373,000 | -21,693,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 143,800,000 | -31,101,000 | -0.30 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 144,934,000 | -16,708,000 | -0.20 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 147,755,000 | -17,938,000 | -0.17 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 163,995,000 | -68,455,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 160,033,000 | 62,400,000 | -0.14 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 165,188,000 | -11,366,000 | -0.13 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 173,573,000 | -54,051,000 | -0.49 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 194,051,000 | -38,782,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 189,715,000 | 38,936,000 | -0.07 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 192,571,000 | -27,233,000 | -0.23 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from REAL's latest 10-K: [/company/REAL/business/](/company/REAL/business/). ## Risk Factors Verbatim Item 1A Risk Factors from REAL's latest 10-K: [/company/REAL/risk-factors/](/company/REAL/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1573221/000157322126000053/real-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion of our financial condition and results of operations should be read together with our condensed financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and our audited financial statements and related notes and our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 26, 2026. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. See the discussion under “Note Regarding Forward-Looking Statements” elsewhere in this Quarterly Report on Form 10-Q for more information. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and particularly in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Our historical results are not necessarily indicative of the results that may be expected for any period in the future, and our interim results are not necessarily indicative of the results we expect for the full calendar year or any other period. Overview We are the world’s largest online marketplace for authenticated resale luxury goods. We are revolutionizing luxury resale by providing an end-to-end service that unlocks supply from consignors and creates a trusted, curated online marketplace for buyers globally. Since our inception in 2011, we have cultivated a loyal and engaged consignor and buyer base through our investments in our technology platform, logistics infrastructure and people. We offer a wide selection of authenticated, primarily pre-owned luxury goods on our online marketplace bearing the brands of thousands of luxury and premium designers. We offer products across multiple categories including women’s and men’s fashion, fine jewelry and watches. We have built a vibrant online marketplace that we believe expands the overall luxury market, promotes the recirculation of luxury goods and contributes to a more sustainable world. We have transformed the luxury consignment experience by removing the friction and pain points inherent in the traditional consignment model. Our growth playbook centers on a scalable supply engine, and helps us forge enduring relationships with our consignors. We offer concierge at-home consultation and pickup as well as virtual consultations. Consignors may also drop off items at our luxury consignment offices. Our retail stores provide an alternative location to drop off consigned items and an opportunity to interact with our authentication experts. Consignors may also utilize our complimentary shipping directly to our authentication centers. We leverage our proprietary transactional database and market insights from over 55 million item sales since our inception to deliver optimal pricing and rapid sell-through. For buyers, we offer highly coveted and exclusive authenticated pre-owned luxury goods at attractive values, as well as a high-quality experience befitting the products we offer. Our online marketplace is powered by our proprietary technology platform, including consumer facing applications and purpose-built software that supports our complex, single-SKU inventory management system. The substantial majority of our revenue is generated by consignment sales. We also generate revenue from other services and direct sales. •Consignment revenue. When we sell goods through our online marketplace or retail stores on behalf of our consignors, we retain a percentage of the proceeds, which we refer to as our take rate. Take rates vary depending on the total value of goods sold through our online marketplace on behalf of a particular consignor as well as the category and price point of the items. In the three months ended June 30, 2026 and 2025, our overall take rate on consigned goods was 35.9% and 37.9%, respectively. The decrease in our take rate was due to sales mix into higher value items. Additionally, we earn revenue from our subscription program, First Look, in which we offer buyers early access to the items we sell in exchange for a monthly fee. •Direct revenue. When we accept out of policy returns from buyers, or when we make direct purchases from businesses and consignors, we take ownership of goods and retain 100% of the proceeds when the goods subsequently sell through our online marketplace or retail stores. •Shipping services revenue. When we deliver purchased items to our buyers, we charge shipping fees to buyers for the outbound shipping and handling services. We also generate shipping services revenue from the shipping fees for consigned products returned by our buyers to us within policy. Shipping services revenue is recognized net of immaterial buyer incentives and excludes the effect of sales tax. We generate revenue from orders processed through our website, mobile app and retail stores. Our omni-channel experience enables buyers to purchase anytime and anywhere. We have a global base of more than 40 million members as of June 30, 2026. A member is any user who has registered an email address on our website or downloaded our mobile app, thereby agreeing to our terms of service. 22 Table of Contents Factors Affecting Our Performance To analyze our business performance, determine financial forecasts and help develop long-term strategic plans, we focus on the factors described below. While each of these factors presents significant opportunity for our business, collectively, they also pose important challenges that we must successfully address in order to sustain our growth, improve our operating results and achieve and maintain our profitability. Consignors and Buyers Consignor growth and retention. We grow our sales by increasing the supply of luxury goods offered through our consignment online marketplace. We grow our supply both by attracting new consignors and by creating lasting engagement with existing consignors. We generate leads for new consignors through our advertising activity and through the activity of our sales team. Our sales professionals, who are trained and incentivized to identify and source high-quality, coveted luxury goods, convert those leads into active consignors. Our sales professionals form a consultative relationship with consignors and deliver a high-quality, full-service consigning experience. Our existing relationships with consignors allow us to unlock valuable supply across multiple categories, including women’s fashion, men’s fashion, jewelry and watches. Our growth has been driven in significant part by repeat sales by existing consignors concurrent with growth of our consignor base. In the three months ended June 30, 2026 and 2025, repeat consignors accounted for over 80% of GMV. Buyer growth and retention. We grow our business by attracting and retaining buyers. We attract and retain buyers by offering highly coveted, authenticated, pre-owned luxury goods at attractive values and delivering a high-quality, luxury experience. We measure our success in attracting and retaining buyers by tracking buyer satisfaction and purchasing activity over time. If we fail to continue to attract and retain our buyer base to our online marketplace, our operating results could be adversely affected. We believe there is substantial opportunity to grow our business by having buyers also become consignors and vice versa. As of June 30, 2026, 16% of our buyers during the last twelve months also consigned items, and 51% of our consignors during the past twelve months also made purchases. We believe this approach effectively captures the flywheel effect that strengthens the network dynamics of our online marketplace. Our GMV from buyers who are also consignors has increased over time due to the effectiveness of our flywheel and more recently through tools to encourage flywheel behavior like the "Reconsign" module on our platform. Scaling operations and technology. To support the future growth of our business, we continue to invest in physical infrastructure, technology and talent. We principally conduct our intake, authentication, merchandising and fulfillment operations in our leased authentication centers located in Arizona and New Jersey comprising an aggregate of approximately 1.4 million square feet of space. We also operate retail stores in several geographies. In addition to scaling our physical infrastructure, growing our single-SKU business operations requires that we attract, train and retain highly-skilled personnel for purposes of authentication, copywriting, merchandising, pricing and fulfilling orders. We have invested substantially in technology to automate our operations and support growth. We have continued to elevate our authentication operations through the combination of technology, our proprietary data and artificial intelligence capabilities to support efficiency and quality. We continue to strategically invest in technology, as innovation positions us to scale and support growth into the future. Seasonality. Historically, we have observed trends in seasonality of supply and demand in our business. Specifically, our supply increases in the third and fourth quarters, and our demand increases in the fourth quarter. As a result of this seasonality, we typically see stronger AOV and more rapid sell-through in the fourth quarter. Key Financial and Operating Metrics The key operating and financial metrics that we use to assess the performance of our business are set forth below for the three and six months ended June 30, 2026 and 2025. 23 Table of Contents [[GREPCENT_TABLE]] [["","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","2026","","2025"],["","(In thousands, except AOV and percentages)"],["GMV","$","617,260","","","$","504,105","","","$","1,223,619","","","$","994,510"],["NMV","$","470,392","","","$","379,377","","","$","929,139","","","$","750,134"],["Consignment revenue","$","148,216","","","$","128,620","","","$","294,109","","","$","252,434"],["Direct revenue","$","25,787","","","$","20,495","","","$","51,595","","","$","40,949"],["Shipping services revenue","$","18,568","","","$","16,073","","","$","36,582","","","$","31,838"],["Number of orders","937","","","868","","","1,875","","","1,737"],["Take rate","35.9","%","","37.9","%","","36.2","%","","38.2","%"],["Active buyers","1,107","","","1,001","","","1,107","","","1,001"],["AOV","$","659","","","$","581","","","$","653","","","$","573"]] [[/GREPCENT_TABLE]] Gross Merchandise Value ("GMV") GMV represents the total amount paid for goods across our online marketplace in a given period. We do not reduce GMV to reflect product returns or order cancellations. GMV includes amounts paid for both consigned goods and our inventory net of platform-wide discounts and excludes the effect of buyer incentives, shipping fees and sales tax. Platform-wide discounts are made available to all buyers on the online marketplace, and impact commissions paid to consignors. Buyer incentives apply to specific buyers and consist of coupons or promotions that offer credits in connection with purchases on our platform. In addition to revenue, we believe this is an important measure of the scale and growth of our online marketplace and a key indicator of the health of our consignor ecosystem. We monitor trends in GMV to inform budgeting and operational decisions to support and promote growth in our business and to monitor our success in adapting our business to meet the needs of our consignors and buyers. While GMV is the primary driver of our revenue, it is not a proxy for revenue or revenue growth (see Note 2—Summary of Significant Accounting Policies—Revenue Recognition—Consignment Revenue). Net Merchandise Value ("NMV") NMV represents the value of sales from both consigned g [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1573221/000157322126000010/real-20251231.htm Complete FY 2025 MD&A: /company/REAL/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-26 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion of our financial condition and results of operations should be read together with our financial statements and related notes and other financial information included in this Annual Report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Annual Report, particularly in the section titled “Risk Factors.” Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Overview We are the world’s largest online marketplace for authenticated resale luxury goods. We are revolutionizing luxury resale by providing an end-to-end service that unlocks supply from consignors and creates a trusted, curated online marketplace for buyers globally. Since our inception in 2011, we have cultivated a loyal and engaged consignor and buyer base through our investments in our technology platform, logistics infrastructure and people. We offer a wide selection of authenticated, primarily pre-owned luxury goods on our online marketplace bearing the brands of thousands of luxury and premium designers. We offer products across multiple categories including women’s and men’s fashion, fine jewelry and watches. We have built a vibrant online marketplace that we believe expands the overall luxury market, promotes the recirculation of luxury goods and contributes to a more sustainable world. We have transformed the luxury consignment experience by removing the friction and pain points inherent in the traditional consignment model. Our growth playbook centers on scalable supply engine, and helps us forge enduring relationships with our consignors. We offer concierge at-home consultation and pickup as well as virtual consultations. Consignors may also drop off items at our luxury consignment offices. Our retail stores provide an alternative location to drop off consigned items and an opportunity to interact with our authentication experts. Consignors may also utilize our complimentary shipping directly to our authentication centers. We leverage our proprietary transactional database and market insights from over 50 million item sales since our inception to deliver optimal pricing and rapid sell-through. For buyers, we offer highly coveted and exclusive authenticated pre-owned luxury goods at attractive values, as well as a high-quality experience befitting the products we offer. Our online marketplace is powered by our proprietary technology platform, including consumer facing applications and purpose-built software that supports our complex, single-SKU inventory management system. The substantial majority of our revenue is generated by consignment sales. We also generate revenue from other services and direct sales. •Consignment revenue. When we sell goods through our online marketplace or retail stores on behalf of our consignors, we retain a percentage of the proceeds, which we refer to as our take rate. Take rates vary depending on the total value of goods sold through our online marketplace on behalf of a particular consignor as well as the category and price point of the items. In 2025 and 2024, our overall take rate on consigned goods was 37.7% and 38.4% respectively. The decrease in our take rate was due to sales mix into higher value items. Additionally, we earn revenue from our subscription program, First Look, in which we offer buyers early access to the items we sell in exchange for a monthly fee. •Direct revenue. When we accept out of policy returns from buyers, or when we make direct purchases from businesses and consignors, we take ownership of goods and retain 100% of the proceeds when the goods subsequently sell through our online marketplace or retail stores. •Shipping services revenue. When we deliver purchased items to our buyers, we charge shipping fees to buyers for the outbound shipping and handling services. We also generate shipping services revenue from the shipping fees for consigned products returned by our buyers to us within policy. Shipping services revenue is recognized net of immaterial buyer incentives and excludes the effect of sales tax. We generate revenue from orders processed through our website, mobile app and retail stores. Our omni-channel experience enables buyers to purchase anytime and anywhere. We have a global base of more than 40 million members as of December 31, 2025. A member is any user who has registered an email address on our website or downloaded our mobile app, thereby agreeing to our terms of service. 34 Table of Contents Factors Affecting Our Performance To analyze our business performance, determine financial forecasts and help develop long-term strategic plans, we focus on the factors described below. While each of these factors presents significant opportunity for our business, collectively, they also pose important challenges that we must successfully address in order to sustain our growth, improve our operating results and achieve and maintain our profitability. Consignors and Buyers Consignor growth and retention. We grow our sales by increasing the supply of luxury goods offered through our consignment online marketplace. We grow our supply both by attracting new consignors and by creating lasting engagement with existing consignors. We generate leads for new consignors through our advertising activity and through the activity of our sales team. Our sales professionals, who are trained and incentivized to identify and source high-quality, coveted luxury goods, convert those leads into active consignors. Our sales professionals form a consultative relationship with consignors and deliver a high-quality, full-service consigning experience. Our existing relationships with consignors allow us to unlock valuable supply across multiple categories, including women’s fashion, men’s fashion, jewelry and watches. We measure the ratio of demand versus supply in a given period, which we refer to as our online marketplace sell-through ratio. Sell-through ratio is defined as GMV in the period divided by the aggregate initial value of items added to our online marketplace in the period. In 2025, our online marketplace sell-through ratio was over 80%. Our growth has been driven in significant part by repeat sales by existing consignors concurrent with growth of our consignor base. In 2025 and 2024, repeat consignors accounted for over 80% of GMV. Buyer growth and retention. We grow our business by attracting and retaining buyers. We attract and retain buyers by offering highly coveted, authenticated, pre-owned luxury goods at attractive values and delivering a high-quality, luxury experience. We measure our success in attracting and retaining buyers by tracking buyer satisfaction and purchasing activity over time. If we fail to continue to attract and retain our buyer base to our online marketplace, our operating results could be adversely affected. We believe there is substantial opportunity to grow our business by having buyers also become consignors and vice versa. As of December 31, 2025, 16% of our buyers during the last twelve months also consigned items, and 50% of our consignors also made purchases. We believe this approach effectively captures the flywheel effect that strengthens the network dynamics of our online marketplace. If we fail to continue to attract and retain our buyer base to our online marketplace, our operating results would be adversely affected. The graph below shows the percentage of GMV in each year from buyers who have participated as both buyers and consignors on our online marketplace. GMV attributable to consigning activity of such buyers is not included. Our GMV from buyers who are also consignors has increased over time due to the effectiveness of our flywheel and more recently through tools to encourage flywheel behavior like the "Reconsign" module on our platform. Buyer acquisition cost. Our financial performance depends on effectively managing the expenses we incur to attract and retain buyers. We closely monitor our efficiency in acquiring new buyers. Our buyer acquisition cost (“BAC”) for a given period is comprised of our total advertising spend for acquiring both buyers and consignors, which is principally the cost of television, digital and direct mail advertising, divided by the number of buyers acquired in that period. We adjust or re-allocate our advertising in real-time to optimize our spend across channels, buyer demographics and geographies to improve our return on advertising spend. Our BAC may vary from year to year, depending upon when we choose to make more significant investments. Scaling operations and technology. To support the future growth of our business, we continue to invest in physical infrastructure, technology and talent. We principally conduct our intake, authentication, merchandising and fulfillment operations in our leased authentication centers located in Arizona and New Jersey comprising an aggregate of approximately 1.4 million square feet of space. We also operate retail stores in several geographies. In addition to scaling our physical infrastructure, growing our single-SKU business operations requires that we attract, train and retain highly-skilled personnel for purposes of authentication, copywriting, merchandising, pricing and fulfilling orders. We have invested substantially in technology to automate our operations and support growth. We have continued to elevate our authentication operations through the combination of technology, our proprietary data, and artificial intelligence capabilities to support efficiency and quality. We continue to strategically invest in technology, as innovation positions us to scale and support growth into the future. Seasonality. Historically, we have observed trends in seasonality of supply and demand in our business. Specifically, our supply increases in the third and fourth quarters, and our demand increases in the fourth quarter. As a result of this seasonality, we typically see stronger AOV and more rapid sell-through in the fourth quarter. 35 Table of Contents Key Financial and Operating Metrics The key operating and financial metrics that we use to assess the performance of our business are set forth below for 2025, 2024, and 2023. [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["","2025","","2024","","2023"],["","(In thousands, except AOV and percentages)"],["GMV","$","2,130,007","","","$","1,829,463","","","$","1,725,983"],["NMV","$","1,614,120","","","$","1,382,875","","","$","1,269,880"],["Consignment revenue","$","535,877","","","$","473,396","","","$","415,572"],["Direct revenue","$","91,091","","","$","64,580","","","$","79,160"],["Shipping services revenue","$","65,877","","","$","62,508","","","$","54,572"],["Number of orders","3,587","","","3,359","","","3,300"],["Take rate","37.7","%","","38.4","%","","37.5","%"],["Active buyers","1,056","","","972","","","922"],["AOV","$","594","","","$","545","","","$","523"]] [[/GREPCENT_TABLE]] Gross Merchandise Value ("GMV") GMV represents the total amount paid for goods across our online marketplace in a given period. We do not reduce GMV to reflect product returns or order cancellations, which totaled 24.2%, 24.4% and 26.4% of GMV in 2025, 2024 and 2023, respectively. GMV includes amounts paid for both consigned goods and our inventory net of platform-wide discounts and excludes the effect of buyer incentives, shipping fees and sales tax. Platform-wide discounts are made available to all buyers on the online marketplace, and impact commissions paid to consignors. Buyer incentives apply to specific buyers and consist of co [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/REAL/mda/fy2025/ All MD&A years: /company/REAL/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/REAL/mda/fy2024/): filed 2025-02-21; accession 0001573221-25-000013 (https://www.sec.gov/Archives/edgar/data/1573221/000157322125000013/real-20241231.htm) - [FY 2023 MD&A](/company/REAL/mda/fy2023/): filed 2024-03-01; accession 0001573221-24-000030 (https://www.sec.gov/Archives/edgar/data/1573221/000157322124000030/real-20231231.htm) - [FY 2022 MD&A](/company/REAL/mda/fy2022/): filed 2023-02-28; accession 0001573221-23-000022 (https://www.sec.gov/Archives/edgar/data/1573221/000157322123000022/real-20221231.htm) - [FY 2021 MD&A](/company/REAL/mda/fy2021/): filed 2022-02-28; accession 0001573221-22-000041 (https://www.sec.gov/Archives/edgar/data/1573221/000157322122000041/real-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 5900 Retail-Miscellaneous Retail) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/REAL.md · JSON record: /company/REAL.json · verified financials: /company/REAL/financials.json / /company/REAL/financials.csv · machine TOC for the whole site: /llms.txt