RealReal, Inc. (REAL)

The RealReal's stock has experienced positive momentum, with a share price increase of 101.84% from January 13, 2025, to January 9, 2026, and an 88.43% total shareholder return over the past year as of January 10, 2026. The stock surged to a new 52-week and four-year high of $16.90, leading analysts to raise price targets. Operational improvements, such as implementing Motorola Solutions' AI-enabled video security system, have reduced asset protection operational expenses. The Q3 2025 earnings report showed positive results, with revenue of $174 million, GMV of $520 million, and adjusted EBITDA reaching $9.3 million. The company raised its full-year GMV guidance to $2.10-$2.11 billion. Insider selling of approximately 15.8 million shares occurred in the last quarter.

The RealReal experiences demand seasonality influenced by fashion cycles and consumer behavior. The company has observed increased supply and demand during the third and fourth quarters, leading to stronger average order values and faster sell-through rates in the fourth quarter. Specific seasonal trends impact demand for various product categories, such as winter coats in late fall and wedding guest attire around April. Major fashion seasons drive traffic and demand for handbags and accessories. Selling products when their seasonal demand is highest yields the best resale prices. Newer items have better resale value within the first few years, while rare and vintage items from established luxury brands maintain or increase their value over time.

The RealReal, Inc. operates as an online marketplace for authenticated luxury consignment goods, connecting buyers and sellers of high-end pre-owned items. The company uses a consignment model, handling the entire selling process, including authentication. It is categorized within the Consumer Discretionary sector and the Luxury Goods, Diversified Retail, E-commerce, and Recommerce industries, offering products such as women's and men's fashion, jewelry, watches, fine art, and home goods. Revenue is generated through consignment and first-party sales on its online marketplace, as well as direct sales.

The RealReal's corporate headquarters is located in San Francisco, California. The company maintains a physical presence across the United States, operating numerous office and retail store locations in major cities, including Chicago, Dallas, Los Angeles, Miami, New York, Washington D.C., West Hollywood, Brooklyn, Newport Beach, Greenwich, Austin, Atlanta, Manhasset, Palm Beach, and Brentwood. It also has e-commerce centers in Secaucus and Perth Amboy, New Jersey, and Brisbane, California.

The RealReal has a strong brand reputation built on its commitment to authenticity and quality in the luxury resale market. The company employs a rigorous authentication process using human experts and AI technology. This expertise fosters trust among its customer base. The RealReal aligns with consumer interest in sustainability by promoting the circular economy through luxury resale. The company's brand recognition in the United States reached 40% under a former CEO. The company's reputation has faced challenges due to reports of fake items on the platform. The RealReal's strategic pivot towards operational efficiency, profitability, and its omnichannel approach has been instrumental in solidifying its market standing and rebuilding confidence.

The ownership structure of The RealReal, Inc. is primarily held by institutional investors, who collectively hold the largest stake, ranging from approximately 64.73% to 75.6% of the company's stock. Major institutional owners include BlackRock, Inc., The Vanguard Group, Inc., Kanen Wealth Management LLC, D. E. Shaw & Co., Inc., Marshall Wace, Llp, Woodson Capital Management, LP, The Goldman Sachs Group, Inc., Driehaus Capital Management Llc, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, and State Street Corp. Retail investors hold a significant portion, around 23.54% to 35.72%, while insiders hold approximately 11.60% to 11.95% of the shares. Timothy M. Riley is noted as owning the most shares among individual investors.