The RealReal Posts Record Q3 as Resale Boom Continues

Record Quarter for The RealReal

The RealReal (TRR), the US-based luxury resale platform, has reported a 19 per cent increase in total revenue to $206 million for the third quarter ended 30 September 2026. Gross merchandise value (GMV) rose 23 per cent year-over-year to $642 million, driven by a 15 per cent increase in orders. This marks the company’s strongest quarterly order growth since 2022 and sets new all-time highs for GMV, revenue and orders.

Consignment revenue grew 18 per cent compared to the prior-year period, while direct revenue increased 19 per cent year-over-year. Gross profit reached $154 million, an increase of $25 million compared to the same period in 2025, yielding a gross margin of 74.9 per cent. The company posted net income of $16 million, representing 7.8 per cent of total revenue, a significant turnaround from a net loss of $54 million in the third quarter of 2025. The net result included a $21.20 million non-cash adjustment resulting from the change in fair value of warrant liability.

Adjusted EBITDA rose to $17 million, or 8.3 per cent of total revenue, up from $9.30 million, or 5.4 per cent of total revenue, in the prior-year quarter. On a per-share basis, basic net income per share was $0.13, while diluted net loss per share was $0.04.

Customer Engagement and Operational Metrics

Operational metrics showed continued expansion across the platform’s customer base. Active buyers over the trailing twelve months reached 1,152,000, representing a 13 per cent increase year-over-year. Average order value rose 8 per cent to $629 compared to the prior-year period.

These figures reflect deeper engagement across buying, consigning and product tracking lifecycles. More customers are starting their journey on the platform and engaging well beyond the transaction, whether discovering what to buy, tracking what they own, or deciding when to sell. This shift in consumer behaviour is underpinned by a fundamental change in how people shop for luxury fashion, with a growing preference for circular ownership.

Driving Profitability Through Structural Adjustments

The third-quarter operational improvements reflected ongoing structural adjustments and customer retention gains across the business. TRR has focused on building what it describes as the new operating system for luxury fashion ownership—a purpose-built platform that supports every stage of the ownership cycle.

“Q3 was another record quarter for The RealReal, with quarterly all-time highs in GMV, revenue and orders, with our strongest quarterly order growth since 2022, up 15 per cent versus last year,” said TRR chief executive officer Rati Levesque. “Alongside that growth we expanded adjusted EBITDA margin by 290 basis points, and earlier this month we completed a key refinancing extending our debt maturity profile and positioning the business to continue deleveraging in the years ahead.”

Levesque added: “Underlying those results is a fundamental change in how people shop for luxury fashion, and our purpose-built platform is helping to drive it. Customers increasingly start their journey with us and engage well beyond the transaction, to discover what to buy, to track what they own, and to decide when to sell. That is the new operating system for luxury fashion ownership, and that is what we are building. Our performance this quarter reinforces our conviction in the direction of the business and our ability to execute, and we are raising our full-year outlook.”

Raised Full-Year 2026 Guidance

Following the strong third-quarter results, TRR raised its full-year financial guidance for 2026. For the fourth quarter, the company expects GMV between $720 million and $735 million. Total revenue is projected to reach between $218 million and $222 million, with adjusted EBITDA forecast between $27.50 million and $29 million.

For the full year 2026, GMV is anticipated to reach between $2.59 billion and $2.60 billion. Full-year revenue guidance is projected between $806 million and $810 million, while adjusted EBITDA for the year is expected to reach between $71.10 million and $72.60 million.

These projections underscore the company’s confidence in its operational strategy and the growing demand for luxury resale. As more consumers embrace circular fashion and seek value in pre-owned luxury goods, The RealReal appears well-positioned to capitalise on the trend, driving sustainable growth and profitability in the years ahead.