REAL TheRealReal, Inc.

Overview and Growth

Fiscal 2025 results for TheRealReal, Inc. combined $692.85M of revenue with net loss of $41.80M and an operating cash inflow of $37.01M. The $692.85M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 15.4% from $600.48M in fiscal 2024, increasing the company’s operating scale. The company reported diluted EPS of -$0.70, adding a shareholder-level measure to the absolute income figures considered below. Total assets stood at $409.03M, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 1.69x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $516.82M as gross profit before recognizing operating expenses and other items. Gross profit represented 74.6% of revenue, showing how much of the top line remained after direct costs. The reported operating result was an operating loss of $23.93M, reflecting costs that exceeded gross profit. Relative to revenue, the operating deficit measured 3.5%, showing the shortfall after operating costs. The bottom-line result was a net loss of $41.80M after operating, financing, tax, and other recognized items. Net margin was -6.0%, reflecting a loss equal to 6.0% of reported revenue. EBITDA was $8.97M, adding a pre-interest, tax, depreciation, and amortization view of the company’s earnings capacity. The company reported a pretax loss of $41.44M, before the effect of income taxes. Measured against revenue, the pretax deficit represented 6.0%. The reported income-tax provision was $363.00K, the amount recognized between pretax income and the final net-income result. The loss-to-assets relationship was 10.2%, placing the bottom-line deficit against the company’s resource base. The bottom-line deficit decreased from $134.20M in fiscal 2024 to $41.80M.

Liquidity and Capital Structure

Total assets were $409.03M, supported by $824.55M of liabilities and -$415.52M of shareholder equity. With total equity at -$415.52M, the company carried a negative book-capital position, increasing its reliance on liabilities and future earnings. Current assets were $227.49M against $264.24M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 0.86x, current liabilities exceeded current assets and placed pressure on the company’s near-term liquidity position. Reported cash and equivalents were $151.23M, separating immediately recognizable cash resources from the rest of the current-asset base. The cash balance equaled 57.2% of current liabilities, showing how much near-term coverage came from cash alone. The equity-to-assets relationship was -101.6%, placing book capital against the total resource base. The liabilities-to-assets relationship was 201.6%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 37.0%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $423.10M in fiscal 2024, the current asset base moved 3.3% and finished lower. Cash and equivalents were 12.2% lower than fiscal 2024 cash of $172.21M, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Cash flow from operations was $37.01M, a reported cash inflow that can be compared directly with net income and capital spending. Capital expenditures used $18.64M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 50.4% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $18.37M, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 2.7%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 4.5% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.