RealReal Reports Transformative 2025 with $2B in GMV

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RealReal (NASDAQ:REAL) executives said 2025 marked a 'transformative' year for the luxury resale platform, highlighting accelerating growth, expanding profitability, and a full-year milestone of more than $2 billion in gross merchandise value (GMV). The company reported Q4 2025 GMV of $616 million, up 22% year-over-year, driven by increases in both unit volume and average selling prices.

Why it matters

RealReal's strong 2025 performance demonstrates the continued growth and profitability of the luxury resale market, as consumers increasingly embrace secondhand shopping for designer fashion, jewelry, and home goods. The company's use of AI and automation to drive operational efficiencies has also been a key factor in its success.

The details

In Q4, RealReal reported total revenue of $194 million, up 18% year-over-year, with consignment revenue up 16% and direct revenue up 39%. Operating expenses leveraged 600 basis points as a percentage of revenue, which the company attributed to greater use of AI and automation, higher sales team productivity, and leverage on fixed costs. Active buyers, orders, and average order value all increased year-over-year, with the company noting success in 'unlocking supply,' particularly in higher-value categories like fine jewelry and watches.

• RealReal reported Q4 2025 results on March 1, 2026.

What they’re saying

What’s next

RealReal plans to continue expanding its use of AI and automation, including rolling out its Athena intake process to more product categories, which the company expects will drive further operational efficiencies and margin improvement.