RealReal (REAL) just wrapped up FY 2025 with fourth quarter revenue of US$194.1 million and a basic EPS loss of US$0.33, alongside trailing twelve month revenue of US$692.8 million and a basic EPS loss of US$0.36. Over recent quarters, the company has seen revenue range from US$147.8 million in Q3 2024 to US$194.1 million in Q4 2025, while quarterly EPS has swung between a loss of US$0.62 in Q4 2024 and a profit of US$0.56 in Q1 2025. This backdrop is likely to encourage investors to focus closely on how margins are evolving through this turn in the earnings cycle.

See our full analysis for RealReal.

With the latest figures on the table, the next step is to see how this earnings profile lines up with the widely followed bull and bear narratives around RealReal and where those stories might need updating.

Losses Narrow on TTM Basis

• On a trailing twelve month basis, RealReal reported total revenue of US$692.8 million and a net loss of US$41.8 million, versus a loss of US$134.2 million on US$600.5 million of revenue a year earlier.
• Consensus narrative points to revenue growth of 10.3% per year and margins moving from a loss of 6.0% to a 4.0% profit in three years. This sits against the latest 12 month loss of US$41.8 million and shows how much improvement analysts are building into that view.
  • Analysts also expect earnings to reach US$37.5 million by about 2029, compared with the current trailing loss, so forecasts are leaning on a sharp swing from red to black.
  • Those same forecasts back an analyst price target of US$18.19 versus the current share price of US$12.40, which assumes the path from today’s loss to that future profit will stay on track.

Quarterly Swings Test Bullish Case

• Across FY 2025, quarterly net income moved from a profit of US$62.4 million in Q1 to losses of US$11.4 million, US$54.1 million, and US$38.8 million in Q2, Q3, and Q4 respectively, with EPS shifting from a profit of US$0.56 to losses between US$0.10 and US$0.47 per share.
• Bulls argue that AI driven automation and authentication could drive much stronger margin expansion than current forecasts. Yet the pattern of a single profitable quarter followed by three loss making quarters shows that profitability is not yet consistent.
  • For that bullish view to play out, earnings would need to move from the current trailing loss of US$41.8 million to a projected profit of US$44.4 million by about 2029, which is a very large swing.
  • The bullish setup also assumes revenue reaching US$970.7 million and supporting a high future P/E multiple, so quarterly volatility in EPS is an area to watch closely against those expectations.

On these numbers, it is easy to see why some investors back the upside case while others focus on the execution risk embedded in those forecasts. 🐂 RealReal Bull Case

Balance Sheet Risk Fuels Bear Concerns

• Analysis flags negative shareholders’ equity over the last 12 months and ongoing losses, even as the company has been reducing those losses at a rate of 24.6% per year over the past five years.
• Bears highlight that negative equity, meaningful insider selling over the past three months, and an expensive 2.2x P/S ratio versus 0.5x for the industry sit awkwardly beside forecasts for very rapid 92.34% annual earnings growth.
  • The shares are described as trading about 35.8% below a DCF fair value of US$19.30, yet still expensive on sales compared with industry and peers, which gives skeptics room to question how much of the forecast improvement is already reflected in the valuation.
  • Given the company is still loss making on a trailing basis, bears focus on whether balance sheet strength and cash generation will support the investment needed to reach the projected profitability path.

Skeptical investors often use this mix of negative equity, insider selling, and richer P/S multiples as a cross check on how much risk they are comfortable taking for the potential upside. 🐻 RealReal Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for RealReal on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With sentiment split between risks and rewards, this is a moment to move quickly, look through the figures yourself, and weigh the story on your terms. To see both sides in one place, start with the 4 key rewards and 2 important warning signs

See What Else Is Out There

RealReal is still posting losses, dealing with negative shareholders’ equity, and trading on a richer P/S ratio than its industry despite optimistic earnings forecasts.

If that combination of ongoing losses and balance sheet pressure feels uncomfortable, shift your focus toward companies screened for stronger financial footing with the solid balance sheet and fundamentals stocks screener (44 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.