Key Highlights

  • Revenue rose to $206.1 million from $173.6 million, up 18.7% on a calculated basis.
  • GMV was $641.5 million, versus $519.8 million a year earlier.
  • Net income was $16.0 million, compared with a net loss of $54.1 million.
  • Adjusted EBITDA was $17.0 million, versus $9.3 million in the prior year quarter.
  • Income from operations was $1.5 million, against a loss of $7.6 million.

Revenue growth built on more orders and larger baskets

TheRealReal (NASDAQ:REAL) runs an online marketplace for authenticated, primarily pre-owned luxury goods, including fashion, fine jewelry and watches, and sells on behalf of consignors in exchange for a share of proceeds. It filed its Quarterly Report for the period ended September 30, 2026 on October 29, 2026, showing total Revenue of $206.1 million, up from $173.6 million, an increase of about 18.7% on a calculated basis.

Gross merchandise value was $641.5 million, versus $519.8 million, which is about 23.4% higher on a calculated basis. Orders rose 15% to 1.02 million, and average order value climbed 8% to $629 from $584. Active buyers reached 1.152 million, up from 1.024 million.

Where revenue came from

Consignment revenue rose 18% to $159.1 million, driven by higher consignment GMV and partly offset by a lower take rate of 36.8%, compared with 37.9%. The filing attributes it to sales mix shifting toward higher value items.

Direct revenue, which comes from goods the company owns, increased 19% to $27.4 million. Shipping services revenue rose 21% to $19.6 million on more orders and higher buyer shipping fees.

Margins and expense leverage

Gross profit was $154.4 million, or about 74.9% of revenue on a calculated basis. Total gross Margin rose 64 basis points, helped by shipping services gross margin that improved 1,183 basis points on higher buyer shipping fees and lower carrier costs.

Operating expenses were $152.9 million, up from $136.5 million. Operations and technology fell to 38% of revenue from 41% on efficiencies in the authentication centers, and selling, general and administrative fell to 27% from 30%. Income from operations was $1.5 million versus a $7.6 million loss.

Why Net Income and per share results point in different directions

Net income was $16.0 million, compared with a $54.1 million loss, but most of the swing came from a $21.2 million gain on the change in Fair Value of Warrant liability, against a $43.9 million charge a year earlier.

Basic net income per share was $0.13. Diluted net loss per share was $0.04, versus $0.49 a year earlier. Adjusted EBITDA, which excludes the warrant item, was $17.0 million, up from $9.3 million.

Cash and the October refinancing

Cash and cash equivalents were $130.4 million at September 30, 2026, with an accumulated Deficit of $1,267.9 million.

On October 9, 2026, the company entered a Credit agreement with a $150.0 million term Loan and a $25.0 million revolver. On October 19, 2026, it borrowed the full $150.0 million and used it, with cash on hand, to redeem in full its 2029 Notes. The facilities carry interest at adjusted Term SOFR plus 5.75% and mature October 19, 2033, unless 2031 notes of $25.0 million or more remain outstanding.

What to watch next

Nine-month revenue was $588.4 million, up from $498.8 million, and nine-month net income was $27.7 million versus a $3.0 million loss. Readers will likely watch whether take rate continues to ease as higher value items grow, whether operating Leverage keeps lifting income from operations, and how interest costs behave after the refinancing.