The RealReal (REAL) Stock Forecast & Price Target

RealReal is in a prime position to benefit from the growing popularity of online luxury resale, as it is the leading online platform with a solid track record of customer loyalty. The company's constantly evolving technology, which includes the cutting-edge Athena system, has greatly improved efficiency and accuracy, paving the way for significant cost leverage and potential for substantial growth. Though there are potential risks, such as increased competition or supply constraints, the company's strong financial performance, with $770MM-$784MM in revenue and $59MM-$67MM in Adjusted EBITDA expected for FY26, and a projected $2.1B in GMV and $693MM in revenue for 2025, support a positive outlook for the stock.

RealReal is in a favorable position within the retail industry, however their strong GMV upside did not translate into as much upside on Adjusted EBITDA, which could negatively impact their profit margins. Despite their efforts to increase efficiency with investments in technology and logistics, there is still room for improvement in areas such as automation to increase capacity. The 1Q26 print may not have met elevated expectations, but their optimistic outlook for the rest of the year suggests strong secular growth potential, leading to a conservative target valuation with a BUY rating.