The RealReal (REAL) Stock Forecast & Price Target

The RealReal demonstrates a strong financial outlook with a 17% revenue increase, alongside a record active buyer count exceeding 1 million, marking significant growth in consumer engagement. The company's operational efficiency is underscored by a notable 470 basis point year-over-year leverage in non-GAAP operating expenses and an expansion of the adjusted EBITDA margin by 380 basis points to 5.4%. Additionally, consistent supply momentum, driven by both new and repeat consignors, supports optimistic projections for future free cash flow expansion and sustained positive EBITDA, which could lead to an increase in valuation multiples.

The RealReal faces a potential decline in sales, projected to be 10%-15% below estimates for 2026, primarily due to challenges in attracting new consignors through effective marketing and conversion strategies. The company is also contending with a decreased consumer interest in luxury items attributed to factors such as lack of innovation, quality trade-downs, and rising prices, which could weaken its business model reliant on authenticated luxury goods. Additionally, adverse macroeconomic conditions and competition from non-authenticated resale platforms pose significant risks to The RealReal's market share and overall financial health.