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The RealReal, Inc. (NASDAQ:REAL) Earnings Preview: A Closer Look at the Luxury Consignment Leader's Financial Health

  • Earnings per share (EPS) is expected to be around -$0.06, with analysts predicting a more significant loss of $0.14 per share, indicating a 55.6% decline year-over-year.
  • Despite challenges, revenue is anticipated to grow by 14% year-over-year to $168.47 million, showcasing the company's expanding market presence.
  • There has been an 8.3% downward revision in the consensus EPS estimate over the past 30 days, hinting at potential investor reactions to the stock's short-term price performance.

The RealReal, Inc. (NASDAQ:REAL) is a prominent online marketplace for authenticated luxury consignment. The company specializes in selling pre-owned luxury goods, including clothing, jewelry, and home decor. As a leader in the resale market, The RealReal competes with other luxury consignment platforms like Poshmark and ThredUp.

On November 10, 2025, REAL is set to release its quarterly earnings. Wall Street estimates an earnings per share (EPS) of approximately -$0.06, while analysts predict a more significant quarterly loss of $0.14 per share. This represents a 55.6% decline year-over-year, highlighting the company's ongoing financial challenges.

Despite the anticipated decline in earnings, The RealReal's revenue is expected to rise by 14% from the previous year, reaching $168.47 million for the quarter ending in September 2025. This growth in revenue suggests that the company is expanding its market presence and attracting more customers, even as it faces profitability issues.

Over the past 30 days, there has been an 8.3% downward revision in the consensus EPS estimate for the quarter. Such revisions are crucial as they often predict potential investor actions regarding the stock. Empirical research shows a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

The RealReal's financial metrics reveal some challenges. The company has a negative price-to-earnings (P/E) ratio of -88.62, indicating negative earnings. The price-to-sales ratio is about 4.92, suggesting investors are willing to pay nearly five times the company's sales per share. The enterprise value to sales ratio is approximately 5.51, reflecting the company's valuation relative to its sales.