The luxury resale leader topped Q3 estimates Monday and raised guidance. By Tuesday, shares hit fresh 52‑week highs as BTIG, UBS, Northland, KeyBanc and Baird updated calls.
The RealReal, Inc. NASDAQ:REAL extended Monday evening’s earnings momentum into Tuesday’s session, touching a new 52‑week high intraday as multiple brokers boosted price targets following the company’s Q3 2025 beat and a higher full‑year outlook.
Today’s (Nov. 11) headlines at a glance
- BTIG: PT to $15 (Buy). Analyst Marvin Fong lifted his target from $11 to $15 after what he called a “resounding” quarter with accelerating growth and positive incremental EBITDA. Investing.com
- UBS: PT to $14 (Neutral). UBS moved its target to $14, citing strength in Q3 and improved outlook.
- Northland: PT to $16 (Outperform). Northland raised its target, pointing to “stellar” Q3 execution and macro tailwinds for resale. TipRanks
- KeyBanc: Overweight reiterated, $16 target. The firm reaffirmed its bullish stance and $16 PT this morning.
- Baird: PT to $13 (Neutral). Baird lifted its target to $13 while keeping a neutral rating.
- Stock action: REAL traded up sharply, setting a fresh 52‑week high as high as ~$14.68 intraday (as of ~15:44 UTC).
- Reuters market wrap: Shares jumped premarket after the upbeat print and raised guide.
What The RealReal reported (Q3 2025)
Top line & activity
- GMV:$520M, +20% YoY (record).
- Revenue:$174M, +17% YoY.
- Consignment revenue:+15% YoY; direct revenue:+47% YoY.
- Active buyers (TTM):1.024M, +7% YoY.
- AOV:$584, +12% YoY.
Profitability & cash
- Gross margin:74.3% (‑60 bps YoY).
- Adjusted EBITDA:$9.3M (5.4% margin), +380 bps YoY.
- GAAP net loss:$(54)M; includes a $(44)M non‑cash warrant‑liability fair‑value mark.
- Free cash flow:+$13.7M for the quarter.
AP’s earnings snapshot also flagged a $54.1M quarterly loss and $173.6M revenue, consistent with the company’s release.
Guidance raised
The company increased FY 2025 targets and issued Q4 guidance:
- Q4 2025: GMV $585–$595M; Revenue $188–$191M; Adjusted EBITDA $17.5–$18.5M.
- FY 2025: GMV $2.099–$2.109B; Revenue $687–$690M; Adjusted EBITDA $37.7–$38.7M.
Why the Street is leaning bullish today
- Execution + operating leverage: Brokers emphasized accelerating growth with positive incremental margins and improving unit economics. BTIG highlighted the largest GMV beat since the pandemic alongside margin expansion.
- Category momentum: Analyst notes point to resilient demand for authenticated luxury resale and better supply flows into the marketplace.
- Sentiment & technicals: Momentum traders added fuel after the print; stock hit new highs during Tuesday trading.
The setup heading into the holiday quarter
- Supply & mix: Watch whether higher‑value categories (watches, fine jewelry, handbags) keep mix favorable for margins. Management said both ASP and units contributed to AOV growth in Q3.
- Profit trajectory: Adjusted EBITDA guide implies another step‑up in Q4; investors will parse how much comes from efficiency initiatives versus top‑line.
- GAAP vs. non‑GAAP optics: The widened GAAP loss was largely a non‑cash warrant‑liability revaluation; cash metrics and EBITDA moved higher. Expect continued focus on free cash flow and balance‑sheet flexibility.
Key numbers cheat sheet
| Metric (Q3’25) | Result | YoY |
|---|---|---|
| GMV | $520M | +20% |
| Revenue | $174M | +17% |
| Gross margin | 74.3% | –60 bps |
| Adj. EBITDA | $9.3M (5.4%) | +380 bps |
| GAAP net loss | $(54)M | n/a |
| Active buyers (TTM) | 1.024M | +7% |
| AOV | $584 | +12% |
| Source: Company release, Nov. 10, 2025. |
What changed on the sell side today (Nov. 11)
- BTIG:Buy, $15 (from $11).
- UBS:Neutral, $14 (from $10.50).
- Northland:Outperform, $16 (from $11).
- KeyBanc:Overweight, $16 target reiterated post‑print.
- Baird:Neutral, $13 (from $8).
The market tape
As of mid‑afternoon Tuesday, REAL traded around $14.49, up sharply on the day, with the session high near $14.68 — both fresh 52‑week highs following Monday’s results. Reuters and other wires flagged the premarket surge as the raised outlook hit the tape.
Context
- The company reported record quarterly GMV and revenue and raised both Q4 and full‑year guides, reinforcing leadership in authenticated luxury resale.
- Multiple outlets summarized the beat/raise dynamics this morning, including GuruFocus and fashion trade press coverage.
Sources & references (selected)
- Company press release: “The RealReal Announces Third Quarter 2025 Results” (Nov. 10, 2025). GlobeNewswire
- Analyst actions: BTIG ($15 Buy), UBS ($14 Neutral), Northland ($16 Outperform), KeyBanc ($16 Overweight), Baird ($13 Neutral).
- Price action: Real‑time quote/52‑week high information.
- Wire/round‑ups: Reuters/Refinitiv brief on premarket jump (via TradingView).
- AP snapshot (for cross‑check on GAAP loss/revenue): Nov. 10, 2025.
Editor’s note: This article is for informational purposes only and not investment advice. Always do your own research before investing.
