The RealReal Raises 2026 Outlook Following 23% GMV Growth and Debt Refinancing

Aditi Sarkar

02 November 2026 11:34 PM AEDT

The RealReal Raises 2026 Outlook Following 23% GMV Growth and Debt Refinancing

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Highlights

Gross merchandise value rose 23% to US$642 million in the third quarter of 2026, while Revenue grew 19%.
Net income reached US$16.0 million, including a US$21.2 million non-cash Warrant gain, against a prior-year loss.
Adjusted EBITDA increased to US$17.0 million, with Margin expanding 290 basis points to 8.3%.
A new US$150 million term Loan from Fortress-managed funds replaced the company's 2029 senior secured notes.

Two announcements in the space of two weeks reshaped the picture at The RealReal, Inc. (NASDAQ:REAL). On 15 October 2026, the luxury resale platform agreed to refinance its 2029 senior secured notes with a new US$150 million term loan maturing in 2033. Then, on 29 October 2026, it reported third-quarter gross merchandise value (GMV) growth of 23% and raised its full-year outlook.

Chief Executive Rati Levesque described the period as another record quarter for the company.

Orders and Order Values Both Climb

GMV for the quarter ended 30 September 2026 reached US$642 million. Total revenue rose 19% to US$206.1 million, led by consignment revenue of US$159.1 million, up 18%. Direct revenue increased 19% to US$27.4 million, and shipping services revenue rose to US$19.6 million.

Order growth of 15% was the strongest quarterly increase since 2022, and average order value rose 8% to US$629. Trailing 12-month active buyers grew 13% to 1,152,000.

Profitability Improves on Higher Volumes

Gross profit increased to US$154.4 million from US$128.9 million, and gross margin widened 64 basis points to 74.9%. The company posted Operating Income of US$1.5 million, compared with an operating loss of US$7.6 million a year earlier.

GAAP Net Income was US$16.0 million, against a net loss of US$54.1 million, helped by a US$21.2 million non-cash gain from the change in Fair Value of the warrant liability. GAAP basic EPS was US$0.13, while diluted EPS was a loss of US$0.04. Adjusted EBITDA rose to US$17.0 million, an 8.3% margin, from US$9.3 million. Operating Cash Flow was US$25.0 million, and cash and cash equivalents stood at US$130.4 million on 30 September 2026.

New Term Loan and a Higher Full-Year Target

The refinancing, funded by affiliates of Fortress Investment Group, comprises a US$150 million senior secured term loan and an undrawn US$25 million revolving Credit facility. Proceeds were set to redeem all of the 4.25%/8.75% PIK/cash-pay notes due 2029 at par on or about 19 October 2026. The new Debt carries interest initially at SOFR plus 5.75%, payable in cash, and matures in October 2033, removing a potential December 2027 springing Maturity under the old notes.

Management expects the deal to cut annual interest expense by about US$4 million in its first year. The company has a medium-term goal of reducing total debt to US$150 million and an adjusted EBITDA margin target of 15% to 20%.

For the fourth quarter, The RealReal expects GMV of US$720 million to US$735 million, revenue of US$218 million to US$222 million and adjusted EBITDA of US$27.5 million to US$29.0 million. Full-year 2026 guidance now calls for GMV of US$2.585 billion to US$2.600 billion, revenue of US$806 million to US$810 million and adjusted EBITDA of US$71.1 million to US$72.6 million.

FAQs

Q: What is The RealReal's 2026 revenue outlook?

A: The company expects full-year 2026 revenue of US$806 million to US$810 million and GMV of US$2.585 billion to US$2.600 billion.

Q: What did the October 2026 refinancing involve?

A: A US$150 million term loan and an undrawn US$25 million revolver from Fortress-managed funds, used to redeem the 2029 senior secured notes.

Q: How did The RealReal perform over the first nine months of 2026?

A: Revenue totaled US$588.4 million, net income was US$27.7 million and adjusted EBITDA reached US$43.6 million, a 7.4% margin.

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