The RealReal, Inc. (REAL) SEC Filings & Earnings Calls

Springing maturity risk if convertible notes remain outstanding

“The New Credit Facilities are subject to a springing maturity if more than $25 million of the Company’s 4.000% Convertible Senior Notes due 2031 remain outstanding 91 days prior to their scheduled maturity.” · word for word

Net loss includes $(18.6)M non-cash warrant liability adjustment; GAAP net loss widened to $(27)M from $(11)M.

“Net Loss was $(27) million or (14.1)% of total revenue, compared to $(11) million or (6.9)%.” · word for word

History of losses and accumulated deficit

“We have a history of losses and we may not be able to achieve or maintain profitability in the future.” · word for word

Take rate pressure from mix shift

“Our take rate decreased to 35.9% from 37.9% ... due to sales mix into higher value items.” · word for word

Dependence on consumer discretionary spending

“We rely on consumer discretionary spending, which is adversely affected by economic downturns.” · word for word

History of losses and accumulated deficit

“We experienced net income (losses) of $(134.2) million, $(41.8) million, and $38.9 million in 2024, 2025 and the three months ended March 31, 2026 respectively, and as of March 31, 2026 we had an accumulated deficit of $1,256.7 million.” · word for word

Dependence on consumer discretionary spending

“We rely on consumer discretionary spending, which is adversely affected by economic downturns, including economic recession or depression and other macroeconomic conditions or trends.” · word for word

Seasonal revenue concentration

“Our business is seasonal and historically we have realized a disproportionate amount of our revenue and earnings for the year in the fourth quarter as a result of the holiday season and seasonal promotions.” · word for word

Net income decline due to non-cash items; GAAP net loss per share negative

“Net Income $39M vs $62M prior year; GAAP diluted net loss per share $(0.07)”

Cybersecurity Risk

“While no risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected the Company, for a discussion of whether and how any such risks are reasonably likely to materially affect the Company, including our business strategy and results of operations and financial condition, see “Risk Factors – Risks ” · word for word

Competition for Talent

“Our headquarters are located in the San Francisco Bay Area, where competition for leadership talent is especially intense, and the cost of living is high.” · word for word

Supermajority Voting Requirements

“Approval of this proposal requires the affirmative vote of least sixty-six and two-thirds percent (66 2/3%) of the voting power of all outstanding shares of our common stock entitled to vote generally in the election of directors.” · word for word

Board and leadership changes may cause short-term disruption.

“Resignation of board member and addition of new executives.”

Warrant liability fair value adjustment impacts net loss; non-cash item.

“Net Loss includes a $39 million adjustment as a result of the change in fair value of warrant liability.” · word for word

AI Regulatory and Operational Risk

“Regulatory landscape related to AI is evolving rapidly... any flaws or failures... could cause interruptions in and delays to our operations which may harm our business.” · word for word

Authentication Center Capacity Risk

“Our ability to successfully grow our business depends on the availability and cost of leasing additional authentication centers... Failure to secure adequate authentication centers could have an adverse effect on our business and operating results.” · word for word

Shipping Disruption Risk

“If we are not able to maintain acceptable pricing and other terms or if our vendors experience performance problems or other difficulties... it could negatively impact our operating results.” · word for word

Fraud and Counterfeit Risk

“We may fail to prevent consignors from consigning stolen or counterfeit goods... negative publicity relating to the actual or perceived listing or sale of stolen or counterfeit goods could damage our reputation.” · word for word

Net loss includes $44M non-cash warrant liability adjustment, impacting reported profitability.

“Net Loss includes a $(44) million adjustment as a result of the change in fair value of warrant liability.” · word for word

History of losses and accumulated deficit

“We experienced net loss of $168.5 million, $134.2 million and $3.0 million in 2023, 2024 and the nine months ended September 30, 2025, respectively, and as of September 30, 2025 we had an accumulated deficit of $1,256.8 million.” · word for word

Negative operating cash flow

“Net cash used in operating activities was $12.5 million for the nine months ended September 30, 2025.” · word for word

High debt and interest expense

“Interest expense increased by $1.1 million, or 19% for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to the interest expense related to the 2031 Notes.” · word for word

Dependence on consumer discretionary spending

“We rely on consumer discretionary spending, which is adversely affected by economic downturns, including economic recession or depression, and other macroeconomic conditions or trends.” · word for word