Why The RealReal Stock (REAL) Is Trading Lower Today

Key Takeaways

* REAL shares fell 17.7% after underwhelming Q4 results.
* Revenue grew 14% year-over-year but missed estimates slightly.
* EBITDA guidance fell short of expectations, raising growth concerns.
* First-quarter revenue outlook suggests a potential slowdown.
* The stock's volatility is significant, with a high number of large price moves.

What Happened?

The RealReal (NASDAQ: REAL) reported Q4 results that disappointed investors, leading to a sharp decline in its stock price. The company's full-year EBITDA guidance fell significantly below analyst expectations, while its number of active buyers slightly missed Wall Street estimates.

Revenue and Profits

Revenue increased by 14% year-over-year, driven by a 12% increase in gross merchandise value (GMV). However, this growth barely exceeded Wall Street's estimates and failed to excite investors.

Despite revenue growth, profits improved. However, the company's forecast for full-year 2025 EBITDA of $20 million to $30 million missed analyst expectations.

First-Quarter Outlook

The RealReal's first-quarter revenue guidance also suggests a potential slowdown from the strong holiday-driven Q4. This raises concerns about the company's growth momentum.

Market Reaction

The market reacted strongly to the news, indicating a significant impact on its perception of the business. The stock's high volatility is evident in its recent history, with numerous large price moves.

Investment Considerations

While the weaker revenue outlook raises questions, The RealReal continues to make progress towards profitability. Investors may see value in the stock at its current price, as it trades well below its 52-week high.

Disclaimer: This analysis is solely for informational purposes and should not be construed as investment advice.