Oct 29, 2026 earnings call — Record GMV and raised full year outlook
Raised full-year revenue outlook to $806 million to $810 million.
Revenue $0.2B (est $0.2B) · EPS $0.02 (est $0.00) · Next-quarter revenue outlook $0.2B–$0.2B
Key quotes
"In the third quarter, 47% of our GMV came from buyers who have been with us for five years or longer."
"This year, we diversified how we source supply, strengthening the core, but also adding layers around it, trust and estates, partnerships, contractors, international vendors and our retail stores, resulting in double-digit supply growth in the quarter."
"Athena remains on track to handle nearly 50% of all items by the end of the year, and we are extending it into high-value fashion this quarter."
Analyst Q&A 8
gross margin and order growth
Q (Anna Glaessgen · B. Riley): Analyst asked why gross margin improved despite lower take rate and which pieces (like shipping) helped. She also asked whether growth will keep shifting toward order volume and about new buyers this quarter.
A: Management said gross margin was 74.9%, up 60 basis points year-over-year, driven by consignment margins and aided by some one-time shipping adjustments. They said Q3 GMV was up 23% with about 3/4 of growth from order volume and orders up 15%. They expect gross margins to be within 73% to 75% on an ongoing basis and that the shift toward volume matched their expectations.
"I think at the core of this, this is -- it's driven by consignment margins, which were 89.3% and continue to be fairly stable when you look at that trend earlier in the year." — Ajay Gopal (CFO)
EBITDA margin pace and Agentic commerce
Q (Mark Altschwager · Baird): Analyst asked why Q4 margin guide is weaker versus recent quarters and how to think about margin progression into 2027. He also asked about economics of Agentic commerce and keeping buyers on The RealReal.
A: Management said they expect to add between 200 to 300 basis points of adjusted EBITDA margin each year and that 2026 guidance implies ending the year adding 280 basis points at the midpoint toward a 15% to 20% medium-term target. They said quarter-to-quarter margins can vary with timing of investments. On Agentic, they called it another tool to keep buyers in, said traffic is still a small but growing share, and emphasized their depth of product and data as an advantage while they test and learn.
"Our guidance for 2026 contemplates that we would end the year adding 280 basis points of margin at the midpoint." — Ajay Gopal (CFO)
consignor growth and AOV trends
Q (Marvin Fong · U.S. Bancorp): Analyst asked about the 11% (clarified to double-digit) growth in active consignors and how that compares to prior quarters and the cost to acquire them. He also asked about the sequential AOV decline and product mix.
A: Management clarified the number was double-digit growth in active consignors in Q3 and said supply growth is coming from many channels at once, which makes the supply engine more durable. They listed channels including reps, a contractor program, trust and estates (which delivered 35% more units this year), stores, and drop ship, noting over $100 million of supply launched in that channel this year. On AOV, they said AOVs were still up 8% and that Q3 seasonality typically lowers AOV before it rises in Q4 for holiday shopping.
"So first, what we shared was the number of active consignors sold with us grew double digits actually in Q3." — Rati Levesque (CEO)
new buyers, consignors, drop ship, sales team
Q (Robert Brooks · Northland): Analyst wanted detail on whether AOV from new buyers matches overall trends and what items new consignors usually start with. He also asked if the $100 million drop ship amount is by year-end and if it's GMV, and what sales force changes look like beyond tools.
A: Management said they have 45 million members and are seeing buyers increasingly become consignors, with new cohorts more engaged and retaining better. They noted strong Gen Z growth (up more than 60% over three years) and said they launched over $100 million in drop ship supply this year while continuing to expand international partners. On sales, they restructured to focus on quality buyers and consignors and are using tools like Ask TRR and Athena item enrichment to create higher-quality listings and better discovery.
"And these results, these AI results deliver higher quality listings so that the consignor can get more for their item." — Rati Levesque (CEO)
Q4 outlook and seller motivation
Q (Ashley Owens · KeyBanc): Analyst asked how much Q4 growth moderation is due to tough comps versus conservatism and for quarter-to-date trends. She also asked if consumers feel more urgency to sell or are consigning different items now.
A: Management said Q4 typically has higher AOV due to holiday shopping and they are entering Q4 with strong momentum, having raised full-year guidance on all three metrics. They said they see a resilient consumer and that their position at the intersection of luxury and value strengthens their case as sellers look to unlock closet value. They noted new buyers grew 20% in Q3, Gen Z is up more than 60% over three years, and broad adoption of secondary-market checking is rising.
"I think our advantage is our model sits, we always say at the intersection of luxury and value." — Rati Levesque (CEO)
Athena savings and liquidity/debt
Q (Jay Sole · UBS): Analyst asked what additional per-item processing cost reductions Athena can deliver next year and to separate gains from higher adoption versus deeper automation. He also asked about minimum liquidity ahead of 2028 repayment and contingency if 2031 notes don't convert, plus interest costs under the new facility.
A: Management said two efficiency sources are automation (like ASRS, automated packaging and conveyors) and Athena, which uses data and custom algorithms to cut manual touches. Athena expanded from 35% last year to nearly 50% this year, and cost savings grow with the volume processed; they said it's still multiple dollars per item but did not quantify an annual amount. On liquidity, they said they are far from any minimum covenant, the model is cash efficient, and growing adjusted EBITDA is producing strong operating cash flow; they described the new $150 million facility priced at SOFR plus 5.75% with an option to drop to SOFR plus 5.5% and expect interest costs to fall, with next year roughly $4 million.
"The cost savings will grow with the volume of what we process." — Ajay Gopal (CFO)
average order value and cash flow
Q (Irwin Boruchow · Wells Fargo): Analyst asked if customers are showing price resistance and how AOV should be modeled going forward. He also asked for a free cash flow guide for the year and how to think about EBITDA expansion into 2027.
A: Management said AOV grew 8% in Q3 (down from 13% in Q2) and they are not seeing price resistance, rather a seasonal mix shift toward mid-value items and jewelry now growing in line with the business. They said they are operating cash flow positive for three quarters with $10 million of operating cash flow and expect it to grow in Q4, but did not provide a full-year free cash flow number. They reiterated they expect to expand EBITDA margins by 280 basis points this year and remain on a path to reach 15% to 20% over the medium term, pacing investments within a 200 to 300 basis-point annual range.
"We're not seeing what you described, price resistance from customers." — Ajay Gopal (CFO)
supply channels and Athena impact
Q (Joseph Gonzalez · ROTH Capital Partners): Analyst asked which supply channels are expected to drive supply growth into Q4 and 2027, and for thoughts on Athena implementation and its impact on margins in 2027.
A: Management said they are focused on diversifying channel mix so there's no single point of failure, highlighting trust and estates, auction houses, trade shows, pop-up events, stores, and international vendors as promising channels for higher-value items. They said Athena coverage has expanded from 35% last year to nearly 50% this year and over the longer term they see no reason it could not inspect nearly every item; operations and tech contributed about 250 basis points of leverage and Athena is a key part of that margin expansion.
"This year, we expect to end at nearly 50%." — Ajay Gopal (CFO)