EBITDA hit $22 million, or 6.1 per cent of total revenue, an increase of $33 million compared to the same period a year prior. Rati Levesque, the business’s president and CEO, hailed 2025 as a year of transformation. “These defining milestones reinforce our confidence in our growth trajectory and our market leadership position,” she said. Levesque added that the company is leading a “fundamental shift” in the luxury consumer’s mindset, as 47 per cent of consumers now consider the resale value of a designer item when purchasing. “As we enter 2026, we are poised to build on the momentum and continue to deliver on our mission to be the definitive authority in luxury resale.” At a time when the luxury consumer’s attention is trickier to hold than ever, and resale platforms like the Gen Z favorite Depop are facing increased competition, how is The RealReal not only holding up but thriving? “Operational efficiencies, improved unit economics, expanding higher-priced categories and an increasingly attractive luxury resale market drove improved financial and operating metrics at The RealReal during 2025,” answered Marie Driscoll, a chartered financial analyst and a professor at Parsons, The New School and the Fashion Institute of Technology. How The RealReal is returning to profitability Driscoll explained that while the primary market for luxury has been weak in the aggregate in the 2024–2025 period following outsized growth in 2021–2023, resale has increasingly become the alternative destination for luxury shoppers priced out of the primary market, as well as those looking for one-of-a-kind and vintage products and the “handbag that got away”. “The RealReal is improving its balance sheet and deriving operating leverage with its investments in stores and authentication centers. There is a flywheel aspect to The RealReal’s business model as well, as buyers become consignors (over 50 per cent of GMV is from individuals who are both),” she added. Neil Saunders, analyst and managing director at GlobalData, also noted that, behind the scenes, the company has taken several steps to capitalize on the natural market growth. “They’ve focused on higher-end products that are not readily available elsewhere, they’ve improved the quality of the assortment, and they’ve used AI tools to make the customer experience better. All these things helped move the dial.” Concurring with Saunders’ commentary, CI&T’s global director of retail strategy, Melissa Minkow, added that The RealReal has created the ideal virtual “hunting” ground for shoppers to find well-priced and hard-to-find designer pieces. “The RealReal has created a winning recipe in that its digital channels are extremely easy to navigate, which is key in a ‘hunting’ category, and its descriptions and imagery are super clear. The condition scale is crucially detailed, and it has a trusted authentication process. This is a great example of a shopping experience meeting all of the needs of its consumer in a challenging space.” What The RealReal is getting right about resale At a time when many customers are pinching their pennies or cutting out nonessentials from their budget, resale fashion has never been so prime. A 2025 report released by mobile marketplace Offerup revealed that the US re-commerce market is projected to grow 34 per cent by 2030, reaching $306 billion in value and accounting for 8 per cent of total retail spending. However, with opportunity comes competition, and Depop’s recent acquisition by Ebay shows how tough it is to maintain an edge in this category. Where The RealReal thrives, where other resale retailers may be struggling, is in its ability to guide public perception. Naomi Omamuli Emiko, the founder and owner of TNGE, a marketing agency built to accelerate beauty and wellness brands, told Inside Retail that the results mark a shift in which resale is no longer adjacent to luxury but embedded within it. “What they’ve done exceptionally well is reframe secondhand as smart luxury asset management,” she said. “They doubled down on authentication, leveraged proprietary data to position themselves as a market authority and elevated the experience through curated edits and physical retail touchpoints. As a result, they’ve made resale feel intentional and premium. “What’s visionary is that they’re aligning with a new luxury mindset: consumers – especially millennials and Gen Z – now think in terms of value cycles, liquidity and sustainability. “Resale is not about access, though, but about the opportunity to participate in a circular luxury economy. That’s why The RealReal has positioned itself correctly: they’re not just a marketplace, but serve as the infrastructure for that future.”