The RealReal Earnings: Sluggish Sales and Profit Progress Are Offset Amid Decent Quarter; Shares Pricey

No-moat The RealReal posted OK quarterly results, with $145 million in revenue topping our $141 million estimate, though a $19 million EBIT loss was wider than the $14 million we'd contemplated. The firm's progress toward adjusted EBITDA profitability was impressive, but it was captured in our prior forecast. With slightly lower guidance for the remainder of the year than we'd initially penciled in, offset by time value, we expect little change to our $2.14 fair value estimate. This leaves shares trading at a premium despite a hard selloff in the aftermarket, which we attribute to some combination of concern regarding the firm's restated active buyer number and a weak sales outlook. Addressing the former, the firm elected curiously to report active buyer count on a trailing three-month basis, with 381,000 active buyers representing just 40%-45% of annual active buyers and declining modestly over the past two years.