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Market Impact: 0.38

The RealReal: EBITDA Margin Inflection Point, Buy The Dip

REAL
Corporate EarningsCorporate Guidance & OutlookCompany FundamentalsConsumer Demand & Retail

The RealReal fell more than 15% despite a Q1 beat-and-raise, as GMV growth accelerated to 24% y/y from the prior quarter. Adjusted EBITDA more than tripled y/y, reflecting lower corporate overhead. The stock reaction suggests investors are focused more on the macro backdrop than the improved operating leverage and demand trend.

Analysis

The RealReal fell more than 15% despite a Q1 beat-and-raise, as GMV growth accelerated to 24% y/y from the prior quarter. Adjusted EBITDA more than tripled y/y, reflecting lower corporate overhead. The stock reaction suggests investors are focused more on the macro backdrop than the improved operating leverage and demand trend.

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Market Sentiment

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mildly positive

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0.35

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REAL0.45