The RealReal's stock surged 5.41% in after-hours trading on Thursday, following the release of its fourth-quarter and full-year 2025 financial results.

The online luxury marketplace reported Q4 revenue of $194 million, an 18% year-over-year increase that exceeded the analyst consensus estimate of $190.7 million. Gross merchandise value (GMV) for the quarter grew 22% to $616 million, while adjusted EBITDA reached $22 million, representing a healthy 11.3% margin. The company also highlighted positive free cash flow of $43 million for the quarter and a "transformation" year in 2025, marked by surpassing $2 billion in annual GMV.

Investor sentiment was further bolstered by the company's forward-looking guidance. For the full year 2026, The RealReal projects revenue between $765 million and $780 million and adjusted EBITDA of $57 million to $65 million. The results and outlook, coupled with strategic progress in AI-enabled operations and customer service improvements, drove the significant post-market price appreciation.