Explore RealReal's Fair Values from the Community and select yours

The RealReal, Inc. (NASDAQ:REAL) just released its latest quarterly results and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$165m leading estimates by 3.5%. Statutory losses were smaller than the analystsexpected, coming in at US$0.10 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on RealReal after the latest results.

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Taking into account the latest results, the current consensus from RealReal's eight analysts is for revenues of US$672.6m in 2025. This would reflect an okay 5.6% increase on its revenue over the past 12 months. RealReal is also expected to turn profitable, with statutory earnings of US$0.26 per share. Before this latest report, the consensus had been expecting revenues of US$657.9m and US$0.12 per share in losses. So we can see there's been a pretty clear upgrade to expectations following the latest results, with a modest lift to revenues expected to lead to profitability earlier than previously forecast.

View our latest analysis for RealReal

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$8.91, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values RealReal at US$15.00 per share, while the most bearish prices it at US$2.40. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.7% annually. So although RealReal is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been a clear step-change in belief around the business' prospects, with the analysts now expecting RealReal to become profitable next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$8.91, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on RealReal. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for RealReal going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with RealReal .

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