TheRealReal, Inc. (REAL)
Retail-Miscellaneous Retail · Retail-Miscellaneous Retail · NASDAQ
$10.93
-0.18%
Investru Score
38.3 / 100
Weak
Why is REAL moving?
REAL is little changed today (-0.18%).
Business overview
- Market capitalization is about $1.29 billion.
- Operates in the luxury‑consignment niche of the Retail‑Miscellaneous Retail sector.
The firm is a modest‑size player in a specialized resale market, offering growth potential but also facing competitive pressures.
Bull case
If operating margins turn positive and cash generation improves, the high growth rates could justify a premium valuation.
Bear case
Continued operating losses, deteriorating liquidity, and a sharp price correction due to overvaluation could push the stock lower.
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Score breakdown
- Financial Quality
- 30
- Growth
- 56
- Profitability
- 46
- Balance Sheet
- 33
- Valuation
- 46
- Momentum
- 10
Financial quality
- Return on equity (ROE) is 10.1%, indicating moderate profitability on shareholders' equity.
- Free cash flow margin is 2.7%, showing a small proportion of revenue turning into cash.
- Earnings quality score is -0.89, suggesting earnings are of low quality.
- Return on invested capital is unavailable, limiting assessment of capital efficiency.
While ROE is decent, low cash conversion and negative earnings quality raise concerns about sustainability.
- ROIC
- Data unavailable
- ROE
- 10.1%
- FCF Margin
- 2.7%
- Free Cash Flow (TTM)
- $0.0B
- Earnings Quality (OCF ÷ Net Income)
- -0.9x
Valuation
- Forward P/E ratio is 75.3, implying the stock is priced far above expected earnings.
- Forward PEG ratio is 1.73, suggesting modest valuation relative to growth expectations.
- Median PEG across peers is also 1.73, indicating the stock aligns with industry growth multiples.
- Price‑to‑sales (P/S) ratio is 1.79, reflecting moderate valuation relative to revenue.
- Free cash flow yield is 1.4%, indicating low cash return relative to market cap.
Valuation metrics are high, especially forward P/E, pointing to an expensive stock despite growth.
- P/E (TTM)
- Data unavailable
- Forward P/E
- 75.3x
- PEG (P/E ÷ EPS Growth)
- Data unavailable
- Company Median PEG
- 1.7x
- Price / Sales
- 1.8x
- EV / EBITDA
- Data unavailable
- FCF Yield
- 1.4%
Key risks
- Current ratio below 1 may lead to a cash crunch.(Probability: Medium · Impact: High)
- Negative interest coverage indicates difficulty meeting debt obligations.(Probability: Medium · Impact: High)
- High forward P/E suggests the stock is overvalued and could decline if growth slows.(Probability: Medium · Impact: Medium)
Latest earnings
- Q2 FY26 EPS
- $-0.23
- Estimate
- Data unavailable
- Surprise
- Data unavailable
- Earnings quality score is -0.89, reflecting low reliability of reported earnings.
- Net margin is -6%, showing the company is currently unprofitable on a per‑share basis.
Earnings appear weak and of questionable quality, supporting the negative outlook.
SEC filings
- 10-Q · Q2 FY26 · period ended 2026-06-30Filed 2026-08-06
- 10-Q · Q1 FY26 · period ended 2026-03-31Filed 2026-05-07
- 10-K · FY25 · period ended 2025-12-31Filed 2026-02-26
- 10-Q · Q3 FY25 · period ended 2025-09-30Filed 2025-11-10
- 10-Q · Q2 FY25 · period ended 2025-06-30Filed 2025-08-07
- 10-K · FY24 · period ended 2024-12-31Filed 2025-02-21
- 10-K · FY23 · period ended 2023-12-31Filed 2024-03-01
- 10-K · FY22 · period ended 2022-12-31Filed 2023-02-28
- 10-K · FY21 · period ended 2021-12-31Filed 2022-02-28
Event filings (8-K) aren't covered by this page's data source yet — only 10-K/10-Q are shown above.
Market cap $1.3B · 52-week range $7.30–$17.39 · market data as of Aug 28, 2026, 4:00 PM ET · latest SEC filing: 2026-08-06
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Analyze REAL with Investru AINot investment advice. Investru AI summarizes public data and AI-generated analysis for informational purposes only.