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REALThe RealReal, Inc.
$11.46$3.3B
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  4. Financial Ratios

The RealReal, Inc. (REAL) Financial Ratios

Latest Ratios: P/E Ratio -16.9x · EV/EBITDA 400.5x · ROE N/A. (2017–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

REAL Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Market Cap$3.3B$4.6B$1.2B$205M$120M$1.1B$1.7B$1.6B——
Enterprise Value$3.6B$4.9B$1.6B$606M$422M$1.2B$1.6B$1.5B——
P/E Ratio →-16.85—————————
P/S Ratio4.796.631.960.370.202.275.715.12——
P/B Ratio—————14.518.954.80——
P/FCF180.79250.27————————
P/OCF89.71124.1954.72———————

P/E links to full P/E history page with 30-year chart

REAL EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
EV / Revenue—7.082.591.100.702.475.474.63——
EV / EBITDA400.48541.17————————
EV / EBIT——————————
EV / FCF—267.26————————

REAL Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Gross Margin69.8%69.8%74.5%68.5%57.8%58.5%62.5%63.7%66.0%63.7%
Operating Margin-3.5%-3.5%-9.4%-30.3%-31.3%-46.0%-57.6%-31.6%-35.6%-37.7%
Net Profit Margin-6.0%-6.0%-22.3%-30.7%-32.6%-50.5%-58.6%-31.1%-36.5%-38.0%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
ROE—————-178.6%-66.5%-247.4%——
ROA-10.0%-10.0%-30.9%-31.7%-28.7%-34.7%-32.9%-32.8%-71.7%-68.9%
ROIC——-129.7%-108.3%-95.7%-113.3%-85.7%-41.1%——
ROCE-15.0%-15.0%-26.1%-49.9%-38.8%-42.0%-43.0%-50.8%-256.4%-488.8%

REAL Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Debt / Equity—————6.971.46———
Debt / EBITDA51.0851.08————————
Net Debt / Equity—————1.25-0.37-0.46——
Net Debt / EBITDA34.4034.40————————
Debt / FCF—16.99————————
Interest Coverage-0.50-0.50-5.26-14.72-17.74-9.96-32.38-158.46-64.68-67.57

REAL Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Current Ratio0.860.860.941.251.792.752.843.431.010.72
Quick Ratio0.740.740.841.131.592.382.563.250.890.62
Cash Ratio0.570.570.690.931.422.222.393.060.700.44
Asset Turnover—1.691.421.230.980.620.500.681.531.81
Inventory Turnover6.786.786.497.785.932.732.665.246.807.54
Days Sales Outstanding—12.558.4911.457.386.068.788.9813.3318.57

REAL Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Dividend Yield——————————
Payout Ratio——————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Earnings Yield——————————
FCF Yield0.6%0.4%————————
Buyback Yield0.0%0.0%0.0%0.3%0.2%0.0%0.0%0.0%——
Total Shareholder Yield0.0%0.0%0.0%0.3%0.2%0.0%0.0%0.0%——
Shares Outstanding—$291M$108M$102M$96M$91M$88M$86M$63M$63M

Key Metrics

Growth RegimeAccelerating
ProfitabilityStrained
Balance SheetVulnerable
Cash FlowMixed
Top Statement Risk

High Operating Leverage Sensitivity

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Market Pricing Reflects Turnaround Hopes

According to recent market data, The RealReal trades at a P/S ratio of 5.09, suggesting that investors are pricing in a significant recovery in profitability despite the company's historical struggle to convert top-line growth into consistent GAAP earnings or positive free cash flow generation.

The forward P/E of 200.99 indicates that the market is assigning a substantial premium to future earnings expectations, which may be overly optimistic given the company's volatile operating history. Investors should monitor whether this valuation multiple remains sustainable if the company fails to demonstrate a clear, linear path toward sustained margin expansion.

Capital Efficiency Remains Under Pressure

Based on reported figures, The RealReal has struggled to generate positive returns on invested capital, with ROIC reaching -74.2% in 2025Q3, highlighting the difficulty of achieving scale in a business model that requires significant physical infrastructure to authenticate and process high-value luxury goods.

The persistent negative ROIC suggests that the capital deployed into authentication centers and logistics has yet to yield a return exceeding the cost of capital. This trend warrants further investigation into whether the company's shift toward pure consignment can eventually drive the asset turnover improvements necessary to normalize returns.

Working Capital Friction Limits Scalability

As reported in financial statements, the company's cash conversion cycle has fluctuated between 27 and 47 days over the last ten quarters, reflecting the inherent operational complexity of managing a high-touch, inventory-heavy luxury resale marketplace that relies on manual authentication processes.

The variability in the cash conversion cycle suggests that the company faces ongoing friction in managing its inventory and payables, which may be exacerbated by the transition away from direct inventory ownership. Investors should monitor whether the recent stabilization in DSO and DIO indicates a more efficient management of the consignment pipeline.

Liquidity Buffers Remain Increasingly Constrained

According to recent SEC filings, the company's current ratio has compressed to 0.84 in 2026Q1, down from 1.25 in 2023Q4, signaling a tightening liquidity position that may limit the firm's ability to navigate short-term operational shocks or unexpected fluctuations in working capital requirements.

The decline in the quick ratio to 0.70 further underscores the limited cushion available to meet short-term obligations without relying on external financing. This liquidity profile appears vulnerable, particularly if the company encounters seasonal demand softness or unexpected spikes in operational costs.

Misapplication of Standard Retail Multiples

The market frequently misapplies standard retail P/E multiples to The RealReal, which obscures the company's true nature as a specialized logistics and authentication platform rather than a traditional e-commerce retailer, leading to a potential misunderstanding of its long-term margin potential.

By focusing on P/E ratios, analysts may overlook the structural moat provided by the company's physical authentication infrastructure, which is difficult to replicate. A more appropriate metric for this business model might be EV/GMV or a focus on take-rate expansion, which better captures the underlying value of the platform's service-based revenue.

Download Financial Ratios Data

Includes 30+ ratios · 9 years · Updated daily

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REAL — Frequently Asked Questions

Quick answers to the most common questions about buying REAL stock.

What is The RealReal, Inc.'s P/E ratio?

The RealReal, Inc.'s current P/E ratio is -16.9x. This places it at the 50th percentile of its historical range.

What is The RealReal, Inc.'s EV/EBITDA?

The RealReal, Inc.'s current EV/EBITDA is 400.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.

Is REAL stock overvalued?

Based on historical data, The RealReal, Inc. is trading at a P/E of -16.9x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are The RealReal, Inc.'s profit margins?

The RealReal, Inc. has 69.8% gross margin and -3.5% operating margin.

How much debt does The RealReal, Inc. have?

The RealReal, Inc.'s Debt/EBITDA ratio is 51.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.