The RealReal reveals 2025 financial targets
Luxury retailer The RealReal announced on Tuesday financial targets ahead of 2025, as the online resale platform confirmed it is on track for positive adjusted earnings for the full year 2024.
Dubbed 'Vision 2025', the New York-based company's financial strategy for the next three years includes registering gross merchandise value (GMV) of more than $5 billion and recording total revenues of more than $1.5 billion.
The luxury retailer said it hopes to record adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of more than $100 million by 2025, after swinging to its previously announced positive adjusted EBITDA for the full year 2024.
“As we previously committed, we are targeting positive adjusted EBITDA for full year 2024, based on strong top-line growth, operational excellence and fixed-cost management," said Robert Julian, CFO at The RealReal.
"Our Vision 2025 for The RealReal is $5+ billion of gross merchandise value, $1.5+ billion of total revenue and $100+ million of positive adjusted EBITDA. We look forward to providing more details later today at our Investor Day event," added Julian.
Last year, The RealReal recorded a net loss of $236 million, compared to $176 million in 2020. Adjusted EBITDA was a loss of $126.9 million.
In its most recent earnings update in late February, The RealReal said it expects GMV in 2022 to range between $2 billion and $2.1 billion, with adjusted EBITDA to narrow to between a loss of $100 and a loss of $80 million.
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