The RealReal: Surprise CEO Transition Unlikely to Inspire Wholesale Turnaround for Beleaguered Brand

No-moat The RealReal announced a CEO transition and previewed positive preliminary third-quarter earnings results on Oct. 28, 2024. The market reaction was muted, with shares up between 1%-2% after the profit warning was digested. All else equal, we'd expect a similar change to our $2.14 fair value estimate, after the firm's $148 million in revenue, $433 million in gross merchandise volume, and $2.3 million in adjusted EBITDA edged our $137 million, $420 million, and $1 million respective estimates. Shares continue to look expensive.