The RealReal Earnings: Results Arrive as Expected After Prerelease; Shares Remain Expensive

There were few surprises in no-moat The RealReal's earnings release after third-quarter results arrived in line with its Oct. 28 prerelease figures. As expected, management provided very little context regarding 2025 expectations considering the CEO transition, giving Rati Levesque a chance to evaluate the business and consider her strategic priorities moving into the new year. We expect to raise our $2.14 per share fair value estimate by a low-single-digit percentage, consistent as we balance better-than-expected quarterly results, guidance for stronger fourth-quarter performance, and very little change to our long-term thesis, leaving shares trading in a range we'd consider significantly overpriced.