REALTheRealReal, Inc.

Retail-Miscellaneous Retail

Revenue: $693M; 15% YoY
Operating margin: -3.5%; 63% YoY
EBITDA: $9M; 139% YoY
Market cap: $1.5B
Employees: 3,140; $221K revenue each
Net debt / EBITDA: -14.0×; −$127M net debt
AI in 10-K: 6.1; mentions per 10K words

Takeover score 5 of 13

Fixable underperformance 2 of 7

TSR below peersYes
5 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashYes
0% of net income
Cash flow under 80% of net income
Dilutive SBCNo
4% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
—
Over 40% of assets
Shareholder dissentNo
93% lowest support
Any vote under 80% support

Buyer economics 2 of 4

Low revenue per employeeNo
$221K · 33rd pct
Bottom quartile of its SIC industry
Quiet on AINo
6.1 per 10K words · 86th pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 14.0× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedYes
$1.5B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$115M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$468M	$603M	$549M	$600M	$693M	15%
Operating income	−$215M	−$189M	−$166M	−$56M	−$24M	58%
Net income	$236.1B	$196.4B	$168.5B	$134.2B	$41.8B	69%
Operating cash flow	−$142M	−$92M	−$61M	$27M	$37M	38%
Capex	$37M	$23M	$29M	$14M	$19M	31%
Stock-based comp	$49M	$46M	$34M	$29M	$29M	0.5%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Jan 30, 2025	Philotimo Fund, LP	SCHEDULE 13D/A	1.7%	Passive
Jan 6, 2025	Philotimo Fund, LP	SCHEDULE 13D/A	3.2%	Passive
Nov 1, 2024	Philotimo Fund, LP	SC 13D	6.8%	Passive

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $115M · 80
Net: −$115M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	—	—	81	144
FY2024	—	—	56	133
FY2023	—	—	10	119
FY2022	—	—	6	98
FY2021	—	—	59	143