RealReal's Q3 Results Unlikely to Shift Wall Street Views, UBS Says

MT Newswires Live10-23

RealReal's (REAL) Q3 results are unlikely to drive major changes to Wall Street estimates or the stock's valuation because continued double-digit sales momentum appears largely priced in for the online luxury resale marketplace's shares, UBS Securities said Wednesday in a report.

UBS forecasts Q3 revenue of $197 million, up about 14% from a year earlier, and breakeven earnings per share, in line with consensus. The firm expects adjusted EBITDA of $14.8 million, above the $14.1 million consensus, helped by revenue growth, operating leverage and continued AI and "automation efficiencies."

UBS said its research and industry data "lean positive," with stronger website traffic in Q3, app activity and TikTok engagement, while RealReal's Athena AI is expected to support further operating leverage.

UBS expects the company to issue Q4 revenue guidance of $214 million to $218 million, "bracketing" the $216.5 million consensus estimate, while keeping its 2026 guidance unchanged.

Q3 results are due Oct. 29.

UBS lowered its price target on RealReal stock to $14 from $16 and maintained its neutral rating.

Price: 10.49, Change: -0.14, Percent Change: -1.32

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