Therealreal, Inc. key statistics and ratios

In fiscal 2025, Therealreal, Inc. had an operating margin of -3.5% and a current ratio of 0.86. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Therealreal, Inc.: financial ratios, annual
Fiscal year	2017Dec 2017	2018Dec 2018	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025	LTMSept 2026
Gross margin	63.7%	64.1%	63.7%	62.5%	58.5%	57.8%	68.5%	74.5%	74.6%	74.7%
Operating margin	−37.7%	−34.6%	−31.6%	−57.6%	−46.0%	−31.3%	−30.3%	−9.4%	−3.5%	0.4%
Net margin	−38.0%	−35.4%	−31.1%	−58.6%	−50.5%	−32.6%	−30.7%	−22.3%	−6.0%	−1.4%
Free-cash-flow margin	−36.5%	−28.3%	−25.1%	−50.9%	−38.4%	−19.0%	−16.5%	2.1%	2.7%	4.4%
Return on equity	—	—	—	−66.5%	−178.6%	—	—	—	—	—
Return on assets	—	−55.9%	−32.8%	−32.9%	−34.7%	−28.7%	−31.7%	−30.9%	−10.0%	−2.7%
Asset turnover	—	1.58	1.05	0.56	0.69	0.88	1.03	1.38	1.67	1.93
Current ratio	—	1.01	3.43	2.84	2.75	1.79	1.25	0.94	0.86	0.84
Debt to equity	—	—	—	102.3%	476.4%	—	—	—	—	—
Interest cover (operating income ÷ interest)	n/m	n/m	n/m	n/m	n/m	n/m	n/m	n/m	n/m	0.1x
SG&A as % of revenue	32.0%	29.8%	35.0%	46.9%	37.7%	32.4%	33.5%	31.3%	29.1%	27.2%
Capital spending as % of revenue	8.4%	6.3%	7.8%	6.1%	8.0%	3.8%	5.3%	2.4%	2.7%	3.2%

US$ thousands unless shown otherwise. Fiscal quarters.

Therealreal, Inc.: financial ratios, quarterly
Quarter	2024 Q4Dec 2024	2025 Q1Mar 2025	2025 Q2Jun 2025	2025 Q3Sept 2025	2025 Q4Dec 2025	2026 Q1Mar 2026	2026 Q2Jun 2026	2026 Q3Sept 2026
Gross margin	74.4%	75.0%	74.3%	74.3%	74.8%	74.5%	74.4%	74.9%
Operating margin	−3.1%	−8.0%	−6.0%	−4.3%	3.2%	−1.2%	−1.2%	0.7%
Net margin	−41.7%	39.0%	−6.9%	−31.1%	−20.0%	20.5%	−14.1%	7.8%
Free-cash-flow margin	14.0%	−20.6%	−6.9%	9.7%	23.6%	−12.7%	−1.3%	7.4%
Current ratio	0.94	0.87	0.80	0.81	0.86	0.84	0.83	0.84
SG&A as % of revenue	28.3%	31.2%	29.1%	29.7%	26.8%	27.6%	27.2%	27.3%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

1 of 5 checks passed · September 30, 2026

What it owns · $404m

Short-term assets $218mLonger-term assets $185m

What it owes, and who funded it · $758m

Short-term liabilities $261mLonger-term liabilities $497mShareholders' equity $-354m

Short-term assets cover short-term liabilities $218m of assets due within a year against $261m of liabilities due within a year.
Short-term assets cover long-term liabilities $218m short-term assets against $497m of longer-dated liabilities.
More cash than debt $130m of cash against $148m of debt.
Debt below 40% of shareholders' equity Equity or debt not reported. Not assessable.
Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
A year's operating cash flow covers at least 20% of debt $59m of operating cash flow against $148m of debt.
Operating profit covers interest at least five times over Operating income of $3m against $29m of interest.

From Therealreal, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

47 /100

Moderate moat

How hard Therealreal's competitive advantage looks for rivals to wear away, judged from 8 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 20 / 20

Cash operating profit has been a median 46.5% of total assets over 7 years.
Pricing power 15 / 20

Gross margin has been a median 64.4%, moving by 6.7 percentage points (standard deviation) across 8 years.
Durability 10 / 20

Operating margin has been a median -32.9%; its worst year was -53.0%.
Cash conversion 1 / 20

Free cash flow was positive in 1 of 8 years, at a median -20.5% of revenue.
Discipline 5 / 20

The diluted share count rose 33.8% over five years; stock-based pay has been a median 5.8% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (52 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Therealreal, Inc.'s SEC filings (10-K and 10-Q), retrieved October 30, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Therealreal, Inc.