Ashley Owens's questions to RealReal Inc (REAL) leadership • Q1 2025
Question
Ashley Owens inquired about the key drivers behind the significant improvement in direct revenue gross margin, its future sustainability, and consumer behavior trends amid macro uncertainty.
Answer
CFO Ajay Gopal detailed that the direct business, now comprised of out-of-policy returns, select vendor buys, and the 'Get Paid Now' program, has a dramatically improved profitability profile, with margins expected to remain around 20%. CEO Rati Levesque added that consumer health has been consistent on both the buyer and seller sides, with the company's growth playbook successfully driving supply.