The RealReal announces debt exchange, reducing 2028 Notes by $6 million and extending maturities to 2031, enhancing financial flexibility.
Quiver AI Summary
The RealReal, the largest online marketplace for authenticated resale luxury goods, announced a strategic debt exchange that will reduce its total indebtedness by over $6 million while extending a portion of its 2028 convertible note maturities to 2031. Following the exchange of approximately $49.5 million of its 1.00% Convertible Senior Notes due 2028, less than $50 million of these notes will remain outstanding. The new 4.00% Convertible Senior Notes, which total $190 million, alongside previously issued notes, are part of efforts to strengthen the company’s balance sheet. CEO Rati Levesque expressed satisfaction with the debt exchange, highlighting a total indebtedness reduction of over $86 million since early 2024, which aims to enhance financial flexibility and support ongoing strategic growth initiatives.
Potential Positives
- The RealReal successfully reduced its total indebtedness by over $6 million through strategic debt exchange transactions.
- The transaction extends the maturity date of a significant portion of its convertible debt from 2028 to 2031, improving financial flexibility.
- Since the beginning of 2024, the Company has reduced its total indebtedness by more than $86 million, indicating effective debt management.
- The press release underscores The RealReal's commitment to strengthening its balance sheet, which can boost investor confidence and support profitable growth.
Potential Negatives
- Engaging in additional debt exchange transactions may signal that the company is still facing significant financial pressures, necessitating further restructuring of its debt obligations.
- The need to reduce total indebtedness by $86 million since the beginning of 2024 suggests ongoing financial struggles and potential liquidity issues.
- The announcement includes a disclaimer about various risks and uncertainties that could adversely affect future performance, indicating a lack of stability in the company's operations and financial outlook.
FAQ
What recent debt transactions did The RealReal announce?
The RealReal announced strategic debt exchange transactions involving its 1.00% Convertible Senior Notes due 2028, reducing total indebtedness by over $6 million.
How much total debt has The RealReal reduced since 2024?
Since the beginning of 2024, The RealReal has reduced its total indebtedness by over $86 million.
What is the significance of the 4.00% Convertible Senior Notes due 2031?
The 4.00% Convertible Senior Notes due 2031 will form a single class totaling $190,079,000, enhancing the company's debt maturity profile.
Who advised The RealReal on these exchange transactions?
Moelis & Company LLC served as the financial advisor and Wachtell, Lipton, Rosen & Katz acted as legal counsel for The RealReal.
How does The RealReal support the circular economy?
The RealReal supports the circular economy by reselling authenticated luxury goods, giving new life to items across various categories.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$REAL Insider Trading Activity
$REAL insiders have traded $REAL stock on the open market 27 times in the past 6 months. Of those trades, 0 have been purchases and 27 have been sales.
Here’s a breakdown of recent trading of $REAL stock by insiders over the last 6 months:
- LEVESQUE RATI SAHI (Chief Executive Officer) has made 0 purchases and 11 sales selling 554,460 shares for an estimated $4,228,415.
- GOPAL AJAY MADAN (Chief Financial Officer) has made 0 purchases and 2 sales selling 153,811 shares for an estimated $1,005,388.
- CHATELLE AILEEN LYNCH (Chief People Officer) has made 0 purchases and 2 sales selling 69,911 shares for an estimated $510,959.
- TODD A SUKO (Chief Legal Officer and Secret) has made 0 purchases and 6 sales selling 48,963 shares for an estimated $337,708.
- STEVE MING LO (SVP, Chief Accounting Officer) has made 0 purchases and 4 sales selling 23,477 shares for an estimated $161,891.
- LUKE THOMAS FRIANG (Chief Product and Technology O) has made 0 purchases and 2 sales selling 18,503 shares for an estimated $127,589.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$REAL Hedge Fund Activity
We have seen 101 institutional investors add shares of $REAL stock to their portfolio, and 131 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- VERITION FUND MANAGEMENT LLC added 1,787,260 shares (+118.6%) to their portfolio in Q2 2025, for an estimated $8,560,975
- SG AMERICAS SECURITIES, LLC removed 1,634,142 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $8,808,025
- MORGAN STANLEY removed 1,467,255 shares (-57.8%) from their portfolio in Q2 2025, for an estimated $7,028,151
- D. E. SHAW & CO., INC. removed 1,329,951 shares (-32.9%) from their portfolio in Q2 2025, for an estimated $6,370,465
- GOLDMAN SACHS GROUP INC added 1,115,407 shares (+51.2%) to their portfolio in Q2 2025, for an estimated $5,342,799
- WOODSON CAPITAL MANAGEMENT, LP added 1,097,172 shares (+20.7%) to their portfolio in Q2 2025, for an estimated $5,255,453
- NORGES BANK removed 1,096,912 shares (-100.0%) from their portfolio in Q2 2025, for an estimated $5,254,208
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$REAL Analyst Ratings
Wall Street analysts have issued reports on $REAL in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- B. Riley Securities issued a "Buy" rating on 08/08/2025
To track analyst ratings and price targets for $REAL, check out Quiver Quantitative's $REAL forecast page.
$REAL Price Targets
Multiple analysts have issued price targets for $REAL recently. We have seen 2 analysts offer price targets for $REAL in the last 6 months, with a median target of $8.5.
Here are some recent targets:
- Susan Anderson from B. Riley Securities set a target price of $9.0 on 08/08/2025
- Kunal Madhukar from UBS set a target price of $8.0 on 08/08/2025
Full Release
SAN FRANCISCO, Aug. 21, 2025 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL) (the “Company”)—the world’s largest online marketplace for authenticated, resale luxury goods—today announced its entry into additional strategic debt exchange transactions with certain holders of its 1.00% Convertible Senior Notes due 2028 (the “2028 Notes”) for additional 4.00% Convertible Senior Notes due 2031 (the “Additional Notes”), reducing its total indebtedness by over $6 million and extending a significant portion of its remaining 2028 maturities to 2031. Following the exchange of approximately $49.5 million aggregate principal amount of the 2028 Notes in connection with these transactions, less than $50.0 million aggregate principal amount of the 2028 Notes will remain outstanding.
The Additional Notes, together with the $146,685,000 of 4.00% Convertible Senior Notes due 2031 previously issued by the Company on February 10, 2025, will form a single class of $190,079,000 aggregate principal amount of 4.00% Convertible Senior Notes due 2031. These private, separately negotiated debt exchange transactions will be conducted in transactions exempt from registration under the Securities Act of 1933, as amended.
Rati Levesque, President and Chief Executive Officer of The RealReal, stated, “We're pleased with the transactions we announced today, which reinforce our commitment to strengthening our balance sheet and reducing our debt. With this debt exchange, we have reduced our total indebtedness by over $86 million since the beginning of 2024 and favorably rebalanced our debt maturity cycle. This transaction enhances our flexibility to address the remainder of our 2028 convertible debt. We believe that we remain well-positioned to execute on our strategic pillars and continue to deliver profitable growth.”
Moelis & Company LLC is serving as financial advisor, and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to The RealReal in connection with the Exchange Transactions.
About The RealReal Inc.
The RealReal is the world’s largest online marketplace for authenticated, resale luxury goods, with more than 40 million members. With a rigorous authentication process overseen by experts, The RealReal provides a safe and reliable platform for consumers to buy and sell their luxury items. We have hundreds of in-house gemologists, horologists and brand authenticators who inspect thousands of items each day. As a sustainable company, we give new life to pieces by thousands of brands across numerous categories—including women's and men's fashion, fine jewelry and watches, art and home—in support of the circular economy. We make selling effortless with free virtual appointments, in-home pickup, drop-off and direct shipping. We handle all of the work for consignors, including authenticating, using AI and machine learning to determine optimal pricing, photographing and listing their items, as well as shipping and customer service.
Investor Relations Contact:
Caitlin Howe
[email protected]
Press Contact:
Mallory Johnston
[email protected]
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of The RealReal that are based on the Company's current expectations, forecasts and assumptions and involve risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” anticipate,” target,” “contemplate,” “project,” “believe,” “estimate,” “predict,” “intend,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology. These statements include, but are not limited to, statements about future operating and financial results, including our strategies, plans, commitments, objectives and goals, in particular in the context of the recent geopolitical events, and uncertainty surrounding macroeconomic trends, financial guidance, anticipated growth in 2025, the anticipated impact of generative AI, and medium-term goals and projections. Actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Other factors that could cause or contribute to such differences include, but are not limited to, inflation, macroeconomic uncertainty, geopolitical instability, any failure to generate a supply of consigned goods, pricing pressure on the consignment market resulting from discounting in the market for new goods, failure to efficiently and effectively operate our merchandising and fulfillment operations, labor shortages and other reasons.
More information about factors that could affect the Company's operating results is included under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the Company's Investor Relations website at https://investor.therealreal.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the Company on the date hereof. The Company assumes no obligation to update such statements.