The RealReal, a leader in the online luxury resale market, has projected revenue growth of approximately 9% for 2025, driven by notable operational efficiency gains. The company expects revenues to reach between $645 million and $660 million, improving from the $600 million anticipated in 2024.
In achieving these projections, The RealReal has deployed advanced AI tools across its operations. As reported by PYMNTS, the Smart Sales AI enhancement led to a 15% increase in value per sales representative in 2024. Furthermore, the company’s Athena AI uses image recognition for item authentication and listing processes, targeting to manage half of these operations through its centers by end-2025. By the conclusion of last year, 85% of their items were priced using an AI-driven engine, which bolstered transparency.
Their financial moves include completing a strategic debt exchange, reducing its debt by about $37 million while extending maturities. With record revenue of $164 million in Q4 2024 and improving financial metrics, The RealReal underscores its strategy of harnessing technology and financial initiatives to bolster growth.