Luxury reseller The RealReal posted record revenue in Q4 — but the stock fell anyway

Shares of The RealReal dropped as much as 10% in after-hours trading before paring some losses, despite the luxury secondhand retailer reporting record fourth-quarter revenue. The RealReal is the world’s largest online marketplace for resale luxury goods, with more than 37 million customers globally.

Adjusted losses per share came in at $0.01 for the quarter, beating Wall Street’s estimates of down $0.04. Meanwhile, revenue jumped 14% to $164 million, marking an all-time high for the company. Gross merchandise value, a key metric for the company, was also up 12% to $504 million.

But shares sank as its full-year forecasts for revenues and adjusted EBITDA were below what analysts had penciled in. Even with its first-ever year of positive free cash flow, the less-than-stellar outlook was enough to spook investors.

The company’s net loss also more than tripled to $68 million, up from $22 million in the same quarter last year, largely due to a $59 million warrant liability adjustment.

CEO Rati Levesque says the company is now focused on unlocking supply, improving efficiency, and leveraging AI to enhance the consignor experience. The company also said its recent debt restructuring should provide more financial flexibility as it works toward consistent profitability. Despite today’s dip, shares of The RealReal are still up nearly 350% over the past year.