What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-02-26 compared with 2025-02-21 · 25 added, 39 removed, 151 unchanged (30% of the section changed)

1 unchanged sentence

We are revolutionizing luxury resale by providing an end-to-end service that unlocks supply and creates a trusted, curated online marketplace for buyers globally.

Since our inception, we have cultivated a loyal and engaged consignor and buyer base through continuous investment in our technology platform, logistics infrastructure and people.

Since our inception, we have cultivated a loyal and engaged consignor and buyer base through continuous investment in our technology platform, logistics infrastructure, brand and people.

We offer a wide selection of authenticated, primarily pre-owned luxury goods on our online marketplace bearing the brands of thousands of luxury and premium designers.

The top-selling luxury designers on our online marketplace include Cartier, Chanel, Christian Dior, Gucci, Hermès, Louis Vuitton, Prada, Rolex, Yves Saint Laurent, Tiffany & Co.

and Van Cleef & Arpels.

The top-selling luxury designers on our online marketplace include Cartier, Chanel, Christian Dior, Gucci, Hermès, Louis Vuitton, Prada, Rolex, Saint Laurent, Tiffany & Co., Van Cleef & Arpels and Bvlgari.

We offer products across multiple categories including women’s fashion, men’s fashion, jewelry and watches.

We have built a vibrant online marketplace that we believe expands the overall luxury market, promotes the recirculation of luxury goods and contributes to a more sustainable world.

The Company executes against three strategic pillars that amplify one another to drive sustainable, profitable growth.

The three components are:

unlocking supply through our growth playbook, driving operational efficiency aided by technology, automation, and proprietary data and obsessing over service for buyers and consignors.

A strong network effect drives the growth of our online marketplace.

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These smaller footprint neighborhood stores are located in areas we have identified as having a large amount of potential customers.

In addition, we operate several larger footprint flagship stores in Los Angeles, California and New York, New York.

Our flagship stores are typically 8,000 to 10,000 square feet with thousands of unique items for sale and are located in highly desirable, densely populated locations with strong foot traffic.

The existing luxury resale market is outdated, fragmented, difficult to access and laden with counterfeit goods.

These stores attract new customers and provide an in person consignment experience for our consignors.

In addition, we operate several larger footprint flagship stores in San Francisco, California, Los Angeles, California and New York, New York.

Our flagship stores are typically 8,000 to 10,000

square feet with thousands of unique items for sale and are located in highly desirable, densely populated locations with strong foot traffic.

The existing luxury resale market is fragmented, difficult to access and laden with counterfeit goods.

Primarily due to these challenges, a vast quantity of consignable luxury goods languishes in homes, and buyers can be hesitant to purchase pre-owned luxury goods.

1 unchanged sentence

• We provide a seamless consignment experience enabled by our proprietary technology platform and data.

We leverage our proprietary technology and data analytics to provide world-class service, making consignment easy, convenient, reliable and fast.

Our sales team, enabled by our proprietary technology and data analytics, provides world-class service, making consignment easy, convenient, reliable and fast.

As a result, we unlock luxury supply from first-time consignors, convert consignors who typically consign at local brick-and-mortar shops to our online marketplace and drive high repeat consignment rates.

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• We generate high commissions for consignors.

Our scale and broad reach combined with our technology-driven online marketplace and proprietary data enable consignors to realize optimal value for their pre-owned luxury goods.

In November 2022, we launched a pricing tool for our consignors that provides transparency and detail on commission rates for specific categories and other aspects of the take

rate structure.

Our scale and broad reach combined with our technology-driven online marketplace and proprietary data enable consignors to realize optimal value for

their pre-owned luxury goods.

Our consignors can earn up to 90% of the proceeds from the sale of their consigned items in commissions and achieved an overall commission rate of approximately 62% in 2025.

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Sell-through ratio is defined as GMV in the measurement period divided by the aggregate initial value of items added to our online marketplace in that period.

Our online marketplace sell-through ratio in 2024 was approximately 85%.

Our online marketplace sell-through ratio in 2025 was over 80%.

We make it easy for buyers to shop our vast, yet curated selection of authenticated, primarily pre-owned luxury goods.

In 2024, we had approximately 1 million active buyers and approximately 88% of our GMV came from repeat buyers.

In 2025, we had over 1 million active buyers and over 80% of our GMV came from repeat buyers.

As we continue to unlock exclusive luxury supply, we aim to attract new buyers and drive repeat purchases from our existing buyers.

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This process includes, among other things, inspecting the item for attributes such as appropriate brand markings, date codes, serial tags and hologram stickers.

We use proprietary artificial intelligence ("AI") microphotography to assist in authenticating multiple categories, including high-end handbags.

We use proprietary artificial intelligence ("AI") to assist in identifying and authenticating multiple categories.

For instance, we use AI and microphotography to assist in authenticating high-end handbags.

Our gemologists and horologists inspect and authenticate fine jewelry and watches, and each piece we sell comes with an authentication certificate.

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Our powerful AI and data analytics capabilities enable us to improve both consignor and buyer experiences.

Our online marketplace generates and aggregates hundreds of millions of unique data points, including data from approximately 44.5 million item sales since our inception.

Our online marketplace generates and aggregates hundreds of millions of unique data points, including data from over 50 million item sales since our inception.

Each consigned item also has up to 50 unique attributes.

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We rely on trademark, copyright, trade secrets, patents, patent applications, confidentiality agreements and other practices to protect our brands, proprietary information, technologies and processes.

We primarily rely on copyright and trade secret laws to protect our proprietary technologies and processes, including the algorithms we use throughout our business.

We rely on copyright, patent, and trade secret laws to protect our proprietary technologies and processes, including the algorithms we use throughout our business.

Our principal trademark assets include the registered trademark “The RealReal” and our logos and taglines.

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We also hold the rights to the “therealreal.com” Internet domain name and various related domain names, which are subject to Internet regulatory bodies and trademark and other related laws of each applicable jurisdiction.

We continually review our development efforts to assess the existence and patentability of new intellectual property and intend to pursue patent protection to the extent we believe it would be beneficial and cost-effective.

We continually review our development efforts to assess the existence and patentability of new intellectual property and pursue patent protection to the extent we believe it is beneficial and cost-effective.

We control access to and use of our intellectual property through confidentiality procedures, non-disclosure agreements with third parties and our employment and contractor agreements.

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The Sustainability Task Force, through several individual working groups, has concentrated its efforts on specific, meaningful topics, including preferred materials, transportation optimization, employee travel, employee experience, reducing energy expenditures, limiting use of packaging materials, and waste.

In 2024, the Sustainability Task Force was reorganized to expand its capabilities and increase its membership, and focused on projects related to packaging, employee engagement, and energy efficiency at our authentication centers.

In 2025, the Sustainability Task Force continued to focus on projects related to packaging, employee engagement, and energy efficiency at our authentication centers.

Human Capital Resources

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We consider our relations with our employees to be positive.

We work to inspire and empower our employees to think creatively and authentically, share their ideas, bring their whole selves to work, and strive for greatness every day.

We are committed to providing an equal employment opportunity regardless of race, color, ancestry, religion, sex, national origin, sexual orientation, age, citizenship, marital status, disability, gender identity or expression, or veteran status.

We believe that creating a more sustainable future by growing the circular economy requires us to bring different perspectives together.

We believe that a more sustainable future is an equitable one, and that growing the circular economy requires us to unlock the power of differences and solve problems together in new and meaningful ways.

We are committed to building a strong culture of trust, safety, collaboration, and belonging to fuel our purpose, people and performance.

In 2024, we conducted our annual employee engagement survey to better understand employees’ sentiment across a range of topics and factors;

management, teamwork, inclusion, and alignment, were among our top scoring factors.

In 2024, our engagement efforts focused on well-being, leadership, communication, and inclusion.

As part of our work to build a culture of trust, we encourage employees to share real-time feedback on culture, bias, discrimination and harassment, or behavior that does not reflect our values and policies through our company-wide employee reporting tool.

The RealReal, Inc.

Foundation was founded at the time of our initial public offering in 2019 with the aim of advancing equity in the communities in which we operate through access to education.

Since its formation, the foundation has provided annual college scholarships and supported numerous community organizations, including the Success Bound Youth Leadership Academy, the Secaucus Youth Alliance, Enterprise for Youth, Friendly House, Education Forward Arizona and the Virgil Abloh™ "Post-Modern" Scholarship Fund, which aims to preserve his vision for a more diverse and equitable fashion industry.

We conduct annual employee engagement surveys to better understand employees’ sentiment across a range of topics.

Talent Development and Training

1 unchanged sentence

We offer a variety of employee training programs, including training specific to business functions, enabling us to provide our consignors and buyers with a consistent luxury experience.

For example, we support our sales professionals by providing a three-week virtual onboarding sequence conducted through peer-to-peer, facilitated and self-learning sessions, followed by continuous professional development programs .

Our authentication teams receive training based on expertise level.

Entry-level authenticators receive approximately 40 to 80 hours of training depending on their specialty in fashion or fine jewelry.

Progression through the authentication training program is an additional minimum of 80 hours of training and at least three months per level.

Training hours and tenure increase with expertise, with a Graduate Gemologist certification from GIA required in the highest levels of specialty in fine jewelry.

Each employee receives training appropriate to the scope and nature of their role.

Our Fair Labor Standards Act-exempt employees receive an annual performance review and our people managers have quarterly meetings with their employees to address performance and development, as appropriate.

As a part of our onboarding program, we have developed an engagement monitoring plan for our employees in the form of personal check-ins and questionnaires.

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We recognize that in addition to minimizing work-related injuries and illness, a safe and healthy work environment supports employee retention and morale and enhances the quality of products and services.

We treat all applicable health and safety regulations as a minimum standard as we are committed to high standards for our working environments that protect the well-being of all employees.

We treat applicable health and safety regulations as a minimum standard as we are committed to high standards for our working environments that protect the well-being of all employees.

We encourage consultation and cooperation between management and employees in developing occupational health and safety mechanisms through ongoing dialogue.

We expect senior management to integrate health and safety mechanisms in business activities and monitor the program’s effectiveness.

In 2022, we implemented the REAL Respect program, which provides community guidelines for our employees, consignors and buyers aimed toward creating a positive and safe experience for all.

In 2023, we launched TRR Secure, a smartphone security application that enables field employees to discreetly contact emergency services via multiple channels if they are in a situation that makes them feel uneasy, unsafe or uncomfortable.

We continued to focus on employees’ overall well-being in 2025 through a range of programs that support access to care, along with resources and tools to address the following pillars of wellness:

4 unchanged sentences

You may access our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other reports (and amendments and exhibits thereto) filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act with the Securities and Exchange Commission (“SEC”), as well as proxy statements filed by us, free of charge on our website at www.therealreal.com, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the SEC.

Information contained on, or that can be accessed through, our website is not incorporated by reference into this or any other report we file with, or furnish to, the SEC , and you should not consider information on our website to be part of this or any other report we file with, or furnish to, the SEC .

this or any other report we file with, or furnish to, the SEC .

Such periodic reports, proxy statements and other information are also available at the SEC’s website at http://www.sec.gov.

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business