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Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>4Q results in line with pre-announcement. REAL delivered $504 million in gross merchandise volume (GMV), $164 million in revenue, $11 million in adjusted EBITDA, and for the first time in its history, generated positive FCF of ~$800k for the full year.</li><li>More importantly, the company restructured its debt, which extended maturities.</li><li>REAL expects HSD-LDD growth in the mid-term. For 2025, the company guided to GMV of $1.96-1.99 billion, up 7-9% Y/Y (versus the Street at $1.96 billion), revenue of $645-660 million, up 7-10% Y/Y (versus the Street at <span style="font-size: var(--content-font-size);">$655 million), and EBITDA of $20-30 million.</span></li></ul>

4Q results in line with pre-announcement. REAL delivered $504 million in gross merchandise volume (GMV), $164 million in revenue, $11 million in adjusted EBITDA, and for the first time in its history, generated positive FCF of ~$800k for the full year.More importantly, the company restructured its debt, which extended maturities.REAL expects HSD-LDD growth in the mid-term. For 2025, the company guided to GMV of $1.96-1.99 billion, up 7-9% Y/Y (versus the Street at $1.96 billion), revenue of $645-660 million, up 7-10% Y/Y (versus the Street at $655 million), and EBITDA of $20-30 million.

The RealReal, Inc - Expect Profitable HSD-LDD Top-Line Growth to Continue

RealReal Inc

The RealReal, Inc - Expect Profitable HSD-LDD Top-Line Growth to Continue