The RealReal targets medium-term adjusted EBITDA margin of 15%-20%
REAL•The RealReal targets medium-term adjusted EBITDA margins of 15%-20% and total leverage of $150 million. Its expected $150 million term loan refinancing is expected to reduce annual interest expense by about $4 million initially, with funding expected around October 19, 2026.
1. Refinancing and targets
The RealReal expects its $150 million senior secured term loan refinancing to reduce annual total interest expense by approximately $4 million initially. The loan initially bears interest at SOFR plus 5.75%, compared with 13% on the 2029 Notes, and extends secured debt maturity to October 2033. Medium-term targets include reducing total leverage to $150 million and expanding adjusted EBITDA margins to 15%-20%. Lower interest expense is expected to lift earnings per share on a run-rate basis, excluding one-time transaction costs. Funding is expected around October 19, 2026, and a new $25 million senior secured revolving credit facility is expected to remain undrawn at closing.
