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This is part 2 of our two-part quick Q3’25 earnings update. Stay tuned for next week when we’ll share our most recent IPO notes on a company going public next week that we think potentially smells.
Below, we’re sharing our notes on names that we hold and cover to provide an update on how we’ve interpreted recent earnings releases. Looking at the below, we’ll talk about these names in that order, should you want to jump around and only focus on certain stocks.
Quick Brief
The RealReal (REAL) → Impressive Q3’25 earnings that shows what we originally outlined. Operational leverage + strong tailwinds resulted in a ~+38% move on Tuesday.
KITS Eyewear (KITS.TSE) → Another name that’s had a tough drawdown since pre-announcing and was once again reassured with earnings. Why we think it’s a screaming buy.
SANUWAVE Health (SNWV) → Recent drawdown from their pre-announcement has been brutal, but with Q3 earnings completed, the +17% move proves our understanding of the company and its future potential.
LENSAR (LNSR) → Arb trade update, which puts into question the confidence of a deal close and the deal-break price.
With that, let’s begin.
The RealReal (REAL)
If you’ve been following our work, then you know how adamant we were on REAL back in April when we first posted our work, and then the subsequent follow-up in May after they reported Q1’15 earnings that led to a 35% reversal to end where we originally started.
We know it can be difficult for investors to hold something that doesn’t want to move or acts irrationally, despite the amount of work you put in or how well you know the company. For us, investing in REAL turned out to be one of those situations, but we had conviction in our trade and in the company.
Since then, we’re proud to say that REAL, as of Tuesday, has crossed the 3x mark since we first posted about it! Congrats to anyone and everyone who read our report and went along for the ride. In an effort to showcase our work for those who didn’t get a chance to read, we’ve gone ahead and removed the paywall on our original post.
That will give you context on the trade, what the market got wrong, and why we had conviction to go long an online luxury retailer when everyone else was drowning from Liberation Day.
Aside from the quick victory lap, Q3’25 earnings really showed investors why the company was, and continues to be, the one to bet on in the luxury space.
Let’s dive into our notes from the quarter and why we’re still very optimistic.
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