Rati Sahi Levesque joined luxury resale marketplace The RealReal as its first employee in 2011. Fifteen years later, she leads a business that generated nearly $693 million in revenue in 2025. Along the way, she has learnt that leading a company is not just about making the right decisions, but also recognising when those decisions need to change.
In an interview with CNBC Make It, Levesque, who became CEO in October 2024, shared a key lesson from her 15 years at the company, emphasising the importance of being open to the possibility of being wrong.
“One of the biggest lessons I’ve learned is not to get too attached to being right,” she said, reflecting on her experience at the company.
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Why The RealReal had to rethink its strategy
The RealReal's journey has not been without setbacks. Like many start-ups, the company initially prioritised rapid growth and customer acquisition. However, the Covid-19 pandemic exposed the challenges of that approach, forcing its leadership to reconsider how the business operated.
In an interview with ELLE in 2024, Levesque spoke about the company's earlier missteps, including opening large flagship stores that proved expensive to operate. The business eventually moved towards smaller neighbourhood stores that required less capital.
{{/usCountry}}In an interview with ELLE in 2024, Levesque spoke about the company's earlier missteps, including opening large flagship stores that proved expensive to operate. The business eventually moved towards smaller neighbourhood stores that required less capital.
{{/usCountry}}The company also had to return its focus to its core consignment model after experimenting with buying inventory during the pandemic, when collecting goods directly from customers became difficult.
These experiences offered a practical lesson in leadership: a decision that appears right at one point may not remain the best option as circumstances change.
The leadership lesson behind its turnaround
The RealReal's subsequent financial performance offers a measure of how far the business has come. According to its 2025 financial results, the company reported revenue of $692.8 million, a 15% increase from 2024. It also recorded positive adjusted EBITDA in every quarter of 2025 for the first time.
The results followed a period of changes aimed at improving efficiency and making growth more sustainable.
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For Levesque, however, the lesson extends beyond financial performance. Leaders must be able to acknowledge when something is not working, take responsibility and consider a different approach instead of defending an earlier decision simply because it was their own.
Her advice is particularly relevant in workplaces where admitting mistakes can feel uncomfortable. Being open to feedback and willing to change course can help leaders make better decisions over time.