Rent the Runway posts record Q2 revenue on subscriber, add-on demand growth
Rent the Runway posts record Q2 revenue on subscriber, add-on demand growth
Overview
US fashion rental platform's fiscal Q2 revenue grew 21% yr/yr to all-time high
Adjusted EBITDA margin improved to 12.9% from 4.4% yr/yr, driven by gross margin expansion
Company named Paige Thomas CEO and Teri Bariquit board chair, reaffirmed FY26 guidance
Outlook
Rent the Runway sees Q3 revenue between $87 mln and $90 mln
Company expects Q3 adjusted EBITDA margin between negative 3% and negative 6%
Rent the Runway reaffirms FY26 double-digit revenue growth and adjusted EBITDA margin of 4%-7%
Result Drivers
GROSS MARGIN EXPANSION - Co said profit margin improvement was driven by a 609 basis point increase in gross margin and disciplined control of operating expenses
ADD-ON BUSINESS GROWTH - Co said add-on bookings rose 81% yr/yr, with higher subscriber engagement and more subscribers using add-ons
AI-POWERED OUTFITS - Co completed rollout of AI-powered outfits generation to all customers, aiming to improve discovery and engagement
Company press release: ID:nGNX4k17yb
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $97.70 mln |
|
Q2 Loss Per Share Attributable to Common Stockholders |
| $0.38 |
|
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)