Rent the Runway delivered record Q4 2025 revenue of $91.7M, up 20% YoY, with EPS improving to $(0.04) as net loss narrowed sharply and full-year flipped to $22.6M net income, aided by a major debt restructuring gain. The stock recently traded around $5.8 with a market cap near $190M, with after-hours movement around the print still normalizing.
About Rent the Runway, Inc.
Rent the Runway, Inc. (NASDAQ: RENT) is a fashion rental and resale platform that lets customers subscribe, rent a‑la‑carte, and shop resale from hundreds of designer brands through its “Closet in the Cloud” model. Founded in 2009 and headquartered in New York, NY, the company focuses on women’s apparel and accessories across occasion wear, workwear, casual, maternity, outerwear, activewear, and more.
Under co‑founder and CEO Jennifer Hyman, Rent the Runway has been featured on CNBC’s Disruptor 50 list multiple times and Fast Company’s Most Innovative Companies list, reflecting its technology‑driven logistics and data platform for fashion discovery. As of mid‑April 2026, Rent the Runway’s stock trades near $5.8 per share with an implied market cap around $190M and a negative trailing P/E given its historical net losses, though FY2025 reported a GAAP profit due to a one‑time debt restructuring gain. The company held $50.4M in cash and cash equivalents at January 31, 2026.
Top Financial Highlights
- Q4 2025 revenue was $91.7M, up 20.0% YoY from $76.4M, the highest quarterly revenue in company history.
- Full‑year FY2025 revenue was $329.8M, up 7.7% from $306.2M in FY2024.
- Q4 2025 gross profit was $35.4M, with gross margin of 38.6% vs 37.7% a year ago.
- FY2025 gross profit was $107.5M, with gross margin compressing to 32.6% from 37.9% in FY2024 due to heavier inventory investment.
- Q4 2025 net income (loss) was $(1.4M), an improvement from $(13.4M) in Q4 2024; net margin improved from (17.5)% to (1.5)%.
- FY2025 net income was $22.6M, compared with $(69.9M) in FY2024, driven by a $96.3M gain on debt restructuring; underlying operating loss remained $(57.5M).
- Q4 2025 EPS was about $(0.04) basic and diluted, versus $(3.27) in the prior‑year quarter.
- FY2025 basic EPS was $1.89 and diluted $1.88, versus $(17.62) in FY2024, reflecting the recapitalization and higher share count.
- Q4 2025 Adjusted EBITDA was $18.3M (margin 20.0%) vs $17.4M (22.8%) a year earlier.
- FY2025 Adjusted EBITDA was $24.9M (margin 7.6%) vs $46.9M (15.3%) in FY2024, reflecting margin pressure from inventory and costs.
- FY2025 net cash provided by operating activities was $3.5M, down from $12.9M in FY2024.
- FY2025 free cash flow was $(46.0M), significantly weaker than $(7.2M) in FY2024, largely due to $75.9M in purchases of rental product.
- Cash and cash equivalents at year‑end were $50.4M, with total cash and restricted cash of $59.1M.
- Ending active subscribers at FY2025 year‑end were 143,796, up 20.1% YoY, with average active subscribers of 146,356 in Q4, up 16.0% YoY.
- For FY2026, management guides to double‑digit revenue growth, Adjusted EBITDA margin of 4-7%, and rental product acquired of $45–50M vs $74.9M in FY2025.
Beat or Miss?
| Metric | Reported | Difference / Analysis |
| Revenue Q4 2025 | $91.7M | Versus consensus $76.6M; ~20% beat and 20% YoY growth. |
| EPS Q4 2025 (GAAP) | $(0.04) | Materially better than consensus loss of about $(5.31); narrower loss per share. |
| FY2025 Revenue | $329.8M | Up 7.7% YoY; roughly in line to modestly ahead of prior expectations. |
| FY2025 Net Income | $22.6M | Swing from $(69.9M) loss, driven by $96.3M debt restructuring gain. |
| FY2025 Adjusted EBITDA | $24.9M | Down from $46.9M, indicating underlying margin compression. |
| Q1 FY2026 Revenue Guidance | $85–87M | Implies continued double‑digit growth vs Q1 prior year; no explicit consensus cited. |
| FY2026 EBITDA Margin Guide | 4–7% | Below FY2025’s 7.6% as company moderates inventory and invests in growth. |
What Leadership Is Saying?
“Last year, we made a calculated bet that increasing our inventory investment was the strongest lever to unlock growth. Today, that strategy has paid off, demonstrated by the significant growth in our subscribers in FY25. Having also strengthened our balance sheet through a strategic recapitalization, I believe that we are operating from our strongest financial position in years. As we enter fiscal year 2026, we plan to continue to evolve, revolutionizing the customer experience by leveraging AI technologies and diversifying our revenue through new streams like our online marketplace and B2B services. We are laser‑focused on building a durable, multi‑faceted platform that defines the future of fashion.” – Jennifer Hyman, Co‑Founder and CEO.
“FY25 was a pivotal year for Rent the Runway with transformational changes in both our balance sheet and customer experience. We look forward to continuing to delight our customers and to driving sustainable growth in the years ahead.” – Sid Thacker, Chief Financial Officer.
Competitors (YoY, Latest Reported Quarter)
To contextualize Rent the Runway’s FY2025/Q4 performance, the table compares it with Stitch Fix (SFIX), another apparel subscription and styling platform, on latest reported quarterly numbers.
| Category | Rent the Runway Q4 2025 | Rent the Runway Q4 2024 | Change (%) | Stitch Fix Q4 CY2025 | Stitch Fix Q4 CY2024 | Change (%) |
| Revenue | $91.7M | $76.4M | 20.00% | $341.3M | ~$312M | ~+9–10% |
| Net Income (GAAP) | $(1.4M) | $(13.4M) | Loss sharply lower | $(0.02) EPS | Roughly more negative EPS | Improved but still negative |
| Operating Expenses** | Higher YoY | Lower base | Up with growth | Lower SG&A vs prior FY | Higher prior year | Reduced SG&A by >$120M |
How the Market Reacted?
Ahead of and around the April 14, 2026 earnings release, Rent the Runway shares were trading in the mid‑$5 range, with recent prices near $5.8 and daily highs around $5.9–6.0. Options data show historical one‑day post‑earnings moves can be high‑teens % in either direction, underlining elevated volatility around earnings events. While precise intraday reaction to this specific report is still forming as trading continues, the combination of a strong top‑line beat, subscriber growth, and a cleaner balance sheet but weaker free cash flow suggests a mixed‑to‑cautiously bullish sentiment skew among investors.
