Rent the Runway (RENT) investor relations material

Executive summary

• Revenue reached $97.7M in Q2 2026, up 20.8% year-over-year, marking an all-time high.

• Net loss narrowed to $(12.9)M, or (13.2)% of revenue, compared to $(26.4)M, or (32.6)% of revenue, in Q2 2025.

• Adjusted EBITDA improved to $12.6M (12.9% margin), up from $3.6M (4.4% margin) year-over-year.

• Paige Thomas appointed CEO and President in September 2026; Teri Bariquit named Chair of the Board.

• Launched AI-powered outfit generation, avatars, and virtual try-on tools to enhance customer engagement.

Financial highlights

• Gross profit increased 45.3% to $35.3M (36.1% margin), up from $24.3M (30.0%) year-over-year.

• Adjusted EBITDA reached $12.6M (12.9% of revenue), up from $3.6M (4.4%) in Q2 last year.

• Free cash flow for year-to-date 2026 improved to -$21.6M from -$32.9M in 2025.

• Cash and cash equivalents at $29.0M as of July 31, 2026.

• Fulfillment costs as a percentage of revenue declined to 24.1% from 27.8% last year.

Outlook and guidance

• Reaffirmed double-digit revenue growth and Adjusted EBITDA margin of 4%-7% for FY26.

• Q3 2026 revenue expected between $87M and $90M; Adjusted EBITDA margin between -3% and -6%.

• Rental product investment for FY26 now expected at $53-$55M, down from $74.9M in FY25.

• Expectation of continued revenue growth driven by higher subscription prices and focus on increasing Active Subscribers.

• Company expects sufficient liquidity for at least the next twelve months but will explore additional funding sources.