Reformation (REF) Q3 2026 earnings summary

Executive summary

• Q3 net revenue rose 19.1% to $173.6M, marking 22 consecutive quarters of double-digit growth; growth spanned channels, categories, and geographies.

• Active customers increased 23.4% to 1.25M, with growth from new and returning customers.

• Adjusted EBITDA grew 64.2% to $23.1M from $14.1M; margin expanded 366 bps to 13.3% from 9.6%.

Financial highlights

• DTC revenue rose 16.7% to $152.8M; wholesale and other revenue rose 40.8% to $20.8M.

• Gross profit grew 24.3% to $104.9M; gross margin increased to 60.4% from 57.9%, up 252 bps, or 200 bps excluding tariff refunds.

• Operating expenses rose 31.3% to $97.5M, or 56.1% of revenue; operating income fell to $7.4M from $10.2M.

• Net loss was $1.1M, or $0.02 per share, versus net income of $5.0M, or $0.10 per diluted share; IPO-related stock compensation contributed to higher SG&A.

• SG&A rose 33.5% to $82.8M, including $10.5M of increased IPO-related stock compensation; selling and shipping expense rose $4.4M.

Outlook and guidance

• FY26 net revenue guidance rose to $610M–$612M, representing 20%–21% growth, from prior guidance of $602M–$606M.

• FY26 Adjusted EBITDA margin is expected at ~14.2%, the high end of prior guidance; stronger gross margin and sales leverage partly offset higher SG&A and shipping costs.

• FY26 gross margin is expected to expand on lower tariffs, AUR increases, and full-price selling; outlook excludes anticipated tariff refunds.

• FY26 capex is expected at $26M–$27M, with 16 planned store openings and 80 stores expected by year-end.

• Long-term growth algorithm remains mid-to-high teens; management expects gross margin expansion and cited a long-term target of 62%+.