Rent the Runway (RENT) Q4 2026 earnings summary

Executive summary

• Q4 2025 revenue reached $91.7M, up 20% year-over-year, with active subscribers growing 20.1% to 143,796 and total subscribers up 11.9% to 183,552.

• FY2025 revenue was $329.8M, up 7.7% year-over-year, with net income of $22.6M (6.9% margin) including a $96.3M gain on debt restructuring.

• Customer engagement and satisfaction surged, with Net Promoter Score up 39% year-over-year and app visits per subscriber up nearly 50%.

• Major inventory investment in FY25 drove subscriber growth and loyalty, supported by new marketplace, B2B dry cleaning, and expanded advertising partnerships.

• Strategic recapitalization reduced total debt and brought in new equity-focused investors.

Financial highlights

• Q4 2025 gross profit was $35.4M (38.6% margin), adjusted EBITDA $18.3M (20.0% margin), and net loss $(1.4)M (-1.5% margin).

• FY2025 gross profit was $107.5M (32.6% margin), adjusted EBITDA $24.9M (7.6% margin), and net income $22.6M (6.9% margin).

• Free cash flow for FY2025 was $(46.0)M, down from $(7.2)M in FY2024, due to front-loaded inventory investments.

• Gross margin improved to 38.6% in Q4 2025 from 37.7% in Q4 2024, but FY25 gross margin declined to 32.6% from 37.9% in FY24.

• Cash and cash equivalents at year-end were $50.4M, down from $77.4M prior year.

Outlook and guidance

• Q1 2026 revenue expected between $85M and $87M, with adjusted EBITDA margin of -5% to -7%.

• FY2026 guidance calls for double-digit revenue growth and adjusted EBITDA margin of 4–7%, with $45M–$50M in rental product acquired.

• Rental Product Acquired expected to decline to $45–50M in 2026 from $74.9M in 2025.