Revolve Group (RVLV) Q4 2025 earnings summary

Executive summary

• Achieved double-digit net sales growth in Q4 2025, with net sales of $324.4M, up 10% year-over-year, and full-year net sales of $1.23B, up 8% year-over-year, with strong performance across both REVOLVE and FWRD segments and geographies.

• Net income increased 58% year-over-year in Q4 to $18.6M and 25% for the full year to $61.1M; diluted EPS was $0.26 in Q4 (+53% YoY) and $0.86 for the year (+25% YoY).

• Adjusted EBITDA rose 44% year-over-year in Q4 to $26.3M and 35% for the full year to $93.8M, reflecting improved operational efficiency and margin expansion.

• Active customers grew 6% year-over-year to 2.84 million as of December 31, 2025, with total orders up 13% YoY in Q4.

• Strong cash flow generation, with $59.4M in operating cash flow and $46.2M in free cash flow for 2025, and total cash and equivalents at $303.2M at year-end, with no debt.

Financial highlights

• Q4 2025 net sales: $324.4M (+10% YoY); REVOLVE segment +10%, FWRD segment +14%.

• Q4 2025 gross margin: 53.3% (+78 bps YoY); full year gross margin: 53.5% (+100 bps YoY); gross profit up 12% YoY in Q4.

• Q4 adjusted EBITDA: $26.3M (+44% YoY); margin expanded to 8.1% (+188 bps YoY); full year adjusted EBITDA: $93.8M (+35% YoY).

• Q4 net income: $18.6M (+58% YoY); full year net income: $61.1M (+25% YoY).

• Free cash flow for FY 2025: $46.2M (+157% YoY); operating cash flow: $59.4M (+123% YoY); cash and equivalents: $303.2M at year-end.

Outlook and guidance

• Early 2026 net sales up ~16% YoY for the first seven weeks; Q1 2026 gross margin guidance: 52.8%-53.3%; full year 2026 gross margin: 53.7%-54.2%.

• FY 2026 guidance: fulfillment costs 3.2%-3.4% of net sales, selling/distribution 17.1%-17.3%, marketing 15.3%-15.8%, G&A $161M-$164M, effective tax rate 24%-26%.

• EBITDA margin goal is high single digits consistently, with long-term upside from gross margin expansion and G&A leverage.

• Guidance reflects macroeconomic headwinds, tariffs, inflation, supply chain, and FX volatility.

• Management highlighted ongoing margin expansion, operational efficiencies, and focus on marketing efficiency and inventory alignment.