Revolve Group (RVLV) Q4 2025 earnings summary

Executive summary

• Achieved double-digit net sales growth in Q4 2025, with net sales of $324.4 million, up 10% year-over-year, and strong performance across both REVOLVE and FWRD segments, as well as domestic and international markets.

• Net income increased 58% year-over-year in Q4 to $18.6 million, and 25% for the full year to $61.1 million; diluted EPS grew 53% in Q4 and 25% for the year.

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

• Active customers reached 2.84 million (+6% YoY) as of December 31, 2025, with total orders placed in Q4 at 2.45 million (+13% YoY).

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

Financial highlights

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

• Q4 gross margin: 53.3% (+78 bps YoY); full year gross margin: 53.5% (+100 bps YoY); gross profit Q4: $172.9 million (+12% YoY).

• Q4 net income: $18.6 million (+58% YoY); adjusted EBITDA: $26.3 million (+44% YoY); adjusted EBITDA margin expanded to 8.1%.

• Full year 2025 net income: $61.1 million (+25% YoY); adjusted EBITDA: $93.8 million (+35% YoY); free cash flow: $46.2 million (+157% YoY).

• Average order value Q4: $296 (-2% YoY), reflecting mix shift toward beauty; total orders placed in Q4: 2.45 million (+13% YoY).

Outlook and guidance

• Q1 2026 net sales up ~16% for first seven weeks; expect more difficult comps for remainder of quarter.

• 2026 gross margin guidance: 53.7%-54.2% (midpoint +45 bps YoY); Q1 2026 gross margin: 52.8%-53.3% (midpoint +105 bps YoY).

• Fulfillment costs expected at 3.2%-3.4% of net sales for 2026; selling and distribution at 17.1%-17.3%; marketing investment to rise to 15.3%-15.8% of net sales in 2026.

• G&A expense for 2026 expected at $161-$164 million (+4% YoY); effective tax rate 24%-26%.

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