Traders should monitor execution on AI-driven discovery and marketplace expansion in FY26; despite lower Adjusted EBITDA, the subscriber growth and margin expansion in Q4 suggest improving fundamentals. The stock may react positively to double-digit revenue growth guidance.
Price Chart
Executive Summary
Rent The Runway reported a strong Q4 and fiscal 2025, with revenue up 20% YoY to a record $91.7M and a 20.1% increase in active subscribers. The company swung to net income of $22.6M from a $69.9M loss in FY24, driven by a $96.3M gain on debt restructuring. Full-year revenue grew 7.7% to $329.8M, and management expects double-digit revenue growth in FY26.
Key Financial Metrics
Key Facts
- Q4 revenue: $91.7M, up 20.0% YoY from $76.4M
- FY25 revenue: $329.8M, up 7.7% YoY from $306.2M
- Active subscribers: 143,796 at end of FY25, up 20.1% YoY
- Net income: $22.6M in FY25 vs. $(69.9M) loss in FY24
- Adjusted EBITDA: $24.9M in FY25 vs. $46.9M in FY24
- Outlook: Double-digit revenue growth expected in FY26, Adjusted EBITDA margin of 4%–7%
Financial Impact
Revenue growth and subscriber gains signal improving demand; $96.3M gain on debt restructuring significantly boosted net income
Risk Factors
- Adjusted EBITDA declined from $46.9M to $24.9M despite revenue growth, raising sustainability concerns
- Free cash flow was negative $46.0M in FY25 due to heavy rental product investment
- Guidance includes non-GAAP metrics with no reconciliation, increasing uncertainty
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3273313 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | 8-K | $2.69 | awaiting T+1 | — | $2.70 (−0.37%) |
Oct 23, 2026 4d ago | Insider Cluster | $2.82 $2.70 | ▼ −4.26% | ▼ −4.82% | $2.70 (−4.26%) |
Oct 23, 2026 4d ago | SC 13D/A | $2.82 $2.70 | ▲ +4.26% | ▲ +4.82% | $2.70 (+4.26%) |
Oct 16, 2026 11d ago | SC 13D/A | $1.86 $2.02 | ▲ +8.60% | ▲ +8.27% | $2.70 (+45.16%) |
Oct 14, 2026 13d ago | 8-K | $1.81 $1.76 | ▼ −2.76% | ▼ −1.66% | $2.70 (+49.17%) |
Oct 1, 2026 26d ago | EFFECT | $1.65 $1.55 | ▲ +6.06% | ▲ +6.80% | $2.70 (−63.64%) |
Sep 30, 2026 27d ago | 8-K | $1.65 $1.65 | · 0.00% | ▲ +0.18% | $2.70 (−63.64%) |
Sep 28, 2026 29d ago | S-1/A | $1.61 $1.68 | ▼ −4.35% | ▼ −4.53% | $2.70 (−67.70%) |
Sep 18, 2026 5w ago | 144 | $1.86 $1.94 | ▲ +4.30% | ▲ +2.75% | $2.70 (+45.16%) |
Sep 15, 2026 6w ago | 8-K | $1.94 $1.93 | ▼ −0.52% | ▼ −1.65% | $2.70 (+39.18%) |
US Market Status
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