Rent the Runway Reports Record Q2 Revenue and Improved Profitability
Rent the Runway (NASDAQ:RENT) reported record second-quarter revenue of $97.7 million, a 20.8% year-over-year increase driven by higher average revenue per subscriber and increased add-on bookings. Adjusted EBITDA improved significantly to $12.6 million from $3.6 million in the same period last year, while gross margin expanded to 36.1%. Despite strong financial performance, active subscribers declined slightly due to an increase in subscription pauses and reduced promotions. The company paused several non-core initiatives such as its marketplace and advertising monetization efforts, focusing instead on core operations like rental and resale services. Rent the Runway also announced a $15 million rights offering and secured a $10 million term loan for additional funding. Leadership changes were confirmed with Paige Thomas set to become CEO effective September 14. Resale revenue grew by 18.8% year-over-year, signaling potential in this segment as demand increases. The company reaffirmed its fiscal 2026 guidance and expects flat or slightly higher third-quarter revenue compared to the prior year.
Topics: leadership_transition profitability_improvement revenue_growth subscriber_metrics