Rent the Runway Reports Q2 Earnings with Revenue Growth and Improved Financials
Rent the Runway (RENT) reported second-quarter fiscal year 2026 results showing revenue of $97.7 million, a 20.8% increase from last year. The company improved its net loss to $(12.9) million compared to $(26.4) million in Q2 FY2025 and reported adjusted EBITDA of $12.6 million, up significantly from the prior year's $3.6 million. Gross margin expanded by 609 basis points due to lower fulfillment costs and better inventory management. Despite a decline in active subscribers (down 3.8% year over year), average active subscribers increased slightly by 1%. Subscription and reserve rental revenue grew 21%, driven by price increases and higher add-on bookings, while other revenue rose 18.8% due to strong resale performance. The company also announced a planned $15 million rights offering for liquidity support. Looking ahead, Rent the Runway provided Q3 guidance of $87–$90 million in revenue with adjusted EBITDA margins expected between -3% and -6%. For FY2026, it anticipates double-digit growth driven by product improvements. The company also announced a new CEO appointment effective September 14.
Topics: adjusted EBITDA financial performance net loss revenue subscriber metrics