Rent the Runway Earnings Call Transcripts
Fiscal Year 2027
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Q1 2026 saw nearly 30% revenue growth, strong Add-On and retail performance, and improved Adjusted EBITDA, despite lower free cash flow. Leadership transitions and AI-driven initiatives support new revenue streams, with double-digit growth guidance reiterated for FY 2026.
Fiscal Year 2026
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The meeting covered 12 proposals, including director elections, auditor ratification, and multiple charter amendments, all of which were approved. No questions were raised during the Q&A session. Final certified voting results will be filed with the SEC.
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Active subscribers grew 20% year-over-year, revenue rose 20% in Q4, and debt was reduced by over 60%. Major inventory investments drove growth, but free cash flow declined due to front-loaded spending. Double-digit revenue growth and improved cash flow are expected in 2026.
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Q3 2025 saw 15.4% revenue growth and a 12% increase in active subscribers, driven by inventory investment, price increases, and enhanced customer experience. Recapitalization reduced debt and added new capital, while guidance calls for continued double-digit subscriber growth.
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Q2 2025 saw accelerated subscriber growth, improved customer experience, and a major recapitalization plan to reduce debt and inject new capital. Revenue rose 2.5% year-over-year, but gross margin and free cash flow declined due to higher costs and investments.
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Q1 2025 saw record subscriber growth and the strongest retention in four years, despite a 7.2% YoY revenue decline and lower margins due to higher inventory investment and promotional spend. The company maintains double-digit subscriber growth guidance for 2025.
Fiscal Year 2025
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Marked by record-low cash consumption and improved profitability, FY24 set the stage for a bold inventory investment in FY25, aiming to double new units and drive subscriber growth. Guidance anticipates higher cash use but expects double-digit subscriber gains and continued innovation.
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Q3 revenue grew 4.7% year-over-year to $75.9 million, with strong gains in Reserve and resale segments. Adjusted EBITDA margin improved to 12.3%, and free cash flow showed significant progress toward break-even. Full-year guidance for revenue growth, adjusted EBITDA, and free cash flow break-even was reiterated.
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Q2 2024 revenue and adjusted EBITDA exceeded guidance, driven by strong Reserve and Resale growth, improved cost structure, and major tech upgrades. Full-year revenue guidance was raised, with free cash flow breakeven reiterated for 2024.
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Q1 2024 saw revenue reach $75M and adjusted EBITDA hit $6.5M, with record active subscribers and a sharp reduction in cash burn. Guidance for free cash flow breakeven and revenue growth is reiterated, supported by strong marketing, improved inventory, and a capital-light model.
Fiscal Year 2024
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Designer clothing rental platform expects free cash flow breakeven in 2024, driven by a capital-light inventory model, cost reductions, and improved customer experience. Growth strategies include enhanced marketing, deeper inventory, and physical store engagement, with a strong outlook for scalable expansion.