Rent the Runway (NASDAQ:RENT) Posts Quarterly Earnings Results

Rent the Runway (NASDAQ:RENT) issued its quarterly earnings data on Friday. The company reported ($0.38) earnings per share for the quarter, FiscalAI reports. The firm had revenue of $97.70 million during the quarter.

Here are the key takeaways from Rent the Runway’s conference call:

• Record Q2 performance: Revenue reached $97.7 million, up 20.8% year over year, while adjusted EBITDA rose to $12.6 million from $3.6 million. Gross margin expanded 609 basis points to 36.1%, supported by lower product and fulfillment costs.
• Management reaffirmed its full-year 2026 outlook for double-digit revenue growth and adjusted EBITDA of 4%–7% of revenue, while expecting improved free cash flow versus 2025.
• Ending active subscribers fell 3.8% year over year to 140,826, reflecting higher pause activity and reduced promotional acquisition; management expects subscriber levels to be roughly flat in the second half. Q3 revenue is forecast at $87 million–$90 million, with adjusted EBITDA expected to be negative 3%–6% of revenue due to seasonality and higher product costs.
• The company is focusing resources on its core rental and resale businesses, pausing marketplace, on-site advertising monetization, and new B2B dry-cleaning partnerships. Resale revenue grew 18.8% year over year, and new discovery tools such as outfit generation and virtual try-on are showing encouraging engagement.
• Paige Thomas will become CEO and president on September 14, with interim CEO Teri Bariquit becoming non-executive chair. The company also plans a $15 million backstopped rights offering, alongside a recently added $10 million term loan, to strengthen liquidity and fund operations.

Rent the Runway Trading Down 13.1%

Shares of NASDAQ RENT opened at $2.45 on Friday. The firm’s 50-day moving average price is $3.46 and its 200-day moving average price is $4.09. The stock has a market capitalization of $82.30 million, a price-to-earnings ratio of 0.38 and a beta of 1.18. Rent the Runway has a 12-month low of $2.26 and a 12-month high of $10.13.

Insider Buying and Selling

In other Rent the Runway news, Director Dhiren Fonseca sold 34,516 shares of the business’s stock in a transaction that occurred on Friday, July 24th. The stock was sold at an average price of $2.99, for a total transaction of $103,202.84. Following the sale, the director directly owned 100,132 shares of the company’s stock, valued at $299,394.68. The trade was a 25.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 0.37% of the company’s stock.

Hedge Funds Weigh In On Rent the Runway

Large investors have recently modified their holdings of the stock. Geode Capital Management LLC lifted its position in Rent the Runway by 1,044.4% in the fourth quarter. Geode Capital Management LLC now owns 284,372 shares of the company’s stock worth $2,251,000 after buying an additional 259,522 shares during the last quarter. Technology Crossover Management VIII Ltd. purchased a new position in shares of Rent the Runway during the 2nd quarter worth about $622,065. Jane Street Group LLC purchased a new position in shares of Rent the Runway during the 4th quarter worth about $690,000. Quinn Opportunity Partners LLC bought a new position in Rent the Runway during the 3rd quarter valued at about $421,000. Finally, State Street Corp bought a new position in Rent the Runway during the 4th quarter valued at about $484,000. Institutional investors own 73.10% of the company’s stock.

Analysts Set New Price Targets

Separately, Weiss Ratings reissued a “sell (d)” rating on shares of Rent the Runway in a research note on Wednesday, June 24th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the stock has an average rating of “Sell”.

More Rent the Runway News

Here are the key news stories impacting Rent the Runway this week:

• Positive Sentiment: Revenue increased 20.8% year over year to a record $97.7 million, while gross margin expanded 609 basis points to 36.1%. Adjusted EBITDA rose to $12.6 million from $3.6 million, and the net loss narrowed to $12.9 million from $26.4 million. Rent the Runway Second Quarter 2026 Results
• Positive Sentiment: Management reaffirmed its fiscal 2026 outlook for double-digit revenue growth and a 4%-7% adjusted EBITDA margin. Add-on bookings increased 81% year over year, while the company said its AI-powered outfit-generation tools were fully rolled out. Rent the Runway Q2 Results and Leadership Changes
• Positive Sentiment: Paige Thomas, a former Nordstrom and Saks OFF 5TH executive, was named CEO and president. Her retail experience could support the company’s sharper focus on its core rental and resale businesses. Rent the Runway Names Paige Thomas CEO
• Neutral Sentiment: Teri Bariquit will become board chair after serving as interim CEO, creating a leadership transition that management expects to complete on September 14.
• Negative Sentiment: Third-quarter revenue is projected at only $87 million-$90 million, with an adjusted EBITDA margin of negative 3% to negative 6%, signaling a meaningful near-term slowdown after the second-quarter revenue record. Rent the Runway Q3 Outlook and Rights Offering
• Negative Sentiment: Ending active subscribers fell 3.8% year over year to 140,826, and cash declined to $29.0 million while the company continued to post negative operating cash flow. A reported $15 million rights offering highlights funding and dilution concerns. Rent the Runway Shares and Cash Needs

About Rent the Runway

Rent the Runway (NASDAQ: RENT) operates an online marketplace and subscription service that provides designer apparel and accessory rentals to consumers. The company offers both one-time rentals and tiered subscription plans, enabling members to borrow items on a recurring basis rather than purchasing them outright. Rent the Runway’s inventory spans a wide range of brands and styles, including evening gowns, everyday wear, handbags and jewelry, positioning the company within the broader sharing-economy and circular-fashion movements.

Founded in 2009 by Jennifer Hyman and Jennifer Fleiss, Rent the Runway was built on the premise of making high-end fashion more accessible and sustainable.