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

Rent the Runway (NASDAQ:RENT) released its earnings results on Friday. The company reported ($0.38) earnings per share (EPS) for the quarter, FiscalAI reports. The company 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 Stock Performance

NASDAQ:RENT traded up $0.14 during mid-day trading on Tuesday, hitting $2.07. The stock had a trading volume of 610,423 shares, compared to its average volume of 99,502. Rent the Runway has a twelve month low of $1.75 and a twelve month high of $10.13. The stock has a market cap of $69.52 million, a price-to-earnings ratio of 0.16 and a beta of 1.18. The company’s 50 day simple moving average is $3.43 and its 200 day simple moving average is $4.04.

Insider Activity at Rent the Runway

In related 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 transaction, the director directly owned 100,132 shares of the company’s stock, valued at approximately $299,394.68. The trade was a 25.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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.

Institutional Trading of Rent the Runway

An institutional investor recently raised its stake in Rent the Runway stock. Renaissance Technologies LLC increased its position in shares of Rent the Runway, Inc. (NASDAQ:RENT) by 133.7% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 26,170 shares of the company’s stock after purchasing an additional 14,970 shares during the quarter. Renaissance Technologies LLC owned 0.08% of Rent the Runway worth $125,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 73.10% of the company’s stock.

Analyst Ratings Changes

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

Rent the Runway Company Profile

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.