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

Rent the Runway (NASDAQ:RENT) posted its quarterly earnings data on Wednesday. The company reported ($0.57) EPS for the quarter, FiscalAI reports. The business had revenue of $89.90 million during the quarter.

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

• Revenue surged nearly 30% year over year to $89.9 million in Q1, above guidance, as subscription revenue, higher average revenue per subscriber, and retail revenue all improved.
• Add-on demand remained very strong, with add-on revenue up 70% year over year and 11% sequentially, which management said reflects better inventory and stronger customer engagement.
• Management said subscriber growth slowed year over year versus prior quarters, but attributed the deceleration mainly to tougher comparisons from normalized marketing spend and last year’s promotional activity.
• The company highlighted several AI-driven discovery upgrades, including personalized carousels, improved imagery, and upcoming outfit generation, with early engagement metrics showing higher hearts and views.
• Rent the Runway reiterated full-year 2026 guidance for double-digit revenue growth, 4%-7% Adjusted EBITDA margin, and $45 million-$50 million of rental product acquired, while noting Q2 will be affected by Reserve declines and fuel surcharge uncertainty.

Rent the Runway Stock Performance

Shares of NASDAQ:RENT opened at $3.45 on Friday. The business’s fifty day moving average price is $4.57 and its two-hundred day moving average price is $5.79. The stock has a market cap of $115.30 million, a PE ratio of 0.53 and a beta of 1.17. Rent the Runway has a one year low of $3.35 and a one year high of $10.13.

Analysts Set New Price Targets

RENT has been the topic of several recent analyst reports. Weiss Ratings reiterated a “sell (d)” rating on shares of Rent the Runway in a research report on Friday, March 27th. Wall Street Zen cut Rent the Runway from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. One analyst has rated the stock with a Sell rating, According to MarketBeat.com, the stock has an average rating of “Sell”.

Institutional Investors Weigh In On Rent the Runway

Large investors have recently bought and sold shares of the stock. Marshall Wace LLP acquired a new stake in Rent the Runway during the 4th quarter valued at $84,000. Romano Brothers AND Company acquired a new stake in Rent the Runway during the 4th quarter valued at $87,000. Virtu Financial LLC purchased a new position in shares of Rent the Runway during the 4th quarter worth $88,000. Renaissance Technologies LLC purchased a new position in shares of Rent the Runway during the 4th quarter worth $89,000. Finally, OMERS ADMINISTRATION Corp purchased a new position in shares of Rent the Runway during the 4th quarter worth $92,000. Institutional investors and hedge funds own 73.10% of the company’s stock.

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.