Rent the Runway (NASDAQ:RENT) Issues Earnings Results

Rent the Runway (NASDAQ:RENT) posted its earnings results on Friday. The company reported ($0.38) EPS for the quarter, FiscalAI reports. The business had revenue of $97.70 million for 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%

RENT opened at $2.45 on Friday. The firm has a market cap of $82.30 million, a price-to-earnings ratio of 0.19 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. The stock has a fifty day moving average price of $3.46 and a 200-day moving average price of $4.09.

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 equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, Rent the Runway currently has a consensus 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

Insiders Place Their Bets

In related news, Director Dhiren Fonseca sold 34,516 shares of the firm’s stock in a transaction dated 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 owned 100,132 shares of the company’s stock, valued at $299,394.68. This trade represents a 25.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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. 0.37% of the stock is currently owned by insiders.

Institutional Trading of Rent the Runway

Several hedge funds have recently modified their holdings of RENT. Marshall Wace LLP purchased a new stake in shares of Rent the Runway during the fourth quarter worth about $84,000. Virtu Financial LLC purchased a new position in shares of Rent the Runway in the fourth quarter worth $88,000. Renaissance Technologies LLC purchased a new position in Rent the Runway in the 4th quarter worth $89,000. OMERS ADMINISTRATION Corp purchased a new position in shares of Rent the Runway in the fourth quarter worth about $92,000. Finally, Millennium Management LLC acquired a new stake in Rent the Runway during the 4th quarter valued at approximately $117,000. 73.10% of the stock is owned by hedge funds and other institutional investors.

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.