Rent the Runway posts record Q2 revenue on subscriber, add-on demand growth
RENT•Outlook for Q3 and FY26
- Rent the Runway sees Q3 revenue between $87 mln and $90 mln.
- The company expects Q3 adjusted EBITDA margin between negative 3% and negative 6%.
- Rent the Runway reaffirmed FY26 double-digit revenue growth and adjusted EBITDA margin of 4% to 7%.
Drivers behind the quarter
- Gross margin expansion - The company said profit margin improvement was driven by a 609 basis point increase in gross margin and disciplined control of operating expenses.
- Add-on business growth - Add-on bookings rose 81% year over year, with higher subscriber engagement and more subscribers using add-ons.
- AI-powered outfits - The company completed rollout of AI-powered outfits generation to all customers, aiming to improve discovery and engagement.
Q2 revenue hits record as margins improve
- US fashion rental platform's fiscal Q2 revenue grew 21% year over year to an all-time high.
- Adjusted EBITDA margin improved to 12.9% from 4.4% a year earlier, driven by gross margin expansion.
- The company named Paige Thomas CEO and Teri Bariquit board chair, and reaffirmed FY26 guidance.
Key details
