Rent the Runway Q4 Revenue Hits $91.7M, Subscribers Up 20%
Rent the Runway closed FY25 with 143,796 active subscribers, up 20% year-over-year, driving a 20% revenue increase to a record $91.7 million in Q4. Subscription add-on sales jumped 67% in Q4, and Rent the Runway expects double-digit revenue growth in FY26 bolstered by AI search enhancements and inventory investments.
1. Q4 Financial Highlights
Rent the Runway reported Q4 revenue of $91.7 million, a 20% increase from Q4 2024, marking its highest quarterly revenue. Full-year revenue increased 20% year-over-year, and management projects double-digit revenue growth for FY26.
2. Subscriber Base Expansion
Active subscribers grew 20% to 143,796 at fiscal year-end, driven by the company’s largest-ever inventory investment, which improved product availability and boosted subscriber loyalty.
3. Add-On Sales and Customer Satisfaction
Subscription add-on revenue surged 67% in Q4, up from 40% growth in Q3, reflecting stronger cross-sell execution. Subscription Net Promoter Score climbed 39% year-over-year, more than tripling since 2022.
4. Strategic Initiatives for FY26
In March 2026, Rent the Runway piloted a curated marketplace for wardrobe purchases to a subset of loyal subscribers. A new AI-driven search algorithm launched in February 2026 improved subscription conversion by 10%, and the company plans AI-powered discovery enhancements alongside community-led marketing to drive FY26 growth.