What were the key takeaways from Rent the Runway’s earnings call?

What is Rent the Runway's latest dividend and current dividend yield?

Did Rent the Runway beat or miss consensus estimates last quarter?

What guidance did Rent the Runway's management provide for the next earnings period?

What were the key takeaways from Rent the Runway's earnings call?

What is the revenue and EPS growth rate for Rent the Runway year over year?

What does Rent the Runway do and what are its main business segments?

What is the market's earnings forecast for Rent the Runway next quarter?

- **Debt Restructuring Success**: Total debt reduced to $120 million, extending maturity to 2029 and securing new private equity backing.
- **Revenue Acceleration**: Q4 2025 revenue growth projected at 11%-14% YoY, driven by 12.4% YoY subscriber growth and 15.4% Q3 revenue surge.
- **Customer Loyalty Surge**: NPS up 43% YoY, with 34% higher app engagement and 15% more hearts per subscriber, despite price hikes.
- **Financial Outlook**: FY2025 revenue to reach $323.1-$325.1 million, with EBITDA margin 4.9%-5.5%, reflecting inventory investment trade-offs.
- **Community-Driven Growth**: Organic initiatives like the City Ambassador program (2,700 reviews in 2 months) and Muse content (10M impressions) are driving efficient customer acquisition.

**【CEO Summary Section】**
- **Strategic Recapitalization**: Reduced total debt from $319 million to $120 million, extended maturity to 2029, and secured new capital from private equity firms Nexus and STORY3.
- **Revenue Growth**: Q4 2025 revenue expected to grow 11%-14% YoY, up from 1% YoY in Q4 2024. Q3 ending active subscribers grew 12.4% YoY.
- **Customer Engagement**: Q3 subscription Net Promoter Score (NPS) up 43% YoY; average monthly app visits per subscriber increased 34% YoY to over 20x/month. Hearts per subscriber rose 15% YoY.
- **Inventory Strategy**: Inventory-related cancellations down nearly 30% YoY in Q3. Rolled out features like personalized homepage redesign (57% engagement boost), RTR 101 onboarding, and one-off shipments for immediate access.
- **Organic Growth**: Shift to community-driven marketing with Muse program (10M impressions Q3) and City Ambassador program (2,700 reviews in 2 months). Referral rates from ambassadors exceed regular subscribers.

**【CFO Financial Commentary】**
- **Q3 Financials**: Total revenue $87.6 million (+15.4% YoY). Subscription & reserve revenue up 16.1% YoY. Adjusted EBITDA $4.3 million (4.9% of revenue vs. 12.3% YoY prior). Free cash flow negative $13.6 million (vs. -$3.4M YoY).
- **Gross Margins**: 29.6% in Q3 (vs. 34.7% YoY) due to higher inventory share costs. Operating expenses 45.2% of revenue (vs. 48.7% YoY).
- **FY2025 Guidance**: Revenue $323.1-$325.1 million (+18.5%-19.5% YoY). Adjusted EBITDA margin 4.9%-5.5%. Free cash flow expected below -$40 million due to inventory investments.
- **Recapitalization Impact**: Reduced debt burden, extended runway, and board expertise to support growth.


Rent the Runway, Inc.(RENT)-20251212-2026 Q3 Earnings call transcript

- **Debt Restructuring Success**: $340M debt reduced to $120M, extending maturity to 2029 with fresh capital for growth.
- **Subscriber Surge**: 13.4% YoY growth in active subscribers, retention rates improving, and 14% price increase absorbed smoothly.
- **Inventory Payoff**: 220% new styles YoY, 56 new brands, and 84% increase in style views driving engagement and NPS to 3-year high.
- **Financial Challenges**: Gross margin drops to 30%, EBITDA down 75%, and free cash flow negative $26.5M, but FY2025 subscriber growth expected to accelerate.

**【CEO Summary Section】**
- **Recapitalization Plan**: Debt reduced from $340M to $120M, with new capital infusion and debt maturity extended to 2029. APS, STORY3, and Nexus Capital are key partners. Deal expected to close by December 2025.
- **Subscriber Growth**: 13.4% YoY increase in Ending Active Subscribers (146,400) vs. Q4 2024 (-4.9%) and Q1 2025 (0.9%). Retention rates improved YoY.
- **Inventory Expansion**: +220% new styles YoY, 56 new brands added in H1, and 80+ brands expected in 2025. Engagement metrics: 84% increase in style views, 15% rise in hearts, and 57% growth in units at home.
- **Customer Experience**: Net Promoter Score (NPS) at highest in 3 years (+77% YoY). Price increase of $2 per item (14% for 2 Swaps plan) had minimal impact, with clear communication to customers.
- **Marketing & Events**: Social media engagement up 796% YoY, 12 in-person events with 1,200 attendees (3x capacity). Personalized app features (e.g., rewards program, AI-driven recommendations) launched.

**【CFO Financial Commentary】**
- **Q2 2025 Results**: Revenue $80.9M (+2.5% YoY, +16.2% QoQ). Subscription revenue up 1% YoY, other revenue +12.5% YoY. Fulfillment costs rose to 27.8% of revenue due to carrier rate increases.
- **Gross Margin**: 30% (vs. 41.1% YoY) due to higher revenue share costs and inventory strategy. Adjusted EBITDA $3.6M (4.4% of revenue vs. 17.4% YoY). Free cash flow negative $26.5M (vs. -$4.5M YoY) due to inventory purchases.
- **Guidance**: Q3 revenue $82-84M, EBITDA margin -2% to +2%. FY2025: Double-digit subscriber growth, free cash flow expected below -$40M due to recapitalization costs.
- **Financial Impact of Recap**: Interest expense reduction, financial flexibility for growth, and equity conversion at premium to pre-announcement stock price.

Rent The Runway, Inc. (RENT) Q2 2025 Earnings Call Transcript

- **Subscriber Record**: 147,157 active subscribers, highest in company history, with fastest Q1-Q4 growth in 4 years.
- **Inventory Surge**: Q2 new receipts up 420% YoY, 40+ new brands, and 2,700+ new styles.
- **Engagement Boom**: Spring '25 inventory views +23%, hearts +46%, with 11% YoY add-on growth.
- **Churn Reduction**: 60-day promise cuts churn by 34%, styling support lowers early-term churn by 27%.
- **Social Revival**: Engagement up 163% YoY, 350+ attendees at re-launched in-person events.
- **Financial Focus**: FY25 targeting >10% ending subs growth, despite Q1 revenue down 7.2% to $69.6M.


**【CEO Strategic Overview】**
- **Subscriber Growth**: Ended Q1 with 147,157 active subscribers, the highest in company history, up 1% YoY. Q1 saw the fastest sequential growth in ending subscribers vs Q4 in 4 years.
- **Inventory Expansion**: Q1 inventory volume up 24% YoY, with 36 new brands and 1,000+ new styles. Q2 new receipts expected to surge 420% YoY, with 40+ new brands and 2,700+ new styles.
- **Customer Engagement**: Spring '25 inventory saw 23% higher share of views, 46% more hearts, and 14% higher love rate vs Spring '24. April add-on gross bookings up 11% YoY.
- **Product Innovations**: 
  - Back-in-stock notifications engaged 25% of subscribers, with 48% converting to adds.
  - Personalized styling support reduced early-term churn by 27%.
  - 60-day customer promise reduced churn by 34%.
- **Brand Rejuvenation**: Social media engagement up 163% YoY, with 350+ attendees at in-person events.

**【CFO Financial Highlights】**
- **Revenue**: Q1 2025: $69.6M (-7.2% YoY). Subscription revenue down 6.2% YoY due to promotional spend and lower ASP.
- **Margins**: Gross margin 31.5% (vs 37.9% YoY), driven by higher revenue share costs (+640% YoY in exclusive designs). Adj. EBITDA: -$1.3M (-1.9% of rev vs +8.7% YoY).
- **Cash Flow**: Free cash flow: -$6.4M (vs -$1.4M YoY), reflecting $12.5M inventory investment.
- **Guidance**: Q2 2025: Revenue $76-80M, Adj. EBITDA -2% to +2% of rev. FY25: Ending subs up >10%, cash consumption -$30M to -$40M.


Rent the Runway, Inc. (RENT) Q1 2026 Earnings Conference Call Transcript

- **Breakthrough Inventory Strategy**: Doubling units in FY2025 via 62% revenue-sharing (Share by RTR) and 83 new luxury brands, driving 75%+ newness per shipment. 
- **Customer Loyalty Engine**: 8% retention improvement from FY2024 inventory focus, with 14% of CS team now proactive (e.g., personalized onboarding calls). 
- **Financial Pivot**: FY2025 to invest $70-75M in growth (vs. $35M prior year), targeting double-digit subscriber growth despite -$30M to -$40M cash consumption. 
- **Consumer Validation**: 800+ customer emails in March 2025 praised new inventory, with 100%+ engagement in new features like stylist consultations.

**【CEO Summary Section】**
- **15-Year Milestone & Financial Discipline**: Highlighted 15 years of disrupting retail, achieving near-breakeven cash consumption in FY2024 ($6.6M decline vs. $70.5M in FY2023), and record-low cash usage. 
- **Inventory Investment Strategy**: Announced doubling of inventory units in FY2025 (75%+ new items per shipment) through: 
  - **Share by RTR Model**: 62% of units sourced via revenue-sharing (vs. 50% in FY2024), reducing upfront costs. 
  - **Exclusive Collections**: 83 new brands (e.g., Ulla Johnson, GANNI) and 75%+ new styles YoY. 
- **Customer-Centric Reforms**: 
  - 14% of CS team now proactive (e.g., 50% of new customers get personalized onboarding calls). 
  - 60-day risk-free trial, back-in-stock notifications, and stylist consultations launched in Q1 2025. 
  - 8% improvement in loyalty from FY2024 inventory depth focus. 

**【CFO Financial Commentary】**
- **FY2024 Results**: 
  - Revenue: $76.4M (Q4) / $469M (FY) with 0.8% Q4 YoY growth. 
  - Adjusted EBITDA: $17.4M (Q4) / $46.9M (FY), up 65% YoY. 
  - Free Cash Flow: -$7.2M FY2024 (vs. -$70.3M prior year). 
- **FY2025 Outlook**: 
  - **Subscriber Growth**: Double-digit ending active subscriber growth. 
  - **Cash Consumption**: -$30M to -$40M (vs. -$7.2M FY2024). 
  - **CapEx**: $70-75M (vs. $35M FY2024). 
  - **Q1 2025 Guidance**: Revenue $68-70M, Adjusted EBITDA -5% to -7% of revenue. 

**【Q&A Highlights】**
- **Tariff Impact**: Minimal direct exposure, but consumer shift to rental as 'value play' observed. 
- **Inventory Payoff**: 75%+ newness in shipments vs. prior year, with mid-summer/winter newness addressing churn hotspots. 
- **Share by RTR Scale**: 62% of FY2025 units via revenue-sharing, reducing cash risk. 
- **Consumer Feedback**: 800+ emails received from customers in March 2025, 100%+ engagement in new features like stylist consultations.

RENT

RENT fundamentals

Earnings Call

You can ask Aime