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

What factors drove the changes in Rent the Runway's revenue and profit?

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

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

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

- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RENT

RENT fundamentals

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