Rent the Runway (RENT) Company Report

Rent the Runway completed a strategic recapitalization, significantly strengthening its balance sheet by reducing total debt from approximately $319 million to $120 million and extending the maturity to 2029.
For Q3 2025, total revenue increased 15.4% year-over-year to $87.6 million, and ending active subscribers grew 12.4% year-over-year to 148,916.
Adjusted EBITDA for Q3 2025 was $4.3 million or 4.9% of revenue, a decrease from Q3 2024 primarily due to higher revenue share expenses. Gross margins were 29.6% in Q3 2025, down from 34.7% in Q3 2024, reflecting increased inventory investments.
The company provided Q4 2025 revenue guidance of between $85 million and $87 million and fiscal year 2025 revenue guidance of between $323.1 million and $325.1 million. Fiscal year 2025 free cash flow is expected to be lower than negative $40 million.

7 days ago

Transcript

Rent the Runway Reports Q3 2025 Results and Provides Q4 and Full-Year 2025 Guidance

RENT

Earnings

Guidance Update

Revenue Acceleration/Inflection

Rent the Runway completed a strategic recapitalization, reducing total debt from approximately $319 million to approximately $120 million and extending the maturity to 2029, with new capital contributed by Nexus and STORY3.
For Q3 2025, total revenue was $87.6 million, a 15.4% year-over-year increase, and ending active subscribers grew 12.4% year-over-year to 148,916. Adjusted EBITDA for the quarter was $4.3 million, or 4.9% of revenue.
The company provided Q4 2025 revenue guidance between $85 million and $87 million, with Adjusted EBITDA margins expected to be between 11% and 13% of revenue.
For fiscal year 2025, Rent the Runway expects revenue between $323.1 million and $325.1 million, Adjusted EBITDA margins between 4.9% and 5.5% of revenue, and free cash flow lower than -$40 million.
Customer engagement metrics showed improvement, with the Q3 subscription Net Promoter Score up 43% year-over-year, average active subscriber app visits up 34% year-over-year, and the subscription add-on rate increasing 17% year-over-year.

7 days ago

Transcript

Rent the Runway Reports Q3 2025 Results and Completes Recapitalization

RENT

Earnings

Guidance Update

Debt Issuance

Rent the Runway reported total revenue of $87.6 million for Q3 2025, representing a 15% year-over-year increase.
The company achieved net income of $76.5 million with an 87.3% margin in Q3 2025, which is an increase of 112 percentage points year-over-year.
Active subscribers for Q3 2025 reached 148.9k, an increase of 12% year-over-year.
Rent the Runway completed recapitalization transactions on October 28, 2025, which involved an investor group contributing $20 million in cash and reducing the total outstanding debt balance to $120 million with an extended maturity to 2029.
For Q4 2025, the company expects total revenue to be between $85 million and $87 million and an Adjusted EBITDA Margin of 11% to 13%.

7 days ago

Presentation

Rent the Runway Announces Third Quarter 2025 Results and Recapitalization Completion

RENT

Earnings

Guidance Update

Debt Issuance

Rent the Runway reported Q3 2025 revenue of $87.6 million, a 15.4% increase year-over-year, with ending active subscribers growing 12.4% to 148,916.
The company completed a transformative recapitalization plan in October 2025, which reduced its outstanding debt to $120 million (with maturity extended to 2029) and injected $32.5 million in new capital.
Net income for Q3 2025 was $76.5 million, primarily driven by a one-time $96.3 million gain on debt restructuring.
For Q4 2025, Rent the Runway anticipates revenue between $85 million and $87 million and an Adjusted EBITDA Margin between 11% and 13%.

7 days ago

8-K

Rent the Runway Announces Third Quarter 2025 Results and Recapitalization Completion

RENT

Earnings

Guidance Update

Revenue Acceleration/Inflection

Rent the Runway reported Q3 2025 revenue of $87.6 million, marking a 15.4% increase year-over-year, and its ending Active Subscribers grew 12.4% to 148,916 as of October 31, 2025.
The company posted Net Income of $76.5 million for Q3 2025, which includes a one-time $96.3 million Gain on Debt Restructuring. Adjusted EBITDA for the quarter was $4.3 million.
Rent the Runway completed a transformative recapitalization in October 2025, which significantly strengthened its balance sheet by reducing total outstanding debt to $120 million with maturity extended to 2029, and injecting $32.5 million in new capital.
For Q4 2025, the company expects revenue between $85 million and $87 million and an Adjusted EBITDA Margin of 11% to 13%. Full fiscal year 2025 revenue is projected to be between $323.1 million and $325.1 million, with anticipated double-digit growth in ending Active Subscribers.

7 days ago

Press Release

Rent the Runway Announces Closing of Recapitalization Transactions

RENT

Debt Issuance

New Projects/Investments

Rent the Runway, Inc. (RTR) completed recapitalization transactions on October 28, 2025, to enhance its financial position and flexibility.
The company's total outstanding debt was reduced to $120 million from an initial $334.17 million , with the maturity extended to 2029.
The recapitalization included a $20 million cash contribution from an investor group and approximately $12.5 million in gross proceeds from a concurrent rights offering.
The minimum liquidity maintenance covenant was temporarily reduced from $30 million to $15 million from October 28, 2025, until February 20, 2027, after which it reverts to $30 million.

Oct 29, 2025, 1:47 AM

8-K

Rent the Runway Reports Q2 2025 Results and Announces Recapitalization Plan

RENT

Earnings

Guidance Update

New Projects/Investments

Rent the Runway announced a recapitalization plan on August 21, 2025, designed to strengthen its balance sheet by reducing total debt from over $340 million to approximately $120 million. The plan includes new capital contributions from Aranda Principal Strategies, StoryTree Capital Partners, and Nexus Capital Management, with the maturity on the debt extended to 2029. The transaction is expected to be consummated by December 31st of this year.
The company ended Q2 2025 with 146,400 active subscribers, marking a 13.4% year-over-year increase, which accelerated from 0.9% in Q1 2025 and -4.9% in Q4 2024.
For Q2 2025, total revenue was $80.9 million, up 2.5% year-over-year. Gross margins were 30%, and Adjusted EBITDA was $3.6 million, or 4.4% of revenue. Free cash flow for the quarter was negative $26.5 million.
For Q3 2025, Rent the Runway expects revenue to be between $82 million and $84 million, with Adjusted EBITDA margins between negative 2% and 2% of revenue. Fiscal year 2025 free cash flow is now expected to be lower than negative $40 million, primarily due to costs associated with the recapitalization transaction.

Sep 11, 2025, 8:30 PM

Transcript

Rent the Runway Reports Q2 2025 Results and Announces Capital Transaction

RENT

Earnings

Guidance Update

Debt Issuance

Rent the Runway announced a transformative capital transaction where Aranda Principal Strategies (APS) is converting over $100M of debt into common equity, and APS, STORY3 Capital Partners, and Nexus Capital Management are contributing $20M of incremental cash, reducing the outstanding debt balance to $120M with maturity extended to 2029.
For Q2 2025, total revenue was $80.9M, representing a 2.5% year-over-year increase, and ending active subscribers grew 13.4% year-over-year to 146.4K.
The company provided Q3 2025 total revenue guidance of $82M to $84M and expects double-digit growth in ending active subscribers for FY2025.
Rent the Runway raised prices for its subscription plans by an average of ~$2 per item as of August 1st.

Sep 11, 2025, 8:30 PM

Presentation

Rent the Runway Announces Q2 2025 Results and Debt Recapitalization Plan

RENT

Earnings

Guidance Update

New Projects/Investments

Rent the Runway announced a recapitalization plan on August 21, 2025, which is expected to reduce its total debt from over $340 million to approximately $120 million and extend the debt maturity to 2029. The plan involves existing lender Aranda Principal Strategies (APS) partnering with StoryTree Capital Partners and Nexus Capital Management, with new capital being contributed to support growth initiatives.
For Q2 2025, Rent the Runway reported total revenue of $80.9 million, a 2.5% year-over-year increase. The company ended the quarter with 146,373 active subscribers, representing a 13.4% year-over-year increase.
Adjusted EBITDA for Q2 2025 was $3.6 million, or 4.4% of revenue, while free cash flow was negative $26.5 million.
The company provided guidance for Q3 2025, expecting revenue between $82 million and $84 million, and adjusted EBITDA margins between negative 2% and 2% of revenue. For fiscal year 2025, Rent the Runway anticipates double-digit growth in ending active subscribers, but free cash flow is expected to be lower than negative $40 million, primarily due to recapitalization transaction costs.

Sep 11, 2025, 8:30 PM

Transcript

Rent the Runway Announces Q2 2025 Results and Recapitalization Plan

RENT

Earnings

Guidance Update

New Projects/Investments

Rent the Runway announced a recapitalization plan on August 21st, designed to reduce total debt from over $340 million to approximately $120 million, with the maturity extended to 2029, and is expected to be consummated by December 31st.
For Q2 2025, total revenue was $80.9 million, marking a 2.5% year-over-year increase, and the company ended the quarter with 146,373 active subscribers, an increase of 13.4% year-over-year.
Adjusted EBITDA for Q2 2025 was $3.6 million, or 4.4% of revenue, compared to $13.7 million (17.4% of revenue) in Q2 2024, and free cash flow was negative $26.5 million.
The company provided Q3 2025 guidance, expecting revenue between $82 million and $84 million and adjusted EBITDA margins between negative 2% and 2% of revenue.