Reformation Announces Third Quarter Fiscal 2026 Results

Revenue grew across both sales channels and geographies, while IPO-related compensation and tax impacts weighed on GAAP earnings.

Rhea-AI Summary

Reformation (NYSE: REF) reported third-quarter fiscal 2026 revenue growth of 19.1%, alongside a net loss and a higher full-year revenue outlook. Revenue reached $173.6 million for the quarter ended September 26, 2026. Gross margin rose 252 basis points to 60.4%. The net loss was $1.1 million, or $0.02 per share, versus net income of $5.0 million a year earlier, reflecting IPO-related tax impacts.

Adjusted EBITDA, a non-GAAP earnings measure excluding interest, taxes, depreciation and certain other costs, rose 64.2% to $23.1 million. Active customers increased 23.4% to 1.25 million, while direct-to-consumer revenue per customer declined 0.5%. Reformation now expects fiscal 2026 revenue of $610 million–$612 million, up from $602 million–$606 million, and an adjusted EBITDA margin of approximately 14.2%, the high end of prior guidance. Quarter-end cash was $97.7 million and net debt was $36.2 million.

16 points · 1 major

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0 major · 13 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 revenue guidance increased to $610 million–$612 million from $602 million–$606 million, implying 20%–21% growth.
• Moderate pointThird-quarter revenue increased 19.1% year over year to $173.6 million.
• Moderate pointGross margin expanded 252 basis points year over year to 60.4%, including approximately 50 basis points of tariff-related vendor refunds.
• Moderate pointAdjusted EBITDA grew 64.2% to $23.1 million; margin expanded 366 basis points to 13.3%.
• Moderate pointActive customers increased 23.4% to 1.25 million, supported by new customer acquisition and retention.
• Moderate point39-week operating cash flow increased to $44.705 million from $10.429 million a year earlier.
• Moderate pointIPO proceeds totaled $132.229 million, net of underwriting discounts, during the first 39 weeks. 12% of market cap

9 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 adjusted EBITDA margin is now expected at approximately 14.2%, the high end of prior guidance.
• Minor pointDirect-to-consumer revenue increased 16.7% year over year to $152.8 million.
• Minor pointWholesale and Other revenue increased 40.8% to $20.8 million, driven by existing wholesale partners.
• Minor pointU.S. revenue increased 17.7% year over year to $137.2 million.
• Minor pointInternational revenue increased 24.7% year over year to $36.4 million.
• Minor point39-week revenue rose to $441.097 million from $356.879 million in the comparable prior-year period.
• Minor pointCash and cash equivalents rose to $97.748 million from $65.473 million at December 27, 2025.
• Minor pointDebt balances declined since December 27, 2025: current debt to $3.213 million and long-term debt to $130.775 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Planned expansion includes 16 new store openings for fiscal 2026.

Negative

• Moderate pointQuarterly operating income fell to $7.430 million from $10.165 million a year earlier.
• Moderate pointSelling, general and administrative expenses increased 33.5% to $82.8 million, including higher IPO-related stock compensation.
• Moderate pointOutstanding common shares increased to 59,079,320 from 49,784,379 at December 27, 2025, diluting existing ownership.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 capital expenditures are expected at $26 million–$27 million, primarily associated with planned store openings.
• Minor pointQuarterly net loss was $1.1 million, or $0.02 per share, versus $5.0 million profit and $0.10 diluted EPS.

8 minor points

• Minor pointEffective tax rate reached 165.9%, primarily reflecting IPO-related limits on executive compensation deductibility.
• Minor pointMarketing expenses increased 20.0% to $14.6 million; their revenue share remained flat at 8.4%.
• Minor pointDirect-to-consumer revenue per customer declined 0.5% to $419, reflecting faster growth in lower-spending new customers.
• Minor pointQuarterly interest expense increased to $4.973 million from $3.997 million a year earlier.
• Minor pointDebt extinguishment loss totaled $2.220 million in the third quarter, versus none a year earlier.
• Minor point39-week net loss was $0.876 million, versus net income of $6.332 million a year earlier.
• Minor point39-week operating income declined to $13.614 million from $18.846 million a year earlier.
• Minor pointIPO offering costs paid totaled $2.371 million during the first 39 weeks.

News Explained

In its reported third-quarter results, Reformation reports net IPO proceeds of $132,229 thousand and 59,079,320 shares issued and outstanding on September 26, 2026, versus the year-end count on December 27, 2025; the higher share count reduces an unchanged holder’s ownership percentage, absent offsetting changes.

Key Figures

Net revenue: $173.6 million (+19.1%) Gross margin: 60.4% (+252 basis points) Net loss: $(1.1) million, or $(0.02) per share +4 more

Net revenue

$173.6 million (+19.1%)

Third quarter fiscal 2026, compared with the prior-year quarter

Gross margin

60.4% (+252 basis points)

Third quarter fiscal 2026, compared with the prior-year quarter

Net loss

$(1.1) million, or $(0.02) per share

Third quarter fiscal 2026; prior-year period had $5.0 million net income

Adjusted EBITDA

$23.1 million (+64.2%)

Third quarter fiscal 2026; compared with $14.1 million in the prior-year period

Active Customers

1.25 million (+23.4%)

Third quarter fiscal 2026

Fiscal 2026 net revenue outlook

$610 million to $612 million; 20% to 21% growth

Raised from prior guidance of $602 million to $606 million

Fiscal 2026 Adjusted EBITDA margin outlook

Approximately 14.2%

Raised to the high end of previous guidance

Historical Context

1 past event · Latest: Sep 10

1 event

1. Sep 10

   Q2 earnings report

   24h Move

   +6.7%

   Prior quarter reported 24.1% revenue growth, 66.7% gross margin, and $12.4 million net income.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, non-gaap financial measure, average unit retail, ieepa

4 terms

adjusted ebitda financial

"Adjusted EBITDA grew 64.2% to $23.1 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial measure financial

"Adjusted EBITDA margin is a non-GAAP financial measure."

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

average unit retail financial

"higher average unit retail (AUR)"

Average unit retail (AUR) is the average selling price per item over a set period, calculated by dividing total sales revenue by the number of units sold. Investors watch AUR because it reveals whether a company is getting more or less money per item—reflecting changes in pricing, discounts, or which types of products are selling—which directly affects revenue and profit; think of it like the average ticket price at a movie theater that changes if more premium or discount seats are sold.

ieepa regulatory

"approximately 50 basis points in IEEPA tariff-related net refunds from vendors"

A U.S. law that gives the president broad authority to control trade, freeze assets, and block financial transactions during a declared national emergency. Investors care because those powers can abruptly restrict a company's ability to sell products, access cash, or do business with certain countries or parties, creating sudden risks to revenues, supply chains and share prices — like an emergency brake that can stop or reroute parts of a business overnight.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Net Revenue grew over 19%; Active Customers increased 23%
Gross Margin Expanded ~250 bps to 60.4%
Raises Fiscal 2026 Net Revenue Growth Outlook to ~20% and Adjusted EBITDA Margin Outlook to High-End of Previous Guidance to ~14.2%

LOS ANGELES, Nov. 5, 2026 /PRNewswire/ -- Reformation Inc. (NYSE: REF) (the "Company"), the sustainable women's fashion brand, today announced its financial results for the third quarter ended September 26, 2026.

Third Quarter Fiscal 2026 Financial Highlights (Compared to the Third Quarter of Fiscal 2025)

• Net revenue increased 19.1% to $173.6 million, driven by strength across channels and geographies
  • DTC net revenues were $152.8 million, an increase of 16.7%
  • Wholesale and Other net revenues were $20.8 million, an increase of 40.8%
• Gross margin expanded 252 basis points to 60.4%
• Net loss was $(1.1) million or $(0.02) per share; reflecting a 165.9% effective tax rate driven by the tax impact of stock-based compensation as a result of the Company's initial public offering
• Adjusted EBITDA grew 64.2% to $23.1 million; adjusted EBITDA margin expanded 366 bps to 13.3%

"Our strong Q3 results, marking our 22nd consecutive quarter of double-digit revenue growth, reflect the durability of our business and momentum across our strategic growth pillars," said Hali Borenstein, Chief Executive Officer. "The combination of our powerful brand, differentiated operating model, and significant white space ahead positions Reformation to continue to deliver double-digit growth in a large global market. We're proud of our accomplishments this quarter and remain focused on delivering against our long-term objectives to drive sustainable profitability and shareholder value."

Third Quarter Fiscal 2026 Results
Net revenue increased 19.1% to $173.6 million, driven by growth across channels, product categories and geographies.

DTC net revenues increased 16.7% to  $152.8 million.

• Active Customers increased 23.4% to 1.25 million, driven by strength across both new customer acquisition and customer retention, underscoring the power of Reformation's brand and product assortment.
• DTC Net Revenue per Customer declined 0.5% to $419, reflecting accelerated growth in new customers, who typically enter the brand at lower initial spend levels versus existing customers.
• The Company opened seven stores during the third quarter, including the reopening of the Palisades store, ending the period with 77 retail stores globally.

Wholesale and Other net revenue grew 40.8% to $20.8 million, driven by increased demand from existing wholesale partners.

International revenue increased 24.7% to $36.4 million, driven by widespread growth across the Company's focus markets and the continued expansion of its retail footprint.

U.S. revenue increased 17.7% to $137.2 million, reflecting strength across channels, product categories, and growth in the Active Customer base.

Gross margin was 60.4% in the third quarter compared to 57.9% in the third quarter of 2025. The 252 basis point expansion was primarily driven by lower average tariff rates and higher average unit retail (AUR), partially offset by the accelerated growth in wholesale and other net revenue  and allocated stock-based compensation expense in connection with the Company's initial public offering. Additionally, gross margin reflects approximately 50 basis points in IEEPA tariff-related net refunds from vendors.

Total operating expenses increased 31.3% to $97.5 million, or 56.1% of net revenue.

Marketing expenses increased 20.0% to $14.6 million, primarily reflecting continued investment in customer acquisition and retention. As a percentage of net revenue, marketing expense was 8.4% in the third quarter, flat to the prior-year period.

SG&A expenses increased 33.5% to $82.8 million. The dollar increase was primarily due to higher IPO-related stock-based compensation of $10.5 million, in addition to higher shipping expense and other variable expenses associated with higher sales volume, as well as costs associated with new stores and public company expenses. 

Net loss was $(1.1) million, or $(0.02) per share, compared to net income of $5.0 million, or $0.10 per diluted share, in the prior-year period.  Net loss reflects an effective tax rate of 165.9%. The higher rate was primarily driven by discrete tax impacts related to limitations on the deductibility of executive compensation as a result of the Company's IPO.

Adjusted EBITDA increased 64.2% to $23.1 million, compared to $14.1 million in the same prior-year period. Adjusted EBITDA margin* expanded 366 basis points to 13.3%.

Balance Sheet Highlights
Cash and cash equivalents totaled $97.7 million at the end of the third quarter of 2026. Total net debt was $36.2 million at the end of the third quarter.

Inventory was $83.8 million, compared to $61.6 million at the end of the third quarter of 2025, which was atypically low due to tariff-related supply chain disruption. Approximately one-third of the increase was attributable to the Company's strategic decision to hold more raw materials on hand to support increased speed to market. The remainder of the growth was associated with the seasonal inventory build and 17 new store openings over the last twelve months.  

Full Year Fiscal 2026 Outlook
Based on its third quarter results and continued momentum in the fourth quarter to date, the Company is raising its full-year fiscal 2026 outlook and now expects:

• Net revenue to be in the range of $610 million to $612 million, representing growth in the range of 20% to 21% compared to last year. This compares to the Company's prior guidance range of $602 million to $606 million.
• Adjusted EBITDA margin* to be approximately 14.2%, at the high end of its prior guidance. 
• Capital expenditures to be in the range of $26 million to $27 million for the year, primarily associated with 16 planned new store openings for the full year. The Company expects to end fiscal 2026 with 80 stores. 

*Adjusted EBITDA margin is a non-GAAP financial measure. The Company is unable to provide a reconciliation of the non-GAAP financial outlook presented in this press release and on the Company's conference call to its most directly comparable GAAP measure, net income (loss) margin, without unreasonable effort due to the challenge in quantifying various significant items, including, but not limited to, foreign currency fluctuations, taxes, increased tariffs, and any future restructuring and other charges and expenses. 

Conference Call Information
A conference call to discuss third quarter results is scheduled for today, November 5, 2026, at 5:00 p.m. ET. To participate, please dial 1 (877) 270-2148 or (412) 317-6060 for international callers. The conference passcode is 10212429. A live webcast of the conference call will be available on the Company's investor relations website, investors.thereformation.com. A replay will be made available online approximately two hours following the live call.

Use of Non-GAAP Financial Measures and Other Operating Metrics
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States of America (GAAP), we reference in this press release and the accompanying tables certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted EBITDA margin.

We define Adjusted EBITDA as net income (loss) before interest, taxes, and depreciation and amortization as further adjusted for stock compensation expense, transaction costs, and other costs not indicative of our ongoing core operations. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net revenue. We use these non-GAAP financial measures to supplement financial information presented in accordance with GAAP. We believe that excluding certain items from our GAAP results allows management to better understand our financial performance from period to period. Moreover, we believe these non-GAAP financial measures provide our stakeholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. Adjusted EBITDA and Adjusted EBITDA margin should not be considered as alternatives to net income or loss or any other performance measure in accordance with GAAP, or as an alternative to cash provided by operating activities as a measure of our liquidity.

For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, please see the tables captioned "Reconciliation of Non-GAAP Financial Measures" included at the end of this release. We encourage reviewing the reconciliation in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future periods, we may exclude similar items, may incur income and expenses similar to these excluded items and may include other expenses, costs and non-recurring items.

Glossary
Definitions of our other operating metrics are presented below.  

We define Active Customers as the total number of unique customers who have placed at least one order through our e-commerce platform or retail or outlet stores within the last rolling 12 months (excluding retail concession customers, employee orders, gift-card only orders, and face mask only orders, as purchased during the COVID-19 pandemic).

We calculate DTC Net Revenue per Customer by dividing our DTC net revenue within the last rolling 12 months by the number of customers counted within the period in which an item in their purchase has shipped. We believe that DTC Net Revenue per Customer is a key operating metric that reflects our ability to generate DTC net revenue from our customer base on a trailing twelve-month basis.     

About Reformation
Reformation is the largest sustainable womenswear brand on the planet (that we know of, anyways). We make beautiful, timeless apparel and accessories that inspire confidence across life stages and occasions. Over the past 17 years, we've built a culturally resonant brand designed to challenge retail conventions. Our business model pairs a smart approach to merchandising with a responsive supply chain, allowing us to consistently deliver covetable, on-trend products to more than one million active customers. Reformation operates retail stores across the US, UK, Canada and France, and serves more than 150 countries around the world through its e-commerce platform. For more information, visit thereformation.com.

Forward Looking Statements
This press release and the related conference call and communications contain statements which are, or may be deemed to be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of management about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. All statements in this press release and related communications, other than statements of historical facts, are forward-looking statements. Forward-looking statements generally relate to future events, future financial or operating performance and may be identified by the use of words such as "plans", "believes", "expects", "intends", "will", "should", "could", "would", "may", "might", "anticipates", "continue", "estimate", "potential", "predict", "project", "target", "runway", the negative of these words, or similar words, phrases or terms of expression that concern Reformation's expectations, strategy, plans or intentions. You should not place undue reliance on any forward-looking statements.  Forward looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. 

Forward-looking statements are based on information available at the time those statements are made and reflect management's current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management as of that time with respect to future events. Forward-looking statements in this press release include, but are not limited to, statements regarding our ability to drive growth, statements regarding our long-term objectives of sustainable profitability and shareholder value, the number of planned new store openings, our expected year-end store count and longer-term store expansion plans, statements regarding the expected drivers of growth and statements regarding our future financial and operating performance, including our outlook and guidance for the full year 2026. In light of these risks and uncertainties, the forward-looking events and circumstances discussed herein may not occur. These risks, uncertainties and other factors include but are not limited to: general economic conditions and their impact on consumer discretionary spending; the seasonality of our business;  competition in the apparel industry; our ability to attract new customers and retain returning customers; our ability to maintain and enhance the value and reputation of our brand; the effect of tariffs imposed by the U.S. government or a global trade war; our ability to anticipate and respond to changing consumer preferences; our ability to accurately forecast customer demand; our ability to effectively manage our growth; our ability to grow our e-commerce and retail channels and execute our expansion into new markets; the risks associated with leasing property; our ability to achieve the sustainability targets and goals that we have announced; our expectations regarding sustainability initiatives; our ability to attract and retain qualified personnel; our reliance on suppliers to provide materials and to produce our products; our dependence on key suppliers; our ability to protect our intellectual property rights and any costs associated therewith; and other risks and uncertainties discussed in our filings with the Securities and Exchange Commission (the "SEC"), including our prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on July 30, 2026 and in our Quarterly Report on Form 10-Q for the period covered by this earnings release once filed, and our other filings made with the SEC from time to time. Please consult these documents for a more complete understanding of these risks and uncertainties. Any forward-looking statement in this press release or related communications speaks only as of the date made and Reformation assumes no obligation and disclaims any obligation to update or revise any forward-looking or other statements contained herein, whether as a result of new information, future developments, or otherwise, except as required by law.

REFORMATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) 13 and 39 Weeks Ended September 26, 2026 and September 27, 2025 (Unaudited)
	13 Weeks Ended				39 Weeks Ended
(in thousands except share and per share data)	September 26, 2026		September 27, 2025		September 26, 2026		September 27, 2025
Net revenue	$    173,565		$    145,715		$    441,097		$    356,879
Cost of goods sold	68,680		61,327		153,744		140,047
Gross profit	104,885		84,388		287,353		216,832
Operating expenses
Marketing expenses	14,628		12,186		38,570		31,978
Selling, general and administrative expense	82,827		62,037		235,169		166,008
Total operating expenses	97,455		74,223		273,739		197,986
Income from operations	7,430		10,165		13,614		18,846
Other (expense) income
Interest expense	(4,973)		(3,997)		(11,787)		(12,184)
Interest income	1,369		412		1,867		1,481
Loss on extinguishment of debt	(2,220)		—		(2,220)		—
Other income, net	117		471		1,301		706
Total other (expense) income	(5,707)		(3,114)		(10,839)		(9,997)
Income before income taxes	1,723		7,051		2,775		8,849
Income tax provision	2,859		2,083		3,651		2,517
Net income (loss)	(1,136)		4,968		(876)		6,332
Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss), net of tax	63		(366)		(499)		337
Total comprehensive income (loss)	$      (1,073)		$       4,602		$      (1,375)		$       6,669
Earnings (loss) per share
Basic	$        (0.02)		$         0.10		$        (0.02)		$         0.13
Diluted	$        (0.02)		$         0.10		$        (0.02)		$         0.12
Weighted-average shares used in per share calculation
Basic	56,012,207		49,784,463		51,864,109		49,784,463
Diluted	56,012,207		51,293,141		51,864,109		51,262,979

 

REFORMATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except share and per share data)	September 26, 2026		December 27, 2025
Assets
Cash and cash equivalents	$       97,748		$       65,473
Accounts receivable, net	20,861		18,407
IEEPA tariff receivable	310		—
Inventories	83,841		60,640
Prepaid expenses and other current assets	24,365		16,393
Total current assets	227,125		160,913
Property and equipment, net	91,417		83,346
Right-of-use assets	185,687		167,695
Intangible assets, net	768		1,396
Trade name	309,100		309,100
Goodwill	209,421		209,421
Other noncurrent assets	4,787		5,996
Total assets	1,028,305		937,867
Liabilities and Stockholders' Equity
Accounts payable	$       17,001		$         7,656
Accrued expenses and other current liabilities	83,746		66,828
Current lease liabilities	19,065		16,670
Current portion of long-term debt	3,213		8,250
Deferred revenue	6,041		6,740
Total current liabilities	129,066		106,144
Long-term debt, net of current portion	130,775		147,724
Noncurrent lease liabilities	184,305		166,837
Deferred income tax liabilities	70,445		68,072
Deferred revenue, net of current portion	5,787		3,064
Other noncurrent liabilities	5,575		5,229
Total liabilities	525,953		497,070
Commitments and contingencies
Stockholders' equity
Common stock, $0.0001 par value; 500,000,000 and 107,025,000 shares authorized as of September 26, 2026 and December 27, 2025, respectively; 59,079,320 and 49,784,379 shares issued and outstanding as of September 26, 2026 and December 27, 2025, respectively	6		5
Additional paid-in capital	502,652		358,274
Retained earnings	168		82,493
Accumulated other comprehensive (loss) income	(474)		25
Total stockholders' equity	502,352		440,797
Total liabilities and stockholders' equity	$    1,028,305		$      937,867

 

REFORMATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	39 Weeks Ended
(in thousands)	September 26, 2026		September 27, 2025
Cash flows from operating activities
Net income (loss)	$          (876)		$         6,332
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation of property and equipment	12,257		8,636
Change in operating lease right-of-use assets	16,108		13,691
Amortization of definite-lived intangible assets	628		628
Loss on extinguishment of debt	2,220		—
Amortization of debt issuance costs	822		845
Deferred income taxes	2,373		825
Stock-based compensation expense	35,380		858
Other	(12)		81
Increase (decrease) in cash due to changes in operating assets and liabilities
Accounts receivable	(2,489)		(7,520)
IEEPA tariff receivable	(310)		—
Inventories	(23,302)		(9,608)
Prepaid expenses and other current assets	(7,269)		(264)
Other noncurrent assets	(1,290)		(1,883)
Accounts payable	9,550		(609)
Accrued expenses and other current liabilities	12,600		8,601
Operating lease liabilities	(14,075)		(11,027)
Deferred revenue	2,044		668
Other noncurrent liabilities	346		175
Net cash provided by operating activities	44,705		10,429
Cash flows from investing activities
Purchases of property and equipment	(19,941)		(35,112)
Net cash used in investing activities	(19,941)		(35,112)
Cash flows from financing activities
Proceeds from Initial Public Offering, net of underwriting discounts	132,229		—
Payment of offering costs	(2,371)		—
Proceeds from exercise of stock options	67		—
Settlement of employee stock options	(5,822)
Proceeds from term loan, net of lender fees	89,211		—
Repayments on term loan	(114,125)		(3,074)
Payment of debt issuance costs	(209)		—
Payments for repurchase of common stock	(2,686)		—
Payment of dividends declared	(88,211)		—
Net cash provided by (used in) financing activities	8,083		(3,074)
Effect of exchange rate changes on cash and cash equivalents	(572)		681
Net change in cash and cash equivalents	32,275		(27,076)
Cash and cash equivalents
Beginning of the period	65,473		87,678
End of the period	$       97,748		$       60,602
Supplemental cash flow information
Cash paid during the year for
Income taxes, net of refunds	$         4,148		$         5,129
Interest	9,741		10,344
Noncash financing and investing activities
Deferred offering costs incurred, but not yet paid	4,090		—
Purchase of property and equipment included in accounts payable and accrued  expenses and other current liabilities	1,294		1,656
Operating lease right-of-use assets obtained in exchange for  operating lease liabilities	34,190		48,041

 

REFORMATION CONSOLIDATED REVENUE DATA (Unaudited)
	13 Weeks Ended				39 Weeks Ended
(in thousands)	September 26, 2026		September 27, 2025		September 26, 2026		September 27, 2025
United States	$    137,169		$    116,531		$    353,592		$    291,669
Rest of the world	36,396		29,184		87,505		65,210
Net revenue	$    173,565		$    145,715		$    441,097		$    356,879
	13 Weeks Ended				39 Weeks Ended
(in thousands)	September 26, 2026		September 27, 2025		September 26, 2026		September 27, 2025
Direct-to-consumer (DTC)	$     152,799		$    130,968		$    386,548		$    317,346
Wholesale and other	20,766		14,747		54,549		39,533
Net revenue	$     173,565		$    145,715		$    441,097		$    356,879

 

REFORMATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
	13 Weeks Ended								39 Weeks Ended
	September 26, 2026				September 27, 2025				September 26, 2026				September 27, 2025
	($ in thousands)								($ in thousands)
Net income (loss)	$	(1,136)			$	4,968			$	(876)			$	6,332
Interest and other expense (income)		5,707				3,114				10,839				9,997
Provision for income taxes		2,859				2,083				3,651				2,517
Depreciation and amortization		4,479				3,387				12,885				9,263
Stock-based compensation expense(1)		11,002				290				36,868				858
Transaction costs(2)		—				—				375				768
Legal costs(3)		176				209				596				371
Other one-time costs(4)		7				10				33				149
Adjusted EBITDA	$	23,094			$	14,061			$	64,371			$	30,255
Net revenue	$	173,565			$	145,715			$	441,097			$	356,879
Net income (loss) margin		(0.7)	%			3.4	%			(0.2)	%			1.8	%
Adjusted EBITDA margin		13.3	%			9.6	%			14.6	%			8.5	%

(1)	Represents non-cash expenses primarily related to equity-based compensation programs, which may vary significantly from period to period depending on various factors including the timing, number, and the valuation of awards granted, vesting of awards including the satisfaction of performance conditions, modifications or settlements of awards, and the impact of repurchases of awards from employees.
(2)	Represents costs incurred in connection with pursuing various strategic alternatives, including legal and accounting costs directly attributable to preparing for an IPO, and other strategic sell side and investment alternatives.
(3)	Represents one-time legal costs and settlements.
(4)	Represents one-time costs directly attributable to activities that are not indicative of our ongoing core operations, including, but not limited to, system implementation and duplicative expenses associated with store relocation.

 

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SOURCE Reformation Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Reformation's third-quarter fiscal 2026 earnings results?

Reformation reported a $1.1 million net loss, or $0.02 per share, on revenue of $173.6 million. Revenue increased 19.1% year over year, while adjusted EBITDA rose 64.2% to $23.1 million. The comparable prior-year quarter generated net income of $5.0 million, or $0.10 per diluted share.

What is Reformation's updated fiscal 2026 outlook?

Reformation expects $610 million–$612 million in fiscal 2026 revenue, representing 20%–21% growth, and an adjusted EBITDA margin of approximately 14.2%. Revenue guidance previously stood at $602 million–$606 million. The margin expectation is at the high end of the company's prior guidance.

Why did Reformation's inventory increase in the third quarter of fiscal 2026?

Reformation's inventory rose to $83.8 million from $61.6 million a year earlier, when tariff-related supply disruption left inventory atypically low. The company attributed approximately one-third of the increase to holding more raw materials to support faster delivery to market; the remainder reflected seasonal inventory building and 17 store openings over the preceding twelve months.

How does Reformation calculate active customers and revenue per customer?

Reformation measures active customers over a rolling twelve-month period, counting unique customers who ordered through its e-commerce platform or retail or outlet stores. It excludes retail concession customers, employee orders, gift-card-only orders and pandemic face-mask-only orders. Direct-to-consumer revenue per customer divides trailing-twelve-month revenue by customers counted during the period when an item in their purchase shipped.