Rent the Runway, Inc. Announces First Quarter 2026 Results
Rhea-AI Summary
Rent the Runway (NASDAQ: RENT) reported first quarter 2026 revenue of $89.9 million, up 29.2% year-over-year and above guidance, with add-on revenue up 70.4% YoY. Gross margin was 25.9% and net loss narrowed to $18.9 million.
The company reaffirmed its 2026 guidance for revenue, Adjusted EBITDA margin and rental product acquired, and expects Q2 2026 revenue of $91–$95 million with Adjusted EBITDA margin of 5–8%. Rent the Runway also named Teri Bariquit Interim CEO and President, Paige Thomas Chief Commercial Officer and Dave Loretta Interim CFO.
Positive
- Revenue grew 29.2% YoY to $89.9 million in Q1 2026
- Add-on revenue increased 70.4% YoY and 11.0% QoQ in Q1 2026
- Net loss improved to $18.9 million from $26.1 million year-over-year
- Adjusted EBITDA loss narrowed to $0.8 million with margin at (0.9)%
- Average Active Subscribers rose 12.2% YoY to 149,744
- Company reaffirmed full-year 2026 revenue and Adjusted EBITDA guidance
Negative
- Gross margin declined to 25.9% from 31.5% year-over-year
- Net cash from operating activities fell to a use of $3.8 million from $8.3 million provided
- Cash and cash equivalents decreased to $37.1 million from $70.4 million year-over-year
- Q1 2026 Adjusted EBITDA remained negative at $0.8 million
- Rental Product Acquired guidance of $45–$50 million is below $74.9 million in 2025
News Market Reaction – RENT
In the Jun 3 session, RENT declined 0.27%, reflecting a mild negative market reaction. Argus tracked a peak move of +11.8% during that session. Argus tracked a trough of -13.1% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 14 | Q4 & FY25 earnings | Positive | -9.8% | Reported Q4/FY25 revenue growth and outlined FY26 double-digit growth outlook. |
| Dec 12 | Q3 2025 earnings | Positive | +18.1% | Posted mid-teens revenue growth and subscriber gains after major recapitalization. |
| Sep 11 | Q2 2025 earnings | Negative | -36.4% | Announced modest revenue growth but larger net loss alongside recapitalization plan. |
| Jun 05 | Q1 2025 earnings | Negative | +27.9% | Reported revenue decline despite record active subscribers and heavier inventory investment. |
| Apr 15 | Q4 & FY24 earnings | Negative | -18.2% | Showed improved cash burn but softer margins and subscriber declines for FY2024. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have produced volatile reactions, with a mix of sharp rallies and selloffs. Across the last 5 earnings events, price moves skew slightly negative on average (-3.68%), and reactions are roughly split between aligning with and diverging from the apparent tone of the results.
Over the past year, Rent the Runway’s earnings cycle has featured recapitalization, debt reduction, and gradual revenue growth. Events on Apr 15, 2025 and Jun 5, 2025 highlighted improved cash burn but mixed subscriber metrics. Subsequent quarters on Sep 11, 2025 and Dec 12, 2025 focused on recapitalization, rising revenue, and subscriber gains. The Apr 14, 2026 FY25 report reiterated double‑digit FY26 growth targets, which today’s Q1 2026 results build upon by exceeding revenue guidance.
Key Terms
adjusted EBITDA financial
adjusted EBITDA margin financial
rental product acquired financial
non-GAAP financial measure financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Revenue Grew to
Reaffirms FY26 Guidance for Revenue, Adjusted EBITDA and Rental Product Acquired
Welcomes Teri Bariquit as Interim CEO and President, Paige Thomas as Chief Commercial Officer, and Dave Loretta as Interim CFO
NEW YORK, June 03, 2026 (GLOBE NEWSWIRE) -- Rent the Runway, Inc. (“Rent the Runway” or "RTR") (NASDAQ: RENT), the company transforming the way women get dressed, today reported financial results for the fiscal quarter ended April 30, 2026.
First quarter results demonstrate continued momentum across the business, with total revenue of
The company’s focus in 2026 remains on Discovery, and it is continuing to deploy AI-driven experiences designed to deliver the closet of her dreams with more choice, personalization, and flexibility than ever before.
Rent the Runway also announced recently that Teri Bariquit has been appointed Interim CEO and President, succeeding Co-Founder Jennifer Hyman, who stepped down after 18 years of category-defining leadership. Ms. Hyman will remain an advisor to the company through January 2027 to ensure a seamless transition.
Ms. Bariquit brings 37 years of retail and merchandising leadership to the role, most recently serving as Chief Merchandising Officer at Nordstrom, where she led more than 1,200 team members across Buying, Planning, Product Development, and Inventory Management. She joined Rent the Runway's Board of Directors in October 2025 and will continue to work closely with Executive Chairman Dhiren Fonseca and the Senior Leadership Team to advance the company's strategy, while the Board is actively conducting a search for a permanent CEO.
Alongside Ms. Bariquit, the company also welcomed Paige Thomas as Chief Commercial Officer and named Dave Loretta as interim CFO. Ms. Thomas, a 25+ year retail veteran, spent over a decade at Nordstrom and most recently served as Chief Merchant & Product Innovation Officer at Signet Jeweler. Mr. Loretta most recently served as CFO of The Honest Company and prior to that as CFO of Duluth Trading Company. He also brings over a decade of experience at Nordstrom, including as President and CFO of Nordstrom Bank.
"Rent the Runway is operating from a solid foundation, supported by a strong core business, a renewed capital structure aligned with our long-term ambitions, and diversified set of revenue streams,” said Teri Bariquit, Interim CEO and President of Rent the Runway. "I'm honored to step into this leadership role at such an exciting moment. The team has built remarkable momentum, and this quarter's results reflect the strength of a strategy that is clearly resonating with our customers.”
Recent Business Highlights
- Expanded Personalized Discovery Across the RTR Platform: In April 2026, we launched personalized carousels across our platform, now live for all subscribers. Customers can now discover items similar to their recent favorites and explore a curated “For You” feed tailored to their individual style preferences. These enhancements are designed to reduce friction in discovery, save her time, and make every visit feel more personalized, and we are seeing a
11% increase in hearting behavior on the home page for active subscribers. - Enhanced Visual Experience with AI-Driven Imagery: In April 2026, we significantly improved imagery across our platform by moving away from outdated visuals and introducing more relatable, true-to-life imagery designed to help customers better envision themselves wearing each item. These updates are intended to improve engagement, product discovery, and rental confidence across the customer journey, and increased views on these tried and true styles by
129% . - Advancing AI-Powered Outfit Discovery: In May 2026, we began internal testing of outfit generation capabilities, enabling RTR to recommend complete looks rather than individual items. We expect to roll out this functionality to subscribers in the coming months and believe it has the potential to meaningfully transform how customers discover and rent on RTR.
- Continued Progress Across New Revenue Stream Initiatives: We continue to advance a set of early-stage growth initiatives across our online marketplace, advertising and media platform, and B2B business. Across each initiative introduced last quarter, we have moved from pilot programs to early operational progress and revenue generation.
"Q1 2026 was a strong start to fiscal year 2026, with revenue growth of
First Quarter 2026 Key Metrics and Financial Highlights
- Revenue was
$89.9 million , a29.2% increase year-over-year from$69.6 million in the first quarter of fiscal year 2025. - 155,692 ending Active Subscribers, representing an increase of
5.8% from 147,157 at the end of the first quarter of fiscal year 2025. - 149,744 Average Active Subscribers, representing an increase of
12.2% from 133,468 at the end of the first quarter of fiscal year 2025. - 196,147 ending Total Subscribers, representing an increase of
7.6% from 182,209 at the end of the first quarter of fiscal year 2025. - Gross Profit was
$23.3 million , representing a change of6.4% from$21.9 million in the first quarter of fiscal year 2025. Gross Margin was25.9% , as compared to31.5% in the first quarter of fiscal year 2025. - Net Loss was
$(18.9) million , as compared to$(26.1) million in the first quarter of fiscal year 2025. Net Loss as a percentage of revenue was (21.0)%, as compared to (37.5)% in the first quarter of fiscal year 2025. - Adjusted EBITDA was
$(0.8) million , as compared to$(1.3) million in the first quarter of fiscal year 2025. Adjusted EBITDA Margin was (0.9)%, as compared to (1.9)% in the first quarter of fiscal year 2025. - Net cash (used in) provided by operating activities was
$(3.8) million , as compared to$8.3 million in the first quarter of fiscal year 2025. - Net cash (used in) provided by operating activities as a percentage of revenue was (4.2)%, as compared to
11.9% in the first quarter of fiscal year 2025. - Net cash used in investing activities was
$(9.8) million , as compared to$(14.7) million in the first quarter of fiscal year 2025. - Net cash used in investing activities as a percentage of revenue was (10.9)%, as compared to (21.1)% in the first quarter of fiscal year 2025.
- Cash and Cash Equivalents was
$37.1 million , as compared to$70.4 million in the first quarter of fiscal year 2025.
Outlook
For the fiscal second quarter of 2026, Rent the Runway expects:
- Revenue of between
$91 million and$95 million - Adjusted EBITDA Margin1 of between
5% and8%
For fiscal year 2026, Rent the Runway continues to expect:
- Double-Digit Revenue Growth versus fiscal year 2025, led primarily by continued product and inventory experience improvements.
- Adjusted EBITDA Margin2 of between
4% and7% - Rental Product Acquired3 of between
$45 million and$50 million versus$74.9 million in fiscal year 2025.
There are unknowns around the economy, such as fuel surcharges, tariffs, and other macroeconomic developments, which are not incorporated into our expectations and that can materially affect actual results for fiscal year 2026 versus our current expectations. Our outlook is based on current conditions and assumptions and does not contemplate material deterioration, including volatility in these factors or from our decision to pass on fuel surcharges to customers; accordingly, actual results may differ materially if such conditions change.
_______________________
1 Represents a non-GAAP financial measure. As more fully described in the Non-GAAP Financial Measures section of this release, a reconciliation of Adjusted EBITDA Margin for the second quarter of fiscal year 2026 is not available without unreasonable efforts.
2 Represents a non-GAAP financial measure. As more fully described in the Non-GAAP Financial Measures section of this release, a reconciliation of Adjusted EBITDA Margin for fiscal year 2026 is not available without unreasonable efforts.
3 Purchases of Rental Product as presented on the Consolidated Statement of Cash Flows may vary from Rental Product Acquired due to timing of payments for rental product. Rental Product Acquired reflects the cost of owned rental product received in the period.
Earnings Presentation, Conference Call and Webcast
The first quarter 2026 Earnings Presentation is now accessible through the Investor Relations section of Rent the Runway’s website at https://investors.renttherunway.com/ under the “Presentations” section.
Rent the Runway will host a conference call and webcast to discuss its first quarter 2026 financial results and provide a business update today, June 3, 2026 at 8:30 am ET.
The financial results and live webcast will be accessible through the Investor Relations section of Rent the Runway’s website at https://investors.renttherunway.com/ under the “Events” section. To access the call through a conference line, dial 1-877-407-3982 (in the U.S.) or 1-201-493-6780 (international callers).
A replay of the conference call will be posted shortly after the call and will be available for at least fourteen days. To access the replay, dial 1-844-512-2921 (in the U.S.) or 1-412-317-6671 (international callers). The access code for the replay is 13760590.
About Rent the Runway, Inc.
Founded in 2009, Rent the Runway is disrupting the trillion-dollar fashion industry and changing the way women get dressed through the Closet in the Cloud. RTR’s mission has remained the same since its founding: powering women to feel their best every day. Through RTR, customers can subscribe, rent items a-la-carte and shop resale from hundreds of designer brands. The Closet in the Cloud offers a wide assortment of millions of items for every occasion, from evening wear and accessories to ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear and ski wear. RTR has built a two-sided discovery engine, which connects deeply engaged customers and differentiated brand partners on a powerful platform built around its brand, data, logistics and technology. RTR has been named to CNBC’s “Disruptor 50” five times in ten years, and has been placed on Fast Company’s Most Innovative Companies list four times.
Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. These statements include, but are not limited to, guidance and underlying assumptions for the second fiscal quarter of 2026 and the fiscal year 2026, and statements regarding the anticipated benefits of the recapitalization transactions, the impact of potential product and customer experience improvements, the impact and volume of our new inventory, the success of our AI investments and initiatives, the success of our marketing plans, and our position for sustained growth. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements because they contain words such as “aim,” “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “toward,” “will,” or “would,” or the negative of these words or other similar terms or expressions. You should not put 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 were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management as of that time with respect to future events. These statements are subject to risks and uncertainties, many of which involve factors or circumstances that are beyond our control, that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. These risks and uncertainties include our ability to drive future growth or manage our growth effectively; the highly competitive and rapidly changing nature of the global fashion industry; risks related to the macroeconomic environment, including war in the Middle East and fuel surcharges; changes in global trade policies, tariffs, and other measures that could restrict international trade; our ability to cost-effectively grow our customer base; any failure to attract or retain customers; our ability to accurately forecast customer demand, acquire and manage our offerings effectively and plan for future expenses; risks arising from the restructuring of our operations; our reliance on the effective operation of proprietary technology systems and software as well as those of third-party vendors and service providers; risks related to shipping, logistics and our supply chain; risks related to AI technology; our failure to successfully recruit a permanent CEO and CFO and manage these leadership transitions; our failure to realize all of the anticipated benefits of the recapitalization transactions, or that those benefits may be short-lived or insufficient for our future needs; failure to manage the transition of our Board of Directors; our failure to comply with the covenants under our credit agreement; our ability to remediate our material weaknesses in our internal control over financial reporting; our ability to comply with laws and regulations applicable to our business; our reliance on the experience and expertise of our senior management and other key personnel; our ability to adequately obtain, maintain, protect and enforce our intellectual property and proprietary rights; compliance with data privacy, data security, data protection and consumer protection laws and industry standards; risks associated with our brand and manufacturing partners; our reliance on third parties to provide payment processing infrastructure underlying our business; our dependence on online sources to attract consumers and promote our business which may be affected by third-party interference or cause our customer acquisition costs to rise; failure by us, our brand partners, or third party manufacturers to comply with our vendor code of conduct or other laws; risks related to our debt; our noncompliance with Nasdaq Marketplace Rule 5606(c)(2)(A), which requires listed companies to have at least three audit committee members; and risks related to our Class A capital stock and ownership structure.
Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from the expectations is included in our Annual Report on Form 10-K for the year ended January 31, 2026, as will be updated in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2026. Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
Key Business and Financial Metrics
Active Subscribers is defined as the number of subscribers with an active membership as of the last day of any given period and excludes paused subscribers. Total Subscribers represents the number of subscribers with an active or paused membership as of the last day of the period and excludes subscribers who had an active or paused subscription during the period, but ended their subscription prior to the last day of the fiscal period.
Average Active Subscribers is defined as the mean of the beginning of quarter and end of quarter Active Subscribers for a quarterly period; and for other periods, represents the mean of the Average Active Subscribers of every quarter within that period.
Gross Profit is defined as total revenue less costs related to activities to fulfill customer orders and rental product acquisition costs, presented as fulfillment and rental product depreciation and revenue share, respectively, on the consolidated statement of operations. We depreciate owned apparel assets over three years and owned accessory assets over two years, net of
Non-GAAP Financial Measures
This press release and the accompanying tables contain the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA margin, free cash flow, and free cash flow margin. In addition to our results determined in accordance with GAAP, we believe that Adjusted EBITDA and Adjusted EBITDA margin are useful in evaluating our performance and free cash flow and free cash flow margin are useful in evaluating our performance and liquidity. Adjusted EBITDA is a key performance measure used by management to assess our operating performance and the operating leverage of our business prior to capital expenditures. These non-GAAP financial metrics are not meant to be considered as indicators of our financial performance in isolation from or as a substitute for our financial information prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis. There are limitations to the use of the non-GAAP financial metrics presented in this press release. For example, our non-GAAP financial metrics may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial metrics differently than we do, limiting the usefulness of those measures for comparative purposes.
We define Adjusted EBITDA as net loss, adjusted to exclude interest expense, rental product depreciation, other depreciation and amortization, share-based compensation expense, write-off of liquidated assets, non-recurring adjustments, non-ordinary course legal fees, income tax (benefit) expense, other income and expense, and other gains / losses. Adjusted EBITDA margin is defined as Adjusted EBITDA calculated as a percentage of total revenue, net for a period.
We define free cash flow as net cash used in operating activities and net cash used in investing activities on a combined basis. Free cash flow margin is defined as free cash flow as a percentage of revenue.
The reconciliation of presented non-GAAP financial metrics to the most directly comparable GAAP financial measure is presented below. We encourage reviewing the reconciliation in conjunction with the presentation of the non-GAAP financial metrics 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. Reconciliations of Adjusted EBITDA margin expectations for fiscal year 2026 and Q2 2026 to the most directly comparable GAAP measures are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures, in particular, share-based compensation expense, and non-recurring expenses, which can have unpredictable fluctuations based on unforeseen activity that is out of our control and/or cannot reasonably be predicted.
Investor Contact
Investor Relations
investors@renttherunway.com
Media Contact
Press
press@renttherunway.com
| Rent the Runway, Inc. Condensed Consolidated Balance Sheets (in millions) (unaudited) | |||||||
| April 30, | January 31, | ||||||
| 2026 | 2026 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 37.1 | $ | 50.4 | |||
| Restricted cash, current | 4.0 | 4.5 | |||||
| Prepaid expenses and other current assets | 13.6 | 11.8 | |||||
| Total current assets | 54.7 | 66.7 | |||||
| Restricted cash | 4.2 | 4.2 | |||||
| Rental product, net | 91.6 | 86.0 | |||||
| Fixed assets, net | 23.3 | 24.0 | |||||
| Intangible assets, net | 1.9 | 2.0 | |||||
| Operating lease right-of-use assets | 28.4 | 29.3 | |||||
| Other assets | 8.6 | 8.8 | |||||
| Total assets | $ | 212.7 | $ | 221.0 | |||
| Liabilities and Stockholders’ Equity (Deficit) | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 13.4 | $ | 9.9 | |||
| Accrued expenses and other current liabilities | 32.8 | 29.1 | |||||
| Deferred revenue | 14.5 | 12.0 | |||||
| Customer credit and gift card liabilities | 6.4 | 6.6 | |||||
| Operating lease liabilities | 5.7 | 5.6 | |||||
| Total current liabilities | 72.8 | 63.2 | |||||
| Long-term debt, net | 157.1 | 156.6 | |||||
| Operating lease liabilities | 34.3 | 35.7 | |||||
| Other liabilities | 1.8 | 1.6 | |||||
| Total liabilities | 266.0 | 257.1 | |||||
| Stockholders’ equity (deficit) | |||||||
| Class A common stock | — | — | |||||
| Class B common stock | — | — | |||||
| Preferred stock | — | — | |||||
| Additional paid-in capital | 1,066.0 | 1,064.3 | |||||
| Accumulated deficit | (1,119.3 | ) | (1,100.4 | ) | |||
| Total stockholders’ equity (deficit) | (53.3 | ) | (36.1 | ) | |||
| Total liabilities and stockholders’ equity (deficit) | $ | 212.7 | $ | 221.0 | |||
| Rent the Runway, Inc. Condensed Consolidated Statements of Operations (in millions, except share and per share amounts) (unaudited) | |||||||
| Three Months Ended April 30, | |||||||
| 2026 | 2025 | ||||||
| Revenue: | |||||||
| Subscription and Reserve rental revenue | $ | 77.7 | $ | 62.0 | |||
| Other revenue | 12.2 | 7.6 | |||||
| Total revenue, net | 89.9 | 69.6 | |||||
| Costs and expenses: | |||||||
| Fulfillment | 23.6 | 20.4 | |||||
| Technology | 9.4 | 9.6 | |||||
| Marketing | 8.0 | 8.6 | |||||
| General and administrative | 23.4 | 20.7 | |||||
| Rental product depreciation and revenue share | 43.0 | 27.3 | |||||
| Other depreciation and amortization | 2.2 | 2.7 | |||||
| Total costs and expenses | 109.6 | 89.3 | |||||
| Operating loss | (19.7 | ) | (19.7 | ) | |||
| Interest income / (expense), net | (0.3 | ) | (6.3 | ) | |||
| Other income / (expense), net | 1.1 | 0.1 | |||||
| Net loss before income tax benefit / (expense) | (18.9 | ) | (25.9 | ) | |||
| Income tax benefit / (expense) | — | (0.2 | ) | ||||
| Net loss | $ | (18.9 | ) | $ | (26.1 | ) | |
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.57 | ) | $ | (6.26 | ) | |
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 33,423,930 | 4,168,053 | |||||
| Rent the Runway, Inc. Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) | |||||||
| Three Months Ended April 30, | |||||||
| 2026 | 2025 | ||||||
| OPERATING ACTIVITIES | |||||||
| Net loss | $ | (18.9 | ) | $ | (26.1 | ) | |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||
| Rental product depreciation and write-offs | 10.2 | 10.3 | |||||
| Write-off of rental product sold | 3.6 | 2.9 | |||||
| Other depreciation and amortization | 2.2 | 2.7 | |||||
| Proceeds from rental product sold | (6.4 | ) | (4.9 | ) | |||
| (Gain) / loss from liquidation of rental product | 0.2 | (0.2 | ) | ||||
| Accrual of paid-in-kind interest | 2.7 | — | |||||
| Amortization of debt (premium) discount | (2.2 | ) | 6.9 | ||||
| Share-based compensation expense | 1.5 | 1.5 | |||||
| Changes in operating assets and liabilities: | |||||||
| Prepaid expenses and other current assets | (1.8 | ) | 0.2 | ||||
| Operating lease right-of-use assets | 0.9 | 0.7 | |||||
| Other assets | 0.2 | (0.8 | ) | ||||
| Accounts payable, accrued expenses and other current liabilities | 2.8 | 13.4 | |||||
| Deferred revenue and customer credit liabilities | 2.3 | 2.4 | |||||
| Operating lease liabilities | (1.3 | ) | (1.1 | ) | |||
| Other liabilities | 0.2 | 0.4 | |||||
| Net cash (used in) provided by operating activities | (3.8 | ) | 8.3 | ||||
| INVESTING ACTIVITIES | |||||||
| Purchases of rental product | (15.2 | ) | (19.3 | ) | |||
| Proceeds from liquidation of rental product | 0.4 | 0.9 | |||||
| Proceeds from sale of rental product | 6.4 | 4.9 | |||||
| Purchases of fixed and intangible assets | (1.4 | ) | (1.2 | ) | |||
| Net cash (used in) provided by investing activities | (9.8 | ) | (14.7 | ) | |||
| FINANCING ACTIVITIES | |||||||
| Proceeds from issuance of common stock | 0.2 | — | |||||
| Other financing payments | (0.4 | ) | (0.7 | ) | |||
| Net cash (used in) provided by financing activities | (0.2 | ) | (0.7 | ) | |||
| Net (decrease) increase in cash and cash equivalents and restricted cash | (13.8 | ) | (7.1 | ) | |||
| Cash and cash equivalents and restricted cash at beginning of period | 59.1 | 86.5 | |||||
| Cash and cash equivalents and restricted cash at end of period | $ | 45.3 | $ | 79.4 | |||
| Rent the Runway, Inc. Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) | |||||
| Three Months Ended April 30, | |||||
| 2026 | 2025 | ||||
| Supplemental Cash Flow Information: | |||||
| Cash payments (receipts) for: | |||||
| Interest paid on loans | $ | 2.8 | $ | — | |
| Fixed operating lease payments, net | 2.9 | 2.8 | |||
| Fixed assets and intangibles received in the prior period | 0.2 | — | |||
| Rental product received in the prior period | 1.6 | 2.7 | |||
| Non-cash financing and investing activities: | |||||
| Purchases of fixed assets and intangibles not yet settled | $ | 0.2 | $ | — | |
| Purchases of rental product not yet settled | 6.4 | 11.3 | |||
| Rent the Runway, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) (unaudited) | |||||||
| The following table presents a reconciliation of net loss and net loss as a percentage of revenue, the most comparable GAAP financial measures, to Adjusted EBITDA and Adjusted EBITDA Margin, respectively, for the periods presented: | |||||||
| Three Months Ended April 30, | |||||||
| 2026 | 2025 | ||||||
| (in millions) | |||||||
| Net loss | $ | (18.9 | ) | $ | (26.1 | ) | |
| Interest (income) / expense, net(1) | 0.3 | 6.3 | |||||
| Rental product depreciation | 13.8 | 13.2 | |||||
| Other depreciation and amortization(2) | 2.2 | 2.7 | |||||
| Share-based compensation(3) | 1.5 | 1.5 | |||||
| Write-off of liquidated assets(4) | 0.6 | 0.7 | |||||
| Non-recurring adjustments(5) | 0.1 | — | |||||
| Non-ordinary course legal fees(6) | 0.6 | 0.6 | |||||
| Income tax (benefit) / expense | — | 0.2 | |||||
| Other (income) / expense, net(7) | (1.1 | ) | (0.1 | ) | |||
| Other (gains) / losses(8) | 0.1 | (0.3 | ) | ||||
| Adjusted EBITDA | $ | (0.8 | ) | $ | (1.3 | ) | |
| Net Loss as a percentage of revenue | (21.0 | )% | (37.5 | )% | |||
| Adjusted EBITDA Margin(9) | (0.9 | )% | (1.9 | )% | |||
| (1) | Includes debt (premium) discount amortization of |
| (2) | Reflects non-rental product depreciation and capitalized software amortization. |
| (3) | Reflects the non-cash expense for share-based compensation. |
| (4) | Reflects the write-off of the remaining book value of liquidated rental product that had previously been held for sale. |
| (5) | Non-recurring adjustments for the three months ended April 30, 2026 includes |
| (6) | Non-ordinary course legal fees for the three months ended April 30, 2026 and 2025 includes |
| (7) | Includes other (income) / expense recognized in the period. |
| (8) | Includes gains / losses recognized in relation to foreign exchange, operating lease terminations and the related surrender of fixed assets (see “Note 4 - Leases – Lessee Accounting” in the Notes to the Condensed Consolidated Financial Statements). |
| (9) | Adjusted EBITDA Margin calculated as Adjusted EBITDA as a percentage of revenue. |
| Rent the Runway, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) | ||||||||
| The following table presents a reconciliation of net cash (used in) provided by operating activities, the most comparable GAAP financial measure, to Free Cash Flow and Free Cash Flow Margin for the periods presented: | ||||||||
| Three Months Ended April 30, | ||||||||
| 2026 | 2025 | |||||||
| (in millions) | ||||||||
| Net cash (used in) provided by operating activities | $ | (3.8 | ) | $ | 8.3 | |||
| Purchases of rental product | (15.2 | ) | (19.3 | ) | ||||
| Proceeds from liquidation of rental product | 0.4 | 0.9 | ||||||
| Proceeds from sale of rental product | 6.4 | 4.9 | ||||||
| Purchases of fixed and intangible assets | (1.4 | ) | (1.2 | ) | ||||
| Free Cash Flow | $ | (13.6 | ) | $ | (6.4 | ) | ||
| Free Cash Flow Margin | (15.1 | )% | (9.2 | )% | ||||
