Revolve Group Announces Third Quarter 2026 Financial Results

Sales grew 20% across both retail segments, while quarterly net income fell 27% and operating cash flow turned negative.

Rhea-AI Summary

Revolve Group (NYSE: RVLV) reported third-quarter 2026 net sales of $356.0 million, with growth across both segments and geographic markets. Sales rose 20% year-over-year, while net income fell 27% to $15.5 million and diluted earnings per share declined to $0.20 from $0.29. The prior-year quarter included an insurance recovery worth approximately $0.05 per diluted share.

Active customers increased 18% to 3,243,000, but average order value fell 5% to $292. Gross margin declined to 53.9% from 54.6%. Operating activities used $24.3 million, versus providing $11.8 million a year earlier. Cash totaled $284.6 million, with no debt; inventory rose 23% to $293.3 million. October sales increased by a mid-teen percentage year-over-year. The company raised the lower end of its full-year gross-margin outlook to 53.9%, retaining a 54.0% upper bound, while increasing its selling and distribution and general and administrative expense guidance.

17 points · 0 major

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0 major · 20 points

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

Positive

• Moderate pointThird-quarter net sales increased 20% year-over-year to $356.0 million.
• Moderate pointThird-quarter gross profit increased 19% year-over-year to $191.8 million.
• Moderate pointTrailing 12-month active customers increased 18% year-over-year to 3,243,000 as of September 30, 2026.
• Moderate pointThird-quarter orders placed increased 19% year-over-year to 2,745,000.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year gross-margin guidance narrowed upward to 53.9%–54.0%, from 53.5%–54.0%.
• Moderate pointNine-month operating income rose to $56.793 million from $53.682 million in the comparable 2025 period.
• Moderate pointNine-month net income rose to $47.905 million from $42.596 million in the comparable 2025 period.
• Moderate pointNine-month diluted EPS increased to $0.66 from $0.60 in the comparable 2025 period.

9 minor points

• Minor pointREVOLVE segment sales increased 20% year-over-year to $306.8 million in the third quarter.
• Minor pointFWRD segment sales increased 20% year-over-year to $49.2 million in the third quarter.
• Minor pointDomestic sales increased 20% year-over-year to $277.4 million in the third quarter.
• Minor pointInternational sales increased 22% year-over-year to $78.6 million in the third quarter.
• Minor pointProduct return rate decreased year-over-year, supporting third-quarter sales growth and partly offsetting higher shipping rates.
• Minor pointDebt-free balance sheet maintained as of September 30, 2026.
• Minor pointOctober 2026 net sales increased by a mid-teen percentage year-over-year.
• Minor pointNine-month net sales rose to $1,046.244 million from $901.311 million in the comparable 2025 period.
• Minor pointNine-month gross profit rose to $569.075 million from $482.864 million in the comparable 2025 period.

Negative

• Moderate pointThird-quarter net income fell 27% to $15.5 million; prior-year income included approximately $3.4 million in after-tax insurance recovery.
• Moderate pointThird-quarter gross margin declined to 53.9% from 54.6% a year earlier.
• Moderate pointThird-quarter operating income fell to $19.038 million from $20.991 million a year earlier.
• Moderate pointThird-quarter adjusted EBITDA, a non-GAAP earnings measure, decreased 7% year-over-year to $23.5 million.
• Moderate pointThird-quarter operating cash flow was negative $24.3 million, versus positive $11.8 million a year earlier.
• Moderate pointNine-month operating cash flow declined to $16.9 million from $69.6 million in the comparable 2025 period.
• Moderate pointThird-quarter average order value fell 5% year-over-year to $292, primarily reflecting lower-priced initial Grow-Good beauty sales.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year selling and distribution expense guidance increased to 17.5% of sales from 17.1%–17.3%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year administrative expense guidance increased to $178.0 million from $170 million–$172 million.

11 minor points

• Minor pointThird-quarter diluted EPS fell to $0.20 from $0.29; prior-year EPS included approximately $0.05 from insurance recovery.
• Minor pointThird-quarter free cash flow, a non-GAAP measure, was negative $27.0 million, versus positive $6.6 million a year earlier.
• Minor pointNine-month free cash flow declined to $7.0 million from $59.0 million in the comparable 2025 period.
• Minor pointCash and cash equivalents declined 10% year-over-year to $284.6 million as of September 30, 2026.
• Minor pointThird-quarter fulfillment costs rose to $12.2 million, or 3.4% of sales, from $9.8 million, or 3.3%.
• Minor pointThird-quarter selling and distribution costs rose to $63.5 million, or 17.8% of sales, from $51.7 million, or 17.5%.
• Minor pointThird-quarter marketing costs rose to $50.8 million, or 14.3% of sales, from $40.4 million, or 13.7%.
• Minor pointThird-quarter administrative costs rose to $46.2 million from $38.6 million; both represented 13.0% of sales.
• Minor pointOther income, net fell to $2.0 million from $7.3 million; the prior-year quarter included $4.5 million in insurance recovery.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year effective tax-rate guidance narrowed to 25%–26%, from 24%–26%.
• Minor point. Forward-looking: it has not happened yet and may not happen.November and December sales comparisons are much more difficult than October's, the company said.

News Explained

Q4 guidance puts gross margin at 52.3% to 52.8%, while operating cash flow remained positive for the first nine months despite the Q3 outflow.

In its third-quarter results, Revolve reports that operating activities used cash in the quarter but generated cash over the first nine months of 2026; the quarterly outflow therefore did not make year-to-date operating cash flow negative.

For the fourth quarter, the company gives a gross-margin outlook of 52.3% to 52.8%, with fulfillment at 3.3% of sales, selling and distribution at 17.6%, marketing at 16.9%, and general and administrative costs of $46.1 million.

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Market move: RVLV -7.11% vs previous close. 3Q26 earnings report

+12.7% Peak in 4 min

$19.17 – $22.75 Day Range

$1.42B Mkt Cap at Last Price

On Nov 3, the day this news came out, the latest delayed price for RVLV is 7.11% below the previous close. Argus tracked a peak move of +12.7% during the session. Our momentum scanner has recorded 5 alerts for this stock so far that day. The latest delayed price is $20.00. Relative volume is elevated at 2.2x what this stock usually trades by this time of day.

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Key Figures

Net sales: $356.0 million; up 20% year-over-year Active customers: 3,243,000; up 18% year-over-year Net income: $15.5 million; down 27% year-over-year +5 more

Net sales

$356.0 million; up 20% year-over-year

Third quarter 2026

Active customers

3,243,000; up 18% year-over-year

Trailing 12 months ended September 30, 2026

Net income

$15.5 million; down 27% year-over-year

Third quarter 2026

Diluted EPS

$0.20 per share

Third quarter 2026; compared with $0.29 in Q3 2025

Adjusted EBITDA

$23.5 million; down 7% year-over-year

Third quarter 2026

Free cash flow

$(27.0) million

Third quarter 2026; compared with $6.6 million in Q3 2025

FY 2026 gross margin outlook

53.9% to 54.0%

Updated outlook; prior outlook was 53.5% to 54.0%

Q4 2026 gross margin outlook

52.3% to 52.8%

Fourth quarter 2026

Previous Earnings Reports

4 past events · Latest: Aug 04

Same Type 4 events

1. Aug 04

   Q2 earnings results

   24h Move

   -4.1%

   Q2 net sales rose 12% and Adjusted EBITDA rose 17%, while quarterly free cash flow was negative.

2. May 05

   Q1 earnings results

   24h Move

   -13.9%

   Q1 net sales grew 16%, net income rose 21%, and free cash flow was positive.

3. Feb 24

   Q4 earnings results

   24h Move

   -6.0%

   Q4 sales grew 10%, net income rose 58%, and full-year free cash flow increased 157%.

4. Nov 04

   Q3 earnings results

   24h Move

   +11.0%

   Q3 sales rose 4%, alongside gross margin expansion and higher net income.

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

Key Terms

diluted earnings per share, basis points, non-GAAP financial measure, ieepa

4 terms

diluted earnings per share financial

"Diluted earnings per share (EPS) was $0.20"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

basis points financial

"a decrease of 75 basis points year-over-year"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

non-GAAP financial measure financial

"Adjusted EBITDA (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.

ieepa regulatory

"does not assume any additional IEEPA tariff refunds"

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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LOS ANGELES, Nov. 3, 2026 /PRNewswire/ -- Revolve Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for Millennial and Generation Z consumers, today announced financial results for the third quarter ended September 30, 2026.

"We delivered a strong third quarter, highlighted by net sales growth of 20% or more across our segments, REVOLVE and FWRD, and in domestic and international markets," said co-founder and co-CEO Mike Karanikolas. "Supporting our top-line momentum was 18% growth in active customers year-over-year, our fourth consecutive quarter of growth acceleration."

"Our strong top line growth and customer engagement metrics are a reflection of our brand strength and a result of our investments in brand building, physical retail expansion and key partnerships, including the recent launch of REVOLVE Los Angeles and our inaugural REVOLVE Magazine, our new joint venture with Donatella Versace, and recently-announced expanded partnerships with Kendall Jenner and Dwyane Wade," said co-founder and co-CEO Michael Mente.  "We couldn't be more happy with our momentum and we are excited about our progress on longer-term investments that we believe strengthen our foundation for future profitable growth."

Third Quarter 2026 Financial Summary

		Three Months Ended September 30,
		2026				2025				YoY Change
		(in thousands, except percentages)
Net sales		$	355,959			$	295,631			20 %
Gross profit		$	191,795			$	161,516			19 %
Gross margin			53.9	%			54.6	%
Net income		$	15,524			$	21,179			(27 %)
Adjusted EBITDA (non-GAAP financial measure)		$	23,491			$	25,347			(7 %)
Net cash (used in) provided by operating activities		$	(24,334)			$	11,818			NM
Free cash flow (non-GAAP financial measure)		$	(26,963)			$	6,627			NM

NM - Not meaningful

Operational Metrics

		Three Months Ended September 30,
		2026				2025				YoY Change
		(in thousands, except average order value and percentages)
Active customers (trailing 12 months)			3,243				2,747			18 %
Total orders placed			2,745				2,300			19 %
Average order value		$	292			$	306			(5 %)

Additional Third Quarter 2026 Metrics and Results Commentary

• Trailing 12-month active customers grew to 3,243,000 as of September 30, 2026, an increase of 18% year-over-year, our highest year-over-year growth rate in three and a half years. 
• Net sales were $356.0 million, a year-over-year increase of 20%. The strong top-line growth was fueled by a 19% increase in total orders placed year-over-year and a reduced product return rate, partially offset by a lower average order value primarily attributable to initial sales of Grow-Good beauty products at much lower price points.    
• Gross profit was $191.8 million, an increase of 19% year-over-year.  
• Gross margin was 53.9%, a decrease of 75 basis points year-over-year, against a prior-year comparison in the third quarter of 2025 that included 347 basis points of expansion. 
• Fulfillment costs were $12.2 million, or 3.4% of net sales, compared to $9.8 million, or 3.3% of net sales, in the third quarter of 2025.
• Selling and distribution costs were $63.5 million, or 17.8% of net sales, compared to $51.7 million, or 17.5% of net sales, in the third quarter of 2025. The reduced efficiency year-over-year as a percentage of net sales was primarily due to higher shipping rates, partially offset by a decrease in our product return rate year-over-year.
• Marketing costs were $50.8 million, or 14.3% of net sales, compared to $40.4 million, or 13.7% of net sales, in the third quarter of 2025. The increased marketing investment year-over-year as a percentage of net sales primarily reflects an increase in performance marketing and brand marketing investments to support various growth initiatives, including our first-ever namesake label, REVOLVE Los Angeles, within our owned brand assortment.
• General and administrative costs were $46.2 million, or 13.0% of net sales, compared to $38.6 million, or 13.0% of net sales, in the third quarter of 2025.
• Other income, net was $2.0 million compared to $7.3 million in the third quarter of 2025. Other income, net in the prior-year quarter was positively impacted by an insurance recovery of $4.5 million.
• Net income was $15.5 million, compared to net income of $21.2 million in the third quarter of 2025, which was positively impacted by the $4.5 million insurance recovery (approximately $3.4 million, net of taxes).    
• Adjusted EBITDA was $23.5 million, a decrease of 7% year-over-year.
• Diluted earnings per share (EPS) was $0.20, compared to diluted EPS of $0.29 in the third quarter of 2025, which was positively impacted by an insurance recovery equivalent to approximately $0.05 per diluted share.  

Additional Net Sales Commentary

• REVOLVE segment net sales were $306.8 million, a year-over-year increase of 20%.
• FWRD segment net sales were $49.2 million, a year-over-year increase of 20%.   
• Domestic net sales were $277.4 million, a year-over-year increase of 20%.
• International net sales were $78.6 million, a year-over-year increase of 22%.   

Cash Flow and Balance Sheet

• Net cash (used in) provided by operating activities was $(24.3) million in the third quarter and $16.9 million in
  the 9-month year-to-date period ended September 30, 2026, compared to $11.8 million and $69.6 million, respectively, in the comparable 2025 periods. The reduced operating cash flow year-over-year for the three- and nine-month periods of 2026 primarily reflects unfavorable changes in working capital. 
• Free cash flow was $(27.0) million in the third quarter and $7.0 million in the 9-month year-to-date period ended September 30, 2026, compared to $6.6 million and $59.0 million, respectively, in the comparable 2025 periods.
• Cash and cash equivalents as of September 30, 2026 were $284.6 million, a decrease of $30.8 million, or 10%, from $315.4 million as of September 30, 2025. Our balance sheet as of September 30, 2026 remains debt free.  
• Inventory as of September 30, 2026 was $293.3 million, an increase of $54.5 million, or 23%, year-over-year, from the inventory balance of $238.8 million as of September 30, 2025.     

Additional trend information regarding Revolve Group's third quarter of 2026 financial results and operating metrics is available in the Q3 2026 Financial Highlights presentation available on our investor relations website:  https://investors.revolve.com/events-and-presentations 

Results Since the End of the Third Quarter of 2026

Net sales in October 2026 increased by a mid-teen percentage year-over-year. Of note, the net sales growth comparisons for November and December are much more difficult than the October year-over-year comparison.  As background and as previously disclosed, our prior-year net sales comparison in October 2025 increased by a mid-single digit percentage year-over-year, and improved net sales growth in the months of November 2025 and December 2025 led to 10% year-over-year net sales growth for the fourth quarter of 2025.   

2026 Business Outlook

Based on information available to us as of November 3, 2026, we are providing the following guidance for the fourth quarter and full year ending December 31, 2026. 

Our outlook takes into account our assessment of the current macroeconomic environment and related cost pressures and potential headwinds to consumer spending, including, but not limited to, geopolitical uncertainty, tariffs, inflationary pressures, supply chain disruptions and foreign currency volatility. The gross margin outlook does not assume any additional IEEPA tariff refunds.

	Updated FY 2026 Outlook	Prior FY 2026 Outlook
Gross margin	53.9% to 54.0%	53.5% to 54.0%
Fulfillment expenses	3.3% of net sales	3.2% to 3.4% of net sales
Selling and distribution expenses	17.5% of net sales	17.1% to 17.3% of net sales
Marketing expenses	15.9% of net sales	15.8% to 16.0% of net sales
General and administrative expenses	$178.0 million	$170 million to $172 million
Effective tax rate	25% to 26%	24% to 26%
	Fourth Quarter 2026 Outlook
Gross margin	52.3% to 52.8%
Fulfillment expenses	3.3% of net sales
Selling and distribution expenses	17.6% of net sales
Marketing expenses	16.9% of net sales
General and administrative expenses	$46.1 million

Conference Call Information
Revolve Group management will host a call today at 4:30 pm ET / 1:30 pm PT to discuss today's results in more detail. To access the conference call by phone, participants can pre-register using the following Conference Call Registration Link to receive dial-in details, including a unique PIN that will enable access to the conference call immediately without requiring operator assistance. Participants are encouraged to register in advance to avoid delays.

If you are unable to pre-register, the conference call may also be accessed by dialing 1-833-461-5787 (U.S./Toll Free) or 1-585-542-9983 (International) and entering the Meeting ID, 281 225 051.

A live audio webcast can be accessed on the company's investor relations website at investors.revolve.com, and a webcast replay of the conference call will also be available on the company's investor relations website for a limited time following the event.   

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding our growth prospects, business initiatives and innovation, our owned brand expansion, our use of AI, our physical retail stores, our partnerships, and our outlook for the fourth quarter and full year of 2026. Forward-looking statements include statements containing words such as "expect," "anticipate," "believe," "project," "will" and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on our current expectations. Forward-looking statements involve risks and uncertainties. Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to changing economic conditions and their impact on consumer demand and our business; the effects of tariffs and our efforts to mitigate such effects; demand for our products; the investment in long-term initiatives such as international expansion, development of owned brands, AI technology and our physical retail stores; the impact of AI and machine learning; supply chain challenges; inflationary pressures; shipping costs and rates; wars and conflicts; other geopolitical tensions; our fluctuating operating results; seasonality in our business; elevated merchandise returns; our ability to acquire products on reasonable terms; our e-commerce business model; our ability to attract customers in a cost effective manner; our ability to source goods in a cost effective manner; the strength of our brand; competition; fraud; system interruptions; our ability to fulfill orders; the impact of public health crises on our business, operations and financial results; the effect of claims, lawsuits, government investigations, other legal or regulatory proceedings or commercial or contractual disputes; and other risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission, or SEC, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2025, and our subsequent Quarterly Reports on Form 10-Q, including for the quarter ended September 30, 2026, which we expect to file with the SEC on November 3, 2026. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

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 the following non-GAAP financial measures: Adjusted EBITDA and free cash flow.      

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies. 

We use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting, and analyzing future periods. 

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. 

Definitions of our non-GAAP financial measures and other operating metrics are presented below.  

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other income, net; taxes; and depreciation and amortization; adjusted to exclude the effects of equity-based compensation expense, certain transaction costs and certain non-routine items. Adjusted EBITDA is a key measure used by management to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of equity-based compensation, excludes an item that we do not consider to be indicative of our core operating performance.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used in purchases of property and equipment, and purchases of rental product, net of proceeds from the sale of rental product. We view free cash flow as an important indicator of our liquidity because it measures the amount of cash we generate. Free cash flow also reflects changes in working capital.

Active Customers

We define an active customer as a unique customer account from which a purchase was made across our platform at least once in the preceding 12-month period. In any particular period, we determine our number of active customers by counting the total number of customers who have made at least one purchase in the preceding 12-month period, measured from the last date of such period. We view the number of active customers as a key indicator of our growth, the reach of our sites, the value proposition and consumer awareness of our brand, the continued use of our sites by our customers and their desire to purchase our products.

Total Orders Placed

We define total orders placed as the total number of orders placed by our customers, prior to product returns, across our platform in any given period. We view total orders placed as a key indicator of the velocity of our business and an indication of the desirability of our products and sites to our customers. Total orders placed, together with average order value, is an indicator of the net sales we expect to recognize in a given period.

Average Order Value

We define average order value as the sum of the total gross sales from our sites in a given period, prior to product returns, divided by the total orders placed in that period. We believe our high average order value demonstrates the premium nature of our product assortment. Average order value varies depending on the site through which we sell merchandise, the mix of product categories sold, the number of units in each order, the percentage of sales at full price, and for sales at less than full price, the level of markdowns.

About Revolve Group, Inc.

Revolve Group, Inc. (NYSE: RVLV) is the next-generation fashion retailer for Millennial and Generation Z consumers. As a trusted premium lifestyle brand and a go-to online source for discovery and inspiration, we deliver an engaging customer experience from a vast yet curated offering of apparel, footwear, accessories, and beauty products. Our dynamic platform connects a deeply engaged community of millions of consumers, thousands of global fashion influencers and more than 1,600 emerging, established and owned brands.

We were founded in 2003 by our co-CEOs, Michael Mente and Mike Karanikolas. We sell merchandise through two complementary segments, REVOLVE and FWRD, that leverage one platform. Through REVOLVE, we offer an assortment of premium apparel, footwear, accessories and beauty products from emerging, established and owned brands. Through FWRD, we offer an assortment of curated and elevated iconic and emerging luxury brands. For more information, visit www.revolve.com.

Contacts:

Investors:

Erik Randerson, CFA
562.677.9513
IR@revolve.com

Media:

Karla Otto
revolveus@karlaotto.com

 

REVOLVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net sales		$	355,959			$	295,631			$	1,046,244			$	901,311
Cost of sales			164,164				134,115				477,169				418,447
Gross profit			191,795				161,516				569,075				482,864
Operating expenses:
Fulfillment			12,177				9,839				34,544				29,025
Selling and distribution			63,516				51,705				183,336				155,455
Marketing			50,825				40,429				162,542				129,940
General and administrative			46,239				38,552				131,860				114,762
Total operating expenses			172,757				140,525				512,282				429,182
Income from operations			19,038				20,991				56,793				53,682
Equity earnings in unconsolidated subsidiaries			(228)				—				(863)				—
Other income, net			(1,990)				(7,310)				(6,931)				(5,290)
Income before income taxes			21,256				28,301				64,587				58,972
Provision for income taxes			5,732				7,122				16,682				16,376
Net income			15,524				21,179				47,905				42,596
Less: Net (income) loss attributable to non-controlling interest			(1,059)				—				(529)				563
Net income attributable to Revolve Group, Inc. stockholders		$	14,465			$	21,179			$	47,376			$	43,159
Earnings per share of Class A and Class B    common stock:
Basic		$	0.20			$	0.30			$	0.66			$	0.61
Diluted		$	0.20			$	0.29			$	0.66			$	0.60
Weighted average number of shares of Class A and    Class B common stock outstanding:
Basic			71,090				71,302				71,286				71,282
Diluted			71,858				72,003				72,068				72,062

 

REVOLVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data)
		September 30,				December 31,
		2026				2025
Assets
Current assets:
Cash and cash equivalents		$	284,640			$	292,256
Restricted cash			—				10,943
Accounts receivable, net			31,853				16,561
Inventory			293,296				251,844
Income taxes receivable			8,606				1,717
Prepaid expenses and other current assets			83,966				73,706
Total current assets			702,361				647,027
Property and equipment (net of accumulated depreciation of $30,718 and $26,245 as of    September 30, 2026 and December 31, 2025, respectively)			21,117				15,371
Right-of-use lease assets			42,928				28,832
Intangible assets, net			2,828				2,410
Goodwill			2,042				2,042
Other assets			50,544				29,560
Deferred income taxes			39,759				39,759
Total assets		$	861,579			$	765,001
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	63,865			$	56,409
Income taxes payable			830				1,357
Accrued expenses			50,868				44,297
Returns reserve			83,804				76,985
Current lease liabilities			11,431				10,534
Other current liabilities			58,491				40,963
Total current liabilities			269,289				230,545
Non-current lease liabilities			35,216				21,921
Total liabilities			304,505				252,466
Stockholders' equity:
Class A common stock, $0.001 par value; 1,000,000,000 shares authorized as of    September 30, 2026 and December 31, 2025; 41,071,709 and 40,861,973 shares    issued and outstanding as of September 30, 2026 and December 31, 2025,    respectively			41				41
Class B common stock, $0.001 par value; 125,000,000 shares authorized as of    September 30, 2026 and December 31, 2025; 30,023,937 and 30,509,949 shares    issued and outstanding as of September 30, 2026 and December 31, 2025,    respectively			30				30
Additional paid-in capital			150,122				144,249
Retained earnings			404,603				368,215
Non-controlling interest			2,278				—
Total stockholders' equity			557,074				512,535
Total liabilities and stockholders' equity		$	861,579			$	765,001

 

REVOLVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
		Nine Months Ended September 30,
		2026				2025
Operating activities:
Net income		$	47,905			$	42,596
Adjustments to reconcile net income to net cash provided by operating    activities:
Depreciation and amortization			4,692				3,395
Rental product depreciation			1,270				1,324
Gain on sale of rental product			(703)				(222)
Equity-based compensation			7,664				7,414
Loss on disposal of subsidiary			—				2,425
Equity earnings in unconsolidated subsidiaries			(863)				—
Changes in operating assets and liabilities:
Accounts receivable			(15,292)				(10,770)
Inventories			(41,452)				(10,541)
Income taxes receivable			(6,889)				1,195
Prepaid expenses and other current assets			(10,260)				968
Other assets			(7,142)				(8,362)
Accounts payable			7,456				17,429
Income taxes payable			(527)				2,345
Accrued expenses			6,571				4,504
Returns reserve			6,819				2,061
Right-of-use lease assets and current and non-current lease liabilities			96				1
Other current liabilities			17,528				13,821
Net cash provided by operating activities			16,873				69,583
Investing activities:
Purchases of property and equipment			(10,856)				(8,306)
Purchases of rental product			—				(3,569)
Proceeds from sale of rental product			988				1,330
Cash divested upon disposal of subsidiary			—				(1,657)
Investments in unconsolidated entities			(14,534)				—
Net cash used in investing activities			(24,402)				(12,202)
Financing activities:
Proceeds from the exercise of stock options, net of    tax withholdings on share-based payment awards			(42)				141
Repurchases of Class A common stock			(10,051)				(2,024)
Net cash used in financing activities			(10,093)				(1,883)
Effect of exchange rate changes on cash and cash equivalents			(937)				3,329
Net (decrease) increase in cash and cash equivalents			(18,559)				58,827
Cash, cash equivalents and restricted cash, beginning of period			303,199				256,600
Cash, cash equivalents and restricted cash, end of period		$	284,640			$	315,427
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes, net of refund		$	24,278			$	12,981
Operating leases		$	10,761			$	9,201
Supplemental disclosure of non-cash activities:
Lease assets obtained in exchange for new operating lease liabilities		$	22,823			$	6,096

 

REVOLVE GROUP, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
The following table summarizes our net sales, cost of sales and gross profit for each of our reportable segments (in thousands):
		Three Months Ended September 30,								Nine Months Ended September 30,
Net sales		2026				2025				2026				2025
REVOLVE		$	306,764			$	254,646			$	902,522			$	777,462
FWRD			49,195				40,985				143,722				123,849
Total		$	355,959			$	295,631			$	1,046,244			$	901,311
Cost of sales
REVOLVE		$	136,159			$	111,540			$	395,469			$	345,631
FWRD			28,005				22,575				81,700				72,816
Total		$	164,164			$	134,115			$	477,169			$	418,447
Gross profit
REVOLVE		$	170,605			$	143,106			$	507,053			$	431,831
FWRD			21,190				18,410				62,022				51,033
Total		$	191,795			$	161,516			$	569,075			$	482,864

 

The following table lists net sales by geographic area (in thousands):
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
United States		$	277,374			$	231,424			$	820,414			$	712,290
Rest of the world			78,585				64,207				225,830				189,021
Total		$	355,959			$	295,631			$	1,046,244			$	901,311

 

REVOLVE GROUP, INC. AND SUBSIDIARIES
KEY OPERATING AND FINANCIAL METRICS
(Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
		(in thousands, except average order value and percentages)
Gross margin			53.9	%			54.6	%			54.4	%			53.6	%
Adjusted EBITDA		$	23,491			$	25,347			$	71,336			$	67,533
Free cash flow		$	(26,963)			$	6,627			$	7,005			$	59,038
Active customers			3,243				2,747				3,243				2,747
Total orders placed			2,745				2,300				8,028				7,032
Average order value		$	292			$	306			$	296			$	300

 

REVOLVE GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
A reconciliation of non-GAAP Adjusted EBITDA to net income for the three and nine months ended September 30, 2026 and 2025 is as follows:
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
		(in thousands)
Net income		$	15,524			$	21,179			$	47,905			$	42,596
Excluding:
Other income, net			(1,990)				(7,310)				(6,931)				(5,290)
Provision for income taxes			5,732				7,122				16,682				16,376
Depreciation and amortization			1,683				1,007				4,692				3,395
Equity-based compensation			2,117				2,357				7,664				7,414
Transaction costs(1)			425				—				781				900
Non-routine items(2)			—				992				543				2,142
Adjusted EBITDA		$	23,491			$	25,347			$	71,336			$	67,533

(1)	Includes legal and professional service fees related to potential and consummated strategic acquisitions and investments.
(2)	Non-routine items in the nine months ended September 30, 2026 and three and nine months ended September 30, 2025, represent an accrual for certain pending legal matters.

 

A reconciliation of non-GAAP free cash flow to net cash provided by operating activities for the three and nine months ended September 30, 2026 and 2025 is as follows:
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
		(in thousands)
Net cash (used in) provided by operating activities		$	(24,334)			$	11,818			$	16,873			$	69,583
Purchases of property and equipment			(3,062)				(4,320)				(10,856)				(8,306)
Purchases of rental product, net of proceeds from the sale of rental product			433				(871)				988				(2,239)
Free cash flow		$	(26,963)			$	6,627			$	7,005			$	59,038
Net cash used in investing activities		$	(2,629)			$	(5,191)			$	(24,402)			$	(12,202)
Net cash provided by (used in) financing activities		$	143			$	215			$	(10,093)			$	(1,883)

 

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SOURCE Revolve Group, Inc.

FAQ

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

What were Revolve Group's third-quarter 2026 sales and earnings?

Revolve Group reported $356.0 million in net sales, up 20% year-over-year, and net income of $15.5 million, down 27%. Diluted earnings per share were $0.20, compared with $0.29 a year earlier. The prior-year quarter included an insurance recovery equivalent to approximately $0.05 per diluted share.

What is Revolve Group's fourth-quarter 2026 outlook?

Revolve Group expects gross margin of 52.3%–52.8% for the fourth quarter of 2026. Expense guidance is 3.3% of net sales for fulfillment, 17.6% for selling and distribution, and 16.9% for marketing. General and administrative expenses are expected to total $46.1 million.

Does Revolve Group's 2026 gross-margin outlook include additional tariff refunds?

Revolve Group's gross-margin outlook does not assume any additional IEEPA tariff refunds. The company expects full-year gross margin of 53.9%–54.0%, compared with its prior range of 53.5%–54.0%.

Why did Revolve Group's operating cash flow decline in the third quarter of 2026?

Revolve Group attributed the decline in operating cash flow primarily to unfavorable changes in working capital. This explanation applies to both the third quarter and the nine months ended September 30, 2026.

What are Revolve Group's updated full-year 2026 fulfillment and marketing expense forecasts?

Revolve Group expects full-year fulfillment expenses of 3.3% of net sales and marketing expenses of 15.9% of net sales. The previous ranges were 3.2%–3.4% for fulfillment and 15.8%–16.0% for marketing.