Revolve Group Q3 net income falls 27% as sales rise
Updated 2026 guidance puts full-year gross margin at 53.9% to 54.0%, with fourth-quarter gross margin at 52.3% to 52.8%.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Revolve Group, Inc. reported third-quarter 2026 net sales of $355.959 million, up 20% year over year, as REVOLVE and FWRD segment sales each rose 20%. Gross profit was $191.795 million, while gross margin was 53.9%, down from 54.6%. Active customers increased 18% to 3.243 million and orders rose 19%; average order value declined 5% to $292.
Net income fell 27% to $15.524 million, adjusted EBITDA declined 7% to $23.491 million, and diluted EPS was $0.20 versus $0.29. Operating cash flow was negative $24.334 million, compared with $11.818 million provided a year earlier; free cash flow was negative $26.963 million versus positive $6.627 million. Cash and cash equivalents were $284.640 million as of September 30, 2026, and the company described its balance sheet as debt free.
Updated full-year 2026 guidance puts gross margin at 53.9% to 54.0%; fourth-quarter guidance is 52.3% to 52.8%. October net sales increased at a mid-teen percentage year over year, while the company said November and December comparisons are more difficult.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet sales rose 20% to $355.959 million in Q3.
- Moderate pointActive customers grew 18% to 3.243 million year over year.
Negative
- Moderate pointNet income fell 27% to $15.524 million.
- Moderate pointAdjusted EBITDA declined 7% to $23.491 million.
- Moderate pointQ3 operating cash flow was $24.334 million used, versus $11.818 million provided.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Free cash flow financial
active customer financial
average order value financial
Earnings Snapshot
Updated FY 2026 outlook: gross margin 53.9% to 54.0%; fulfillment expenses 3.3% of net sales; selling and distribution expenses 17.5% of net sales; marketing expenses 15.9% of net sales; general and administrative expenses $178.0 million; effective tax rate 25% 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.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were RVLV's third-quarter 2026 sales?
How much did RVLV earn in the third quarter of 2026?
What is RVLV's 2026 gross margin outlook?
What did RVLV say about October sales and fourth-quarter comparisons?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of Registrant as Specified in Its Charter)
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(Address of Principal Executive Offices) |
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(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: |
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Trading Symbol(s): |
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Name of each exchange on which registered: |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 3, 2026, Revolve Group, Inc. issued a press release announcing its financial results for its second quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information included in Item 2.02 of this Current Report on Form 8-K and the exhibit attached hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in any such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. |
Description |
99.1 |
Press Release dated November 3, 2026 |
104 |
Cover page interactive data file (embedded with the inline XBRL document) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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REVOLVE GROUP, INC. |
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Date: November 3, 2026 |
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By: |
/s/ JESSE TIMMERMANS |
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Jesse Timmermans |
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Chief Financial Officer |
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Exhibit 99.1
Revolve Group Announces Third Quarter 2026 Financial Results
Los Angeles, CA – November 3, 2026 - 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
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Three Months Ended September 30, |
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2026 |
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2025 |
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YoY Change |
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(in thousands, except percentages) |
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Net sales |
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$ |
355,959 |
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$ |
295,631 |
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20% |
Gross profit |
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$ |
191,795 |
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$ |
161,516 |
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19% |
Gross margin |
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53.9 |
% |
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54.6 |
% |
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Net income |
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$ |
15,524 |
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$ |
21,179 |
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(27%) |
Adjusted EBITDA (non-GAAP financial measure) |
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$ |
23,491 |
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$ |
25,347 |
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(7%) |
Net cash (used in) provided by operating activities |
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$ |
(24,334 |
) |
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$ |
11,818 |
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NM |
Free cash flow (non-GAAP financial measure) |
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$ |
(26,963 |
) |
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$ |
6,627 |
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NM |
NM - Not meaningful
Operational Metrics
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Three Months Ended September 30, |
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2026 |
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2025 |
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YoY Change |
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(in thousands, except average order value and percentages) |
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Active customers (trailing 12 months) |
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3,243 |
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2,747 |
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18% |
Total orders placed |
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2,745 |
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2,300 |
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19% |
Average order value |
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$ |
292 |
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$ |
306 |
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(5%) |
Additional Third Quarter 2026 Metrics and Results Commentary
Additional Net Sales Commentary
Cash Flow and Balance Sheet
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.
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.
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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% |
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Fourth Quarter 2026 Outlook |
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Gross margin |
52.3% to 52.8% |
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Fulfillment expenses |
3.3% of net sales |
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Selling and distribution expenses |
17.6% of net sales |
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Marketing expenses |
16.9% of net sales |
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General and administrative expenses |
$46.1 million |
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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)
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Net sales |
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$ |
355,959 |
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$ |
295,631 |
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$ |
1,046,244 |
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$ |
901,311 |
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Cost of sales |
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164,164 |
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134,115 |
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477,169 |
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418,447 |
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Gross profit |
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191,795 |
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161,516 |
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569,075 |
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482,864 |
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Operating expenses: |
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|
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Fulfillment |
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12,177 |
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9,839 |
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34,544 |
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29,025 |
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Selling and distribution |
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63,516 |
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51,705 |
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183,336 |
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|
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155,455 |
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Marketing |
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50,825 |
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|
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40,429 |
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|
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162,542 |
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129,940 |
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General and administrative |
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46,239 |
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38,552 |
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131,860 |
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114,762 |
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Total operating expenses |
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172,757 |
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140,525 |
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|
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512,282 |
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429,182 |
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Income from operations |
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19,038 |
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20,991 |
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56,793 |
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53,682 |
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Equity earnings in unconsolidated subsidiaries |
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(228 |
) |
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— |
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(863 |
) |
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— |
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Other income, net |
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(1,990 |
) |
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(7,310 |
) |
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(6,931 |
) |
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(5,290 |
) |
Income before income taxes |
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21,256 |
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28,301 |
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64,587 |
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58,972 |
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Provision for income taxes |
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5,732 |
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7,122 |
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16,682 |
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|
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16,376 |
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Net income |
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15,524 |
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|
21,179 |
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|
47,905 |
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42,596 |
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Less: Net (income) loss attributable to non-controlling interest |
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(1,059 |
) |
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— |
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(529 |
) |
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|
563 |
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Net income attributable to Revolve Group, Inc. stockholders |
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$ |
14,465 |
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$ |
21,179 |
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$ |
47,376 |
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$ |
43,159 |
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Earnings per share of Class A and Class B |
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Basic |
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$ |
0.20 |
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$ |
0.30 |
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$ |
0.66 |
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$ |
0.61 |
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Diluted |
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$ |
0.20 |
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$ |
0.29 |
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$ |
0.66 |
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$ |
0.60 |
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Weighted average number of shares of Class A and |
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Basic |
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71,090 |
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71,302 |
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71,286 |
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71,282 |
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Diluted |
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|
71,858 |
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|
72,003 |
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72,068 |
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|
72,062 |
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REVOLVE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data)
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September 30, |
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December 31, |
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2026 |
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2025 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
284,640 |
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$ |
292,256 |
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Restricted cash |
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|
— |
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|
|
10,943 |
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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 |
|
|
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 |
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Liabilities and Stockholders’ Equity |
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|
|
|
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||
Current liabilities: |
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|
|
|
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|
||
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 |
|
|
41 |
|
|
|
41 |
|
Class B common stock, $0.001 par value; 125,000,000 shares authorized as of |
|
|
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 |
|
|
|
|
|
|
||
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 |
|
|
(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 |
) |