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RENT

Rent the Runway, Inc.

RENT

Rent the Runway, Inc. • NASDAQ
$4.87 ▼ -1.42% (-0.07)
Market Cap $19.14 M
52w High $13.66
52w Low $3.69
Dividend Yield 0%
P/E -0.25
Volume 22.67K
Outstanding Shares 3.93M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $80.9M ▲ $78.5M ▲ $-26.4M ▼ -32.633% ▲ $-6.55 ▲ $17.2M ▲
Q1-2025 $69.6M ▼ $68.9M ▲ $-26.1M ▼ -37.5% ▼ $-6.58 ▼ $10.3M ▼
Q4-2024 $76.4M ▲ $63.9M ▼ $-13.4M ▲ -17.539% ▲ $-3.55 ▲ $22.6M ▲
Q3-2024 $75.9M ▼ $68.2M ▲ $-18.9M ▼ -24.901% ▼ $-4.94 ▼ $17.5M ▼
Q2-2024 $78.9M $67.9M $-15.6M -19.772% $-4.17 $19.6M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $43.6M ▼ $219M ▼ $451.1M ▼ $-232.1M ▼
Q1-2025 $70.4M ▼ $245.3M ▲ $452.4M ▲ $-207.1M ▼
Q4-2024 $77.4M ▲ $240M ▼ $422.5M ▼ $-182.5M ▼
Q3-2024 $74.1M ▼ $251.6M ▼ $422.8M ▲ $-171.2M ▼
Q2-2024 $76.6M $257.4M $411.9M $-154.5M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $-26.4M ▼ $-10.5M ▼ $-16M ▼ $-700K $-27.2M ▼ $7.9M ▲
Q1-2025 $-26.1M ▼ $8.3M ▲ $-14.7M ▼ $-700K ▼ $-7.1M ▼ $-12.2M ▼
Q4-2024 $-13.4M ▲ $1.4M ▼ $700K ▲ $1.3M ▲ $3.4M ▲ $-7.9M ▲
Q3-2024 $-18.9M ▼ $4.7M ▲ $-8.1M ▼ $-100K ▲ $-3.5M ▲ $-11.1M ▲
Q2-2024 $-15.6M $2.2M $-6.7M $-900K $-5.4M $-12.4M

Revenue by Products

Product Q1-2013Q2-2013Q3-2013Q4-2013
AMI
AMI
 $10.00M ▲$20.00M ▲$20.00M ▲$20.00M ▲
Corporate and Other
Corporate and Other
 $0 ▲$0 ▲$0 ▲$0 ▲
Home Entertainment
Home Entertainment
 $10.00M ▲$10.00M ▲$10.00M ▲$10.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Rent the Runway’s revenue has grown from its early days and now appears to be stabilizing at a moderate level rather than rapidly expanding. The good news is that the company’s core profitability measures have improved: gross margins are much stronger than a few years ago, and a cash-style profit measure (EBITDA) has moved from losses into positive territory. However, the company is still reporting meaningful net losses, even if those losses are getting smaller over time. Overall, the income statement tells a story of a business that has made real progress in efficiency and scale, but has not yet crossed the line into true, bottom-line profitability.

Balance Sheet

Balance Sheet The balance sheet looks fragile. The asset base has shrunk since the IPO period, and cash on hand is much lower than it once was, leaving less of a cushion. Debt stands out as heavy relative to the size of the company, and accounting equity is negative again, which signals that past losses and leverage weigh on the financial structure. Management’s stated recapitalization plan to cut debt and push out maturities is therefore not just helpful but essential to strengthening the company’s foundation and lowering financial risk.

Cash Flow

Cash Flow Cash flow performance is improving but still not fully comfortable. The core business has recently begun to generate a small amount of cash from operations, a clear step up from the consistent outflows of prior years. After factoring in spending on technology, logistics, and other capital needs, the company is still using more cash than it generates, though the burn rate has been narrowing. This means Rent the Runway is moving in the right direction toward free cash flow breakeven, but it still relies on careful cost control, growth execution, and access to capital to fund its transition.

Competitive Edge

Competitive Edge Rent the Runway holds a differentiated niche in fashion through its clothing rental and subscription model, with a strong brand in “closet in the cloud” and sustainability-minded consumption. Its large network of designer partnerships, scale in cleaning and reverse logistics, and deep database of fit and style information give it advantages that are not easy for new entrants to copy quickly. The platform benefits from network effects: more customers create more data and reviews, which improve the experience and can attract even more customers and brands. At the same time, the company operates in a competitive broader landscape that includes traditional retail, fast fashion, resale, and other rental or subscription offerings, so it must continue to justify its value and convenience to keep growing.

Innovation and R&D

Innovation and R&D Innovation is central to Rent the Runway’s strategy. The company uses technology, data, and increasingly AI to optimize inventory, personalize recommendations, and smooth the rental experience from fit guidance to returns. Its push toward an “asset-light” model—using more revenue-sharing and exclusive design deals with brands—aims to reduce upfront inventory risk and improve margins. The planned 2025 “relaunch,” with updated subscription offerings, broader assortments, and deeper brand collaborations, is a key strategic moment that could either accelerate growth or expose execution challenges, depending on how well it resonates with customers.

Summary

Rent the Runway appears to be in the middle of a turnaround and repositioning phase. The income statement and cash flows show clear operational improvement and better efficiency, but the company is still loss-making and not yet self-funding. The balance sheet is the main pressure point, with high leverage and negative equity, making the announced recapitalization and path to free cash flow especially important. On the strategic side, the business has real competitive strengths in brand relationships, logistics, and data, and it is leaning heavily on tech and an asset-light model to sharpen its edge. Overall, this is a higher-risk, higher-uncertainty profile where the long-term outcome will depend heavily on successful execution of the 2025 relaunch, sustained subscriber growth, and disciplined financial management.

NEWS

November 21, 2025 · 4:01 PM UTC

Rent the Runway to Report Third Quarter 2025 Results on December 12, 2025

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October 28, 2025 · 9:40 PM UTC

Rent the Runway Announces Closing of Recapitalization Transactions

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