Rent the Runway Inc
NASDAQ:RENT
Rent the Runway Inc
Rent the Runway, Inc. provides online ready-to-wear and contemporary designer apparel services. The company is headquartered in Brooklyn, New York and currently employs 958 full-time employees. The company went IPO on 2021-10-27. The firm offers over 19,000 styles by over 780 designer brands that transforms the way women get dressed by letting them wear whatever they want, without having to own it. The firm gives customers ongoing access to its unlimited closet through its subscription offerings to rent a-la-carte through its reserve offering. The company also gives its subscribers and customers the ability to buy its products through its resale offering. Its Closet in the Cloud offers an assortment 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, ski wear, home goods and kidswear. The firm has built a two-sided discovery engine, which connects customers and its differentiated brand partners on a platform built around its brand, data, logistics and technology.
Rent the Runway, Inc. provides online ready-to-wear and contemporary designer apparel services. The company is headquartered in Brooklyn, New York and currently employs 958 full-time employees. The company went IPO on 2021-10-27. The firm offers over 19,000 styles by over 780 designer brands that transforms the way women get dressed by letting them wear whatever they want, without having to own it. The firm gives customers ongoing access to its unlimited closet through its subscription offerings to rent a-la-carte through its reserve offering. The company also gives its subscribers and customers the ability to buy its products through its resale offering. Its Closet in the Cloud offers an assortment 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, ski wear, home goods and kidswear. The firm has built a two-sided discovery engine, which connects customers and its differentiated brand partners on a platform built around its brand, data, logistics and technology.
Revenue Growth: Rent the Runway delivered 15.4% year-over-year revenue growth in Q3 2025, a significant acceleration from previous quarters.
Subscriber Momentum: Active subscribers grew 12.4% year-over-year to 148,916, with engagement and retention both improving.
Gross Margin Pressure: Gross margin fell to 29.6% from 34.7% last year, mainly due to higher revenue share costs tied to increased inventory investment.
Recapitalization Success: The company reduced debt from about $319 million to $120 million, extended maturities to 2029, and attracted new capital from Nexus and STORY3.
Q4 & FY Guidance: Management expects Q4 revenue of $85–87 million and full-year 2025 revenue of $323.1–$325.1 million, with double-digit subscriber growth.
Cash Burn: Free cash flow was negative $13.6 million in Q3 and is expected to be lower than negative $40 million for the full year, mainly due to recapitalization costs.
