Rent the Runway posts decline in Q3 revenue

For the third quarter, Rent the Runway revenue was 72.5 million dollars, a 6.3 percent decrease, while gross profit was 25.2 million dollars, down 20.8 percent and gross margin was 34.8 percent.

Net loss for the quarter contracted to 31.5 million dollars, while adjusted EBITDA dropped to 3.5 million dollars and adjusted EBITDA margin to 4.8 percent.

The company also announced the amendment of its credit facility with the existing lender and administrative agent for the next six fiscal quarters and reduced the minimum liquidity covenant from 50 million dollars to 30 million dollars.

"We believe that the terms that we’ve agreed to with our longtime lender further enable Rent the Runway to achieve significant free cash flow before the debt’s maturity date, helping us to demonstrate the strength of our business model to the market--and, importantly, to grow,” said Jennifer Hyman, co-founder and CEO, Rent the Runway.

For the fourth quarter, Rent the Runway expects revenue of at least 74 million dollars and adjusted EBITDA margin of at least 7 percent. For fiscal year 2023, the company expects revenue of at least 296.4 million dollars and adjusted EBITDA margin between 7 percent to 8 percent.