Rent the Runway reports 29.2 percent revenue growth for first quarter 2026

US clothing rental platform Rent the Runway has announced its financial results for the first quarter of fiscal year 2026, ended April 10, 2026, revealing strong top-line momentum and narrowing losses.

Total revenue for the period reached 89.90 million dollars, representing a 29.20 percent increase year-over-year (YoY) compared to 69.60 million dollars in the first quarter of fiscal year 2025. This performance exceeded the initial guidance provided by the company.

The revenue growth was supported by a 70.40 percent YoY increase in add-on revenue, which also rose 11 percent quarter-over-quarter. Management attributed this improvement to elevated subscriber engagement following a significant inventory expansion and various digital product upgrades executed during the prior year.

Key subscriber metrics and profitability shifts The platform experienced an increase across its subscriber segments during the quarter. The total number of ending subscribers grew by 7.60 percent to 196,147, while ending active subscribers increased by 5.80 percent to 155,692, while average active subscribers grew by 12.20 percent to reach 149,744.

Gross profit rose by 6.40 percent to 23.30 million dollars, however, gross margin contracted to 25.90 percent, down from 31.50 percent in the first quarter of fiscal year 2025.

Net loss narrowed substantially to 18.90 million dollars, down from a net loss of 26.10 million dollars in the prior year period. Net loss as a percentage of revenue improved from negative 37.50 percent to negative 21 percent.

Adjusted EBITDA was negative 0.80 million dollars, an improvement from negative 1.30 million dollars in the first quarter of 2025. This resulted in an adjusted EBITDA margin of negative 0.90 percent, compared to negative 1.90 percent YoY.

Executive transition and board appointments

The financial report follows the recent appointment of Teri Bariquit as interim chief executive officer and president. Bariquit succeeded co-founder Jennifer Hyman, who stepped down after 18 years in the leadership role. Hyman will serve as an advisor to the firm until January 2027 to facilitate the transition.

Bariquit, who joined the Rent The Runway's board of directors in October 2025, previously accumulated 37 years of retail experience, including a tenure as chief merchandising officer at US department store chain Nordstrom.

The executive team has been further expanded with the addition of Paige Thomas as chief commercial officer and Dave Loretta as interim chief financial officer. Thomas previously worked at Nordstrom and Signet Jewelers, while Loretta served as financial head at The Honest Company and Duluth Trading Company.

Financial outlook

For the second quarter of fiscal year 2026, the platform projects revenue to fall between 91 million dollars and 95 million dollars, with an adjusted EBITDA margin expected between 5 percent and 8 percent.

For the full fiscal year 2026, the company reaffirmed its previous guidance. It anticipates double-digit revenue growth compared to the full year 2025, driven by product and inventory investments.

The full-year adjusted EBITDA margin is expected to land between 4 percent and 7 percent, while total rental product acquired is projected to be between 45 million dollars and 50 million dollars, down from 74.90 million dollars in fiscal year 2025.