Quarterly ResultJun 3, 2026, 08:26 AM
Rent the Runway Q1 Revenue Up 29% to $89.9M; Net Loss Narrows to $18.9M
AI Summary
Rent the Runway reported a 29% increase in total revenue to $89.9 million for the three months ended April 30, 2026, compared to $69.6 million in the prior year. The company's net loss narrowed to $18.9 million from $26.1 million year-over-year, with net loss per share significantly improving to $(0.57) from $(6.26). However, the company disclosed non-compliance with Nasdaq Listing Rule 5605(c)(2)(A) regarding audit committee composition and highlighted risks related to leadership transitions and material weaknesses in internal controls.
Key Highlights
- Total revenue increased 29% to $89.9 million for the three months ended April 30, 2026.
- Net loss narrowed to $18.9 million in Q1 2026, from $26.1 million in Q1 2025.
- Net loss per share improved to $(0.57) in Q1 2026, from $(6.26) in Q1 2025.
- Subscription and Reserve rental revenue grew to $77.7 million from $62.0 million year-over-year.
- Operating loss remained flat at $(19.7) million for both periods.
- Net cash used in operating activities was $(3.8) million, compared to $8.3 million provided in Q1 2025.
- Rent the Runway is noncompliant with Nasdaq Listing Rule 5605(c)(2)(A) on audit committee composition.
- The company identified material weaknesses in its internal control over financial reporting.
Price Impact
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