| Metric | Value ($ M) | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Revenue | 13.90 | 13.9% | 18.8% |
| Total Income | 13.90 | 13.9% | 18.8% |
| Expenditure | 105.50 | 3.7% | 4.5% |
| PBT | -12.80 | 32.3% | 51.5% |
| Net Profit | -12.90 | 31.8% | 51.1% |
| OPM | -56.12% | ||
| NPM | -92.81% | ||
| EPS | -0.38 | 33.3% | 94.2% |
Rent the Runway Announces Q2 2026 Results: Revenue Grows 20.8% YoY to $97.7M
11 Sept 2026 · 11 Sept, 5:34 pm
Summary
Rent the Runway announced strong second quarter fiscal year 2026 results, with total revenue reaching $97.7 million, up 20.8% year-over-year. The company achieved significant gross margin expansion to 36.1% and saw Adjusted EBITDA grow to $12.6 million, representing 12.9% of revenue. Net loss narrowed considerably to $(12.9) million. Management highlighted continued execution, the successful rollout of AI-powered features, and a sharpened focus on the core rental business. The company reaffirmed its full-year guidance for double-digit revenue growth and a positive Adjusted EBITDA margin.
Key Highlights
- 1
Rent the Runway reported total revenue of $97.7 million for the second quarter of fiscal year 2026, an increase of 20.8% year-over-year.
- 2
Gross margin expanded significantly to 36.1% in Q2 FY26, up from 30.0% in the prior year's second quarter.
- 3
Adjusted EBITDA for Q2 FY26 was $12.6 million, or 12.9% of revenue, a substantial improvement from $3.6 million, or 4.4% of revenue, in Q2 FY25.
- 4
Net loss narrowed to $(12.9) million in Q2 FY26, compared to a net loss of $(26.4) million in Q2 FY25.
- 5
Add-on bookings increased by 81% year-over-year in Q2 FY26, indicating strong customer engagement with ancillary services.
- 6
The company completed the rollout of AI-powered outfits generation to all customers in Q2 FY26, enhancing the discovery experience.
- 7
Rent the Runway reaffirmed its full fiscal year 2026 guidance for double-digit revenue growth and Adjusted EBITDA margin between 4% and 7%.
Management Comments
Teri Bariquit
Rent the Runway is operating from a focused foundation, with a core rental business that continues to grow and a customer who is telling us what she values most. This quarter we concentrated our resources on that core, delivered capabilities against the discovery experience we committed to at the start of the year, and began building a 2027 plan centered on transforming the business. I want to thank Dhiren for his leadership as Executive Chairman through this transition, and I am confident in the company Paige is stepping into.
Paige Thomas
I'm focused on listening to our customer and making every decision through her lens, doubling down on fashion and what makes this fashion service platform unique, while executing with operational excellence. This is not a new direction—it's an acceleration of the strong foundation the team has built. The path is clear, and I've never been more excited to lead the team forward.
Dave Loretta
Second quarter results were strong with revenues that reflect an all-time high for the company and profit margin expansion that is driven by our operating discipline and highlights how we intend to run the business. We remain committed to strengthening our liquidity position with the improved free cash flow in the first half and additional funding support from our investor group.
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