Rent the Runway (RENT) Q4 2025 Earnings Transcript
Rent the Runway reported a 20.1% increase in ending active subscribers and 20% year-over-year revenue growth in Q4 2025. The company expects double-digit revenue growth in 2026 with adjusted EBITDA margin between 4%-7%.
Rent the Runway reported strong Q4 2025 results, with ending active subscribers reaching 143,796, a 20.1% year-over-year increase. Total revenue was $91.7 million, up 20% from the previous year. The company's subscription and reserve rental revenue grew 20.4% year over year, driven by higher average subscribers and a price increase in August 2025. Add-on revenue increased 67% year over year, supported by new features introduced in 2025. Rent the Runway's gross margin improved to 38.6%, up from 37.7% year over year, due to lower fulfillment and depreciation rates. The company expects revenue between $85 million and $87 million in Q1 2026, reflecting 22%-25% year-over-year growth. For 2026, Rent the Runway anticipates double-digit revenue growth with adjusted EBITDA margin between 4%-7%.
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