Rent the Runway reported a 12.4% increase in active subscribers and a 15.4% increase in revenue year over year for Q3. They closed a transformative recapitalization plan to strengthen their balance sheet. The company is focusing on community-driven strategies for brand awareness and acquisition. CEO Jennifer Hyman highlighted the company’s sustained growth this year.

Key highlights include a debt restructuring and capital infusion, driving growth through inventory acquisition, and implementing community-driven organic growth strategies. They also launched new products, enhanced the subscription add-on experience, and reported improvements in revenue per subscriber. Rent the Runway aims to continue delighting customers and driving sustainable growth.

Financially, Rent the Runway reported Q3 revenue of $87.6 million, an increase of 15.4% year over year, with 148,916 ending active subscribers, up 12.4% from the previous year. Gross profit was $25.9 million with a gross margin of 29.6%. Adjusted EBITDA was $4.3 million, with an EBITDA margin of 4.9%.

For Q4 2025, Rent the Runway expects revenue between $85 million and $87 million, with an adjusted EBITDA margin between 11% and 13%. For the full fiscal year, they anticipate revenue between $323.1 million and $325.1 million, with an adjusted EBITDA margin between 4.9% and 5.5%. They reiterate guidance for double-digit growth in ending active subscribers and expect free cash flow to be lower than $(40) million due to costs related to the recapitalization transactions.

Read more at GlobeNewswire: Rent the Runway, Inc. Announces Third Quarter 2025 Results