NASDAQ$RENT
Rent the Runway · Q3 2025 earnings
Q3 2025 earnings · · Before market open · Investor relations
Briefing
Rent the Runway reported Q3 2025 results and returned to profitability with a significant gain from debt restructuring.
Rent the Runway delivered strong top-line growth and ended the quarter with positive net income due to a one-time gain from recapitalization. Subscriber growth remained in double digits, supported by expanded inventory and improved retention.
Headline financials
Revenue & EPS history
Rent the Runway · Revenue · Quarterly
$87.6M
Revenue by segment
Rent the Runway · $69.6M total across 2 segments · Q1 2025
- Subscription and Reserve rental revenue$62M—89.1%
- Other revenue$7.6M—10.9%
Forward guidance
Rent the Runway expects continued growth in Q4 with steady revenue and improved EBITDA margins, though cash flow remains challenged by recapitalization-related costs.
Tailwinds
- Q4 revenue expected between $85M and $87M
- Adjusted EBITDA margin guided between 11% and 13%
- FY25 revenue projected at $323.1M to $325.1M
- Reiterated guidance for double-digit growth in ending active subscribers
- Continued improvements in customer retention and inventory experience
Headwinds
- Free cash flow for FY25 expected to be worse than -$40M
- Gross margin declined YoY due to inventory costs
- Adjusted EBITDA margin fell sharply YoY in Q3
- Ongoing macroeconomic uncertainty may affect results
- Tariff risks and external variables could impact FY25 performance
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 17 quarterly earnings reports · overlaid with Q3 2025
+11.1%
Avg return
Earnings day
+5.9%
Avg return
5 days after
+1.1%
Avg return
30 days after
33%
6 / 18 earnings
Positive
+256.9%
Q4 2023
Best reaction
-36.1%
Q2 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2025 | +33.8% | +55.2% | +60.2% | |
| Q2 2025 | -36.1% | -35.2% | -41.6% | |
| Q1 2025 | +27.9% | -11.0% | -23.7% | |
| Q4 2024 | -18.2% | -24.9% | +21.9% | |
| Q3 2024 | -25.5% | -29.5% | -32.4% | |
| Q2 2024 | -22.0% | -29.3% | -33.1% | |
| Q1 2024 | -7.1% | +3.8% | -39.7% | |
| Q4 2023 | +256.9% | +171.1% | +226.9% | |
| Q3 2023 | +1.5% | +2.4% | -29.4% | |
| Q2 2023 | -30.1% | -34.6% | -50.0% | |
| Q1 2023 | -1.4% | -14.3% | -24.2% | |
| Q4 2022 | -5.2% | -11.0% | -28.4% | |
| Q3 2022 | +75.6% | +128.1% | +165.2% | |
| Q2 2022 | -32.6% | -35.3% | -55.4% | |
| Q1 2022 | -9.1% | -13.7% | +4.8% | |
| Q4 2020 | -1.2% | +3.1% | -28.8% | |
| Q4 2021 | +6.7% | +5.4% | -24.1% | |
| Q3 2021 | -14.0% | -24.4% | -48.3% | |
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