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.

Rent the Runway announced a significant recapitalization plan to reduce its debt from $340 million to $120 million, extending maturity to 2029. The company reported a 2.5% year-over-year revenue increase to $80.9 million and a 13.4% increase in ending active subscribers. However, gross profit and Adjusted EBITDA saw declines compared to the prior year.

Despite a drop in revenue and wider net loss, Rent the Runway showed early signs of turnaround with the highest-ever ending active subscribers and improving customer retention metrics.

Rent the Runway delivered a small year-over-year revenue increase and significantly reduced its net loss in Q4 2024. Cash burn was also improved, supported by higher Adjusted EBITDA margins and continued cost discipline.