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Apr 30, 2025
Rent the Runway Q1 2025 Earnings Report
Rent the Runway reported a decline in revenue and net income but achieved record-high ending active subscribers in Q1 2025.
Key Takeaways
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.
Forward Guidance
For Q2 FY25, Rent the Runway expects revenue between $76M and $80M and Adjusted EBITDA margin between -2% and +2%. It also reiterated full-year guidance for double-digit active subscriber growth and negative free cash flow between $30M and $40M.
Positive Outlook
- Expected revenue growth in Q2 FY25 to $76–80M
- Anticipates improved Adjusted EBITDA margin between -2% and +2%
- Guiding for double-digit growth in ending active subscribers for FY25
- Customer engagement metrics are improving with higher item interaction
- Inventory strategy driving better retention and new member satisfaction
Challenges Ahead
- Continued net losses and negative free cash flow projected for FY25
- Ongoing macroeconomic uncertainty may impact results
- Tariff volatility could affect inventory costs
- Adjusted EBITDA remains negative in Q1 despite improvements
Historical Earnings Impact
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Avg. Return Before/After Earnings
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