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Jan 31, 2025
Rent the Runway Q4 2024 Earnings Report
Rent the Runway reported a narrower net loss in Q4 2024 as revenue slightly increased and cost controls improved margins.
Key Takeaways
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.
Forward Guidance
RTR expects to return to subscriber growth and is investing in inventory to drive customer engagement, although macroeconomic uncertainty and retention timing remain challenges.
Positive Outlook
- Expecting double-digit growth in ending Active Subscribers in FY25
- Largest inventory acquisition in company history planned for FY25
- Inventory depth expected to drive improved retention
- Expanded capital-light inventory acquisition models
- Cost discipline maintained after multi-year transformation
Challenges Ahead
- Uncertainty around macroeconomic environment and tariffs
- Potential delays in realizing customer retention improvements
- Free cash flow expected to be between $(30)M and $(40)M in FY25
- Q1 FY25 Adjusted EBITDA margin projected to be negative
Historical Earnings Impact
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Avg. Return Before/After Earnings
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