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Jun 30, 2025
Revolve Q2 2025 Earnings Report
Revolve Group announced strong financial results for the second quarter ended June 30, 2025, with significant growth in net sales, operating income, and Adjusted EBITDA.
Key Takeaways
Revolve Group delivered robust second-quarter results, achieving 9% year-over-year net sales growth to $309.0 million and a 10% increase in operating income to $18.0 million. The company also reported its highest Adjusted EBITDA margin in three years and strong operating cash flow, despite a decrease in net income and diluted EPS primarily due to a swing from other income to other expense and an increased effective tax rate.
Net sales increased by 9% year-over-year to $308.971 million.
Operating income grew by 10% year-over-year to $18.003 million.
Adjusted EBITDA rose by 12% year-over-year to $22.887 million, marking the highest Adjusted EBITDA margin in three years.
Net income decreased by 35% to $10.011 million, and diluted EPS was $0.14, down from $0.21 in the prior year, mainly due to a swing in other expense (income) and a higher effective tax rate.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Revolve Group provided updated full-year 2025 guidance and initial third-quarter 2025 guidance, taking into account macroeconomic conditions, cost pressures, and potential headwinds to consumer spending, including tariffs.
Positive Outlook
- Updated FY 2025 Gross Margin outlook increased to 52.1% to 52.6% from 50.0% to 52.0%.
- Updated FY 2025 General and Administrative expenses outlook decreased to $152 million to $154 million from $154 million to $157 million.
- Net sales in July 2025 increased approximately 7% year-over-year, indicating continued growth post-Q2.
- The company plans to continue investing in exciting initiatives such as AI enhancements, developing new owned brands, physical retail exploration, and category expansion.
- Healthy cash flow generation provides capacity for continued investment in long-term growth drivers.
Challenges Ahead
- The outlook considers potential headwinds to consumer spending, including tariffs, inflationary pressures, supply chain disruptions, and foreign currency volatility.
- Actual gross margin will be particularly susceptible to variability based on the timing and level of tariffs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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