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Sep 30, 2025
Revolve Q3 2025 Earnings Report
Revolve Group announced its financial results for the third quarter ended September 30, 2025, reporting significant increases in net income and Adjusted EBITDA.
Key Takeaways
Revolve Group delivered a solid third quarter in 2025, marked by exceptional gross margin performance which led to an 11% increase in gross profit and a 45% increase in Adjusted EBITDA, reaching its highest ever for a third quarter. The company also saw a substantial 97% rise in net income and a 4% increase in net sales year-over-year, driven by growth in both REVOLVE and FWRD segments and across domestic and international markets. Healthy cash flow and a strong balance sheet position the company for continued investment in long-term strategic initiatives.
Net sales increased by 4% year-over-year to $295.6 million.
Gross profit rose by 11% to $161.5 million, with gross margin expanding by 347 basis points to 54.6%.
Net income surged by 97% to $21.2 million, and Adjusted EBITDA increased by 45% to $25.3 million.
Diluted EPS grew by 93% to $0.29, and the company maintained a strong cash balance of $315.4 million with no debt.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Revolve Group provided an updated outlook for the full year 2025 and guidance for the fourth quarter of 2025, reflecting confidence in gross margin expansion and marketing efficiency, while acknowledging potential macroeconomic headwinds.
Positive Outlook
- Full year 2025 gross margin is expected to be 53.5%, an increase from the prior outlook of 52.1% to 52.6%.
- Marketing expenses for the full year 2025 are projected to be 14.6% of net sales, showing increased efficiency compared to the prior outlook of 14.8% to 15.0%.
- The effective tax rate for FY 2025 is expected to be 27% to 28%, lower than the previous guidance of 28% to 29%.
- The company plans to continue investing in long-term initiatives such as international expansion, development of new owned brands, leveraging AI technology, and physical retail opportunities.
- Healthy cash flow and a strong balance sheet enable continued strategic investments despite a dynamic operating environment.
Challenges Ahead
- Fulfillment expenses for the full year 2025 are expected to be 3.2% of net sales, slightly higher than the lower end of the prior outlook of 3.1%.
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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