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Dec 31, 2025
Revolve Q4 2025 Earnings Report
Revolve Group reported strong fourth quarter 2025 results with double-digit top-line growth and significant net income expansion.
Key Takeaways
Revolve Group delivered a robust Q4 2025, characterized by a 10% increase in net sales to $324.4 million and a 58% surge in net income. The company saw record growth in active customers and maintained a debt-free balance sheet while navigating a shift in product mix toward lower-value beauty items.
Net sales increased 10% year-over-year to $324.4 million, showing sequential improvement from Q3.
Net income grew 58% to $18.6 million, driven by gross margin expansion and operating expense leverage.
Active customers reached a record 2.84 million, with the highest quarterly growth in over three years.
The company remains debt-free with $303.2 million in cash and cash equivalents as of year-end.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Revolve provided guidance for Q1 and FY 2026, expecting continued growth while monitoring macroeconomic headwinds and potential tariff impacts.
Positive Outlook
- Net sales in the first seven weeks of 2026 increased approximately 16% year-over-year.
- Full year 2026 gross margin is projected to be between 53.7% and 54.2%.
- Fulfillment expenses are expected to remain efficient at 3.2% to 3.4% of net sales.
- The company plans to invest significantly in AI innovation to drive conversion.
- Balance sheet remains strong and debt-free, allowing for strategic investments.
Challenges Ahead
- Gross margin is susceptible to variability based on the timing and level of potential tariffs.
- Average order value saw a slight decrease due to a shift toward lower-priced beauty products.
- Operating expenses include potential headwinds from inflationary pressures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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