Rent the Runway Reports 20.8% Revenue Growth in Q2 FY 2026

Rent the Runway, Inc. reported its financial results for the second quarter of fiscal year 2026, revealing a total revenue of $97.7 million, a 20.8% increase from $80.9 million in the same period last year. The growth was primarily driven by a rise in subscription and reserve rental revenue, which reached $83.8 million, up from $69.2 million. The company also recorded a net loss of $12.9 million for the quarter, a significant improvement compared to a net loss of $26.4 million in the prior year. The net loss as a percentage of revenue decreased from 32.6% to 13.2%, reflecting enhanced operational efficiency.

For the six months ending July 31, 2026, Rent the Runway's total revenue was $187.6 million, marking a 24.7% increase from $150.5 million in the same period of 2025. The company reported a net loss of $31.8 million, down from $52.5 million year-over-year. The improved financial performance was attributed to a higher gross profit of $58.6 million, which represented a gross margin of 31.2%, compared to 30.7% in the previous year. The company’s adjusted EBITDA also showed positive momentum, reaching $11.8 million for the six-month period, compared to $2.3 million in the prior year.

Operationally, Rent the Runway had 186,019 total subscribers as of July 31, 2026, a slight increase from 185,102 in the previous year. However, the number of active subscribers decreased to 140,826 from 146,373, indicating a shift in customer engagement. The company has focused on enhancing its core rental and resale offerings, pausing other initiatives to concentrate resources on areas that yield higher customer satisfaction. The introduction of AI-powered features, such as outfit generation and virtual try-on tools, has been part of this strategy to improve customer experience and engagement.

In terms of liquidity, Rent the Runway reported cash and cash equivalents of $29.0 million as of July 31, 2026, down from $50.4 million at the beginning of the fiscal year. The company has incurred significant net operating losses since its inception, with an accumulated deficit of $1.132 billion. To bolster its financial position, Rent the Runway completed recapitalization transactions in October 2025, which included a new credit agreement that reduced its existing debt and improved borrowing terms. The company plans to explore additional funding sources to enhance liquidity and strengthen its balance sheet.

Looking ahead, Rent the Runway aims to continue its focus on customer acquisition and retention while managing costs effectively. The company is aware of the challenges posed by the current macroeconomic environment, including inflation and changing consumer behavior, which may impact discretionary spending. Despite these challenges, Rent the Runway remains optimistic about its growth potential, driven by its innovative product offerings and strategic initiatives aimed at enhancing customer satisfaction and operational efficiency.