Rent the Runway achieved record Q2 revenue of $97.7 million and improved adjusted EBITDA to $12.6 million, though subscriber counts dipped 3.8% as the company pivots toward core rental operations and reduced promotional spending.
Rent the Runway reported record Q2 revenue and improved profitability, but subscriber decline and flat Q3 guidance create a mixed outlook.
Rent the Runway posted record second-quarter revenue of $97.7 million, a 20.8% year-over-year increase, driven by higher revenue per subscriber and expanded margins. Despite the top-line growth, the company reported a 3.8% decline in active subscribers as it reduced promotional activity to focus on long-term profitability. The firm also announced a leadership transition, with Paige Thomas set to take over as CEO on September 14.
The decline was primarily attributed to a higher rate of subscription pauses and a strategic reduction in promotional activity as the company prioritizes acquiring more profitable customers.