Rent the Runway posts 21% revenue growth to $97.7 million, but a 3.8% decline in active subscribers and persistent negative cash flow highlight ongoing challenges in achieving sustainable profitability.
Revenue grew 20.8% and adjusted EBITDA improved, but active subscribers declined and cash flow remains negative, creating uncertainty about sustainable cash generation.
Rent the Runway reported a 20.8% revenue increase to $97.7 million for the quarter ended July 31, driven by pricing adjustments and add-on bookings. Despite improved adjusted EBITDA of $12.6 million, the company faces headwinds as active subscribers declined 3.8% to 140,826, raising concerns over long-term customer retention and cash flow sustainability.
Revenue growth is primarily attributed to subscription-price increases implemented in August 2025, new shipping charges, and an 81% increase in add-on bookings.
The company is narrowing its cash deficit by reducing investing outflows and has secured a $10 million credit amendment, with a proposed $15 million rights offering to further bolster liquidity.