Rent the Runway achieves 15.4 percent revenue growth in Q3 driven by subscriber increase

Rent the Runway, Inc. reported financial results for the fiscal quarter ended October 31, 2025, demonstrating execution on its multi-year transformation plan with significant strategic and operational milestones.

Revenue grew 15.4 percent year-over-year to 87.6 million dollars, driven by subscriber growth, with ending active subscribers increasing 12.4 percent to 148,916, primarily due to improved retention.

Co-Founder and CEO Jennifer Hyman highlighted the operational execution, which included the company's largest-ever inventory investment and strategic community-first marketing programs, resulting in inventory-related churn dropping nearly 30 percent year-over-year.

A pivotal highlight of the quarter was the completion of transformative recapitalization transactions in October 2025, which reduced the total outstanding debt balance to 120 million, extended the maturity date to 2029, and infused 32.5 million dollars in primary gross proceeds.

This debt restructuring led to a one-time 96.3 million dollars gain on debt restructuring, resulting in a GAAP net income of 76.5 million dollars for the quarter, compared to a net loss of 18.9 million dollars in the prior year. However, adjusted EBITDA was 4.3 million dollars, down from 9.3 million dollars last year, reflecting a lower adjusted EBITDA margin of 4.9 percent versus 12.3 percent.

Looking ahead, the company expects Q4 revenue between 85 million dollars and 87 million dollars, with an adjusted EBITDA margin between 11 percent and 13 percent, and reiterated guidance for double-digit growth in ending active subscribers for the full fiscal year 2025.