Rent the Runway records 20.8 percent revenue growth, appoints new CEO

US fashion platform Rent the Runway, Inc. (Rent the Runway) has reported a 20.8 percent increase in total revenue to 97.70 million dollars for the second quarter ended July 31, 2026, compared to 80.90 million dollars in the second quarter of fiscal 2025.

The company stated that the performance represents an all-time high revenue for the business, supported by gross margin expansion and growing demand for add-on features.

Alongside its financial results, Rent the Runway announced the appointment of Paige Thomas as chief executive officer and president, effective September 14, 2026.

Leadership transition and strategic focus on core business

Thomas, who joined the company as chief commercial officer in June 2026, succeeds Teri Bariquit, who has served as interim CEO and president since May 2026.

Bariquit will transition to non-executive chair of the board of directors, while Dhiren Fonseca will step down as executive chairman while remaining on the board. Thomas brings over 30 years of retail experience, having previously held senior positions at Signet Jewelers, Saks OFF 5TH, and Nordstrom.

“Rent the Runway is operating from a focused foundation, with a core rental business that continues to grow and a customer who is telling us what she values most,” said Bariquit in a release.

During the quarter, the company streamlined its operational focus by pausing several secondary projects, including an online marketplace pilot and on-site advertising, while scaling back new business-to-business dry cleaning initiatives. Resources have been reallocated to its primary rental and sales offerings, including its Reserve service.

Rent the Runway also completed the rollout of artificial intelligence (AI)-powered outfit generation features across its platform. The tool allows customers to view full coordinated looks and utilize personalized avatars to assist with fit visualization.

Gross profit for the quarter rose 45.3 percent to 35.30 million dollars, up from 24.30 million dollars in the prior-year period. Gross margin expanded 609 basis points to 36.1 percent compared to 30 percent in the second quarter of fiscal 2025.

Net loss narrowed to 12.90 million dollars, or 13.2 percent of revenue, compared to a net loss of 26.40 million dollars, or 32.6 percent of revenue, in the same period last year. Adjusted EBITDA reached 12.60 million dollars, up from 3.60 million dollars in the second quarter of fiscal 2025, while adjusted EBITDA margin expanded to 12.9 percent from 4.4 percent.

Financial outlook

For the third quarter of fiscal 2026, Rent the Runway anticipates revenue to fall between 87 million dollars and 90 million dollars, with an adjusted EBITDA margin between negative 3 percent and negative 6 percent.

For the full year fiscal 2026, the company reaffirmed its target of double-digit YoY revenue growth and expects an adjusted EBITDA margin of between 4 percent and 7 percent.

The platform updated its full-year expectation for rental product acquired, now projecting a range between 53 million dollars and 55 million dollars, compared to 74.90 million dollars in fiscal 2025.