RENT Research | Milton Maxwell

RENT

Rent the Runway, Inc.

8.44

+0.91+12.1%

Dec 16, 4:00:01 PM EST

Upcoming Earnings

Report date

-/-

Earnings Call Transcripts

This Quarter (Q1 '26)

No earnings call transcript available yet

Last Quarter (Q4 '25)

No earnings call transcript available

Key Stats

Market Cap

283.13M

P/E (TTM)

2.93

Basic EPS (TTM)

2.88

Dividend Yield

Recent Filings

8-K

Drops liquidity covenant

2/3/26Feb 3, 2026

Rent the Runway signed its credit agreement's First Amendment on January 28, 2026, deleting the minimum liquidity covenant while leaving other terms intact. Lenders CHS, S3 RR Aggregator, and Gateway Runway agreed, confirming no defaults exist. Flexibility expands, yet obligations persist.

8-K

Q3 revenue surges 15%; debt restructured

12/12/25Dec 12, 2025

Rent the Runway reported Q3 revenue of $87.6 million, up 15.4% YoY, with ending Active Subscribers hitting 148,916, a 12.4% rise. The company closed its recapitalization on October 28, slashing debt to $120 million—maturing 2029—via $20 million cash infusion and $12.5 million rights offering, sparking a $96.3 million gain that flipped net loss to $76.5 million profit. Debt slashed. Q4 revenue guides $85-87 million.

10-Q

Q3 FY2026 results

12/12/25Dec 12, 2025

Rent the Runway posted Q3 revenue of $87.6M, up 15% y/y from $75.9M, with subscription revenue climbing 16% y/y to $77.0M on higher pricing and 12% y/y active subscriber growth to 149K; yet operating loss widened to $(16.2)M from $(13.7)M as rental product depreciation/revenue share jumped 34% y/y to $37.7M. Debt restructuring slashed long-term debt to $159.1M (due 2029) from $333.7M, booking a $96.3M gain that flipped net loss to $76.5M income, while cash dipped to $50.7M amid $61.9M rental product buys. Operating cash flow swung negative at $(3.6)M YTD. Recapitalization closed Oct 28 for $120M new term loans plus 26M shares issued for debt equitization. Nasdaq audit committee non-compliance lingers.

8-K

RENT closes debt-to-equity recap

10/29/25Oct 29, 2025

Rent the Runway closed recapitalization on October 28, 2025, slashing debt from $334M to $120M term loans maturing 2029 at term SOFR+5%. Lender swapped $234M debt for 26M shares, grabbing 59.9% control; board got a full reshuffle. Debt cut breathes easy—yet covenants tighten.

8-K

Stockholders approve incentive plan expansion

10/22/25Oct 22, 2025

Rent the Runway's stockholders overwhelmingly approved amendments to the 2021 Incentive Award Plan at the October 21, 2025 special meeting, boosting reserved Class A shares by 18.3% of outstanding stock post-closing of the August 20 Exchange Agreement with CHS US Investments and extending the plan's expiration to the tenth anniversary of that closing. This bolsters the company's equity incentive pool amid a debt-to-equity conversion and rights offering backstop, both greenlit with near-unanimous support exceeding 99% votes for. Stockholders also ratified the certificate of incorporation update. Yet dilution looms for existing holders.

About

Rent the Runway, Inc. operates shared designer closet in the United States. The company provides evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering. It also engages in the software development and support activities. Rent the Runway, Inc. was incorporated in 2009 and is headquartered in Brooklyn, New York.

CEO

Ms. Jennifer Y. Hyman

IPO

10/27/2021

Website

https://www.renttherunway.com

Employees

912

Sector

Consumer Cyclical

Industry

Apparel Retail