Rent the Runway Posts Record Q2 Revenue, Names New CEO
RENT sits 19% above its 52-week low of $2.6 on elevated volume (2.0× avg).
Summary
Rent the Runway delivered record Q2 revenue of $97.7M, up 21% year-over-year, driven by an 81% surge in add-on bookings and a 609 basis point gross margin expansion. Adjusted EBITDA margin jumped to 12.9% from 4.4% a year ago. The company named Paige Thomas as CEO and Teri Bariquit as board chair, with Thomas succeeding Bariquit, who had served as interim CEO and president since May, and Dhiren Fonseca stepping down as executive chairman while remaining on the board. Rent the Runway reaffirmed FY26 guidance for double-digit revenue growth and 4%-7% adjusted EBITDA margin, and issued Q3 guidance of $87M-$90M revenue and -3% to -6% adjusted EBITDA margin. This follows the $9M IPO class action settlement and a $15M rights offering backstop announced earlier this month. The stock trades at a market cap of roughly $95M.
At the time of this announcement, RENT was trading at $3.10 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $94.7M. The 52-week trading range was $2.60 to $10.13. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.