Rent the Runway grows revenue 21% but forecasts weaker next quarter

Rent the Runway ($RENT) reported second-quarter revenue of $97.7 million, up 20.8%, and narrowed its net loss to $12.9 million from $26.4 million. Adjusted EBITDA increased to $12.6 million from $3.6 million. However, ending active subscribers fell 3.8% to 140,826, despite a modest increase in the quarter’s average active subscriber count.

The company expects next-quarter revenue of $87–90 million and a negative adjusted EBITDA margin of 3–6%. It maintained full-year expectations for double-digit revenue growth and a 4–7% adjusted EBITDA margin. Paige Thomas was named chief executive, with interim chief Teri Bariquit moving to non-executive chair. The release combines an improved reported quarter with a more difficult near-term profitability outlook and another leadership transition.

Sources:

• Rent the Runway — quarterly release, GlobeNewswire via StockTitan