Rent the Runway Reports 12.4% Active Subscriber Growth and 15.4% Revenue Increase in Q3

Written by Emily J. Thompson, Senior Investment Analyst

Source: Newsfilter

Updated: Dec 12 2025

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Should l Buy RENT?

Source: Newsfilter

Active Subscriber Growth: As of Q3 2025, Rent the Runway reported 148,916 active subscribers, reflecting a 12.4% year-over-year increase primarily driven by improved subscriber retention, which enhances customer loyalty and competitive positioning.
Significant Revenue Increase: The company achieved revenue of $87.6 million in Q3, a 15.4% increase from $75.9 million in the same quarter last year, demonstrating successful execution of its transformation plan and strong market demand.
Successful Debt Restructuring: On October 28, 2025, Rent the Runway completed its debt restructuring, reducing its outstanding debt to $120 million and extending the maturity to 2029, significantly enhancing financial flexibility and laying the groundwork for future growth.
Innovative Inventory Investment: The company is on track to nearly double its new inventory and introduce 1.5 times the number of new styles compared to last year, driving substantial business growth and indicating strategic success in meeting customer needs and enhancing brand awareness.

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About RENT

Rent the Runway, Inc. operates in the fashion industry and focuses on changing the way women get dressed through the Closet in the Cloud. Through the Company, customers can subscribe, rent items a-la-carte and shop resale from hundreds of designer brands. The Closet in the Cloud offers a wide assortment of items for every occasion, from evening wear and accessories to ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear and ski wear. The Company gives customers access to its unlimited closet through its subscription offering (Subscription) or the ability to rent a-la-carte through its reserve offering (Reserve). It also gives its subscribers and customers the ability to buy its products through its Resale offering. The Company has built a two-sided discovery engine, which connects engaged customers and differentiated brand partners on a platform built around its brand, data, logistics and technology.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Rent The Runway Makes a Strong Comeback with Perfect-Fit Quarter

Dec 12 2025Benzinga

Strong Quarterly Performance: Rent the Runway reported third-quarter sales of $87.60 million, exceeding expectations, with a 15.4% year-over-year increase and a rise in total subscribers to 185,166.
Improved Financial Outlook: The company provided optimistic revenue guidance for the fourth quarter and fiscal 2025, forecasting revenues above analyst estimates, driven by increased inventory and subscriber growth.
Operational Challenges: Despite the sales growth, gross profit and adjusted EBITDA declined, indicating softer profitability trends, with gross margin dropping from 34.7% to 29.6% year-over-year.
Stock Market Reaction: Following the positive earnings report, Rent the Runway's stock surged by 26.82%, reflecting investor confidence in the company's strategic direction and financial health.

Transcript of Rent the Runway's Q3 2025 Earnings Call

Dec 12 2025Yahoo Finance

Strategic Recapitalization: Rent the Runway, Inc. has successfully reduced its debt from approximately $319 million to $120 million, extending maturity to 2029, while also securing new capital from private equity firms to support growth initiatives.
Growth and Customer Engagement: The company is experiencing a resurgence in growth, with a projected 11% to 14% year-over-year revenue increase in Q4 2025, driven by improved customer experience, increased inventory, and a 12% rise in active subscribers.
Enhanced Customer Experience: Key improvements include a redesigned app homepage, better onboarding for new subscribers, and transparent pricing for add-ons, leading to higher customer engagement and retention metrics.
Future Outlook: Rent the Runway anticipates continued strong revenue growth and subscriber increases, with Q4 revenue expected between $85 million and $87 million, while managing investments prudently to sustain growth momentum.

Rent the Runway Reports 15.4% Revenue Growth in Q3 and Completes Recapitalization

Dec 12 2025Globenewswire

Significant User Growth: As of Q3 2025, Rent the Runway's active subscribers reached 148,916, reflecting a 12.4% year-over-year increase, indicating substantial improvements in customer retention that enhance market competitiveness.
Sustained Revenue Increase: The company reported revenue of $87.6 million in Q3, a 15.4% year-over-year growth primarily driven by its largest inventory investment in history, which further boosts brand awareness and customer acquisition.
Optimized Capital Structure: The completion of the recapitalization in October 2025 reduced total debt to $120 million and extended the maturity to 2029, enhancing financial flexibility and laying a solid foundation for future growth.
Innovation-Driven Growth: The launch of a personalized homepage and community-driven growth strategies led to a 57% increase in user engagement with the app, which not only enhances customer experience but also has the potential to drive future revenue growth.