Rent the Runway (NASDAQ:RENT) Posts Quarterly Earnings Results

Rent the Runway (NASDAQ:RENT) announced its quarterly earnings results on Wednesday. The company reported ($0.57) earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $89.90 million during the quarter.

Here are the key takeaways from Rent the Runway’s conference call:

• Revenue surged nearly 30% year over year to $89.9 million in Q1, above guidance, as subscription revenue, higher average revenue per subscriber, and retail revenue all improved.
• Add-on demand remained very strong, with add-on revenue up 70% year over year and 11% sequentially, which management said reflects better inventory and stronger customer engagement.
• Management said subscriber growth slowed year over year versus prior quarters, but attributed the deceleration mainly to tougher comparisons from normalized marketing spend and last year’s promotional activity.
• The company highlighted several AI-driven discovery upgrades, including personalized carousels, improved imagery, and upcoming outfit generation, with early engagement metrics showing higher hearts and views.
• Rent the Runway reiterated full-year 2026 guidance for double-digit revenue growth, 4%-7% Adjusted EBITDA margin, and $45 million-$50 million of rental product acquired, while noting Q2 will be affected by Reserve declines and fuel surcharge uncertainty.

Rent the Runway Stock Performance

Shares of RENT stock opened at $3.71 on Thursday. Rent the Runway has a 1 year low of $3.35 and a 1 year high of $10.13. The stock has a market cap of $123.99 million, a PE ratio of 7.73 and a beta of 1.17. The business’s fifty day moving average is $4.59 and its 200-day moving average is $5.80.

Hedge Funds Weigh In On Rent the Runway

Hedge funds have recently modified their holdings of the company. Virtu Financial LLC acquired a new position in shares of Rent the Runway during the 4th quarter valued at $88,000. Renaissance Technologies LLC acquired a new position in shares of Rent the Runway during the 4th quarter valued at $89,000. State Street Corp acquired a new position in shares of Rent the Runway during the 4th quarter valued at $484,000. Jane Street Group LLC acquired a new position in shares of Rent the Runway during the 4th quarter valued at $690,000. Finally, Geode Capital Management LLC grew its holdings in shares of Rent the Runway by 1,044.4% in the 4th quarter. Geode Capital Management LLC now owns 284,372 shares of the company’s stock worth $2,251,000 after acquiring an additional 259,522 shares during the last quarter. 73.10% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on RENT. Wall Street Zen downgraded Rent the Runway from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. Weiss Ratings reissued a “sell (d)” rating on shares of Rent the Runway in a report on Friday, March 27th. One analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock has a consensus rating of “Sell”.

About Rent the Runway

Rent the Runway (NASDAQ: RENT) operates an online marketplace and subscription service that provides designer apparel and accessory rentals to consumers. The company offers both one-time rentals and tiered subscription plans, enabling members to borrow items on a recurring basis rather than purchasing them outright. Rent the Runway’s inventory spans a wide range of brands and styles, including evening gowns, everyday wear, handbags and jewelry, positioning the company within the broader sharing-economy and circular-fashion movements.

Founded in 2009 by Jennifer Hyman and Jennifer Fleiss, Rent the Runway was built on the premise of making high-end fashion more accessible and sustainable.