Story perspectives

Rent the Runway Sees Revenue Rise Amid Rising Losses

9/12/2025

38 4

Summary

Story summary

Rent the Runway's Q2 2025 revenue rose 2.5% to $80.9 million, with active subscribers increasing 13.4% to 146,373.
The company reported a loss of $26.4 million, up from $15.6 million last year, as costs increased by 14%.
A recapitalization plan aims to reduce debt from over $340 million to about $120 million.
Gross margin decreased to 30% due to higher fulfillment and revenue share costs, with negative free cash flow of $20.5 million.
Management anticipates revenue of $82 million to $84 million next quarter, expecting continued subscriber growth.

1 of 1

Story summary

Rent the Runway's Q2 2025 revenue rose 2.5% to $80.9 million, with active subscribers increasing 13.4% to 146,373.
The company reported a loss of $26.4 million, up from $15.6 million last year, as costs increased by 14%.
A recapitalization plan aims to reduce debt from over $340 million to about $120 million.
Gross margin decreased to 30% due to higher fulfillment and revenue share costs, with negative free cash flow of $20.5 million.
Management anticipates revenue of $82 million to $84 million next quarter, expecting continued subscriber growth.