We saw broad-based revenue improvement and meaningful expansion in gross margin this quarter; our priority is translating that improvement into sustained positive adjusted EBITDA and free cash flow.
— Management (CEO/C-suite paraphrase)
03Detailed Report
RENT
Rent the Runway Inc
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 5, 2026
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Executive Summary
Rent the Runway reported Q1 2026 revenue of $89.9 million, up ~19.9% year-over-year, driven by stronger top-line trends and improved gross margin (73.7%). Despite healthy unit economics at the gross-profit line, the company recorded an operating loss of $19.7 million and an EBITDA loss of $17.5 million in the quarter. A large component of the operating shortfall is a $54.6 million line item classified as 'other expenses' and elevated operating expense levels (S,G&A $31.4 million). Net loss was $18.9 million (-$0.57 per share). Absent cash-flow and balance-sheet line items in the provided data, the primary near-term considerations for investors are the sustainability of the improved gross margins, the composition and recurrence of the 'other expenses', and a credible path to positive adjusted EBITDA and free cash flow.
Key Performance Indicators
Revenue
Increasing
89.90M
QoQ: 17.67% | YoY: 19.87%
Gross Profit
Increasing
66.30M
73.75% margin
QoQ: 17.97% | YoY: 327.74%
Operating Income
Decreasing
-19.70M
QoQ: -149.37% | YoY: -20.86%
Net Income
Increasing
-18.90M
QoQ: -41.04% | YoY: 14.09%
EPS
Increasing
-0.57
QoQ: 83.94% | YoY: 90.55%
Revenue Trend
Margin Analysis
Financial Highlights
Q1 2026 highlights (USD): Revenue $89.9M (+19.9% YoY, +17.7% QoQ). Gross profit $66.3M; Gross margin 73.7%. Operating loss $19.7M (operating margin -21.9%). EBITDA -$17.5M (EBITDA margin -19.5%). Net loss $18.9M (-21.0% net margin); diluted EPS -$0.57; weighted average shares outstanding 33.42M. Cost of revenue $23.6M. Total operating expenses $86.0M; other expenses $54.6M (material contributor to loss). Depreciation & amortization $2.2M (notable decline versus earlier disclosed periods—see filings/notes).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
89.90M
19.87%
17.67%
Gross Profit
66.30M
327.74%
17.97%
Operating Income
-19.70M
-20.86%
-149.37%
Net Income
-18.90M
14.09%
-41.04%
EPS
-0.57
90.55%
83.94%
Key Financial Ratios
Management Insights Available for Members
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