"Getting to free cash flow breakeven for full year 2024; and reigniting the growth flywheel of the business."
— Jennifer Hyman, CEO
03Detailed Report
RENT
Rent the Runway Inc
Period
Q1 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 5, 2026
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Executive Summary
Rent the Runway reported Q1 2024 revenue of $75.0 million and a GAAP net loss of $22.0 million (EPS -$6.03). Management reiterated full-year 2024 guidance and emphasized two strategic priorities: reach free cash flow breakeven in 2024 and reignite top-line growth. The company showed operational progress — record ending active subscribers (145,837), improved adjusted EBITDA (management: $6.5 million / 8.7% of revenue) and materially reduced free cash flow burn versus prior periods — but retains a leveraged balance sheet (total debt ~$361.8 million; negative shareholders’ equity of ~$141.3 million). The quarter demonstrates improving unit economics and marketing/product initiatives that could accelerate growth, while elevated leverage and negative GAAP profitability remain principal constraints on risk-adjusted valuation.
Key Performance Indicators
Revenue
Increasing
75.00M
QoQ: -1.06% | YoY: 1.08%
Gross Profit
Decreasing
15.50M
20.67% margin
QoQ: -72.17% | YoY: -50.64%
Operating Income
Decreasing
-16.30M
QoQ: 15.54% | YoY: -63.00%
Net Income
Increasing
-22.00M
QoQ: 11.29% | YoY: 26.91%
EPS
Increasing
-6.03
QoQ: 14.10% | YoY: 34.03%
Revenue Trend
Margin Analysis
Financial Highlights
Key reported metrics (USD): Revenue $75.0M; Gross profit $15.5M (20.7% GAAP gross margin); Operating loss $16.3M (-21.7%); EBITDA (non-GAAP per filing) $13.0M; Management adjusted EBITDA $6.5M (8.7% of revenue); Net loss $22.0M (EPS -$6.03); Operating cash flow $4.6M; Capital expenditures $13.9M; Free cash flow -$9.3M; Cash & equivalents $87.2M; Total assets $278.4M; Total liabilities $419.7M; Total debt $361.8M; Net debt $274.6M; Ending active subscribers 145,837 (record). Selected ratios: current ratio 1.61; net leverage (net debt / trailing EBITDA) — not provided explicitly; enterprise value multiple 23.97; price/sales ~0.49.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
75.00M
1.08%
-1.06%
Gross Profit
15.50M
-50.64%
-72.17%
Operating Income
-16.30M
-63.00%
15.54%
Net Income
-22.00M
26.91%
11.29%
EPS
-6.03
34.03%
14.10%
Key Financial Ratios
Gross Profit Margin
Fair
20.70%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
-0.22%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.29%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.08%
Return on assets suggests inefficient capital allocation
Return on Equity
Good
15.60%
Return on equity shows solid performance and effective asset utilization
Current Ratio
Healthy
1.61
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
-2.56
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-0.42x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
-0.26x
Trading below book value, potential value opportunity or distressed
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