I'm excited to report results for Q2 that beat our expectations. And as a result, we're raising revenue guidance for the full year.
— Jennifer Hyman, CEO
03Detailed Report
RENT
Rent the Runway Inc
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 5, 2026
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Executive Summary
Rent the Runway reported Q2 2024 revenue of $78.9 million, up 4.2% year‑over‑year, with adjusted EBITDA of $13.7 million (17.4% of revenue) and GAAP net loss of $15.6 million (EPS -$4.17). Management raised full‑year revenue guidance and reiterated its objective of reaching free cash flow breakeven in fiscal 2024. Operational improvements — notably in the reserve (special event rental) business, site performance and fulfillment costs — drove revenue per order and margin gains. The company’s liquidity position is adequate in the near term (cash and equivalents roughly $77–86.6 million depending on disclosure), but Rent the Runway remains highly levered with total debt ~ $366.9 million and negative shareholders’ equity. Investment case depends on execution of H2 revenue acceleration, conversion of positive adjusted EBITDA into sustainable free cash flow, and progress on reducing net leverage.
Key Performance Indicators
Revenue
Increasing
78.90M
QoQ: 5.20% | YoY: 4.23%
Gross Profit
Increasing
58.30M
73.89% margin
QoQ: 276.13% | YoY: 75.60%
Operating Income
Increasing
-9.60M
QoQ: 41.10% | YoY: 45.14%
Net Income
Increasing
-15.60M
QoQ: 29.09% | YoY: 41.79%
EPS
Increasing
-4.17
QoQ: 30.85% | YoY: 47.41%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $78.9M (Q2 2024, +4.2% YoY). Gross profit: $58.3M (gross margin ~41.1%). GAAP operating income: -$9.6M. EBITDA (GAAP field): $19.6M; Adjusted EBITDA (management): $13.7M (17.4% of revenue). Net income: -$15.6M; EPS: -$4.17. Operating cash flow: $2.2M; Capital expenditures: $14.6M; Free cash flow: -$12.4M (Q2). Cash at period end: ~$76.6M–$86.6M (disclosure variance); Total debt: $366.9M; Net debt: $290.3M. Current ratio: 1.92; Cash ratio: 1.59. Management notes nine consecutive quarters of positive adjusted EBITDA and expects full‑year adjusted EBITDA margins of 15–16% and free cash flow breakeven for 2024.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
78.90M
4.23%
5.20%
Gross Profit
58.30M
75.60%
276.13%
Operating Income
-9.60M
45.14%
41.10%
Net Income
-15.60M
41.79%
29.09%
EPS
-4.17
47.41%
30.85%
Key Financial Ratios
Gross Profit Margin
Good
41.10%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
-0.12%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.20%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.06%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
10.10%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
1.92
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
-2.37
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-0.89x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
-0.36x
Trading below book value, potential value opportunity or distressed
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