We have proven that we can operate a sustainable, nearly break-even business. With our business operations in a solid position, we believe it is now time for Rent the Runway to look to the future.
— Jennifer Hyman, CEO
03Detailed Report
RENT
Rent the Runway Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 5, 2026
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Executive Summary
Rent the Runway reported Q4 FY2024 revenue of $76.4 million and a GAAP net loss of $13.4 million (EPS -$3.55). Management highlights meaningful progress on cost discipline and adjusted profitability while announcing a material inventory investment program for FY2025 intended to drive subscriber growth and retention. The company ended the period with positive operating cash flow for the quarter but remains highly leveraged on the balance sheet with total liabilities of $422.5 million and negative stockholders’ equity of $182.5 million. Management expects to invest in inventory in 2025 (CAPEX guidance in the earnings call: ~$70–75M) and has provided free cash flow guidance for FY2025 of negative $30M to negative $40M while targeting double-digit ending subscriber growth.
Key Performance Indicators
Revenue
Increasing
76.40M
QoQ: 0.66% | YoY: 0.79%
Gross Profit
Increasing
56.20M
73.56% margin
QoQ: 3.12% | YoY: 0.90%
Operating Income
Increasing
-7.90M
QoQ: 42.34% | YoY: 59.07%
Net Income
Increasing
-13.40M
QoQ: 29.10% | YoY: 45.97%
EPS
Increasing
-3.55
QoQ: 28.14% | YoY: 49.43%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $76.4M; Gross profit (GAAP): $56.2M (73.6% of revenue). Note: management-reported gross/growth margin metrics differ — management cited a 37.7% gross margin (company presentation definition). Operating loss: $7.9M (-10.3% of revenue). EBITDA (GAAP): $22.6M. Net loss: $13.4M (net margin -17.5%). EPS (diluted): -$3.55. Adjusted EBITDA (management): $17.4M (22.8% of revenue) per the earnings discussion. Operating cash flow (quarter): $1.4M. Free cash flow (quarter): -$7.9M. Cash at period end (company disclosure): $86.5M (note: balance-sheet cash line shows $77.4M; reconciliation is in filings). Total assets: $240.0M. Total liabilities: $422.5M. Total equity: -$182.5M. Total debt: $380.8M; net debt: $303.4M. Current ratio: 1.98. Days payable outstanding: 27.6. Price/Revenue (reported ratio context): ~0.41x.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
76.40M
0.79%
0.66%
Gross Profit
56.20M
0.90%
3.12%
Operating Income
-7.90M
59.07%
42.34%
Net Income
-13.40M
45.97%
29.10%
EPS
-3.55
49.43%
28.14%
Key Financial Ratios
Gross Profit Margin
Excellent
73.60%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.10%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.18%
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
7.34%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
1.98
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
-2.09
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-0.59x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
-0.17x
Trading below book value, potential value opportunity or distressed
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