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Revolve Group Reports Strong Q2 2025 Financial Performance

Revolve Group Reports Strong Q2 2025 Financial Performance

Revolve Group ( (RVLV) ) has released its Q2 earnings. Here is a breakdown of the information Revolve Group presented to its investors.

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Revolve Group, Inc., a prominent fashion retailer catering to Millennial and Generation Z consumers, specializes in offering a curated selection of apparel, footwear, accessories, beauty, and home products through its online platform. The company operates through two segments, REVOLVE and FWRD, which provide a mix of premium and luxury brands.

In its second quarter of 2025 financial results, Revolve Group reported a robust performance with a 9% increase in net sales year-over-year, reaching $309 million. The company also achieved a 10% growth in operating income and recorded its highest Adjusted EBITDA margin in three years. Despite macroeconomic challenges, including tariff policy uncertainties, Revolve demonstrated resilience and continued to invest in long-term growth initiatives such as AI enhancements and category expansion.

Key financial highlights include a gross profit of $167.1 million, maintaining a gross margin of 54.1%. However, net income decreased by 35% to $10 million, primarily due to a significant drop in other income and an increased effective tax rate. The company saw a 12% rise in Adjusted EBITDA, reflecting improved efficiency in selling and distribution costs. Additionally, Revolve’s cash flow from operations significantly improved, with a free cash flow of $9.6 million for the quarter.

Looking ahead, Revolve Group remains focused on leveraging its strong cash flow to support strategic investments aimed at accelerating growth. The management anticipates continued market share gains while navigating potential economic headwinds such as tariffs and inflationary pressures. The company’s updated outlook for 2025 reflects a positive stance on maintaining healthy gross margins and managing operational expenses effectively.

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