Rent the Runway (RENT) stock took a beating on Friday after the women’s designer wear rental company posted its earnings report for the second quarter of 2025. This report started with diluted earnings per share of -$6.55. That’s a huge increase in losses compared to the -$4.17 per share reported in the same period of the year prior.
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Rent the Runway reported revenue of $80.9 million for Q2 2025, which was up 2.5% year-over-year compared to $78.9 million. The company noted that this increased revenue came alongside a 13.4% increase in subscribers compared to Q2 2024. It also announced a price change at the start of August due to “inflationary pressures and tariffs in the fashion industry.”
Rent the Runway stock was down 26.49% on Friday, extending a 31.76% year-to-date fall. The shares have also dropped 24.35% over the past 12 months.
Rent the Runway Guidance
Rent the Runway provided a guidance update in its latest earnings report. The company expects Q3 2025 revenue to come in between $82 million and $84 million. It also estimates an Adjusted EBITDA Margin of -2% to 2% for the quarter.
Rent the Runway also included guidance for 2025 in its earnings report. It expects double-digit growth in Ending Active Subscribers compared to 2024, $70 million to $75 million in rental product acquired, and free cash flow of less than -$40 million due to previously announced costs associated with
the recapitalization transactions.
Is Rent the Runway Stock a Buy, Sell, or Hold?
Turning to Wall Street, Rent the Runway lacks significant analyst coverage. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates RENT stock a Neutral (51) with an $8 price target. It cites “weak financial performance, characterized by negative profitability and high leverage” as reasons for this stance. Spark’s rating and price target could change following the company’s latest earnings report.
