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Rent the Runway (RENT)
NASDAQ:RENT
Earnings Data
Report Date
Jun 05, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
-7.43Last Year’s EPS
-6.03Same Quarter Last Year
Based on 1 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Apr 15, 2025
|% Change Since: -24.86%
|Next Earnings Date:Jun 05, 2025
Earnings Call Sentiment|Neutral
The earnings call highlighted significant strategic investments in inventory and innovative customer engagement initiatives, indicating a focus on future growth and customer satisfaction. However, challenges such as decreased active subscribers and increased cash consumption forecast for 2025 present notable risks.Company Guidance
During the Rent the Runway's fourth quarter and fiscal year 2024 earnings call, the company provided guidance for fiscal year 2025, focusing on a significant inventory investment intended to drive subscriber growth and improve customer loyalty. The company plans to double inventory purchases, with 62% of new inventory expected to come through their Share by RTR program, which allows inventory acquisition at zero or low upfront cost. Despite this investment resulting in anticipated cash consumption between negative $30 million and negative $40 million, Rent the Runway expects double-digit growth in active subscribers. The call highlighted fiscal year 2024's nearly break-even cash position, with adjusted EBITDA of $46.9 million or 15.3% of revenue, and a reduction in cash consumption from a decline of $70.5 million in fiscal year 2023 to $6.6 million in fiscal year 2024. The company projects a positive impact on cash flow beyond fiscal year 2025 as the inventory investment aims to enhance customer satisfaction and retention, leveraging a capital-light business model.Improved Cash Position
Rent the Runway significantly improved its cash position from a decline of $70.5 million in fiscal year 2023 to a decline of only $6.6 million at the end of fiscal year 2024, marking record low cash consumption.
Largest Inventory Investment in Company's History
In 2025, Rent the Runway plans to add two times new inventory units year-over-year, emphasizing a substantial investment to improve customer satisfaction and retention.
Significant Growth in Share by RTR Model
Share by RTR units are expected to increase to approximately 62% of total units in fiscal year 2025, a 2.5x increase versus fiscal year 2024, highlighting the success and popularity of the model.
Positive Adjusted EBITDA Growth
Adjusted EBITDA for fiscal year 2024 was approximately $46.9 million or 15.3% of revenue, up from $26.9 million or 9% of revenue in fiscal year 2023.
Strong Customer Service and Loyalty Initiatives
The company maintained a CSAT score between 80% and 90% over the past three years, and implemented new strategies for proactive customer engagement to drive loyalty.
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RENT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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RENT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Apr 15, 2025 | $5.39 | $4.41 | -18.18% |
| Dec 09, 2024 | $12.82 | $10.02 | -21.84% |
| Sep 05, 2024 | $15.08 | $10.90 | -27.72% |
| Jun 06, 2024 | $26.81 | $23.22 | -13.39% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Rent the Runway (RENT) report earnings?
Rent the Runway (RENT) is schdueled to report earning on Jun 05, 2025, TBA Not Confirmed.
What is Rent the Runway (RENT) earnings time?
Rent the Runway (RENT) earnings time is at Jun 05, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is RENT EPS forecast?
RENT EPS forecast for the fiscal quarter 2025 (Q1) is -7.43.
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