Rent The Runway, Inc. (RENT)
NASDAQ:RENT
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Rent the Runway
(NASDAQ:RENT)
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Rating:52Neutral
Price Target:
$5.50
▲(11.34% Upside)
Action:ReiteratedDate:04/15/26
The score is held back primarily by weak financial resilience (negative equity and negative free cash flow despite improving earnings/operating cash flow). Technicals are neutral with the price still below key longer-term moving averages, while valuation is a supportive offset due to the very low P/E. Earnings call and recent financing-related events point to operational progress and improved liquidity, but margin pressure and cash burn remain notable risks.
Positive Factors
Subscriber growth and engagement
Sustained subscriber growth and materially higher engagement indicate strengthening recurring revenue and customer retention. Higher visit frequency and NPS suggest rising lifetime value and lower churn risk, which supports predictable subscription cash flows and scalable unit economics over the next several quarters.
Negative Factors
Negative equity / weak capital structure
Persistently negative equity constrains the company's ability to absorb shocks and raise non-dilutive capital, increasing refinancing risk. For a retail subscription model sensitive to cyclicality, weak book equity reduces covenant headroom and heightens the likelihood of costly financing or dilution if performance falters.
Read all positive and negative factors
Positive Factors
Negative Factors
Subscriber growth and engagement
Sustained subscriber growth and materially higher engagement indicate strengthening recurring revenue and customer retention. Higher visit frequency and NPS suggest rising lifetime value and lower churn risk, which supports predictable subscription cash flows and scalable unit economics over the next several quarters.
Read all positive factors
Rent the Runway (RENT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$193.33M
Dividend YieldN/A
Average Volume (3M)58.17K
Price to Earnings (P/E)3.7
Beta (1Y)2.04
Revenue Growth2.91%
EPS Growth94.12%
CountryUS
Employees912
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.03
Shares Outstanding33,390,903
10 Day Avg. Volume47,741
30 Day Avg. Volume58,171
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)-2.34
Price to Sales (P/S)0.26
P/FCF Ratio-76.77
Enterprise Value/Market Cap0.07
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit0.06
Enterprise Value/Ebitda0.09
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-19.64
Revenue Forecast (FY)$302.60M
Rent the Runway Business Overview & Revenue Model
Company Description
Rent the Runway, Inc. rents designer wear for women through its stores and online retail. The company offers ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, ski wear, home...
How the Company Makes Money
Rent the Runway primarily makes money through (1) subscription revenue and (2) resale revenue. Subscription revenue is generated when customers pay recurring fees for membership plans that provide ongoing access to rent a set number of items at a ...
Rent the Runway Key Performance Indicators (KPIs)
Any
Subscriber Breakdown
Provides a detailed look at the composition of subscribers, revealing trends in customer acquisition, retention, and the overall health of the subscription model.
Provides a detailed look at the composition of subscribers, revealing trends in customer acquisition, retention, and the overall health of the subscription model.
Data provided by:
The Fly
The FlyRent the Runway Earnings Call Summary
Earnings Call Date:Dec 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a generally positive outlook with strong subscriber and revenue growth, reduced debt, and enhancements in customer experience. However, challenges remain with decreased gross margins, higher operating expenses, and negative free cash flow.Positive Updates
Debt Reduction and Recapitalization
The company successfully reduced its total debt from approximately $319 million to approximately $120 million and extended the maturity to 2029, following a strategic recapitalization with new capital from two private equity firms.
Negative Updates
Decreased Gross Margins
Gross margins decreased from 34.7% in Q3 2024 to 29.6% in Q3 2025, primarily due to higher revenue share costs from increased inventory levels.
Read all updates
Q3-2025 Updates
Positive
Negative
Debt Reduction and Recapitalization
The company successfully reduced its total debt from approximately $319 million to approximately $120 million and extended the maturity to 2029, following a strategic recapitalization with new capital from two private equity firms.
Read all positive updates
Company Guidance
In the third quarter of fiscal year 2025, Rent the Runway, Inc. provided optimistic guidance, highlighting significant progress in financial and operational metrics. The company reduced its total debt from approximately $319 million to $120 million, extended its maturity to 2029, and is on track for 11% to 14% year-over-year revenue growth in Q4, compared to 1% in Q4 2024. Q3 saw a 12.4% increase in active subscribers year-over-year, with total revenue rising by 15.4% to $87.6 million. Despite a price increase in August, customer retention and acquisition improved, with inventory-related cancellations down nearly 30% year-over-year in Q3. The Net Promoter Score increased by 43% year-over-year, while the average subscriber visited the app 34% more times, and parts per subscriber rose by 15%. However, the adjusted EBITDA margin decreased to 4.9% of revenue due to higher revenue share expenses, and free cash flow was negative $13.6 million. For fiscal year 2025, the company expects revenue to range between $323.1 million and $325.1 million, with adjusted EBITDA margins between 4.9-5.5% of revenue.Rent the Runway Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
22
Negative
Cash Flow
34
Negative
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 329.80M | 306.20M | 298.20M | 296.40M | 203.30M |
| Gross Profit | 241.30M | 67.70M | 60.80M | 55.10M | 8.90M |
| EBITDA | 12.10M | 76.80M | 25.70M | -4.70M | -67.20M |
| Net Income | 22.60M | -69.90M | -113.20M | -138.70M | -211.80M |
Balance Sheet | |||||
| Total Assets | 221.00M | 509.60M | 534.60M | 336.20M | 447.50M |
| Cash, Cash Equivalents and Short-Term Investments | 50.40M | 77.40M | 84.00M | 154.50M | 247.60M |
| Total Debt | 41.30M | 380.80M | 356.60M | 315.20M | 312.80M |
| Total Liabilities | 257.10M | 692.10M | 656.90M | 371.50M | 376.40M |
| Stockholders Equity | -36.10M | -182.50M | -122.30M | -35.30M | 71.10M |
Cash Flow | |||||
| Free Cash Flow | -1.10M | -40.70M | -98.20M | -118.70M | -83.40M |
| Operating Cash Flow | 3.50M | 12.90M | -15.70M | -47.70M | -42.30M |
| Investing Cash Flow | -49.50M | -20.10M | -54.60M | -44.30M | -22.50M |
| Financing Cash Flow | 18.60M | -300.00K | 700.00K | -4.00M | 215.20M |
Rent the Runway Technical Analysis
Negative
4.94
Price Trends
5.47
Negative
6.25
Negative
5.40
Negative
Market Momentum
0.04
Negative
50.12
Neutral
63.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RENT, the sentiment is Negative. The current price of 4.94 is below the 20-day moving average (MA) of 4.95, below the 50-day MA of 5.47, and below the 200-day MA of 5.40, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 63.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RENT.
Rent the Runway Risk Analysis
Rent the Runway disclosed 62 risk factors in its most recent earnings report. Rent the Runway reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rent the Runway Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $442.33M | ― | -12.23% | ― | -0.08% | 73.05% | |
54 Neutral | $4.02B | 28.27 | 22.70% | ― | 2.97% | 9.85% | |
52 Neutral | $193.33M | 3.74 | -17.71% | ― | 2.91% | 94.12% | |
51 Neutral | $118.16M | 3.76 | -21.26% | ― | -8.31% | 36.10% | |
49 Neutral | $206.58M | -16.58 | 0.97% | ― | -7.33% | -114.80% | |
46 Neutral | $25.03M | -1,135.68 | -326.53% | ― | -12.10% | -44.14% |
* Consumer Cyclical Sector Average
RENT
Rent the Runway
5.22
1.26
31.82%
TLYS
Tilly's
5.12
3.50
216.05%
SFIX
Stitch Fix
3.33
0.26
8.47%
CURV
Torrid Holdings
2.05
-3.48
-62.93%
VSCO
Victoria's Secret
48.55
32.62
204.77%
LVLU
Lulu's Fashion Lounge Holdings
9.03
2.28
33.78%
Rent the Runway Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Rent the Runway Launches New ATM Equity Program
Neutral
Apr 15, 2026
On April 15, 2026, Rent the Runway entered into an at-the-market sales agreement with BTIG that allows the company to issue and sell up to $40 million of its Class A common stock under an existing shelf registration. A related prospectus supplemen...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Rent the Runway Amends Credit Agreement to Enhance Liquidity
Positive
Apr 6, 2026
On April 1, 2026, Rent the Runway, Inc. entered into a Second Amendment to its Amended and Restated Credit Agreement with its lenders and CHS (US) Management LLC as administrative agent. The amendment allows the company to capitalize interest inst...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Rent the Runway Amends Credit Agreement, Easing Liquidity Terms
Positive
Feb 3, 2026
On January 28, 2026, Rent the Runway, Inc. entered into a First Amendment to its Amended and Restated Credit Agreement with its lenders and administrative agent, CHS (US) Management LLC, originally dated October 28, 2025, to remove the minimum liq...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.