Rent The Runway, Inc. (RENT)
NASDAQ:RENT
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Rent the Runway
(NASDAQ:RENT)
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Rating:51Neutral
Price Target:
$5.00
▲(1.21% Upside)
Action:ReiteratedDate:04/21/26
The score is held back primarily by the fragile financial position (negative equity and negative free cash flow despite improving profitability) and a technically weak price trend below major moving averages. These are partly offset by a low P/E valuation and constructive operational momentum from the latest call (growth and debt reduction), though guidance points to near-term margin pressure and continued execution risk.
Positive Factors
Balance sheet recapitalization reduced debt
Lowering total debt from roughly $319M to $120M materially reduces leverage and near‑term refinancing pressure. This durable capital structure improvement increases financial flexibility to support inventory investments and operations, and aligns new investors with equity value creation over time.
Negative Factors
Negative shareholders' equity
Persistent negative equity constrains financial flexibility and heightens refinancing risk, particularly for a cyclical apparel retailer. It limits the company's ability to absorb shocks, fund growth internally, or negotiate favorable terms, making sustained external capital access more likely.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet recapitalization reduced debt
Lowering total debt from roughly $319M to $120M materially reduces leverage and near‑term refinancing pressure. This durable capital structure improvement increases financial flexibility to support inventory investments and operations, and aligns new investors with equity value creation over time.
Read all positive factors
Rent the Runway (RENT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$151.06M
Dividend YieldN/A
Average Volume (3M)86.55K
Price to Earnings (P/E)3.7
Beta (1Y)2.99
Revenue Growth7.71%
EPS GrowthN/A
CountryUS
Employees912
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.03
Shares Outstanding33,419,415
10 Day Avg. Volume162,487
30 Day Avg. Volume86,545
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)-2.34
Price to Sales (P/S)0.26
P/FCF Ratio-1.81
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit0.85
Enterprise Value/Ebitda7.51
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:Apr 14, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and top-line momentum driven by a large, deliberate inventory investment: double-digit subscriber and revenue growth, improved engagement and higher gross margins in Q4, successful community and new revenue pilots, and a recapitalization that materially reduced debt. Offsetting these positives were meaningful cash consumption in FY2025 (free cash flow deteriorated to negative $46M), a higher mix of revenue-share inventory that pressures adjusted EBITDA margins, guidance for lower EBITDA margins in FY2026 and continued cost and macro risks. Overall, management presented a credible path to sustainable growth while acknowledging near-term margin and cash trade-offs stemming from the inventory strategy and revenue-share mix.Positive Updates
Strong Subscriber Growth
Ending active subscribers of ~144,000, up 20.1% year-over-year (Q4 '25 vs Q4 '24); average active subscribers during Q4 were 146,356, up 16% year-over-year.
Negative Updates
Free Cash Flow Deterioration
Fiscal year 2025 free cash flow was negative $46 million versus negative $7.2 million in fiscal year 2024, driven primarily by front-loaded inventory purchases to fuel growth; Q4 free cash flow fell to $0.5 million from $2.1 million in Q4 '24.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Subscriber Growth
Ending active subscribers of ~144,000, up 20.1% year-over-year (Q4 '25 vs Q4 '24); average active subscribers during Q4 were 146,356, up 16% year-over-year.
Read all positive updates
Company Guidance
For Q1 2026 Rent the Runway guided revenue of $85–$87 million (up 22–25% year‑over‑year) and adjusted EBITDA margins of negative 5% to negative 7% (versus negative 1.9% in Q1 2025), noting a sequential revenue decline from $91.7M in Q4 2025 driven by lower resale; for fiscal 2026 the company expects double‑digit revenue growth, full‑year adjusted EBITDA of 4%–7% of revenue (vs 7.5% in FY2025), and rental products acquired of $45–$50M (down from $74.9M in FY2025, a ~$25–30M decline). Management cautioned that Q1 and FY2026 margins will be pressured by higher fixed and variable revenue‑share expenses due to a larger Share by RTR inventory base, that H1 growth benefits from the August 2025 price increase, that ending active subscriber growth may decelerate versus the 20.1% YoY increase to 143,796 subscribers in Q4 2025, and that they expect free cash flow trends to improve versus FY2025’s negative $46M as the large inventory buy monetizes.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 | 196.00M | 67.70M | 60.80M | 55.10M | 8.90M |
| EBITDA | 22.30M | 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 | 198.30M | 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 | -46.60M | -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
Positive
4.94
Price Trends
5.39
Positive
6.28
Negative
5.42
Positive
Market Momentum
0.08
Negative
54.78
Neutral
31.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RENT, the sentiment is Positive. The current price of 4.94 is below the 20-day moving average (MA) of 5.09, below the 50-day MA of 5.39, and below the 200-day MA of 5.42, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 54.78 is Neutral, neither overbought nor oversold. The STOCH value of 31.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $501.04M | -60.75 | -12.23% | ― | 3.65% | 66.88% | |
54 Neutral | $4.09B | 28.27 | 22.70% | ― | 5.22% | -4.06% | |
51 Neutral | $151.06M | 3.74 | -17.71% | ― | 7.71% | ― | |
51 Neutral | $91.11M | 3.76 | -21.26% | ― | -2.79% | 62.29% | |
49 Neutral | $166.85M | -16.58 | 3.50% | ― | -9.39% | -147.79% | |
46 Neutral | $30.83M | -1,135.68 | -326.53% | ― | -10.64% | 75.40% |
* Consumer Cyclical Sector Average
RENT
Rent the Runway
4.52
0.49
12.16%
TLYS
Tilly's
3.93
2.40
156.86%
SFIX
Stitch Fix
3.67
0.40
12.23%
CURV
Torrid Holdings
1.68
-4.67
-73.54%
VSCO
Victoria's Secret
50.88
32.08
170.64%
LVLU
Lulu's Fashion Lounge Holdings
10.79
4.23
64.48%
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.