Revolve Group (RVLV) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 29.0
• Beta (1Y): 1.85
• Revenue Growth: 9.24%
• EPS Growth: 35.68%
• Country: US
• Employees: 1,632
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.26
• Shares Outstanding: 41,253,120
• 10 Day Avg. Volume: 848,074
• 30 Day Avg. Volume: 1,256,362
• PEG Ratio: 1.44
• Price to Book (P/B): 4.20
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 44.85
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 2.02
• Enterprise Value/Ebitda: 14.73
• 1Y Price Target: $29.55
• Price Target Upside: 33.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 0.91
• Revenue Forecast (FY): $1.33B

• Rating: 67 Neutral
• Price Target: $25.00 ▲(13.07% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is driven primarily by strong underlying financial quality (low leverage, solid margins, multi-year growth) and a generally positive earnings outlook with improving gross margin and demand momentum. Offsetting these are notably weak technicals (price below key moving averages with bearish momentum) and a growth-leaning valuation (P/E ~29) without dividend support, plus near-term uncertainty from tariffs and higher marketing investment pressuring EBITDA leverage.

Positive Factors

Conservative balance sheet

Low leverage, a large cash buffer and healthy ROE (~12% in 2025) provide durable financial flexibility. This supports sustained investment in marketing, owned‑brand development and measured retail expansion while helping absorb tariff or inventory shocks without forcing external financing.

Resilient gross margins

Consistently low‑to‑mid 50% gross margins and management's FY26 margin guidance reflect structural margin strength from owned brands, improved markdown algorithms and merchandising. Durable gross margin supports long‑term profit conversion as revenues scale and cushions operating cost investments.

Multi-year revenue and category diversification

Sustained top‑line growth and faster expansion in beauty and luxury (FWRD) diversify revenue streams and customer cohorts. Category breadth and owned‑brand progress (~20% of REVOLVE sales) reduce dependence on single categories and create multiple durable growth vectors and margin drivers.

Negative Factors

Tariff-related gross margin risk

Tariff timing, levels and potential refunds inject structural variability into costs and margins. Because guidance is sensitive to tariff outcomes, sustained tariff exposure could reverse recent gross‑margin gains and complicate multi‑period planning for pricing, sourcing and inventory strategies.

Planned higher marketing spend

Management's deliberate increase in brand and owned‑brand marketing is strategic but will pressure near‑term operating leverage and keep adjusted EBITDA roughly flat. If marketing payback underperforms, profit expansion and cash‑return prospects could be delayed materially.

Inconsistent cash flow trends

While cash generation remains positive, a sharp FCF decline and uneven operating cash flows reduce confidence in internal funding consistency. This can constrain sustainable reinvestment, measured retail roll‑out and optionality for opportunistic uses of capital during cyclical stress.

Revolve Group Business Overview & Revenue Model

Company Description

Revolve Group, Inc. operates as an online fashion retailer for consumers in the United States and internationally. The company operates in two segments, REVOLVE and FWRD. It operates a platform that connects consumers and global fashion influencers, as well as emerging, established, and owned brands. The company offers women's apparel, footwear, accessories, and beauty styles under established and emerging brands, as well as owned brands. It also provides various luxury brands. The company was formerly known as Advance Holdings, LLC and changed its name to Revolve Group, Inc. in October 2018. Revolve Group, Inc. was founded in 2003 and is headquartered in Cerritos, California.

How the Company Makes Money

Revolve Group makes money primarily by selling merchandise directly to consumers through its online stores. Revenue is generated mainly from (1) product sales across categories such as women’s and men’s apparel, footwear, accessories, and beauty, with the company earning the difference between the retail price and its cost of inventory (and/or through brand arrangements where applicable), and (2) shipping-related revenue where customers pay for shipping or expedited delivery (netted/recognized per applicable accounting treatment). A key operational driver of sales is its performance marketing and brand-building approach, which includes influencer and social-media-driven campaigns, curated assortments, and frequent new product drops designed to increase site traffic, conversion, and repeat purchases. The company also sells its own private-label and owned brands alongside third-party brands, allowing it to capture retail margin on owned products and diversify assortment. Partnerships and brand relationships with designers and suppliers support inventory access and exclusive/limited offerings, while logistics and fulfillment capabilities support order volume and customer experience; specific partner names and commercial terms are not publicly detailed at a granular level beyond general disclosures, so detailed partner economics are null.

Revolve Group Financial Statement Overview

Summary

Solid fundamentals supported by steady multi-year revenue growth, resilient ~low-to-mid 50% gross margins, and a conservatively financed balance sheet. The main offsets are profitability still well below the 2021 peak and uneven cash-flow consistency, including a noted decline in free cash flow in 2025.

Income Statement

Revenue has expanded steadily from $581M (2020) to $1.23B (2025), with a return to growth after the 2023 dip. Gross margin has remained resilient in the low-to-mid 50% range, supporting profitability. However, operating and net profitability are meaningfully below the 2021 peak (net margin down from ~11.2% in 2021 to ~5.0% in 2025), and year-to-year earnings power has been more volatile than the top line.

Balance Sheet

The balance sheet looks conservatively financed, with low leverage throughout the period (debt-to-equity ~0.06 in 2025, and near-zero debt in 2020). Equity and assets have grown consistently alongside the business, and returns on equity remain healthy (~12.0% in 2025), though they have come down materially from the unusually strong 2021 level. Overall, financial risk from leverage appears limited.

Cash Flow

Cash generation is positive, with 2025 operating cash flow of ~$59.4M and free cash flow of ~$48.0M, and free cash flow tracking net income reasonably well (about 81% of net income in 2025). That said, free cash flow growth turned sharply negative in 2025 (down ~21.5%), and operating cash flow has been choppy across years, which reduces confidence in near-term cash flow consistency despite solid profitability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.23B	1.13B	1.07B	1.10B	891.39M
Gross Profit	655.78M	593.27M	554.20M	592.32M	489.82M
EBITDA	86.90M	56.58M	27.23M	77.93M	109.80M
Net Income	61.71M	49.56M	28.15M	58.70M	99.84M
Balance Sheet
Total Assets	765.00M	665.55M	608.89M	579.32M	480.41M
Cash, Cash Equivalents and Short-Term Investments	292.26M	256.60M	245.45M	234.72M	218.46M
Total Debt	32.45M	40.73M	40.99M	24.50M	6.94M
Total Liabilities	252.47M	227.76M	223.75M	199.75M	163.40M
Stockholders Equity	512.53M	438.19M	385.14M	379.57M	317.01M
Cash Flow
Free Cash Flow	47.99M	21.04M	39.14M	18.27M	60.12M
Operating Cash Flow	59.40M	26.69M	43.34M	23.44M	62.31M
Investing Cash Flow	-14.87M	-9.11M	-4.20M	-5.17M	-2.19M
Financing Cash Flow	-1.39M	-5.36M	-30.38M	887.00K	12.77M

Revolve Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RVLV, the sentiment is Negative. The current price of 22.11 is below the 20-day moving average (MA) of 24.09, below the 50-day MA of 26.45, and below the 200-day MA of 23.82, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 35.12 is Neutral, neither overbought nor oversold. The STOCH value of 10.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RVLV.

Revolve Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WINA	71 Outperform	$1.44B	34.96	―	3.35%	3.35%	1.97%
RVLV	67 Neutral	$1.58B	29.01	12.82%	―	9.24%	35.68%
SBH	64 Neutral	$1.36B	7.65	23.43%	―	-0.42%	31.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SVV	61 Neutral	$1.21B	16.40	5.37%	―	6.45%	-102.30%
TDUP	53 Neutral	$414.14M	-38.47	-34.47%	―	-4.90%	50.77%
EYE	52 Neutral	$2.11B	69.37	3.47%	―	-1.58%	85.04%

Revolve Group Corporate Events

Revolve Group Refreshes Board with New Audit Chair

On March 18, 2026, Revolve Group, Inc. appointed Erinn Murphy to its board of directors, effective immediately, and named her chair of the Audit Committee and a member of the Compensation Committee. Murphy brings extensive capital markets and finance experience from senior roles at Crocs, Inc. and Piper Sandler Companies, and she will receive cash and equity compensation under Revolve’s outside director compensation policy.

The same day, board member Jennifer Baxter Moser tendered her resignation from the board and its Audit and Compensation Committees, effective upon Murphy’s appointment. The company stated that Moser’s departure did not result from any disagreement with Revolve, signaling a planned governance transition as the board refreshes its financial and capital markets expertise.

The most recent analyst rating on (RVLV) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Revolve Group stock, see the RVLV Stock Forecast page.

Revolve Group Extends Credit Facility, Enhancing Liquidity Flexibility

On February 2, 2026, Revolve Group, Inc. executed a First Amendment to its existing Amended and Restated Credit Agreement, originally dated March 23, 2021, with subsidiaries Alliance Apparel Group, Inc., Eminent, Inc., and Advance Development, Inc. as borrowers, and Bank of America, N.A. as administrative and collateral agent. The amendment extended the credit facility’s maturity to February 2, 2031, modified the eligible inventory component of the borrowing base, revised certain reporting obligations, and provided greater flexibility under some negative covenants, while noting that no revolving loans were outstanding under the facility as of the amendment date, signaling reinforced long-term liquidity and financial flexibility for the company without immediate additional leverage.

The most recent analyst rating on (RVLV) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Revolve Group stock, see the RVLV Stock Forecast page.