Revolve Group (RVLV) AI Stock Analysis

• Market Cap: $1.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 32.1
• Beta (1Y): 1.93
• Revenue Growth: 9.24%
• EPS Growth: 35.68%
• Country: US
• Employees: 1,632
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.29
• Shares Outstanding: 40,415,440
• 10 Day Avg. Volume: 919,688
• 30 Day Avg. Volume: 1,094,863
• PEG Ratio: 0.60
• Price to Book (P/B): 5.41
• Price to Sales (P/S): 2.10
• P/FCF Ratio: 112.75
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 1.97
• Enterprise Value/Ebitda: 16.11
• 1Y Price Target: $25.11
• Price Target Upside: 1.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.55
• Revenue Forecast (FY): $1.21B

• Rating: 74 Outperform
• Price Target: $26.00 ▲(5.22% Upside)

Revolve Group's overall stock score reflects strong financial performance and positive earnings call highlights, including significant gross margin expansion and EBITDA growth. The technical analysis supports a moderately positive outlook, though valuation concerns due to a high P/E ratio and lack of dividend yield temper the score. The company's strategic initiatives and international growth potential are promising, but slower sales growth remains a risk.

Positive Factors

Gross Margin Expansion

The significant gross margin expansion reflects effective cost management and pricing strategies, enhancing profitability and providing a competitive edge in the retail sector.

Cash Flow Generation

Strong cash flow generation and a debt-free balance sheet enhance financial flexibility, enabling strategic investments and resilience against economic fluctuations.

AI Integration for Efficiency

AI integration boosts operational efficiency and productivity, reducing costs and potentially increasing margins, which is crucial for long-term competitiveness in the fast-paced retail industry.

Negative Factors

Slower Net Sales Growth

Slower net sales growth indicates potential challenges in market expansion and consumer demand, which could impact revenue and market share if not addressed.

Higher Return Rates

Increased return rates can lead to higher fulfillment costs and erode profit margins, necessitating improvements in product quality and customer satisfaction strategies.

Challenges in Asian Regions

Challenges in Asian markets may hinder international expansion efforts, limiting growth opportunities and diversification of revenue streams.

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 generates revenue primarily through direct sales of fashion and lifestyle products via its online platform. The company utilizes a drop-shipping model, allowing it to offer a wide array of products without holding large inventories. Key revenue streams include sales from its proprietary brands and third-party brands, as well as shipping and handling fees. Additionally, Revolve invests in influencer marketing and collaborations, which enhance brand visibility and drive sales. Significant partnerships with popular fashion influencers and celebrities also contribute to its revenue by creating exclusive collections and promotional campaigns that attract customers.

Revolve Group Financial Statement Overview

Summary

Revolve Group demonstrates strong financial health with solid profitability and a robust balance sheet. The income statement reflects efficient operations and profitability, although revenue growth has slowed. The balance sheet is characterized by low leverage and strong equity, minimizing financial risk. Cash flow metrics show adequate cash generation, though the decline in free cash flow growth warrants attention. Overall, the company is financially stable with potential for future growth if revenue expansion can be accelerated.

Income Statement

Revolve Group's income statement shows a solid gross profit margin of 53.3% TTM, indicating effective cost management. The net profit margin has improved to 4.6% TTM, reflecting enhanced profitability. Revenue growth is modest at 1.1% TTM, suggesting stable but slow expansion. EBIT and EBITDA margins have also improved, indicating operational efficiency. However, the growth rate is lower compared to previous years, which could be a concern for future growth potential.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.072 TTM, indicating low leverage and financial stability. The return on equity is healthy at 10.2% TTM, showcasing effective use of equity to generate profits. The equity ratio stands at 65.2%, reflecting a solid capital structure. Overall, the company maintains a robust financial position with minimal risk from debt.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, down 80.9% TTM, which is a concern. However, the operating cash flow to net income ratio is 0.31 TTM, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is strong at 0.86 TTM, suggesting good cash conversion. Despite the decline in free cash flow growth, the company maintains a reasonable cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.20B	1.13B	1.07B	1.10B	891.39M	580.65M
Gross Profit	637.16M	593.27M	554.20M	592.32M	489.82M	305.28M
EBITDA	77.81M	56.58M	27.23M	77.93M	109.80M	65.89M
Net Income	55.49M	49.56M	28.15M	58.70M	99.84M	56.79M
Balance Sheet
Total Assets	751.26M	665.55M	608.89M	579.32M	480.41M	305.75M
Cash, Cash Equivalents and Short-Term Investments	315.43M	256.60M	245.45M	234.72M	218.46M	146.01M
Total Debt	35.29M	40.73M	40.99M	24.50M	6.94M	0.00
Total Liabilities	261.05M	227.76M	223.75M	199.75M	163.40M	105.69M
Stockholders Equity	490.21M	438.19M	385.14M	379.57M	317.01M	200.06M
Cash Flow
Free Cash Flow	61.16M	21.04M	39.14M	18.27M	60.12M	71.45M
Operating Cash Flow	73.50M	26.69M	43.34M	23.44M	62.31M	73.77M
Investing Cash Flow	-14.29M	-9.11M	-4.20M	-5.17M	-2.19M	-2.32M
Financing Cash Flow	3.74M	-5.36M	-30.38M	887.00K	12.77M	8.66M

Revolve Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RVLV, the sentiment is Positive. The current price of 24.71 is above the 20-day moving average (MA) of 22.04, above the 50-day MA of 22.05, and above the 200-day MA of 21.93, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 64.33 is Neutral, neither overbought nor oversold. The STOCH value of 86.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RVLV.

Revolve Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	74 Outperform	$1.76B	32.09	12.19%	―	9.24%	35.68%
SBH	73 Outperform	$1.60B	8.69	27.54%	―	-0.42%	31.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SVV	60 Neutral	$1.42B	―	-0.40%	―	6.45%	-102.30%
WINA	58 Neutral	$1.50B	37.50	―	3.28%	3.35%	1.97%
EYE	55 Neutral	$1.96B	-668.80	-0.37%	―	-1.58%	85.04%
TDUP	45 Neutral	$938.57M	―	-35.37%	―	-4.90%	50.77%

Revolve Group Corporate Events

Revolve Group’s Earnings Call Highlights Growth and Challenges

Revolve Group’s recent earnings call painted a picture of strong financial performance, marked by significant achievements in gross margin expansion, adjusted EBITDA growth, and cash flow improvements. Despite these positive developments, the company faces challenges with slower net sales growth and increased return rates. The overall sentiment suggests a favorable outlook, though concerns about sales growth persist.

Revolve Group Reports Strong Q3 2025 Results

Revolve Group, Inc. is a next-generation fashion retailer catering to Millennial and Generation Z consumers, offering a diverse range of apparel, footwear, accessories, beauty, and home products through its dynamic online platform. The company operates through two segments, REVOLVE and FWRD, providing a curated selection of premium and luxury brands.

Revolve Group’s Earnings Call: Strong Growth Amid Challenges

Revolve Group’s latest earnings call exuded a positive sentiment, highlighting the company’s impressive achievements in revenue growth, international expansion, and financial stability. Despite facing challenges such as tariffs and a higher tax rate, Revolve demonstrated resilience by generating significant cash flow, improving inventory efficiency, and enhancing technological capabilities, thereby strengthening its competitive position.

Revolve Group Reports Strong Q2 2025 Financial Performance

Revolve Group, Inc., a prominent fashion retailer catering to Millennial and Generation Z consumers, specializes in offering a curated selection of apparel, footwear, accessories, beauty, and home products through its online platform. The company operates through two segments, REVOLVE and FWRD, which provide a mix of premium and luxury brands.