Revolve Group (RVLV) AI Stock Analysis

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Revolve Group

(NYSE:RVLV)

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Outperform 77 (OpenAI - 4o)

Rating:77Outperform

Price Target:

$29.00

▼(-7.29% Downside)

Revolve Group's overall stock score is driven by strong technical indicators and solid financial performance, despite a high valuation. The company's strategic initiatives and operational efficiencies highlighted in the earnings call contribute positively, but concerns about sales growth and valuation temper the score. The absence of corporate events does not impact the overall assessment.

Positive Factors

Gross Margin Expansion

The significant increase in gross margin indicates improved cost management and pricing power, which can enhance long-term profitability and competitive positioning.

International Growth in China

Strong growth in China reflects successful market penetration and potential for continued international expansion, diversifying revenue sources and reducing reliance on domestic sales.

AI Integration for Efficiency

Utilizing AI for operational efficiency can lead to cost reductions and productivity gains, enhancing long-term operational effectiveness and competitive advantage.

Negative Factors

Slower Net Sales Growth

Slower sales growth may indicate market saturation or competitive pressures, potentially limiting future revenue expansion and affecting long-term growth prospects.

Higher Return Rates

Increased return rates can lead to higher fulfillment costs and reduced margins, impacting profitability and operational efficiency over the long term.

Challenges in Asian Regions

Challenges in Asian markets may hinder international expansion efforts and limit potential growth opportunities in these regions, affecting overall market diversification.

Revolve Group (RVLV) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.23B

Dividend YieldN/A

Average Volume (3M)965.30K

Price to Earnings (P/E)40.6

Beta (1Y)1.84

Revenue Growth9.24%

EPS Growth35.68%

CountryUS

Employees1,632

SectorConsumer Cyclical

Sector Strength84

IndustrySpecialty Retail

Share Statistics

EPS (TTM)0.29

Shares Outstanding40,415,440

10 Day Avg. Volume929,057

30 Day Avg. Volume965,302

Financial Highlights & Ratios

PEG Ratio0.60

Price to Book (P/B)5.41

Price to Sales (P/S)2.10

P/FCF Ratio112.75

Enterprise Value/Market Cap0.56

Enterprise Value/Revenue1.05

Enterprise Value/Gross Profit1.97

Enterprise Value/Ebitda16.11

Forecast

1Y Price Target

$26.80

Price Target Upside-14.32% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering13

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

Revolve Group Business Overview & Revenue Model

Company DescriptionRevolve 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 MoneyRevolve 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 Key Performance Indicators (KPIs)

Any

Total Active Customers

Total Active Customers
Measures the number of customers who have made a purchase within a specific period, showing customer engagement and the potential for repeat business.

Chart InsightsRevolve Group's active customer base has shown consistent growth, reaching 2.74 million by mid-2025. This upward trend aligns with the company's strategic focus on international expansion and leveraging AI for enhanced customer experiences. The earnings call highlights robust revenue growth and improved operational efficiencies, contributing to this customer growth. Despite challenges like tariff pressures and a higher tax rate, Revolve's focus on owned brands and technological innovations has bolstered its competitive position, suggesting continued momentum in expanding its customer base.

Data provided by:

The Fly

Revolve Group Earnings Call Summary

Earnings Call Date:Nov 04, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Feb 19, 2026

Earnings Call Sentiment Neutral

The earnings call highlighted significant achievements in gross margin expansion, adjusted EBITDA growth, and cash flow improvements, indicating strong financial performance. However, the slower net sales growth and increased return rates presented notable challenges. Overall, the positive aspects and strategic initiatives suggest a favorable outlook, but sales growth remains a concern.

Q3-2025 Updates

Positive Updates

Record Adjusted EBITDA Growth

Adjusted EBITDA increased by 45% year-over-year to $25 million, marking the highest ever for a third quarter.

Gross Margin Expansion

Consolidated gross margin increased to 54.6%, a gain of nearly 3.5 percentage points year-over-year, significantly outperforming guidance.

Cash Position Strengthening

Free cash flows tripled, increasing cash position by $63 million or 25% year-over-year, with no debt on the balance sheet.

International Growth in China

REVOLVE segment net sales in Mainland China increased more than 50% year-over-year.

Owned Brand Success

Owned brand penetration increased for the third consecutive quarter, contributing to higher-than-expected gross margins.

AI Integration for Efficiency

AI is being leveraged to drive efficiency across design and back-office functions, resulting in cost efficiencies and improved productivity.

Negative Updates

Slower Net Sales Growth

Net sales increased by only 4% year-over-year in the third quarter, which is lower than recent trends and expectations.

Higher Return Rates

Slight increase in return rate year-over-year, affecting fulfillment costs and overall margin.

Challenges in Asian Regions

Continued challenges in certain Asian regions partially offset the international growth.

Company Guidance

During Revolve Group's third quarter 2025 earnings call, the company provided guidance highlighting several key financial metrics and strategic initiatives. The company reported a 45% year-over-year increase in adjusted EBITDA, reaching $25 million, driven by a robust 350 basis point increase in gross margins to 54.6%. Despite net sales growth of only 4%, with domestic and international net sales increasing 4% and 6% respectively, Revolve focused on enhancing profitability, resulting in a significant expansion in gross profit dollars. The company is optimistic about its strategic initiatives, including owned brand expansion, which contributed to the quarter's results, and investments in marketing to grow brand awareness. Revolve is also actively pursuing international growth, with notable success in Mainland China, where net sales increased by over 50% year-over-year. Additionally, the company is leveraging AI technology to drive operational efficiencies and is exploring physical retail as a new channel for customer acquisition. Looking forward, Revolve expects its gross margin for the full year 2025 to increase by approximately 100 basis points year-over-year, despite a volatile tariff landscape.

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 Price31.28

Price Trends

50DMA

25.77

Positive

100DMA

24.03

Positive

200DMA

22.32

Positive

Market Momentum

MACD

1.50

Positive

RSI

67.91

Neutral

STOCH

84.34

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 31.28 is above the 20-day moving average (MA) of 29.62, above the 50-day MA of 25.77, and above the 200-day MA of 22.32, indicating a bullish trend. The MACD of 1.50 indicates Positive momentum. The RSI at 67.91 is Neutral, neither overbought nor oversold. The STOCH value of 84.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RVLV.

Revolve Group Risk Analysis

Revolve Group disclosed 64 risk factors in its most recent earnings report. Revolve Group 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

Revolve Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	77 Outperform	$2.23B	40.62	12.19%	―	9.24%	35.68%
SBH	76 Outperform	$1.44B	8.13	27.54%	―	-0.42%	31.64%
WINA	69 Neutral	$1.51B	38.75	―	3.35%	3.35%	1.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SVV	61 Neutral	$1.49B	-662.25	-0.40%	―	6.45%	-102.30%
EYE	57 Neutral	$2.10B	-794.35	-0.37%	―	-1.58%	85.04%
TDUP	54 Neutral	$760.86M	-18.95	-35.37%	―	-4.90%	50.77%

* Consumer Cyclical Sector Average

Performance Comparison

RVLV

Revolve Group

31.28

1.88

6.39%

SBH

Sally Beauty

15.37

4.35

39.47%

WINA

Winmark

434.64

64.25

17.35%

EYE

National Vision Holdings

26.69

16.11

152.27%

TDUP

thredUP

5.90

4.60

353.85%

SVV

Savers Value Village Inc.

10.00

-0.80

-7.41%

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.Date of analysis: Dec 03, 2025