Rent the Runway (RENT) Q1 2026 Earnings Transcript

Rent the Runway reported Q1 2026 revenue of $89.9 million, up 29.2% year-over-year and exceeding guidance. The company saw strong add-on revenue growth of 70% YoY and 155,692 ending active subscribers. However, gross margins declined significantly to 25.9% from 31.5% YoY due to higher revenue share costs. Free cash flow deteriorated to negative $13.6 million from negative $6.4 million YoY. New leadership was appointed including interim CEO Teri Bariquit and CFO Dave Loretta. The company reiterated double-digit full-year revenue growth guidance and 4-7% adjusted EBITDA margin guidance.