Rent The Runway, Inc. · NASDAQ:RENT
Rent The Runway — Q1 2025 Earnings Presentation
34 slides from Rent The Runway's earnings presentation, Jun 5, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation June 5, 2025
Slide 2: Forward-Looking Statements Disclaimer
Forward-Looking Statements Disclaimer RENT THE RUNWAY This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this presentation that do not relate to maers of historical fact should be considered forward-loo
Slide 3: Contents
Contents RENT THE RUNWAY 01 Q1 2025 Summary 02 Recent Business Highlights 03 Q2 + FY2025 Guidance 33
Slide 4: Q1 2025 Summary
RENT THE RUNWAY Q1 2025 Summary 4
Slide 5: Q1'25 Key Metrics and Financial Highlights
Q1’25 Key Metrics and Financial Highlights RENT THE RUNWAY ACTIVE SUBSCRIBERS TOTAL REVENUE Highest Quarterly Ending Active TOTAL SUBSCRIBERS Subscribers in Company History 147.2K, Up 1% YoY 182.2K $69.6M AVERAGE ACTIVE SUBSCRIBERS Down 7.2% YoY 133.5K, Down 2% YoY Down 2% YoY GROSS PROFIT / MARGIN
Slide 6: Active Subscribers as of April 30, 2025 Up 1% YoY
Active Subscribers as of April 30, 2025 Up 1% YoY RENT THE RUNWAY SUBSCRIBERS (IN THOUSANDS) YoY Growth YoY Active Subs 82% 27% 15% 10% 8% 11% (2)% (1)% 0% (6)% 1% (5)% 1% YoY Avg Active Subs 94% 51% 20% 12% 9% 9% 4% (1)% (0)% (3)% (3)% (2)% (2)% Paused % of Total 24% 28% 24% 26% 22% 25% 25% 27% 21%
Slide 7: Total Revenue Down 7% YoY in Q1'25
Total Revenue Down 7% YoY in Q1’25 RENT THE RUNWAY TOTAL REVENUE, NET ($ IN MILLIONS) Key Highlights ● 88% of revenue from subscribers in Q1’25 YoY Growth 100% 64% 31% 18% 11% (1)% (6)% 1% 1% 4% 5% 1% (7)% Note: FY22 ended January 31, 2023; FY23 ended January 31, 2024; FY24 ended January 31, 2025, Q
Slide 8: Revenue to Gross Profit - Q1'25 and Q1'24
Revenue to Gross Profit - Q1’25 and Q1’24 RENT THE RUNWAY FISCAL QUARTER ENDED APR 30, 2025 % of Revenue 29% 19% 20% 31% $ IN MILLIONS FISCAL QUARTER ENDED APR 30, 2024 % of Revenue 27% 20% 15% 38% $ IN MILLIONS 8 Note: Calculations are based on unrounded figures.
Slide 9: Gross Profit to Adjusted EBITDA - Q1'25 and Q1'24
Gross Profit to Adjusted EBITDA - Q1’25 and Q1’24 RENT THE RUNWAY FISCAL QUARTER ENDED APR 30, 2025 % of Revenue 31% (12)% (14)% (30)% (4)% 0% 2% 23% 0% 1% (2)% $ IN MILLIONS FISCAL QUARTER ENDED APR 30, 2024 % of Revenue 38% (12)% (13)% (30)% (4)% (0)% 4% 24% 0% 2% 9% $ IN MILLIONS Note: See GAAP to
Slide 10: Adjusted EBITDA to Free Cash Flow - Q1'25 and Q1'24
Adjusted EBITDA to Free Cash Flow - Q1’25 and Q1’24 RENT THE RUNWAY THREE MONTHS ENDED APR 30, 2025 % of Revenue (2)% (28)% (2)% 1% 22% (1)% 0% (9)% $ IN MILLIONS THREE MONTHS ENDED APR 30, 2024 % of Revenue 9% (17)% (1)% 1% 7% (0)% 0% (2)% $ IN MILLIONS Note: See GAAP to Non-GAAP Reconciliation in
Slide 11: Recent Business Highlights
RENT THE RUNWAY Recent Business Highlights 11
Slide 12: RTR is Back!
RENT RENTTHE THERUNWAY Highest Q1 sequential increase in ending RUNWAY Active Subscribers, with a 27,000+ increase between Q4 2024 and Q1 2025. RTR is Strongest quarterly customer retention in 4 Back! years, with improved churn rates for both early-term and long-term subscribers. Record 147,000+ Qua
Slide 13: The strategy is working - quarterly customer retention is highest in 4 years
The strategy is working - quarterly customer retention is highest in 4 years RENT THE RUNWAY In Q1’2025, RTR experienced our greatest year-over-year and quarter-over-quarter Q1 churn improvement since the pandemic recovery period. Total Churn Investment in inventory depth Q1 2025 new inventory recei
Slide 14: We've started to see the impact of our 2025 inventory investment
We’ve started to see the impact of our 2025 inventory investment RENT THE RUNWAY Q1 inventory volume received was +24% The remainder of FY25 will be even more impactful, YoY. We’ve launched 36 new brands and with volume received expected to be +134% YoY, 40+ posted 1,000+ new styles new brands launc
Slide 15: Feminine, Polished, Playful
RENT THE RUNWAY Redefined the new inventory assortment, resonating with our Feminine, Polished, Playful core customer 15
Slide 16: So far, she's loving it
So far, she’s loving it RENT THE RUNWAY She’s adding more to her shipment, with We are seeing higher performance in all of our key engagement April add-on gross bookings +11% YoY metrics for our Spring 2025 inventory vs the year prior Subscription Add-on Gross Bookings Share of views More Hearts Lov
Slide 17: We believe that our investment in new and pillar brands is working
We believe that our investment in new and pillar brands is working RENT THE RUNWAY Pillar Brands New Brands Increased breadth in pillar brands by over 40% in Q1 Launched 36 new brands in Q1 that align with the polished and playful aesthetic our customer is These brands are leading the way in demand,
Slide 18: Exclusive Design launches have resonated with customers
Exclusive Design launches have resonated with customers - offering high RENT THE RUNWAY core-line quality and enabling deeper inventory investment Collections that delivery comparable quality at ~40% lower cost on average ~3M Pageviews 76% Utilization 18
Slide 19: The pace of innovation at RTR has rapidly increased with key launches
The pace of innovation at RTR has rapidly increased with key launches focused on RENT THE RUNWAY improving the customer experience Select Recent Product Launches Back In Stock Notifications Styling Support Customer Promise Personalized Experiences #1 most requested new feature 27% reduction in first-m
Slide 20: More top requested innovations are planned for Q2
RENT THE RUNWAY More top requested innovations are planned for Q2 Select Planned Product Launches RTR Rewards Program Hearting Progression & Personalized Feeds Incentivize retentive behaviors and celebrate milestones and key Build the habit of hearting and keep her engaged & build a more curated and
Slide 21: We are focused on re-establishing our relationship with our community
We are focused on re-establishing our relationship with our RENT THE RUNWAY community directly & authentically, online & IRL Personal Outreach From Our Brand New Organic Strategy Member First Experiences: CEO/Founder Breaks the 4th Wall; Online & IRL Extending “We Heard You” campaign to Engagement r
Slide 22: Leveraging a community-first approach to reinvigorate our social and content strategies
And leveraging a community-first approach to reinvigorate our social and content RENT THE RUNWAY strategies and drive demand at scale Inspire Drive relevance through strategic creator collabs Engage Tap RTR members to fuel content engine Scale Activate RTR community across owned channels Build out mi
Slide 23: Q2 + FY2025 Guidance
RENT THE RUNWAY Q2 + FY2025 Guidance 23
Slide 24: Q2 2025 and FY 2025 Guidance
Q2 2025 and FY 2025 Guidance RENT THE RUNWAY Q2 2025 Guidance Total Revenue: $76M - $80M Adjusted EBITDA Margin1: -2% to +2% FY2025 Guidance Ending Active Subscribers: Double Digit Growth vs FY 2024 Rental Product Acquired2: ~$70 M - $75 M Free Cash Flow3: -$30 M to -$40 M 1 Reconciliation of Adjust
Slide 25: Appendix
25 RENT THE RUNWAY Appendix
Slide 26: Improved the Financial Profile of RTR Significantly Since FY21
Improved the Financial Profile of RTR Significantly Since FY21 RENT THE RUNWAY Note: See GAAP to Non-GAAP Reconciliation in appendix. Free cash flow defined as net cash (used in) provided by operating activities and net cash (used in) provided by investing activities on a combined 26 basis. Margins calc
Slide 27: Condensed Consolidated Statements of Operations
Condensed RENT THE RUNWAY Consolidated Three Months Three Months Ended 4/30/2025 Ended 4/30/2024 Year Ended 1/31/2025 Year Ended 1/31/2024 Statements of (In millions, except per share amounts) Total revenue, net $69.6 $75.0 $306.2 $298.2 Operations Fulfillment Technology Marketing 20.4 9.6 8.6 20.6 9
Slide 28: Condensed Consolidated Balance Sheets
Condensed RENT THE RUNWAY Consolidated (in millions) As Of 4/30/2025 As Of 1/31/2025 Balance Sheets Cash and cash equivalents Restricted cash, current $70.4 5.1 $77.4 4.7 Prepaid expenses and other current assets 11.6 11.8 Restricted cash, fixed 3.9 4.4 Rental product, net 87.3 73.3 Fixed and intangi
Slide 29: Condensed Consolidated Statements of Cash Flows
Condensed RENT THE RUNWAY Consolidated Three Three Statements Months Ended 4/30/2025 Months Ended 4/30/2024 Year Ended 1/31/2025 Year Ended 1/31/2024 Year Ended 1/31/2023 of Cash Flows (in millions) Net loss $(26.1) $(22.0) $(69.9) $(113.2) $(138.7) Net cash (used in) provided by operating activitie
Slide 30: Selected Cash Flows Detail and Information
Selected Cash RENT THE RUNWAY Flows Detail Three Months Ended 4/30/2025 Three Months Ended 4/30/2024 Year Ended 1/31/2025 Year Ended 1/31/2024 and (in millions) INVESTING ACTIVITIES Supplemental Purchases of rental product $(19.3) $(13.1) $(49.2) $(77.9) Cash Flow Proceeds from liquidation of rental
Slide 31: Reconciliation of Purchases of Rental Product
Reconciliation RENT THE RUNWAY of Purchases of Three Three Rental Product Months Ended Months Ended 4/30/2025 4/30/2024 Year Ended 1/31/2025 Year Ended 1/31/2024 to Rental (in millions) Product Purchases of rental product $(19.3) $(13.1) $(49.2) $(77.9) Cost of owned rental product paid for in the p
Slide 32: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation RENT THE RUNWAY of Net Loss to Three Months Ended Three Months Ended Year Ended Year Ended Year Ended Adjusted (in millions) 4/30/2025 4/30/2024 1/31/2025 1/31/2024 1/31/2023 EBITDA Net loss Interest (income) / expense, net $(26.1) 6.3 $(22.0) 5.6 $(69.9) 24.2 $(113.2) 33.7 $(138.7) 3
Slide 33: Reconciliation of Cash Used by Operating Activities to Free Cash Flow
Reconciliation RENT THE RUNWAY of Cash Used by Operating Three Months Three Months Ended Ended Year Ended Year Ended Year Ended 4/30/2025 4/30/2024 1/31/2025 1/31/2024 1/31/2023 Activities to (in millions) Net cash (used in) provided by operating activities $8.3 $4.6 $12.9 $(15.7) $(47.7) Free Cash
Slide 34: Operating Expense Detail
Operating RENT THE RUNWAY Expense Three Months Three Months Detail Ended Ended 4/30/2025 4/30/2024 (in millions) Technology $9.6 $9.6 Marketing $8.6 $9.0 General and administrative $20.7 $22.8 Total operating expenses $38.9 $41.4 Less: Share-based compensation $1.5 $3.0 Total operating expenses excl