Rent The Runway, Inc. · NASDAQ:RENT
Rent The Runway — Q3 2025 Earnings Presentation
31 slides from Rent The Runway's earnings presentation, Dec 12, 2025
Slide 1: Q3 2025 Earnings Presentation
Q3 2025 Earnings Presentation December 12, 2025
Slide 2: Forward-Looking Statements Disclaimer
Forward-Looking Statements Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements herein that do not relate to matters of historical fact should be considered forward-looking statements. These statem
Slide 3: We Completed the Recapitalization Transactions
We Completed the Recapitalization Transactions ● Aranda Principal Strategies (“APS”) converted a substantial portion of its extant debt investment into common equity ownership, and an investor group consisting of APS, STORY3 Capital Partners (“STORY3”) and Nexus Capital Management (“Nexus”) contribu
Slide 4: Agenda
Agenda 01 Q3 2025 Summary 02 Recent Business Highlights 03 Q4 + FY2025 Guidance Q3 2025 Earnings Presentation 4
Slide 5: Q3 2025 Summary
Q3 2025 Summary Q3 2025 Earnings Presentation 5
Slide 6: Q3'25 Key Metrics and Financial Highlights
Q3’25 Key Metrics and Financial Highlights ACTIVE SUBSCRIBERS(2) TOTAL SUBSCRIBERS(4) TOTAL REVENUE 148.9k, Up 12% YoY $87.6M AVERAGE ACTIVE SUBSCRIBERS(3) 185.1K 185.2k Up 15% YoY 147.6k, Up 13% YoY Up 6% YoY GROSS PROFIT / MARGIN NET INCOME / MARGIN(1) ADJ. EBITDA / MARGIN $25.9M / 29.6% $76.5M /
Slide 7: Ending Active Subscribers as of October 31, 2025
Ending Active Subscribers as of October 31, 2025 Up 12% YoY Subscribers (in thousands) YoY Growth YoY Active Subs 82% 27% 15% 10% 8% 11% (2)% (1)% 0% (6)% 1% (5)% 1% 13% 12% YoY Avg Active Subs 94% 51% 20% 12% 9% 9% 4% (1)% (0)% (3)% (3)% (2)% (2)% 7% 13% Paused % of Total 24% 28% 24% 26% 22% 25% 25
Slide 8: Total Revenue Up 15% YoY in Q3'25
Total Revenue Up 15% YoY in Q3’25 Total Revenue, Net ($ in Millions) Highlights: ● 89 % of revenue from subscribers in Q3’25 YoY Growth 100% 64% 31% 18% 11% (1)% (6)% 1% 1% 4% 5% 1% (7)% 3% 15% Note: FY22 ended January 31, 2023; FY23 ended January 31, 2024; FY24 ended January 31, 2025; Q3’25 ended O
Slide 9: Revenue to Gross Profit - Q3'25 and Q3'24
Revenue to Gross Profit - Q3’25 and Q3’24 Fiscal Quarter Ended October 31, 2025 (in $M) % of Revenue 27% 18% 25% 30% Fiscal Quarter Ended October 31, 2024 (in $M) % of Revenue 28% 22% 15% 35% Note: Calculations are based on unrounded figures. 9
Slide 10: Gross Profit to Adjusted EBITDA - Q3'25 and Q3'24
Gross Profit to Adjusted EBITDA - Q3’25 and Q3’24 Fiscal Quarter Ended October 31, 2025 (in $M) % of Revenue 30% (7)% (12)% (26)% (3)% 0% 1% 21% 0% 2% 5% Fiscal Quarter Ended October 31, 2024 (in $M) % of Revenue 35% (9)% (11)% (28)% (4)% 0% 3% 26% 0% 2% 12% Note: See GAAP to Non-GAAP Reconciliation
Slide 11: Adjusted EBITDA to Free Cash Flow - YTD'25 and YTD'24
Adjusted EBITDA to Free Cash Flow - YTD’25 and YTD’24 Nine Months Ended October 31, 2025 (in $M) % of Revenue 3% (26)% (1)% 0% 5% (2)% 2% (20)% Nine Months Ended October 31, 2024 (in $M) % of Revenue 13% (18)% (1)% 1% 1% (0)% 0% (4)% Note: See GAAP to Non-GAAP Reconciliation in appendix. Free cash fl
Slide 12: Recent Business Highlights
Recent Business Highlights Q3 2025 Earnings Presentation 12
Slide 13: Delivering on our FY25 Goals
Delivering on our FY25 Goals Driving Growth by Making the Biggest Inventory Acquisition in RTR History Reinvigorating Our Brand Bringing Customer Obsession & Founder Mentality into Our Work Strengthening Our Capital Structure Q3 2025 Earnings Presentation 13
Slide 14: Subscriber Growth Continued in Q3
Subscriber Growth Continued in Q3 Q3’25 Ending Active Subscribers +12% YoY Year-over-Year Growth in Ending Active Subscriber Count Despite August Price Increase Averaging ~+13% For Our Most Popular Plans 14 14
Slide 15: Inventory as Key Retention Driver
Inventory as Key Retention Driver FY25 inventory infusion is the primary driver of customer satisfaction and engagement, which is ultimately driving retention Inventory Related Churn Customer Happiness & Engagement Inventory-related cancellations in Q3 were down ~28% YoY Customer happiness and engag
Slide 16: Personalizing Her Experience in Product
Personalizing Her Experience in Product Launched a personalized home page redesign, shifting discovery to her preferences 01 She is engaging more Those with personalized app engage via hearting, interacting with products & reviewing 57% more than those in the prior homepage She is picking more from
Slide 17: Increasing Flexibility for Subscribers by Improving Add-on Product
Increasing Flexibility for Subscribers by Improving Add-on Product Drove growth in add-on revenue with improved pricing and transparency, along with one-off shipments. Q3 Add-on revenue was +40% year-over-year, accelerating from +24% growth in Q2 and +4% growth in Q1 Add-on Pricing Transparency One-
Slide 18: Fueling Growth Strategy with Word-of-Mouth Organic Tactics
Fueling Growth Strategy with Word-of-Mouth Organic Tactics Investing in authentic, community-driven content & virality to drive brand awareness and acquisition Muse Residents Influencers Affiliate Ambassadors A curated group of Influencers who High-reach talent who Partners who earn Everyday customers
Slide 19: Coming Soon in Q4 & Beyond
Coming Soon in Q4 & Beyond Drive Higher Conversion by Drive Retentive Actions by Optimize Onboarding Search & Discovery AI-powered Similar Styles Optimizing Prospect Funnel Gamifying the Experience Testing different prospect funnel “Swipe left & right” method to Action-based onboarding journey Optim
Slide 20: Q4 & FY2025 Guidance
Q4 & FY2025 Guidance Q3 2025 Earnings Presentation 20
Slide 21: Q4'25 and FY2025 Guidance
Q4’25 and FY2025 Guidance Q4’25 Guidance Total Revenue: $85 M - $87 M Adjusted EBITDA Margin1: 11% - 13% FY2025 Guidance Total Revenue: $323.1 million - $325.1 million 1 Adjusted EBITDA Margin : 4.9% - 5.5% Ending Active Subscribers: Double Digit Growth vs FY2024 Rental Product Acquired2: ~$70 M - $
Slide 22: Appendix
Appendix Q3 2025 Earnings Presentation 22
Slide 23: Improved the Financial Profile of RTR Significantly Since FY21
Improved the Financial Profile of RTR Significantly Since FY21 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 23 basis. Margins calculated as percen
Slide 24: Condensed Consolidated Statements of Operations
Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended Year Ended Year Ended 10/31/2025 10/31/2024 10/31/2025 10/31/2024 1/31/2025 1/31/2024 Condensed (In millions, except per share amounts) Total revenue, net $87.6 $75.9 $238.1 $229.8 $306.2 $298.2 Consolidated Fulfillment 24.0 21
Slide 25: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (in millions) As Of 10/31/2025 As Of 1/31/2025 Cash and cash equivalents $50.7 $77.4 Restricted cash, current 4.5 4.7 Prepaid expenses and other current assets 11.5 11.8 Restricted cash, fixed 4.2 4.4 Rental product, net 94.9 73.3 Fixed and intangible assets, net
Slide 26: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows Nine Months Nine Months Ended Ended Year Ended 10/31/2025 10/31/2024 1/31/2025 (in millions) Net loss $24.0 $(56.5) $(69.9) Net cash (used in) provided by operating activities (3.6) 11.5 12.9 Net cash (used in) provided by investing activities (42.9) (
Slide 27: Selected Cash Flows Detail and Supplemental Information
Selected Cash Flows Detail and Supplemental Nine Months Nine Months Ended Ended Year Ended Year Ended 10/31/2025 10/31/2024 1/31/2025 1/31/2024 Cash Flow (in millions) INVESTING ACTIVITIES Information Purchases of rental product $(61.9) $(41.4) $(49.2) $(77.9) Proceeds from liquidation of rental pro
Slide 28: Reconciliation of Purchases of Rental Product
Reconciliation of Purchases of Rental Product to Rental Nine Months Nine Months Product Ended Ended Year Ended Year Ended 10/31/2025 10/31/2024 1/31/2025 1/31/2024 (in millions) Acquired Purchases of rental product $(61.9) $(41.4) $(49.2) $(77.9) Cost of owned rental product paid for in the period,
Slide 29: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation Three Months Three Months Ended Ended Nine Months Ended Nine Months Ended Year Ended Year Ended Year Ended of Net Loss to 10/31/2025 10/31/2024 10/31/2025 10/31/2024 1/31/2025 1/31/2024 1/31/2023 (in millions) Net loss $76.5 $(18.9) $24.0 $(56.5) $(69.9) $(113.2) $(138.7) Adjusted Int
Slide 30: Reconciliation of Cash Used by Operating Activities to Free Cash Flow
Reconciliation of Cash Used by Operating Activities to Nine Months Ended Nine Months Ended Year Ended Year Ended Year Ended Free Cash 10/31/2025 10/31/2024 1/31/2025 1/31/2024 1/31/2023 (in millions) Net cash (used in) provided by operating activities $(3.6) $11.5 $12.9 $(15.7) $(47.7) Flow Purchase
Slide 31: Operating Expense Detail
Operating Expense Three Months Ended 10/31/2025 Three Months Ended 10/31/2024 Nine Months Ended 10/31/2025 Nine Months Ended 10/31/2024 Detail (in millions) Technology $10.5 $8.7 $29.9 $27.0 Marketing $6.4 $7.1 $22.4 $23.9 General and administrative $22.7 $21.2 $68.0 $66.2 Total operating expenses $