Rent The Runway, Inc. · NASDAQ:RENT
Rent The Runway — Q2 2025 Earnings Presentation
32 slides from Rent The Runway's earnings presentation, Sep 11, 2025
Slide 1: Q2 2025 Earnings Presentation
Q2 2025 Earnings Presentation September 11, 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 herein that do not relate to maers of historical fact should be considered forward-looking statement
Slide 3: Q2 2025 and Recent Highlights
Q2 2025 and Recent Highlights RENT THE RUNWAY RTR Announced a Transformative Capital Transaction to Strengthen Our Balance Sheet and Inject Capital into the Business ● Aranda Principal Strategies (“APS”) is converting a substantial portion of its original debt investment into common equity ownership
Slide 4: Contents
Contents RENT THE RUNWAY 01 Q2 2025 Summary 02 Recent Business Highlights 03 Q3 + FY2025 Guidance 44
Slide 5: Q2 2025 Summary
RENT THE RUNWAY Q2 2025 Summary 5
Slide 6: Q2'25 Key Metrics and Financial Highlights
Q2’25 Key Metrics and Financial Highlights RENT THE RUNWAY En TOTAL REVENUE ENDING ACTIVE SUBSCRIBERS TOTAL SUBSCRIBERS 146.4K, Up 13.4% YoY $80.9M AVERAGE ACTIVE SUBSCRIBERS 185.1K Up 2.5% YoY 146.8K, Up 6.8% YoY Up 5.7% YoY GROSS PROFIT / MARGIN NET LOSS / MARGIN ADJ. EBITDA / MARGIN $24.3M / 30.0
Slide 7: Active Subscribers as of July 31, 2025
Active Subscribers as of July 31, 2025 Up 13.4% YoY RENT THE RUNWAY SUBSCRIBERS (IN THOUSANDS) YoY Growth YoY Active Subs 82% 27% 15% 10% 8% 11% (2)% (1)% 0% (6)% 1% (5)% 1% 13% YoY Avg Active Subs 94% 51% 20% 12% 9% 9% 4% (1)% (0)% (3)% (3)% (2)% (2)% 7% Paused % of Total 24% 28% 24% 26% 22% 25% 25
Slide 8: Total Revenue Up 2.5% YoY in Q2'25
Total Revenue Up 2.5% YoY in Q2’25 RENT THE RUNWAY TOTAL REVENUE, NET ($ IN MILLIONS) Key Highlights ● 90% of revenue from subscribers in Q2’25 YoY Growth 100% 64% 31% 18% 11% (1)% (6)% 1% 1% 4% 5% 1% (7)% 3% Note: FY22 ended January 31, 2023; FY23 ended January 31, 2024; FY24 ended January 31, 2025
Slide 9: Revenue to Gross Profit - Q2'25 and Q2'24
Revenue to Gross Profit - Q2’25 and Q2’24 RENT THE RUNWAY FISCAL QUARTER ENDED JULY 31, 2025 % of Revenue 28% 20% 22% 30% $ IN MILLIONS FISCAL QUARTER ENDED JULY 31, 2024 % of Revenue 26% 21% 12% 41% $ IN MILLIONS 9 Note: Calculations are based on unrounded figures.
Slide 10: Gross Profit to Adjusted EBITDA - Q2'25 and Q2'24
Gross Profit to Adjusted EBITDA - Q2’25 and Q2’24 RENT THE RUNWAY FISCAL QUARTER ENDED JULY 31, 2025 % of Revenue 30% (9)% (12)% (30)% (3)% 0% 2% 23% 0% 5% 4% $ IN MILLIONS FISCAL QUARTER ENDED JULY 31, 2024 % of Revenue 41% (10)% (11)% (28)% (4)% (0)% 3% 25% 0% 2% 17% $ IN MILLIONS Note: See GAAP to
Slide 11: Adjusted EBITDA to Free Cash Flow - YTD'25 and YTD'24
Adjusted EBITDA to Free Cash Flow -YTD’25 and YTD’24 RENT THE RUNWAY SIX MONTHS ENDED JULY 31, 2025 % of Revenue 2% (28)% (1)% (2)% 10% (3)% 1% (22)% $ IN MILLIONS SIX MONTHS ENDED JULY 31, 2024 % of Revenue 13% (17)% (1)% 1% 1% (0)% 0% (4)% $ IN MILLIONS Note: See GAAP to Non-GAAP Reconciliation in
Slide 12: Recent Business Highlights
RENT THE RUNWAY Recent Business Highlights 12
Slide 13: Executing a Turnaround, with Accelerating Subscriber Growth
Executing a Turnaround, with Accelerating Subscriber Growth RENT THE RUNWAY Year-over-Year Growth in Ending Active Subscribers Q2’25 Ending Active Subscribers +13.4% YoY 13
Slide 14: We've Posted ~2x More Styles, Significantly Improving Her Experience with RTR
We’ve Posted ~2x More Styles, Significantly Improving RENT THE RUNWAY Her Experience with RTR Our customer started to see the meaningful Making our boldest investment yet, with a goal to increase in inventory on platform in Q2. As of transform the customer experience, reduce July, we’ve posted almost
Slide 15: Our Subscribers are Loving the Newness
Our Subscribers are Loving the Newness RENT THE RUNWAY Engagement with the new inventory is Q2’25 subscription net promoter score was at its overperforming last year across every highest level in three years, and +77% YoY key metric Q2 New Style Engagement Metrics Avg. Subscription Net Promoter Scor
Slide 16: Driving More Value from Existing Brand Relationships and Expanding with New Partners
RENT THE RUNWAY Driving More Value from Existing Brand Relationships and Expanding with New, High-Potential Partners Brand Partners increasingly recognize the strength of our customer, Update image reach of our platform, and power of our marketing capabilities Existing Revenue Share Units Total Reve
Slide 17: Organic Channels Delivered Their Strongest Quarter in Years
Organic Channels Delivered Their Strongest Quarter in Years RENT THE RUNWAY Outsized Growth and Launched 11 New Series Engaged with Community IRL Momentum Q2’25 Net Audience Growth In Q2, we hosted 12 +678% +225% YoY QoQ events, with 1,200+ of our subscribers aending Q2’25 Views in-person. Demand f
Slide 18: Building on the Momentum of Prior Product Improvements
Building on the Momentum of Prior Product Improvements, We Have Enhanced the RENT THE RUNWAY Subscription Experience to Be More Personalized, Rewarding, and Engaging Select Q2 Product Launches Personalized Home with RTR Rewards Program with Preview and Heart Real Member Spotlight Contextual Educatio
Slide 19: We Raised Prices for the First Time in Years
We Raised Prices for the First Time in 3 Years RENT THE RUNWAY ● In response to inflationary pressures and tariffs in the fashion industry, on August 1st, we raised the prices of our subscription plans on average ~$2 per item ● We aim to deliver the best experience for our customers, doubling our inve
Slide 20: Planning to Make the Subscriber Experience More Personalized and Relevant
We are Planning to Make the Subscriber Experience Even More RENT THE RUNWAY Personalized and Relevant with More Recommendations and AI Enhancements Select Recent and Planned Product Launches Personalized Recommendations AI for Review Summary and Fit Improvements Personalizing her browsing experience
Slide 21: Q3 + FY2025 Guidance
RENT THE RUNWAY Q3 + FY2025 Guidance 21
Slide 22: Q3 2025 and FY 2025 Guidance
Q3 2025 and FY 2025 Guidance RENT THE RUNWAY Q3 2025 Guidance Total Revenue: $82 M - $84 M 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: Lower than -$40M primarily due to costs a
Slide 23: Appendix
23 RENT THE RUNWAY Appendix
Slide 24: 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 24 basis. Margins calc
Slide 25: Condensed Consolidated Statements of Operations
Condensed RENT THE RUNWAY Consolidated Three Months Three Months Ended 7/31/2025 Ended 7/31/2024 Six Months Ended 7/31/2025 Six Months Ended 7/31/2024 Year Ended 1/31/2025 Year Ended 1/31/2024 Statements of (In millions, except per share amounts) Total revenue, net $80.9 $78.9 $150.5 $153.9 $306.2 $
Slide 26: Condensed Consolidated Balance Sheets
Condensed RENT THE RUNWAY Consolidated Balance Sheets As Of 7/31/2025 As Of 1/31/2025 (in millions) Cash and cash equivalents $43.6 $77.4 Restricted cash, current 4.7 4.7 Prepaid expenses and other current assets 15.0 11.8 Restricted cash, fixed 3.9 4.4 Rental product, net 86.7 73.3 Fixed and intangi
Slide 27: Condensed Consolidated Statements of Cash Flows
Condensed RENT THE RUNWAY Consolidated Statements of Cash Flows Six Months Six Months Year Ended Ended 7/31/2025 Ended 7/31/2024 1/31/2025 (in millions) Net loss $(52.5) $(37.6) $(69.9) Net cash (used in) provided by operating activities (2.2) 6.8 12.9 Net cash (used in) provided by investing activi
Slide 28: Selected Cash Flows Detail and Supplemental Cash Flow Information
Selected Cash RENT THE RUNWAY Flows Detail and Supplemental Six Months Six Months Cash Flow (in millions) Ended 7/31/2025 Ended 7/31/2024 Year Ended 1/31/2025 Year Ended 1/31/2024 Information INVESTING ACTIVITIES Purchases of rental product $(42.0) $(26.3) $(49.2) $(77.9) Proceeds from liquidation o
Slide 29: Reconciliation of Purchases of Rental Product
Reconciliation RENT THE RUNWAY of Purchases of Rental Product to Rental Product Six Months Six Months Year Year Acquired (in millions) Ended 7/31/2025 Ended 7/31/2024 Ended 1/31/2025 Ended 1/31/2024 Purchases of rental product $(42.0) $(26.3) $(49.2) $(77.9) Cost of owned rental product paid for in
Slide 30: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation RENT THE RUNWAY of Net Loss to Adjusted Three Months Ended Three Months Ended Six Months Ended Six Months Ended Year Ended Year Ended Year Ended EBITDA (in millions) Net loss 7/31/2025 $(26.4) 7/31/2024 $(15.6) 7/31/2025 $(52.5) 7/31/2024 $(37.6) 1/31/2025 $(69.9) 1/31/2024 $(113.2) 1
Slide 31: Reconciliation of Cash Used by Operating Activities to Free Cash Flow
Reconciliation RENT THE RUNWAY of Cash Used by Operating Activities to Free Cash Flow Six Months Ended 7/31/2025 Six Months Ended 7/31/2024 Year Ended 1/31/2025 Year Ended 1/31/2024 Year Ended 1/31/2023 (in millions) Net cash (used in) provided by operating activities $(2.2) $6.8 $12.9 $(15.7) $(47.
Slide 32: Operating Expense Detail
Operating RENT THE RUNWAY Expense Detail Three Months Three Months Six Months Six Months Ended Ended Ended Ended 7/31/2025 7/31/2024 7/31/2025 7/31/2024 (in millions) Technology $9.8 $8.7 $19.4 $18.3 Marketing $7.4 $7.8 $16.0 $16.8 General and administrative $24.6 $22.2 $45.3 $45.0 Total operating e