Rent the Runway, Inc. (RENT) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

or information except as required by law. During this call, we will also reference certain non-GAAP financial information. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Reconciliations of GAAP to non-GAAP measures can be found in our press release, slide presentations posted on our Investor Relations website, and our SEC filings. And with that, I'll turn it over to Jen. Thanks, Cara, and thank you everyone for joining. We've been laser focused on two clear priorities. First, completing the strategic recapitalization of the business to significantly strengthen our balance sheet. Second, bringing the business back to growth through a new inventory strategy, increased product innovation, and improved connection to our core customer. Now that we are here in Q3, I'm pleased to say we've delivered on both of these goals. We've strengthened our financial foundation by reducing our total debt from approximately $319 million to approximately $120 million and extending the maturity to 2029, giving us years of additional runway. With the recapitalization to highly respected private equity firms with deep experience in the consumer retail space, Nexus and Story3, alongside our long-term existing lender, contributed new capital to further support the business and its growth initiatives. In addition, they will join us in the boardroom to provide their expertise and support. And importantly, the Rent the Runway business is growing again. We are on track for 11% to 14% year-over-year revenue growth in Q4, up from 1% revenue growth year-over-year in Q4 2024. Q3, fiscal year 25, ending active subscribers grew 12% year-over-year as our base of inventor...