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what it is
It lets you subscribe to, rent, and buy designer clothes instead of owning them outright.
how it gets paid
Last year Rent The Runway made $41M in revenue. subscription rentals was the main engine at $23.0M, or 56% of sales.
why it's growing
Revenue grew 22.2% last year. Consensus showed last earnings at -$5.87 per share.
what just happened
Latest reported revenue was $30M, but losses are still the whole story.
At a glance
C balance sheet — red flag territory — real financial stress
-$18.51 fy2024 eps est
$306M fy2024 rev est
n/a operating margin
1.9 beta
xvary composite: 25/100 — weak
What they do
It lets you subscribe to, rent, and buy designer clothes instead of owning them outright.
The pitch is convenience plus closet variety. You get access to millions of items across hundreds of designer brands without paying full price for each look. That helps retention because fashion rental works best at scale, and the company already supports that engine with 912 employees and a logistics-heavy platform.
How they make money
$41M
annual revenue · their business grew +22.2% last year
subscription rentals
$23.0M
a-la-carte rentals
$11.0M
resale
$4.0M
accessories and add-ons
$3.0M
The products that matter
subscription clothing rental
Closet in the Cloud
Q3 2025 company revenue $87.6M
This is the recurring-revenue idea — repeat customer payments rather than one-off purchases. Q3 2025 company revenue reached $87.6M, up 15.4% from a year ago, but the page does not break out subscription revenue on its own. You are seeing traction, not full segment clarity.
recurring core
event and occasion wear
One-Time Rentals
72.9% gross margin backdrop
This is the business line people picture first. It helps the brand stay premium, but the hard number here is still the company-wide 72.9% gross margin. The missing number is how much of that survives shipping, cleaning, and customer acquisition.
brand driver
resale of used inventory
Retail Purchases
$314.5M annual revenue base
Resale is the inventory release valve. It gives the company another way to monetize garments after rental demand cools. The page gives no standalone revenue for this line, which matters because second-life sales help cash recovery in a balance-sheet story.
cash recovery lever
Key numbers
n/a
operating margin
Prior margin KPI failed sanity check — verify in filings. Operating margin → profit after running the business → so what: the company loses more than $1 for every $1 of operating profit it hoped to make.
$196M
long-term debt
Long-term debt → money owed for years → so what: the debt load is larger than the roughly $150M market cap, so lenders matter more than optimism.
57%
debt share
Debt as a share of capital → how much of the company is financed with borrowing → so what: more than half the capital stack is debt in a business still losing money.
1.9
beta
Beta → how jumpy the stock is versus the market → so what: this name has historically moved about 90% more than the market.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $196M (57% of capital)
C — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for RENT right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Latest reported revenue was $30M, but losses are still the whole story.
Consensus showed last earnings at -$5.87 per share, while quarterly history shows FY2024 ending with a -$3.44 quarter and a full-year EPS estimate of -$18.51. Gross margin was 37.7% in the Q4 2024 earnings transcript, which is decent for apparel but nowhere near enough to offset the cost structure.
$30M
revenue
$5.87
eps
37.7%
gross margin
the number that mattered
The number that matters is -116.7% operating margin because revenue growth does not help much if every extra dollar still carries a loss.
source: company earnings report, 2026
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What could go wrong
The main risk is simple: RENT does not have balance-sheet room for many mediocre quarters. A company worth about $150M carrying $196M of long-term debt has to keep both customers and lenders onside at the same time.
med
Debt and liquidity stay in control of the story
RENT carries $196M of long-term debt, equal to 57% of capital, and it amended its credit agreement in January 2026. That tells you the financing structure still needs active maintenance.
Impact: if lenders keep getting a vote on operations, equity holders are no longer just underwriting demand for designer rentals.
med
The category grows faster than the company
Annual revenue growth was 2.7% while the market reference on this page is 9.6%. If those two numbers keep diverging, the first-mover narrative looks more like stalled share capture.
Impact: slow growth makes every fixed cost heavier and gives the debt stack more time to matter.
med
Post-exchange control is concentrated
After the 2025 debt-for-equity exchange, a concentrated group of investment funds controls the company. You own the residual claim, not the steering wheel.
Impact: if decisions tilt toward creditor logic over minority-shareholder logic, your upside gets diluted before it gets realized.
med
The stock itself stays hard to own
A 1.9 beta and 5/100 price stability score tell you this name absorbs stress loudly. The 52-week range of $4–$10 shows how quickly the market reprices the same facts.
Impact: even if the operating story improves, volatility can still shake you out before the thesis has time to prove itself.
72.9% gross margin sounds elegant. 3.7% operating margin and $196M of debt sound like reality. That tension is the whole stock.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
Whether annual growth moves meaningfully above 2.7%
The company posted a 15.4% quarter, but the annual number on this page is still 2.7%. If the annual figure starts catching up, the turnaround earns more than a headline.
risk
Any new financing language after the amended credit agreement
With $196M of long-term debt and a C balance sheet, lender terms matter. You are reading the credit story right alongside the customer story.
calendar
Q1 2026 earnings expected around April 14, 2026
Watch for subscriber commentary, inventory productivity, and how much time management spends on liquidity. The balance between those topics tells you where the real pressure sits.
trend
What new leadership changes in practice
Dhiren Fonseca became executive chairman in March 2026. The number that matters is not the title. It is whether costs, capital allocation, and growth messaging get more disciplined.
Analyst rankings
risk profile
high
You do not need a formal ranking to see it. A 1.9 beta, 5/100 price stability, and a C balance sheet already translate the message.
what it means
thin cover
Sparse coverage shifts the burden back to operating facts. Here, that means growth, debt, and cash discipline matter more than target-price theater.
source: institutional data
Institutional activity
institutional ownership data for RENT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$8
current price
n/a
target midpoint · n/a from current
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