Rent the Runway revenue rises 20.8% as Thomas takes CEO role and investors back $15 million rights offering

Rent the Runway, Inc. (NASDAQ: RENT) reported second-quarter fiscal 2026 revenue of $97.7 million on September 11, up 20.8% from a year earlier and an all-time high, according to the company. For the quarter ended July 31, gross margin rose to 36.1% from 30.0%, and the net loss narrowed to $12.9 million from $26.4 million.

Second-quarter results

Adjusted EBITDA, a company non-GAAP measure, increased to $12.6 million, or 12.9% of revenue, from $3.6 million, or 4.4%. The improvement came alongside a smaller ending active subscriber base: 140,826, down 3.8% from a year earlier.

The company also named Paige Thomas CEO and president effective September 14, replacing interim chief Teri Bariquit, who will become non-executive board chair. Separately, Rent the Runway entered a $15 million rights offering backstop agreement with an investor group. That agreement provides conditional backing for the planned equity raise as quarter-end cash fell to $29.0 million from $43.6 million a year earlier; the offering has not closed.

Second-quarter results

Revenue increased from $80.9 million in the prior-year quarter. Gross profit rose 45.3% to $35.3 million from $24.3 million. Rent the Runway cited gross margin expansion of 609 basis points and operating-expense discipline as drivers of the increase in adjusted EBITDA, its non-GAAP earnings measure. The net loss represented 13.2% of revenue, compared with 32.6% a year earlier.

Subscriber measures were mixed. Average active subscribers increased 1.0% to 148,259 from 146,765, while ending active subscribers fell from 146,373 to 140,826. Ending total subscribers rose 0.5% to 186,019. Add-on bookings increased 81%, and 33% of subscribers used an add-on during the quarter, up from 29% a year earlier.

Net cash used in operating activities was $5.0 million, compared with $2.2 million in the prior-year quarter. Net cash used in investing activities declined to $16.6 million from $30.7 million. Cash and cash equivalents ended the quarter at $29.0 million.

For fiscal 2026, Rent the Runway reaffirmed double-digit revenue growth and adjusted EBITDA margin of 4% to 7%, a company non-GAAP measure. It updated its outlook for Rental Product Acquired to $53 million to $55 million, compared with $74.9 million in fiscal 2025. For the third quarter, it forecast revenue of $87 million to $90 million and a company non-GAAP adjusted EBITDA margin between negative 6% and negative 3%.

New CEO and board chair

Thomas will become CEO, president and a board member on September 14. She joined Rent the Runway as chief commercial officer in June. Her previous roles include chief merchant and product innovation officer at Signet Jewelers, president and CEO of Saks OFF 5TH, and leadership positions at Nordstrom and Nordstrom Rack.

Bariquit, interim CEO and president since May, will become non-executive chair on the same date. Dhiren Fonseca will step down as executive chairman and remain a board member.

$15 million rights offering backstop

In a separate September 11 filing, Rent the Runway disclosed a Rights Offering Backstop Agreement with CHS US Investments LLC, Gateway Runway, LLC (Nexus), and S3 RR Aggregator, LLC (STORY3). The investor group agreed to purchase all unsubscribed shares in a $15 million rights offering at the subscription price, subject to customary conditions, including an effective Form S-1 registration statement.

Eligible Class A holders on a record date to be set by the board will receive transferable subscription rights at no cost, allocated pro rata. The subscription price will be the greater of $3.55—the 15-day volume-weighted average price ending on the second trading day before the agreement date—and the 15-day volume-weighted average price through and including the record date.

The record date and Form S-1 remain ahead, and the offering has not closed. The backstop is a conditional commitment to buy shares left unsubscribed, rather than cash already received by the company. Item 3.02 of the filing addresses any unregistered issuance of unsubscribed shares under that commitment.

Filing path

Rent the Runway disclosed Q2 FY2026 results in Form 8-K AccNo 0001468327-26-000086 under Items 2.02 and 9.01 with Exhibit 99.1, and disclosed the $15.0 million rights offering backstop in Form 8-K AccNo 0000950103-26-013810 under Items 1.01, 3.02 and 9.01, both filed September 11, 2026.