Rent the Runway posts 20% subscriber growth, but debt restructuring masks operating losses

Filed April 14, 2026 · Period ending January 31, 2026 · Compared to 10-K Apr 15, 2025 · ~2 min read

Key Changes

• high

  Active subscribers grew 20% to 143,796, reversing prior year's 5% decline, driven by doubling rental product inventory. However, adjusted EBITDA fell 47% to $24.9M as gross margin compressed 530 basis points to 32.6%.

  MD&A: Operating Results verify on EDGAR →
• high

  October 2025 recapitalization reduced debt from $333.7M to $156.6M and generated $96.3M one-time gain, converting net loss to $22.6M net income. Investor Group now holds 85% voting power; company can capitalize interest through May 2027.

  Notes: Recapitalization Transactions verify on EDGAR →
• high

  Subscription pricing increased 16-17% (now $109-$275/month vs. $94-$235), while Share by RTR sourcing jumped from 48% to 57% of product acquisition. Exclusive Designs fell from 22% to 12%, with cost advantage declining from 50% to 35% below wholesale.

  Business: Pricing & Sourcing verify on EDGAR →