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Reformation, Inc.
(NYSE:REF)
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Rating:50Neutral
Price Target:
$12.50
▼(-16.67% Downside)
Action:N/A
Date:09/24/26
REF scores 50 primarily due to weakening financial performance (notably negative free cash flow and materially lower profitability) and bearish technicals. These are partly offset by a strong, confidence-boosting earnings call with upbeat FY2026 growth and margin guidance, but valuation remains a major headwind given the extremely high P/E and no dividend yield provided.
Positive Factors
Strong customer retention
High repeat revenue and strong multi-year retention indicate that Reformation has meaningful customer loyalty and cohort value. Returning customers spend nearly twice as much as new customers, supporting durable monetization, more efficient growth, and resilience beyond individual product launches.
Negative Factors
Material profitability compression
Revenue growth has not translated into stable earnings because gross and operating margins deteriorated materially. This weakens internal funding capacity and makes future profitability more dependent on restoring pricing, product mix, and operating leverage rather than simply adding sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong customer retention
High repeat revenue and strong multi-year retention indicate that Reformation has meaningful customer loyalty and cohort value. Returning customers spend nearly twice as much as new customers, supporting durable monetization, more efficient growth, and resilience beyond individual product launches.
Read all positive factors
Reformation, Inc. (REF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$711.32M
Dividend YieldN/A
Average Volume (3M)542.75K
Price to Earnings (P/E)2006.7
Beta (1Y)-0.65
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,353
SectorGeneral
Sector StrengthN/A
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)N/A
Shares Outstanding59,079,320
10 Day Avg. Volume874,172
30 Day Avg. Volume542,749
Financial Highlights & Ratios
PEG Ratio-1.01
Price to Book (P/B)1.69
Price to Sales (P/S)1.47
P/FCF Ratio-41.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.25Price Target Upside28.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Reformation, Inc. Business Overview & Revenue Model
Company Description
Reformation, Inc. operates as a clothing brand company. It is engaged in sustainable womenswear. Its products include dresses, jeans, tops, sweaters, shoes, and accessories. The company was founded in 2009 and is headquartered in New York, NY....
Reformation, Inc. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 267.53M | 507.10M | 438.16M |
| Gross Profit | 182.47M | 305.49M | 282.61M |
| EBITDA | 16.27M | 44.60M | 66.49M |
| Net Income | 260.00K | 12.64M | 32.93M |
Balance Sheet | |||
| Total Assets | 1.01B | 937.87M | 873.77M |
| Cash, Cash Equivalents and Short-Term Investments | 76.63M | 65.47M | 87.68M |
| Total Debt | 435.31M | 339.48M | 307.74M |
| Total Liabilities | 628.43M | 497.07M | 447.16M |
| Stockholders Equity | 376.73M | 440.80M | 426.61M |
Cash Flow | |||
| Free Cash Flow | -13.19M | -17.87M | 18.12M |
| Operating Cash Flow | 26.00K | 26.67M | 44.27M |
| Investing Cash Flow | -13.22M | -44.54M | -26.15M |
| Financing Cash Flow | 24.82M | -5.16M | -6.40M |
Reformation, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $3.30B | 22.16 | 16.05% | 1.88% | 18.33% | 56.39% | |
64 Neutral | $122.50M | -13.01 | -7.73% | ― | -9.42% | 87.85% | |
57 Neutral | $322.08M | 18.33 | 5.83% | 3.31% | -0.84% | ― | |
56 Neutral | $364.29M | -5.12 | -69.12% | ― | -9.10% | -15.30% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | $711.32M | 2,006.67 | 0.06% | ― | ― | ― | |
50 Neutral | $1.67B | 11.22 | 88.57% | ― | -17.40% | ― |
* General Sector Average
REF
Reformation, Inc.
12.04
-3.04
-20.16%
DBI
Designer Brands
6.05
2.66
78.20%
FOSL
Fossil Group
6.57
3.99
154.65%
CPRI
Capri Holdings
14.12
-7.11
-33.49%
SHOO
Steven Madden
44.77
11.22
33.46%
VRA
Vera Bradley
4.62
2.55
123.19%
Reformation, Inc. Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Reformation Inc. Completes Initial Public Offering Debut
Positive
Aug 3, 2026
On July 31, 2026, Reformation Inc. put into effect amended and restated versions of its certificate of incorporation and bylaws in connection with the closing of its initial public offering of common stock. These governance changes, previously app...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.