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Rent the Runway (RENT) AI Stock Analysis
Rent the Runway
(NASDAQ:RENT)
RENT's score is primarily constrained by fragile financial quality, negative free cash flow, and weak medium- and long-term technical positioning. Strong revenue and profitability improvement, unusually low reported P/E, reaffirmed guidance, and strengthened liquidity provide meaningful support, but subscriber pressure, expected near-term EBITDA losses, and financing risk limit the upside.
Rent the Runway Key Performance Indicators (KPIs)
Subscriber BreakdownProvides a detailed look at the composition of subscribers, revealing trends in customer acquisition, retention, and the overall health of the subscription model.
Subscriber growth has become the lever for Rent the Runway’s recovery—ending and average active subscribers accelerated into early‑2026 after the FY2025 inventory build, validating the strategy with higher engagement and record totals. That said, management warns growth may decelerate from the ~20% YoY pace, will materially pull back new-buy inventory next year, and is shifting mix toward revenue‑share stock; expect continued top‑line momentum but near‑term margin and cash‑flow pressure as the company balances growth versus profitability.
The FlyRent the Runway (RENT) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $81.56M
- Dividend Yield
- ―
- Average Volume (3M)
- 626.11K
- Price to Earnings (P/E)
- 0.2
- Beta (1Y)
- 2.53
- Revenue Growth
- 21.17%
- EPS Growth
- ―
- Country
- US
- Employees
- 979
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Apparel - Retail
Rent the Runway Business Overview & Revenue Model
Company Description
Rent the Runway, Inc. operates a service that leases premium women's fashion and apparel. Customers can access these offerings through the company's online platform and its physical retail locations. Their extensive inventory spans a broad spectrum o...
How the Company Makes Money
Rent the Runway primarily generates revenue from apparel rentals delivered through its subscription offerings and related rental services. The core revenue stream is subscription revenue, where customers pay recurring fees for access to a plan that a...
Rent the Runway Earnings Call Summary
The call was predominantly positive. The company reported record revenue, strong year-over-year gross margin and adjusted EBITDA improvement, better year-to-date free cash flow, reaffirmed full-year guidance, continued customer-experience innovation, and additional liquidity support. These positives were tempered by a 3.8% decline in ending active subscribers, lower Reserve revenue, negative year-to-date free cash flow, paused initiatives, and expectations for flat to 3% Q3 revenue growth and negative Q3 adjusted EBITDA.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For fiscal year 2026, Rent the Runway reiterated its double-digit revenue growth guidance and adjusted EBITDA guidance of 4%-7% of revenue, expects rental product investment to be in the range of $53 million-$55 million, compared with fiscal year 2025 of $75 million and previous guidance of $45 million-$50 million, and continues to expect improved free cash flow in 2026 compared to last year; for Q3 2026, it expects revenue to be between $87 million and $90 million, representing between flat to 3% growth versus Q3 2025, active subscribers to be roughly flat in the back half of 2026, Resale revenue to continue to grow in the second half, Reserve orders to grow, and adjusted EBITDA to be between negative 3% and negative 6% of revenue.
Rent the Runway Financial Statement Overview
Summary
Revenue and profitability have improved substantially, but negative equity, historically significant losses, and persistently negative free cash flow keep financial risk elevated.
Income Statement
72PositiveBalance Sheet
48NeutralCash Flow
38Negative| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 366.90M | 329.80M | 306.20M | 298.20M | 296.40M | 203.30M |
| Gross Profit | 260.40M | 196.00M | 67.70M | 60.80M | 55.10M | 8.90M |
| EBITDA | 188.40M | 65.70M | 13.30M | 25.70M | -4.70M | -67.20M |
| Net Income | 43.30M | 22.60M | -69.90M | -113.20M | -138.70M | -211.80M |
Balance Sheet | ||||||
| Total Assets | 192.40M | 221.00M | 509.60M | 534.60M | 336.20M | 447.50M |
| Cash, Cash Equivalents and Short-Term Investments | 29.00M | 50.40M | 77.40M | 84.00M | 154.50M | 247.60M |
| Total Debt | 196.00M | 198.30M | 380.80M | 356.60M | 315.20M | 312.80M |
| Total Liabilities | 257.90M | 257.10M | 692.10M | 656.90M | 371.50M | 376.40M |
| Stockholders Equity | -65.50M | -36.10M | -182.50M | -122.30M | -35.30M | 71.10M |
Cash Flow | ||||||
| Free Cash Flow | -50.30M | -46.60M | -40.70M | -98.20M | -118.70M | -83.40M |
| Operating Cash Flow | 700.00K | 3.50M | 12.90M | -15.70M | -47.70M | -42.30M |
| Investing Cash Flow | -35.40M | -49.50M | -20.10M | -54.60M | -44.30M | -22.50M |
| Financing Cash Flow | 19.70M | 18.60M | -300.00K | 700.00K | -4.00M | 215.20M |
Rent the Runway Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RENT, the sentiment is Neutral. The current price of 2.18 is above the 20-day moving average (MA) of 2.07, below the 50-day MA of 2.41, and below the 200-day MA of 4.08, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 55.54 is Neutral, neither overbought nor oversold. The STOCH value of 61.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RENT.
Rent the Runway Risk Analysis
Rent the Runway disclosed 63 risk factors in its most recent earnings report. Rent the Runway reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksRent the Runway Peers Comparison
Overall Rating
- RENT57Neutral
SFIX52Neutral
TLYS52Neutral
LVLU48Neutral
CURV42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| RENT | 57Neutral | $81.56M | 0.19 | -91.16% | ― | 21.17% | ― |
| SFIX | 52Neutral | $360.73M | -28.69 | -6.22% | ― | 6.39% | 57.76% |
| TLYS | 52Neutral | $128.77M | 59.30 | 2.37% | ― | 6.07% | ― |
| LVLU | 48Neutral | $32.76M | -3.88 | -903.25% | ― | -10.40% | 83.52% |
| CURV | 42Neutral | $243.32M | -26.99 | 4.27% | ― | -11.16% | -384.28% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| RENT | Rent The Runway, Inc. | 2.42 | -1.38 | -36.45% | |
| TLYS | Tilly's | 4.21 | 2.72 | 182.55% | |
| SFIX | Stitch Fix | 2.70 | -1.45 | -34.94% | |
| CURV | Torrid Holdings, Inc. | 2.44 | 1.18 | 93.65% | |
| LVLU | Lulu's Fashion Lounge Holdings, Inc. | 11.41 | 6.91 | 153.56% |
Rent the Runway Corporate Events
Rent the Runway Strengthens Liquidity With New Equity Financing
PositiveOn October 20, 2026, Rent the Runway completed a $15 million rights offering, through which subscribers purchased 2,501,262 shares of Class A common stock, generating approximately $8.9 million in gross proceeds. Under a backstop agreement with CHS U...
Rent the Runway concludes shareholder rights offering period
NeutralOn October 14, 2026, Rent the Runway’s subscription period for its previously announced $15,000,000 rights offering expired at 5:00 p.m. Eastern Time. Any rights that were not exercised by that deadline lapsed and can no longer be used, effecti...
Rent the Runway Launches $15M Share Rights Offering
PositiveOn September 30, 2026, Rent the Runway launched a previously announced $15 million rights offering for holders of its Class A common stock as of the September 25, 2026 record date, subject to due bill trading procedures that shift rights to purchaser...
Rent the Runway Announces $15 Million Rights Offering
NeutralOn September 15, 2026, Rent the Runway announced that it will conduct a $15 million rights offering, setting September 25, 2026 as the record date for determining eligible holders of its Class A common stock. The offering will grant these shareholder...
Rent the Runway Announces $15 Million Rights Backstop
PositiveOn September 11, 2026, Rent the Runway entered into a $15 million rights offering backstop agreement with an investor group comprising CHS US Investments, Gateway Runway and S3 RR Aggregator to bolster its financial position and flexibility. The comp...
Rent the Runway Settles IPO-Related Securities Class Action
NeutralOn September 3, 2026, Rent the Runway entered into a Stipulation and Agreement of Settlement to resolve a putative securities class action filed on November 14, 2022 in the Eastern District of New York, which alleged misleading statements and omissio...
Rent the Runway Secures New $10M Term Loan
PositiveOn September 1, 2026, Rent the Runway, Inc. entered into a Third Amendment to its Amended and Restated Credit Agreement with its existing lenders and CHS (US) Management LLC as administrative agent. The amendment establishes an incremental term loan...
Rent the Runway Updates Bylaws and Governance Framework
NeutralOn August 11, 2026, Rent the Runway’s board approved conforming amendments to its Third Amended & Restated Bylaws, following the earlier stockholder-approved filing of its Thirteenth Amended and Restated Certificate of Incorporation in Dela...
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.
Date of analysis: Oct 26, 2026