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Revolve Group
(NYSE:RVLV)
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Rating:74Outperform
Price Target:
$24.00
▲(4.76% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by improving profitability and a strong, low-leverage balance sheet, supported by a constructive price trend and a positive earnings call highlighting accelerating sales and customer growth. The main constraints are uneven/weakening free-cash-flow conversion and a valuation (P/E ~27.9) that leaves the stock more sensitive to margin pressure, higher investment spending, and inventory/working-capital swings.
Positive Factors
Customer and Sales Growth
Double-digit sales growth across both major segments, combined with an expanding active-customer base, supports durable demand and increasing platform reach. A larger customer cohort can improve marketing efficiency, create repeat-purchase opportunities, and provide a stronger foundation for future revenue growth.
Negative Factors
Uneven Cash Conversion
Positive cash generation remains a strength, but the sharp decline in free-cash-flow growth and weaker conversion from earnings indicate that reported profitability is not consistently translating into available cash. Persistent volatility could constrain reinvestment, shareholder returns, or resilience during slower demand periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Customer and Sales Growth
Double-digit sales growth across both major segments, combined with an expanding active-customer base, supports durable demand and increasing platform reach. A larger customer cohort can improve marketing efficiency, create repeat-purchase opportunities, and provide a stronger foundation for future revenue growth.
Read all positive factors
Revolve Group Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Reveals the profitability of different business segments, highlighting which areas are most lucrative and where the company might need to improve efficiency or strategy.
Reveals the profitability of different business segments, highlighting which areas are most lucrative and where the company might need to improve efficiency or strategy.
Data provided by:
The Fly
The FlyRevolve Group (RVLV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.52B
Dividend YieldN/A
Average Volume (3M)914.91K
Price to Earnings (P/E)20.9
Beta (1Y)1.81
Revenue Growth10.80%
EPS Growth59.70%
CountryUS
Employees1,664
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.02
Shares Outstanding41,061,480
10 Day Avg. Volume792,598
30 Day Avg. Volume914,909
Financial Highlights & Ratios
PEG Ratio1.43
Price to Book (P/B)4.20
Price to Sales (P/S)1.76
P/FCF Ratio44.85
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$31.11Price Target Upside35.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)0.88
Revenue Forecast (FY)$1.39B
Revolve Group Business Overview & Revenue Model
Company Description
Revolve Group, Inc. operates as a fashion retailer for millennial and generation z consumers in the United States and internationally. The company operates in two segments, REVOLVE and FWRD. It operates a platform that connects consumers and globa...
How the Company Makes Money
Revolve Group primarily makes money by selling products online directly to consumers (DTC) through its REVOLVE and FWRD e-commerce platforms. Its core revenue stream is net sales from merchandise (apparel, footwear, accessories, and beauty), where...
Revolve Group Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The earnings call reflects strong top‑line momentum, profitable growth, and multiple strategic early wins (active customer acceleration, international expansion, FWRD luxury momentum, and very strong early demand for the Grow‑Good brand). Management is deliberately investing in long‑term initiatives — marketing, owned brands, physical retail, and AI — which weighed on near‑term expense lines and drove a negative Q2 free cash flow due to working capital timing. Gross margin expanded year‑over‑year excluding tariff refunds, but Q3 margin guidance is softer vs. a tough prior‑year comp and results benefited from tariff refunds. Overall, positives (growth, margin expansion ex‑refunds, customer metrics, product/brand momentum and AI/retail initiatives) materially outweigh the near‑term headwinds (higher marketing/G&A, shipping/input cost pressures, and inventory/working capital dynamics).Positive Updates
Net Sales Growth — Third Consecutive Quarter of Double-Digit Growth
Consolidated net sales of $347M in Q2 2026, up 12% year-over-year; REVOLVE segment +13% and FWRD segment +11%. Orders placed increased 11% to 2.7M.
Negative Updates
Elevated Marketing and G&A Investments
Marketing increased to 16.5% of net sales (+130 bps YoY) and above guidance; company indicated 2026 investments approximate ~2 points of adjusted EBITDA margin. G&A rose 13% YoY to $43.4M and full‑year G&A guidance increased to $170–$172M.
Read all updates
Q2-2026 Updates
Positive
Negative
Net Sales Growth — Third Consecutive Quarter of Double-Digit Growth
Consolidated net sales of $347M in Q2 2026, up 12% year-over-year; REVOLVE segment +13% and FWRD segment +11%. Orders placed increased 11% to 2.7M.
Read all positive updates
Company Guidance
Management guided Q3 gross margin of 53.5%–54.0% (midpoint implying ~88 bps YoY decline) and reiterated full‑year gross margin of 53.5%–54.0% (midpoint ≈+25 bps YoY); expected fulfillment of ~3.4% of net sales in Q3 (3.2%–3.4% FY), selling & distribution ~17.5% in Q3 (17.1%–17.3% FY), marketing ~15% in Q3 and north of 16% in Q4 (15.8%–16.0% FY), G&A ~ $43.5M in Q3 and $170M–$172M for the year, and an effective tax rate of ~24%–26% for FY2026. Management also noted recent trends and modeling considerations: July net sales ≈+18% YoY (a six‑point acceleration vs Q2), Q2 net sales $347M (+12% YoY), AOV $299 (vs $300 prior year; >$300 ex‑Grow‑Good), TTM active customers +11% YoY (surpassing 3.0M), inventory $276M (+25% YoY), cash & equivalents $312M with no debt, YTD operating cash flow $41M and free cash flow $34M (Q2 operating cash used $8M, Q2 FCF -$11M), nearly 500k Class A shares repurchased in Q2 at an average $19.98 (~$10M returned), and an additional $1.4M of potential IEEPA tariff refunds not yet included in results.Revolve Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.31B | 1.23B | 1.13B | 1.07B | 1.10B | 891.39M |
| Gross Profit | 711.72M | 655.78M | 593.27M | 554.20M | 592.32M | 489.82M |
| EBITDA | 99.08M | 86.90M | 69.61M | 42.85M | 81.41M | 109.24M |
| Net Income | 72.64M | 61.71M | 49.56M | 28.15M | 58.70M | 99.84M |
Balance Sheet | ||||||
| Total Assets | 844.49M | 765.00M | 665.55M | 608.89M | 579.32M | 480.41M |
| Cash, Cash Equivalents and Short-Term Investments | 311.57M | 292.26M | 256.60M | 245.45M | 234.72M | 218.46M |
| Total Debt | 30.87M | 32.45M | 40.73M | 40.99M | 24.50M | 6.94M |
| Total Liabilities | 303.44M | 252.47M | 227.76M | 223.75M | 199.75M | 163.40M |
| Stockholders Equity | 538.18M | 512.53M | 438.19M | 385.14M | 379.57M | 317.01M |
Cash Flow | ||||||
| Free Cash Flow | 25.42M | 47.99M | 21.04M | 39.14M | 18.27M | 60.12M |
| Operating Cash Flow | 42.84M | 59.40M | 26.69M | 43.34M | 23.44M | 62.31M |
| Investing Cash Flow | -29.63M | -14.87M | -9.11M | -4.20M | -5.17M | -2.19M |
| Financing Cash Flow | -9.53M | -1.39M | -5.36M | -30.38M | 887.00K | 12.77M |
Revolve Group Technical Analysis
Negative
22.91
Price Trends
23.99
Negative
22.84
Negative
24.55
Negative
Market Momentum
-0.67
Positive
31.68
Neutral
9.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RVLV, the sentiment is Negative. The current price of 22.91 is below the 20-day moving average (MA) of 23.16, below the 50-day MA of 23.99, and below the 200-day MA of 24.55, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 31.68 is Neutral, neither overbought nor oversold. The STOCH value of 9.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RVLV.
Revolve Group Risk Analysis
Revolve Group disclosed 65 risk factors in its most recent earnings report. Revolve Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Revolve Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.52B | 20.93 | 14.05% | ― | 10.80% | 59.70% | |
70 Outperform | $1.56B | 8.39 | 23.11% | ― | 1.08% | 3.88% | |
66 Neutral | $1.14B | 27.89 | -99.42% | 4.39% | 3.76% | -2.25% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $1.61B | 65.31 | 5.75% | ― | 10.03% | -24.86% | |
53 Neutral | $1.32B | 26.39 | 5.71% | ― | 7.84% | ― | |
48 Neutral | $357.23M | -15.23 | -37.30% | ― | 15.58% | 64.75% |
* Consumer Cyclical Sector Average
RVLV
Revolve Group
21.35
-2.11
-8.99%
SBH
Sally Beauty
16.70
2.02
13.76%
WINA
Winmark
318.17
-139.64
-30.50%
EYE
National Vision Holdings
16.74
-6.34
-27.47%
TDUP
thredUP
2.72
-8.41
-75.56%
SVV
Savers Value Village Inc.
10.45
-2.06
-16.47%
Revolve Group Corporate Events
Executive/Board ChangesShareholder Meetings
Revolve Group Shareholders Back Board, Auditor and Pay
Positive
Jun 9, 2026
On June 5, 2026, Revolve Group held its 2026 Annual Meeting of Stockholders, where shareholders elected directors Michael Karanikolas, Michael Mente, Melanie Cox, Erinn Murphy and Oana Ruxandra to serve on the board until the 2027 annual meeting o...
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.