The company's operating margin remains deeply negative at -21.9% as of 2026Q1, reflecting the difficulty of scaling revenue against high variable costs.
Rent the Runway, Inc. (RENT) annual income statement — 17-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 |
|---|
| Sales/Revenue | 366.9M | 329.8M | 306.2M | 298.2M | 296.4M | 203.3M | 157.5M | 256.9M | 102.92M | 75.6M | 99.18M | 91.07M | 97.09M | 91.08M | 94.97M | 93.19M | 106M | 93.39M |
| Revenue Growth % | 21.17% | 7.71% | 2.68% | 0.61% | 45.79% | 29.08% | -38.69% | 149.61% | 36.14% | -23.77% | 8.9% | -6.2% | 6.6% | -4.1% | 1.91% | -12.09% | 13.5% | - |
| Cost of Goods Sold | 106.5M | 133.8M | 238.5M | 237.4M | 241.3M | 194.4M | 181M | 236.3M | 35.85M | 27.25M | 53.63M | 48.13M | 54.85M | 58.28M | 62.58M | 61.81M | 72.49M | 65.29M |
| COGS % of Revenue | - | 40.57% | 77.89% | 79.61% | 81.41% | 95.62% | 114.92% | 91.98% | 34.83% | 36.04% | 54.08% | 52.84% | 56.5% | 63.99% | 65.89% | 66.33% | 68.39% | 69.9% |
| Gross Profit | 260.4M | 196M | 67.7M | 60.8M | 55.1M | 8.9M | -23.5M | 20.6M | 67.07M | 48.35M | 45.55M | 42.95M | 42.23M | 32.8M | 32.39M | 31.37M | 33.51M | 28.11M |
| Gross Margin % | 70.97% | 59.43% | 22.11% | 20.39% | 18.59% | 4.38% | -14.92% | 8.02% | 65.17% | 63.96% | 45.92% | 47.16% | 43.5% | 36.01% | 34.11% | 33.67% | 31.61% | 30.1% |
| Gross Profit Growth % | - | 189.51% | 11.35% | 10.34% | 519.1% | 137.87% | -214.08% | -69.29% | 38.72% | 6.16% | 6.05% | 1.68% | 28.77% | 1.26% | 3.24% | -6.36% | 19.21% | - |
| Operating Expenses | 305.6M | 253.5M | 115M | 132.8M | 137.2M | 130.9M | 85.3M | 121.8M | 73.15M | 57.81M | 67.76M | 48.85M | 44.32M | 33.05M | 26.89M | 25.68M | 24.94M | 22.07M |
| OpEx % of Revenue | - | 76.86% | 37.56% | 44.53% | 46.29% | 64.39% | 54.16% | 47.41% | 71.08% | 76.47% | 68.32% | 53.64% | 45.65% | 36.29% | 28.31% | 27.56% | 23.53% | 23.63% |
| Selling, General & Admin | 117.1M | 115.8M | 115M | 132.8M | 137.2M | 130.9M | 85.3M | 121.8M | 59.86M | 48.8M | 67.76M | 48.85M | 44.32M | 33.05M | 26.89M | 25.68M | 24.94M | 22.07M |
| SG&A % of Revenue | - | 35.11% | 37.56% | 44.53% | 46.29% | 64.39% | 54.16% | 47.41% | 58.16% | 64.55% | 68.32% | 53.64% | 45.65% | 36.29% | 28.31% | 27.56% | 23.53% | 23.63% |
| Research & Development | 0 | 39.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 11.92% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 98.4M | 0 | 0 | 0 | 0 | 0 | 0 | 13.29M | 9.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -45.2M | -57.5M | -47.3M | -72M | -82.1M | -122M | -108.8M | -101.2M | -6.08M | -9.46M | -22.21M | -5.91M | -2.6M | -924K | 5.25M | 5.61M | 8.57M | 6.04M |
| Operating Margin % | -12.32% | -17.43% | -15.45% | -24.14% | -27.7% | -60.01% | -69.08% | -39.39% | -5.91% | -12.51% | -22.4% | -6.49% | -2.68% | -1.01% | 5.52% | 6.02% | 8.08% | 6.47% |
| Operating Income Growth % | - | -21.56% | 34.31% | 12.3% | 32.7% | -12.13% | -7.51% | -1564.75% | 35.74% | 57.41% | -275.95% | -126.97% | -181.71% | -117.61% | -6.42% | -34.57% | 41.81% | - |
| EBITDA | 118.1M | -47.6M | 74.9M | 33M | 15.3M | -30.1M | -36.5M | -32.7M | 1.44M | -3.53M | -17.26M | -1.56M | 829K | 1.41M | 7M | 7.04M | 10.3M | 7.63M |
| EBITDA Margin % | 32.19% | -14.43% | 24.46% | 11.07% | 5.16% | -14.81% | -23.17% | -12.73% | 1.4% | -4.67% | -17.4% | -1.71% | 0.85% | 1.54% | 7.37% | 7.55% | 9.72% | 8.17% |
| EBITDA Growth % | 76.27% | -163.55% | 126.97% | 115.69% | 150.83% | 17.53% | -11.62% | -2369.26% | 140.81% | 79.54% | -1008.54% | -287.82% | -41% | -79.92% | -0.61% | -31.69% | 35.06% | - |
| D&A (Non-Cash Add-back) | 163.3M | 9.9M | 122.2M | 105M | 97.4M | 91.9M | 72.3M | 68.5M | 7.52M | 5.93M | 4.95M | 4.35M | 3.43M | 2.33M | 1.75M | 1.43M | 1.74M | 1.59M |
| EBIT | 25.1M | 12.4M | -45.4M | -79.3M | -102.1M | -159.1M | -124.5M | -130.1M | 0 | 0 | 0 | 0 | 0 | 0 | 6.36M | 7.27M | 10.09M | 7.06M |
| Net Interest Income | -7.6M | -20.3M | -24.2M | -33.7M | -36.8M | -53M | -46.6M | -24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 7.6M | 20.3M | 24.2M | 33.7M | 36.8M | 53M | 46.6M | 24M | 0 | 0 | 0 | 0 | 0 | 0 | 2K | 10K | 7K | 2K |
| Other Income/Expense | 88.5M | 80.2M | -22.3M | -41M | -56.8M | -90.1M | -62.3M | -52.9M | 291K | 125K | 377K | 477K | 595K | 1.15M | 1.11M | 1.65M | 1.51M | 1.01M |
| Pretax Income | 43.3M | 22.7M | -69.6M | -113M | -138.9M | -212.1M | -171.1M | -154.1M | -5.79M | -9.34M | -21.83M | -5.43M | -2.01M | 227K | 6.35M | 7.26M | 10.08M | 7.06M |
| Pretax Margin % | 11.8% | 6.88% | -22.73% | -37.89% | -46.86% | -104.33% | -108.63% | -59.98% | -5.62% | -12.35% | -22.02% | -5.96% | -2.07% | 0.25% | 6.69% | 7.79% | 9.51% | 7.56% |
| Income Tax | -200K | -100K | 300K | 200K | -200K | -300K | 0 | -200K | -424K | -2.18M | 844K | 995K | -1.24M | -349K | 991K | 2.66M | 4.03M | 2.59M |
| Effective Tax Rate % | -0.46% | -0.44% | -0.43% | -0.18% | 0.14% | 0.14% | 0% | 0.13% | 7.33% | 23.39% | -3.87% | -18.32% | 61.8% | -153.74% | 15.6% | 36.7% | 40.01% | 36.71% |
| Net Income | 43.3M | 22.6M | -69.9M | -113.2M | -138.7M | -211.8M | -171.1M | -153.9M | -1.99M | -4.25M | -22.62M | -6.43M | -767K | 576K | 5.36M | 4.59M | 6.05M | 4.47M |
| Net Margin % | 11.8% | 6.85% | -22.83% | -37.96% | -46.79% | -104.18% | -108.63% | -59.91% | -1.93% | -5.63% | -22.8% | -7.06% | -0.79% | 0.63% | 5.65% | 4.93% | 5.71% | 4.78% |
| Net Income Growth % | 151.06% | 132.33% | 38.25% | 18.39% | 34.51% | -23.79% | -11.18% | -7641.45% | 53.27% | 81.19% | -251.96% | -737.81% | -233.16% | -89.26% | 16.74% | -24.04% | 35.42% | - |
| Net Income (Continuing) | 43.5M | 22.8M | -69.9M | -113.2M | -138.7M | -211.8M | -171.1M | -153.9M | -1.99M | -4.25M | -22.62M | -6.43M | -767K | 576K | 5.36M | 4.59M | 6.05M | 4.47M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.29 | 1.88 | -18.51 | -33.12 | -43.17 | -67.20 | -52.31 | -47.05 | -2.94 | -6.99 | -38.55 | -11.48 | -0.07 | 0.05 | 0.49 | 0.41 | 0.54 | 0.40 |
| EPS Growth % | 158.55% | 110.16% | 44.11% | 23.28% | 35.76% | -28.46% | -11.18% | -1500.34% | 57.94% | 81.87% | -235.8% | -16300% | -233.84% | -89.33% | 19.51% | -24.07% | 35% | - |
| EPS (Basic) | - | 1.89 | -18.51 | -33.12 | -43.17 | -67.20 | -52.31 | -47.05 | -2.94 | -6.99 | -38.55 | -11.48 | -0.07 | 0.05 | 0.51 | 0.43 | 0.57 | 0.42 |
| Diluted Shares Outstanding | 33.58M | 12M | 3.78M | 3.42M | 3.21M | 3.15M | 3.27M | 3.27M | 675.4K | 608.85K | 586.65K | 559.85K | 10.96M | 11.01M | 11.05M | 11.23M | 11.17M | 11.05M |
| Basic Shares Outstanding | 33.58M | 11.96M | 3.78M | 3.42M | 3.21M | 3.15M | 3.27M | 3.27M | 675.4K | 608.85K | 586.65K | 559.85K | 10.96M | 10.53M | 10.56M | 10.73M | 10.63M | 10.57M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying RENT stock.
For fiscal year 2025, Rent the Runway, Inc. (RENT) reported total revenue of $329.8M. This represents a 253.1% increase compared to $93.4M in 2005.
Rent the Runway, Inc. (RENT) is profitable, generating $22.6M in net income for the fiscal year ending 2025 with a net profit margin of 6.9%.
Rent the Runway, Inc. (RENT) reported an operating income of $-57.5M, resulting in an operating profit margin of -17.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Rent the Runway, Inc. (RENT) generated $196.0M in gross profit for the year, representing a gross profit margin of 59.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent Operating Losses
Metrics are mathematically derived from official filings.
Revenue Growth Lacks Consistent Momentum
According to recent financial disclosures, RENT's revenue growth has exhibited significant volatility, fluctuating from a 7.2% contraction in 2025Q1 to a 29.2% expansion by 2026Q1, suggesting that the company's top-line trajectory remains highly sensitive to seasonal demand and shifting consumer engagement patterns within urban markets.
The erratic nature of revenue growth indicates that the subscription model has yet to achieve the predictable, compounding scale required to offset high fixed costs. Investors should monitor whether the recent acceleration in 2026Q1 represents a sustainable shift in subscriber acquisition or merely a temporary recovery from previous seasonal troughs.
Structural Margin Compression Remains Prevalent
As reported in quarterly filings, RENT's gross margin has struggled to maintain stability, recently compressing to 13.0% in 2026Q1, which highlights the inherent difficulty in managing the high variable costs associated with garment maintenance and reverse logistics in a capital-intensive apparel rental business model.
The persistent inability to sustain gross margins above 20% suggests that the company's unit economics are under constant pressure from fulfillment and depreciation expenses. This margin profile appears to limit the company's ability to achieve operating leverage, as the cost of servicing each rental unit remains disproportionately high relative to revenue.
Operating Leverage Remains Elusive
Based on the provided income statement data, RENT continues to report significant operating losses, with the 2026Q1 operating margin reaching -21.9%, indicating that the company has not yet successfully scaled its revenue base to cover the substantial overhead and fulfillment costs inherent in its current operational structure.
The lack of positive operating income across nearly all reported periods suggests that the business model is currently unable to generate sufficient scale to achieve profitability. The persistent gap between gross profit and operating expenses warrants further investigation into whether the company's current cost structure is fundamentally misaligned with its revenue generation capacity.
Earnings Quality Obscured by Anomalies
As noted in the financial statements, the reported net income of $76.5M in 2025Q3 stands in stark contrast to the company's consistent history of operating losses, suggesting that non-operating items or one-time accounting adjustments are significantly distorting the perceived profitability of the underlying business operations.
Investors should exercise extreme caution when interpreting net income figures, as the 2025Q3 outlier appears disconnected from the company's operational reality. The reliance on such adjustments to achieve positive net income may mask the ongoing cash burn and the structural challenges facing the core rental business.
Sustainability of Business Model Challenged
Analysis of the income statement reveals that RENT's reliance on high-frequency logistics and inventory depreciation creates a challenging path to profitability, as evidenced by the fact that operating losses have persisted despite various attempts to optimize the cost structure and pivot toward consignment-based inventory procurement strategies.
Short-term improvements in revenue growth may be insufficient to offset the long-term risks associated with the company's capital-intensive fulfillment model. The persistent negative operating margins suggest that the company may continue to face liquidity pressures, necessitating ongoing scrutiny of its ability to fund operations without further dilutive capital raises.