Rent the Runway Inc Class A

Rent the Runway reported Q1 2026 revenue of $89.9 million, up 29.2% year over year, beating expectations. Subscription and single-rental revenue rose 25.3%; ancillary revenue grew 70%. Gross margins fell due to higher revenue share costs, adjusted EBITDA improved slightly, while free cash flow remained negative. The stock rose 9.68% in premarket trading; management highlights AI-driven personalization and efficiency measures to improve free cash flow. » More on de.investing.com

Co‑founder and CEO Jennifer Hyman said she will step down as CEO, president and board member effective May 15, 2026, and will remain as an adviser until January 2027. The announcement triggered a roughly 10.8% drop to $3.96; the stock fell intraday to $3.70 and hit a 52‑week low. While an experienced interim CEO is expected to provide stability, the search for a permanent successor and changes to governance and voting rights are creating uncertainty for investors. » More on de.investing.com

Rent the Runway saw fourth‑quarter revenue rise 20% to $91.7 million, driven by higher subscription revenue and one‑time rentals as well as price increases. Gross margin improved by 90 basis points to 38.6%, adjusted EBITDA was $18.3 million (20% of revenue), and net debt was reduced from $319 million to $120 million. The stock jumped 16.58% in premarket trading; management guided revenue of $294.6 million for 2026 ($302.6 million for 2027) and said it will increase investments in AI‑driven customer experiences and inventory optimization. Risks remain macroeconomic uncertainty, operational challenges in the warehouse transition, and competitive pressure in the rental fashion market. » More on de.investing.com