RENT earnings analysis
What we found in RENT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Rent the Runway reported Q4 2026 results with a total revenue of $92 million, reflecting a sequential increase from the previous quarter and showing growth compared to the prior year. The company reported a narrower net loss of $18.9 million, attributed largely to a higher than expected revenue growth of 29.2% year-over-year. Despite ongoing losses and large negative free cash flow, management remains optimistic about subscriber growth and operational adjustments going forward.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Total revenue rose to $92 million, a sequential increase from $81 million in Q3 2026 and up 29.2% from $69.6 million in Q4 2025.
- Improved Gross Margin
- Gross margin improved to 76.4%, up from 72.6% in Q3 2026 and 73.6% in Q4 2025.
- Decreased Net Loss
- Net loss narrowed to $(18.9) million compared to $(26.1) million in Q4 2025, signifying a decrease in loss margin from (37.5)% to (21.0)%.
- Increased Active Subscribers
- Ending active subscribers reached 155,692, an increase from 147,157 in Q4 2025.
- Lower Interest Expenses
- Interest expense decreased significantly to $(0.3) million compared to $(6.3) million in Q4 2025.
- Higher Other Revenue Growth
- Other revenue increased to $12.2 million in Q4 2026, marking a 60.5% increase from $7.6 million in Q4 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Ongoing Cash Consumption
- Net cash used in operating activities was $(3.8) million for Q4 2026, compared to $8.3 million in the same period last year.
- High Free Cash Flow Loss
- Free cash flow was $(34) million for Q4 2026, indicating continuing cash burn despite revenue growth.
- Dependency on Third-Party Providers
- Reliance on a single payment processing provider poses risks if vendors face disruptions or increase fees.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.04
- Gross margin
- 76.4%
- Operating margin
- -1.6%
What they said about what is next.
Management anticipates continued growth in subscribers and revenue, with expectations for improved margins as cost structure optimizations take effect.
The filing reads about the same as the one before it.
What came before.
- 10-K · April 14, 2026
- Rent the Runway positions itself as a subscription-first “Closet in the Cloud” with 143,796 active subscribers as of January 31, 2026 and subscribers driving 90% of total revenue in fiscal year 2025. The company has…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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