10-Q · May 5, 2026
Revolve Group reported Q1 2026 revenue of $342.9 million, surpassing estimates by 4.5%, with an EPS of $0.20 matching expectations. The revenue reflects a year-over-year increase of 15.6%, highlighting strong segment…
Earnings analysis · 10-Q
RVLV earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Revolve delivered a strong Q2, with revenue up 12.4% to $347.405 million, gross margin up 250 basis points to 56.6%, and diluted EPS of $0.26. Both segments grew at double-digit rates, aided by higher orders and lower…
Read full summary
Revolve delivered a strong Q2, with revenue up 12.4% to $347.405 million, gross margin up 250 basis points to 56.6%, and diluted EPS of $0.26. Both segments grew at double-digit rates, aided by higher orders and lower returns, but the margin result included a $5.6 million tariff-refund benefit. The key offset is weaker quarterly cash conversion and deliberate operating-expense investment, while future margins remain exposed to potentially renewed or higher tariffs.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.26
What stood out
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Double-digit sales growth continued
Q2 net sales rose 12.4% year over year to $347.405 million, or $38.434 million of growth, driven by an 11.4% increase in orders shipped and a lower proportion of returned purchases. Revenue also increased 1.3% sequentially from $343 million in Q1 2026.
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Gross margin expanded sharply
Gross margin expanded 250 basis points year over year to 56.6% from 54.1% and 390 basis points sequentially from 52.7%. The expansion included a $5.6 million reduction in cost of sales from IEEPA tariff refunds, plus shallower markdowns and a lower third-party-brand mix.
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Profitability and EPS improved
Operating income increased to $22.100 million from $18.003 million, lifting operating margin to 6.4% from 5.8% year over year and from 4.6% in Q1 2026. Diluted EPS was $0.26, up from $0.14 a year earlier and $0.20 sequentially.
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Growth was broad-based across segments
Both reporting segments grew: REVOLVE sales rose 12.7% to $302.5 million and FWRD sales increased 10.7% to $44.9 million. International sales grew 16.3% to $78.4 million, faster than U.S. sales growth of 11.4% to $269.1 million.
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Customer base and orders expanded
Active customers increased to 3.041 million from 2.743 million, while total orders placed increased to 2.701 million from 2.424 million. Management attributed the increases to greater existing-customer engagement and sales-and-marketing-led new-customer acquisition.
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Cash-rich balance sheet and unused revolver
Liquidity remained substantial: cash and cash equivalents rose $19.315 million from year-end to $311.571 million, working capital rose $4.395 million to $420.877 million, and there were no borrowings outstanding on the $75.0 million revolver.
What to watch
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Quarterly cash conversion turned negative
Quarterly free cash flow was negative $10.933 million, versus positive $9.607 million a year earlier, as operating cash flow turned to an $8.213 million outflow from a $12.620 million inflow. Property-and-equipment purchases were $2.841 million, or 0.8% of quarterly sales, and rental-product spending was $0.806 million.
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Growth investments pressured cost leverage
Marketing expense increased 22.0% to $57.491 million, outpacing 12.4% revenue growth, and rose to 16.5% of sales from 15.3%. Selling and distribution expense also rose 50 basis points to 17.9% of sales, reflecting higher shipping rates.
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Receivables and working capital absorbed cash
Accounts receivable nearly doubled to $31.085 million from $16.561 million at year-end, a $14.524 million increase. Management cited unfavorable working-capital changes as the primary reason six-month operating cash flow declined to $41.207 million from $57.765 million.
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Tariff benefit may reverse amid policy uncertainty
The filing newly details volatile tariff exposure: prior China tariff rates briefly reached 145.0% in 2025, while a June 2026 USTR proposal contemplated additional Section 301 tariffs of 10.0% to 12.5%. The current quarter's 56.6% gross margin benefited from $5.6 million of tariff refunds, which may not recur.
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Average-order-value pressure remains
Management expects average order value could decline year over year following the Q2 Grow-Good hair-care launch because the products have a lower average order value. Average order value was already relatively flat year over year, as higher selling prices were offset by fewer units per order and mix effects.
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Investment and repurchases reduced cash flow
Capital deployment increased: six-month investing cash outflow was $21.773 million versus $7.011 million, primarily including a $14.5 million investment in unconsolidated entities. Financing outflow was $10.236 million, including 497,675 shares repurchased during Q2 for approximately $9.9 million at average prices of $20.18 and $19.16.
Management's outlook
The 10-Q provides no explicit quantitative revenue or EPS outlook. Management says it expects its current three fulfillment centers to support near-term growth plans and expects to open a third physical store in Miami in 2026; it also cautions that near-term Adjusted EBITDA may be adversely affected by tariff-driven gross-margin pressure.
Earlier filings 4
10-K · February 25, 2026
REVOLVE reports $1.2 billion in net sales for 2025, serving 2.8 million active customers with a high-touch, influencer-driven premium fashion platform. The company highlights durable full-price selling (81.4% of net…
10-Q · November 5, 2024
REVOLVE reported quarterly net sales of $283,146,000 for the three months ended September 30, 2024, up from $257,603,000 a year earlier, with gross margin of 51.2% and operating income of $14,253,000 (5.0% operating…
10-Q · August 6, 2024
Revolve reported Q2 net sales of $282,456,000 (up $8,727,000 vs. Q2 2023) with gross profit of $152,606,000 (gross margin ~54.0%) and operating income of $16,435,000 (operating margin ~5.8%). Diluted EPS was $0.21 vs.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.