Rent the Runway(RENT)2025-06-05 20:25Revenue and Profitability - Revenue for Q1 2025 was $69.6 million, a decrease of 7.2% year-over-year from $75.0 million in Q1 2024[8] - Gross Profit was $21.9 million, down 22.9% from $28.4 million in Q1 2024, with a Gross Margin of 31.5% compared to 37.9% in Q1 2024[8] - Net Loss for Q1 2025 was $(26.1) million, compared to $(22.0) million in Q1 2024, representing a net loss as a percentage of revenue of (37.5)%[8] - Adjusted EBITDA was $(1.3) million, down from $6.5 million in Q1 2024, with an Adjusted EBITDA Margin of (1.9)%[8] - Total revenue for the three months ended April 30, 2025, was $69.6 million, a decrease of 7.2% from $75.0 million in the same period of 2024[29] - Net loss for the three months ended April 30, 2025, was $26.1 million, compared to a net loss of $22.0 million in the same period of 2024, representing a 18.6% increase in losses[29] - Adjusted EBITDA for the three months ended April 30, 2025, was $(1.3) million, a significant decline from $6.5 million in the same period of 2024[35] - Adjusted EBITDA margin for the three months ended April 30, 2025, was (1.9)%, down from 8.7% in the same period of 2024[35] Subscriber Metrics - Active Subscribers at the end of Q1 2025 reached 147,157, an increase of 1% from 145,837 in Q1 2024[8] - Average Active Subscribers decreased by 2% to 133,468 from 135,896 in Q1 2024[8] - The company anticipates double-digit growth in ending Active Subscribers for fiscal year 2025 compared to fiscal year 2024[11] Inventory and Customer Engagement - New inventory strategy led to a 24% increase in new inventory receipts in Q1 2025 versus Q1 2024, with expectations of a 134% year-over-year increase for the remainder of the year[4] - Customer engagement metrics improved, with 23% higher share of views and 46% more hearts for Spring 2025 inventory compared to Spring 2024[7] Cash Flow and Assets - Total current assets decreased to $87.1 million as of April 30, 2025, from $93.9 million as of January 31, 2025[27] - Total liabilities increased to $452.4 million as of April 30, 2025, compared to $422.5 million as of January 31, 2025[27] - Cash and cash equivalents at the end of the period were $70.4 million, down from $77.4 million at the beginning of the period[27] - Free cash flow for the three months ended April 30, 2025, was $8.3 million, compared to $4.6 million in the same period of 2024[31] - Net cash provided by operating activities increased to $8.3 million in Q2 2025 from $4.6 million in Q2 2024[37] Future Outlook - The company expects revenue for Q2 2025 to be between $76 million and $80 million[11] Costs and Expenses - Total costs and expenses for the three months ended April 30, 2025, were $89.3 million, a slight decrease from $91.5 million in the same period of 2024[29] - Free Cash Flow for Q2 2025 was $(6.4) million, compared to $(1.4) million in Q2 2024[37] - Free Cash Flow Margin decreased to (9.2)% in Q2 2025 from (1.9)% in Q2 2024[37] - Purchases of rental products rose to $(19.3) million in Q2 2025 from $(13.1) million in Q2 2024[37] - Proceeds from the sale of rental products decreased to $4.9 million in Q2 2025 from $6.8 million in Q2 2024[37] - Proceeds from the liquidation of rental products were $0.9 million in Q2 2025, down from $1.1 million in Q2 2024[37] - Purchases of fixed and intangible assets increased to $(1.2) million in Q2 2025 from $(0.8) million in Q2 2024[37]