Rent the Runway(RENT) GlobeNewswire News Room·2025-06-05 20:01Core Insights - Rent the Runway reported the strongest quarterly customer retention in four years and a return to subscriber growth with over 147,000 active subscribers, the highest count in the company's history [2][3][4] Business Strategy and Performance - The company is undergoing a multi-year corporate strategy transformation, focusing on aggressive inventory acquisition, enhancing product experience, and rebuilding customer relationships, which has led to improved subscriber growth and retention [3][4] - A significant investment in inventory has resulted in a 24% increase in new inventory receipts in Q1 2025 compared to Q1 2024, with expectations for a 134% year-over-year increase for the remainder of the year [5][10] - The launch of 36 new brands and over 1,000 new styles in Q1 2025 has contributed to increased customer engagement, with metrics showing a 23% higher share of views and 46% more hearts compared to the previous year [5][10] Financial Highlights - Revenue for Q1 2025 was 75.0 million in Q1 2024 [10] - The company reported a net loss of 22.0 million in the same quarter of the previous year, with a net loss as a percentage of revenue at 37.5% [10][27] - Adjusted EBITDA for Q1 2025 was 6.5 million in Q1 2024, indicating a significant decline in operational performance [10][27] Subscriber Metrics - Ending active subscribers increased by 1% to 147,157 from 145,837 at the end of Q1 2024, while average active subscribers decreased by 2% [10] - The total number of subscribers decreased by 2% to 182,209 from 185,346 in the same period last year [10] Future Outlook - The company expects double-digit growth in ending active subscribers for fiscal year 2025, indicating confidence in the effectiveness of its new strategies [6][7] - Revenue guidance for the second quarter of 2025 is projected between 80 million, with an adjusted EBITDA margin expected to range from -2% to +2% [10][7]