Rent the Runway, Inc. (RENT)

In August 2025, Rent the Runway increased prices. In October 2025, a recapitalization deal reduced debt and shifted controlling interest to investment funds. In December 2025, strong third-quarter earnings were reported, with revenue and subscriber increases, leading to a stock price rally. In January 2026, discussions highlighted a multi-year transformation plan. The company also made its largest inventory investment in history.

The online clothing rental market experiences seasonal income patterns influenced by client choices and preferences. Demand for occasional wear drives the rental market. Subscription models aim to generate consistent revenue, but demand for clothing types can be influenced by seasonal trends and events. Rent the Runway's offerings cater to a broader range of needs, which could help mitigate extreme seasonality.

Rent the Runway is an online fashion rental company offering rental, subscription, and purchase options for designer apparel and accessories. Its core business is subscription plans, providing access to a rotating wardrobe. The company also offers one-time rentals and resells used inventory, with a wide range of products from over 700 designers. Rent the Runway manages a large logistics operation, including a significant dry cleaning facility.

Rent the Runway's services are available across the United States. It operates fulfillment centers in New Jersey and Texas. Physical retail locations were closed in August 2020 to focus on the digital subscription model and expand drop-off locations.

Rent the Runway has focused on strengthening its brand reputation and customer loyalty. In Q1 2025, the company achieved its strongest quarterly customer retention in four years and the highest quarter-ending active subscriber count in its history. Customer engagement has also seen significant improvements, with a 43% year-over-year increase in the subscription Net Promoter Score in Q3 2025 and personalized homepage redesigns leading to a 57% boost in app engagement. The company has also launched new organic media strategies and engaged with its community members to drive brand awareness. Customers generally view Rent the Runway positively for its convenience, sustainability, variety, and access to high-end fashion.

Rent the Runway has a mix of institutional, retail, and individual investors. Major institutional owners include Bain Capital Venture Investors, Technology Crossover Management VIII, Ares Management Llc, CastleKnight Management LP, Vanguard Group Inc, Quinn Opportunity Partners LLC, Park Avenue Securities Llc, and BlackRock, Inc. The recapitalization in late 2025 significantly altered the ownership landscape, with Aranda Principal Strategies (APS), Nexus Capital Management LP, and STORY3 Capital Partners LLC collectively acquiring a controlling interest in the company. Michel Arougheti owns the most shares among individual investors.