Rent the Runway, Inc. Q4 FY2025 earnings call

• Inventory strategy: One year ago, Rent the Runway made a big inventory investment. In fiscal 2025, active subscriber base grew 20% to 144,000. 2026 inventory plan has three pillars: opportunistic procurement (accessing high-cost categories and elevated brands), exclusive design momentum (expanding exclusive design partnerships), revenue share growth (increasing Share by RTR program). - Customer experience: Planning to improve customer experience via outfit grouping, robust product detail pages, conversational search. Leveraging AI for back-end operations like quality control, dynamic pricing, team productivity. - Brand and revenue: Reallocating paid marketing budget to organic community-led channels. Pursuing revenue diversification with Rent the Runway Marketplace launch, scaling advertising and media business, B2B dry cleaning services. - Membership and revenue: Aiming to drive higher revenue per customer by expanding membership flexibility, scaling resale and reserve businesses through smarter pricing and discounting

In Q4 2025, ending active subscribers were 143,796, up 20.1% year-over-year. Average active subscribers during the quarter were 146,356, up 16% year-over-year. Total revenue was $91.7 million, up 20% year-over-year. Subscription and reserve rental revenue was up $13.2 million, 20.4% year over year. Other revenue increased $2.1 million, 17.8% year over year. Fulfillment costs were $21.6 million, 23.6% of revenue. Gross margins were 38.6% in Q4 2025 versus 37.7% in Q4 2024. Adjusted EBITDA for Q4 2025 was $18.3 million, 20% of revenue. Free cash flow for Q4 2025 was $0.5 million versus $2.1 million in Q4 2024

• Q1 2026 revenue expected between $85 million and $87 million, +22% to 25% yoy. Q1 2026 adjusted EBITDA margins between -5% and -7% of revenue. - Fiscal year 2026 expects double-digit revenue growth. Adjusted EBITDA 4% - 7% of revenue. Rental product acquired in fiscal 2026 between $45 million and $50 million, down from $74.9 million in 2025

• Macroeconomic and geopolitical uncertainties can impact transportation costs, fuel surcharges, and consumer confidence, which may materially affect actual results