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Core Insights - Revolve Group (RVLV) reported revenue of $295.63 million for Q3 2025, a year-over-year increase of 4.4%, with an EPS of $0.24 compared to $0.15 a year ago, indicating strong earnings performance despite a slight revenue miss against estimates [1] Financial Performance - Revenue of $295.63 million compared to Zacks Consensus Estimate of $298.79 million, resulting in a surprise of -1.06% [1] - EPS of $0.24 exceeded the consensus estimate of $0.11, delivering a surprise of +118.18% [1] - Total orders placed were 2.3 million, matching the average estimate [4] - Average order value was $306.00, slightly above the average estimate of $303.45 [4] - Active customers totaled 2.75 million, slightly below the average estimate of 2.77 million [4] Geographic Sales Performance - Geographic Net Sales in the Rest of the World reached $64.21 million, compared to an average estimate of $66.74 million, representing a year-over-year change of +6.1% [4] - Geographic Net Sales in the United States were $231.42 million, slightly below the average estimate of $232.06 million, with a year-over-year change of +3.9% [4] Segment Performance - Net Sales for FWRD were $40.99 million, below the average estimate of $42.66 million, with a year-over-year change of +3.2% [4] - Net Sales for REVOLVE were $254.65 million, compared to the average estimate of $257.52 million, reflecting a year-over-year change of +4.6% [4] - Gross profit for FWRD was $18.41 million, exceeding the average estimate of $15.9 million [4] - Gross profit for REVOLVE was $143.11 million, surpassing the average estimate of $138.65 million [4] Stock Performance - Shares of Revolve Group have returned -4.5% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - The company reported a 4% year-over-year increase in net sales, reaching $296 million, with Adjusted EBITDA rising 45% to $25 million, marking the highest ever for a third quarter [6][30] - Consolidated gross margin improved to 54.6%, an increase of 347 basis points year-over-year, significantly exceeding guidance [9][31] - Free cash flow more than tripled year-over-year, increasing by $43 million, or 265%, for the nine months ended September 30 [10][34] Business Line Data and Key Metrics Changes - Revolve segment net sales increased by 5%, while Forward segment net sales grew by 3% year-over-year [8][30] - Sales of beauty, men's, and home products saw a healthy double-digit percentage increase year-over-year [12] - The owned brand penetration of Revolve segment net sales increased year-over-year for the third consecutive quarter, contributing to higher gross margins [23][70] Market Data and Key Metrics Changes - Domestic net sales increased by 4%, while international net sales rose by 6% year-over-year [30] - The Middle East and Europe showed strong performance, with Mainland China net sales increasing over 50% year-over-year [12] - Active customers increased by 5% year-over-year, with total orders placed reaching 2.3 million, also a 5% increase [30] Company Strategy and Development Direction - The company is focusing on brand investments, expanding owned brands, and physical retail development as key growth drivers [18][26] - The competitive environment in luxury retail is viewed as an opportunity, with the company planning to capture market share amid challenges faced by competitors [20][21] - The company is leveraging AI technology to enhance operational efficiency and drive growth across various functions [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, supported by a strong financial foundation and operational excellence [16][40] - The outlook for gross margin in Q4 2025 is expected to be between 53.1% and 53.6%, indicating a year-over-year increase [37] - Management remains optimistic about the potential for international growth and the impact of new owned brand launches [12][70] Other Important Information - The company has no debt and reported cash and cash equivalents of $315 million, a 25% year-over-year increase [34] - The tariff landscape remains fluid, but the company has made significant progress in mitigating tariff exposure [35][80] Q&A Session Summary Question: Can you size the benefit from the improved markdown algorithm? - Management noted that the markdown margin optimization was the largest driver of gross margin improvement, with positive impacts from promotional strategy shifts and an increase in full-price sales [42][43] Question: What are the trends in October compared to Q3? - October showed mid-single-digit growth, which is encouraging given tougher comparisons, and management is optimistic about the holiday season [46][47] Question: What is the outlook for average order value (AOV)? - AOV is expected to continue increasing slightly due to price increases, with a mix shift impacting overall results [50][51] Question: How is the company addressing higher return rates? - Higher return rates were attributed to mix shifts and higher average unit retail prices, with ongoing efforts to improve return rates in the future [73][74] Question: What is the contribution margin from international sales compared to the U.S.? - The contribution margin gap is closing, with ongoing optimization efforts in last-mile shipping and localized customer experiences [67] Question: What is the expected impact of tariffs going forward? - Management does not anticipate incremental headwinds from tariffs, with potential net benefits from mitigation efforts [79][80]

Financial Performance - Gross margin for Q3 2025 was 54.6%, up from 51.2% in Q3 2024, while the nine-month gross margin increased to 53.6% from 52.5%[96] - Adjusted EBITDA for Q3 2025 reached $25,347,000, compared to $17,503,000 in Q3 2024, with a nine-month total of $67,533,000 versus $51,244,000[96] - Free cash flow for the nine months ended September 30, 2025, was $59,038,000, significantly higher than $16,174,000 for the same period in 2024, indicating a strong improvement in liquidity[111] - Net income for the three months ended September 30, 2025, was $21.2 million, compared to $10.8 million for the same period in 2024[146] - For the nine months ended September 30, 2025, net sales rose by $65.1 million, or 7.8%, to $901.3 million compared to $836.2 million in 2024[156] Customer Metrics - Active customers increased to 2,747,000 in Q3 2025, up from 2,628,000 in Q3 2024, with total orders placed rising to 2,300,000 from 2,200,000[96] - Active customers increased during the period ended September 30, 2025, compared to the same period in 2024, driven by enhanced engagement and new customer acquisition[113] - Total orders placed increased in the three and nine months ended September 30, 2025, compared to the same periods in 2024, reflecting successful sales and marketing efforts[115] Sales and Marketing - REVOLVE segment net sales increased by 4.6% to $254.6 million for the three months ended September 30, 2025, and by 8.2% to $777.5 million for the nine months ended September 30, 2025[131] - FWRD segment net sales increased by 3.2% to $41.0 million for the three months ended September 30, 2025, and by 5.3% to $123.8 million for the nine months ended September 30, 2025[132] - Net sales to customers in the United States increased by 3.9% to $231.4 million for the three months ended September 30, 2025, and by 6.8% to $712.3 million for the nine months ended September 30, 2025[133] - Net sales to customers outside of the United States increased by 6.1% to $64.2 million for the three months ended September 30, 2025, and by 11.6% to $189.0 million for the nine months ended September 30, 2025[134] - Total net sales for the three months ended September 30, 2025, were $295.6 million, compared to $283.1 million for the same period in 2024[146] Cost and Expenses - Operating expenses for the three months ended September 30, 2025, totaled $140.5 million, an increase from $130.6 million in the same period in 2024[146] - Marketing expenses increased to $40.4 million for the three months ended September 30, 2025, from $39.5 million in the same period in 2024[146] - General and administrative expenses for the three months ended September 30, 2025, rose by $4.6 million, or 13.7%, to $38.6 million, increasing as a percentage of net sales from 12.0% to 13.0%[154] Economic and Market Conditions - The company faced a total tariff rate of 37.5% on goods imported from China, which may adversely impact gross margins and customer demand if sustained[118] - The overall economic environment, including tariffs and inflation, significantly affects consumer behavior and spending patterns, which may impact future sales[117] - The company is monitoring inflation impacts and may adjust pricing strategies to mitigate effects, which could influence demand for products[181] Strategic Initiatives - The company has successfully expanded internationally with limited investment, offering products on platforms like Tmall Global and Nykaa Fashion[94] - The logistics infrastructure supports free shipping and returns in the U.S., optimized by proprietary algorithms to reduce costs and improve efficiency[93] - The company plans to continue investing in international markets while maintaining a focus on the core U.S. market[94] - The company emphasizes the importance of customer acquisition and retention, with a focus on cost-effective marketing strategies to drive growth[121] - The company is implementing strategies to mitigate the impact of heightened tariffs, including diversifying manufacturing sources and optimizing supply chains[120] Cash Flow and Financing - Cash and cash equivalents increased to $315.427 million as of September 30, 2025, from $256.600 million as of December 31, 2024, reflecting a growth of 23%[166] - Net cash provided by operating activities surged to $69.583 million for the nine months ended September 30, 2025, compared to $22.774 million in 2024, marking an increase of 206%[173] - The company has a line of credit providing up to $75 million in revolver borrowings, with no borrowings outstanding as of September 30, 2025[169] - A stock repurchase program of up to $100 million was authorized in August 2023, with repurchases based on market conditions[172] Taxation - The effective tax rate for the three months ended September 30, 2025, decreased to 25.2% from 25.6% in the same period in 2024[155] - The effective tax rate rose to 27.8% for the nine months ended September 30, 2025, up from 25.7% in 2024, primarily due to an increase in valuation allowance against deferred income tax assets[165]

Q3 2025 Financial Highlights November 4, 2025 PAGE 2 Note on Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of U.S. federal securities laws. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would," or similar expres ...

Financial Performance - Net sales for Q3 2025 were $295.6 million, representing a 4% year-over-year increase from $283.1 million in Q3 2024[2]. - Gross profit increased by 11% year-over-year to $161.5 million, with a gross margin of 54.6%, up 347 basis points from 51.2%[2][7]. - Net income for Q3 2025 was $21.2 million, a significant increase of 97% compared to $10.8 million in Q3 2024[2][7]. - Adjusted EBITDA reached $25.3 million, reflecting a 45% year-over-year increase, driven by higher net sales and gross profit[2][7]. - Free cash flow for Q3 2025 was $6.6 million, a 7% increase year-over-year, with a nine-month total of $59.0 million, up 265%[13]. - Operating expenses for the three months ended September 30, 2025, totaled $140,525,000, up from $130,614,000 in the same period of 2024, indicating a rise of 7.4%[33]. - Net income attributable to Revolve Group, Inc. stockholders for the nine months ended September 30, 2025, was $43,159,000, compared to $37,221,000 for the same period in 2024, an increase of 15.5%[33]. Customer Metrics - Active customers grew to 2.75 million, a 5% increase from 2.63 million in the previous year[3][7]. - The number of active customers is a key growth indicator, with the company emphasizing its importance in measuring consumer awareness and brand value[26]. - Active customers increased to 2,747 in Q3 2025, up from 2,628 in Q3 2024, indicating a growth of 4.5%[41]. Sales and Orders - Total net sales for Q3 2025 reached $295.6 million, a 4.4% increase from $283.1 million in Q3 2024[39]. - Total orders placed in Q3 2025 were 2,300, an increase from 2,200 in Q3 2024[41]. - Net sales in the United States for Q3 2025 were $231.4 million, up from $222.7 million in Q3 2024, representing a growth of 3.4%[39]. - Total net sales for the nine months ended September 30, 2025, were $901.3 million, a 7.8% increase from $836.2 million in the same period of 2024[39]. Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were $315.4 million, a 25% increase from $252.8 million a year earlier[13]. - Cash and cash equivalents increased to $315,427,000 as of September 30, 2025, up from $256,600,000 at the end of 2024, marking a significant liquidity improvement[35]. - The company reported net cash provided by operating activities of $69,583,000 for the nine months ended September 30, 2025, compared to $22,774,000 for the same period in 2024, showcasing improved operational efficiency[37]. Future Outlook and Investments - The company plans to invest in international expansion, new owned brands, and AI technology to enhance market share and growth[4]. - The updated FY 2025 outlook projects a gross margin of 53.5%, an increase from the previous estimate of 52.1% to 52.6%[15].

Core Viewpoint - Revolve Renewable Power Corp. has increased the size of its brokered private placement due to strong investor demand, aiming to raise up to $3,039,973 through the issuance of up to 15,999,857 units at a price of $0.19 per unit [1] Offering Details - The offering consists of units, each comprising one common share and one common share purchase warrant, with warrants exercisable at $0.40 for 24 months [1] - The offering is expected to close on or about November 6, 2025, subject to regulatory approvals [4] Use of Proceeds - Net proceeds from the offering are intended for advancing late-stage projects in the company's portfolio and for working capital purposes [3] Company Overview - Revolve was established in 2012 to meet the growing demand for renewable energy, focusing on utility-scale wind, solar, hydro, and battery storage projects across North America [6] - The company has developed and sold over 1,550 MW of renewable energy projects and is targeting 5,000 MW of utility-scale projects under development [7] Regulatory Compliance - The units will be offered under applicable exemptions from prospectus requirements in Canada and the United States [2]

Group 1: Optimist Fund Performance - Optimist Fund achieved a return of +9.1% in Q3 2025, outperforming the benchmark return of 7.9% [1] - The fund is focusing on cyclical holdings that have been in multi-year downswings while also paying attention to developments in AI [1] Group 2: Revolve Group, Inc. Overview - Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer targeting millennial and Generation Z consumers [2] - The stock had a one-month return of 2.32% but experienced an 8.29% decline over the last 52 weeks, closing at $22.89 per share with a market capitalization of $1.632 billion on October 30, 2025 [2] Group 3: Optimist Fund's Position on Revolve Group - Optimist Fund exited its position in Revolve Group, citing tempered confidence in the company's ability to achieve 20% revenue growth [3] - The fund lowered its base-case estimates for Revolve, reducing the expected five-year annualized investment return to approximately 15%, which is below the 20% internal rate of return hurdle rate [3] Group 4: Market Sentiment and Sales Performance - Revolve Group generated net sales of $309 million in Q2 2025, reflecting a year-over-year increase of 9% [4] - Despite recognizing the potential of Revolve Group, the sentiment is that certain AI stocks present greater upside potential and lower downside risk [4]

Core Viewpoint - Revolve Renewable Power Corp. has announced a brokered private placement to raise up to $2,000,130 through the issuance of up to 10,527,000 units at a price of $0.19 per unit, with each unit consisting of one common share and one warrant [1][4]. Group 1: Offering Details - The offering includes an option for the agent to sell an additional 1,579,000 units for proceeds of $300,010 [2]. - The units will be offered under exemptions from prospectus requirements in Canada and the U.S. [3]. - The net proceeds will be used for advancing late-stage projects and for working capital [4]. Group 2: Company Overview - Revolve was established in 2012 to meet the growing demand for renewable energy, focusing on utility-scale wind, solar, hydro, and battery storage projects across North America [6]. - The company has developed and sold over 1,550 MW of renewable energy projects to date [6]. - Revolve currently operates 12 MW of assets under long-term power purchase agreements and has a development portfolio exceeding 3,000 MW [7]. Group 3: Future Goals - The company aims to develop 5,000 MW of utility-scale projects in the U.S., Canada, and Mexico while expanding its revenue-generating distributed generation assets [8].