Rent the Runway(RENT) - 2025 Q4 - Annual Results

Financial Performance - Revenue for fiscal year 2024 was $306.2 million, a 2.7$298.2 million in fiscal year 2023[15]. - Net loss for fiscal year 2024 was $(69.9) million, compared to$(113.2) million in fiscal year 2023, representing a net loss as a percentage of revenue of (22.8)%, down from (38.0)%[15]. - Adjusted EBITDA for fiscal year 2024 was $46.9 million, compared to$26.9 million in fiscal year 2023, with an adjusted EBITDA margin of 15.3%[15]. - For fiscal year 2025, the company expects revenue between $68 million and$70 million and free cash flow between $(30) million and$(40) million[15]. - The net loss for the year ended January 31, 2025, was $69.9 million, compared to a net loss of$113.2 million for the year ended January 31, 2024, indicating an improvement of 38.2%[34]. - Total revenue for the three months ended January 31, 2025, was $76.4 million, a slight increase from$75.8 million in the same period of 2024, representing a growth of 0.8%[32]. - Subscription and Reserve rental revenue decreased to $64.6 million in Q1 2025 from$65.4 million in Q1 2024, a decline of 1.2%[32]. - Adjusted EBITDA for the three months ended January 31, 2025, was $17.4 million, representing an Adjusted EBITDA margin of 22.8$11.2 million and 14.8% in the prior year[38]. - Free Cash Flow for the three months ended January 31, 2025, was $2.1 million, with a Free Cash Flow Margin of 2.7$(3.4) million and a margin of (4.5)% in the previous quarter[40]. Subscriber Metrics - Active subscribers at the end of fiscal year 2024 were 119,778, a decrease of 5% from 125,954 at the end of fiscal year 2023[11]. - The company aims to return to subscriber growth in fiscal year 2025, focusing on customer loyalty and inventory reinvestment[2][6]. Cash and Liquidity - Cash and cash equivalents at the end of fiscal year 2024 were $77.4 million, with a decline in cash consumption from$(70.5) million in fiscal year 2023 to $(6.6) million[4][15]. - The company reported a cash and cash equivalents balance of$77.4 million as of January 31, 2025, down from $84.0 million as of January 31, 2024, a decrease of 7.9$12.9 million for the year ended January 31, 2025, compared to $(15.7) million in the previous year[40]. - The company reported net cash provided by operating activities of$1.4 million for the three months ended January 31, 2025, compared to $4.7 million for the three months ended October 31, 2024[40]. Inventory and Customer Retention - The company announced the largest inventory acquisition in its history, expecting to approximately double the new inventory in fiscal year 2025[2][7]. - Customer retention improved by 8$333.7 million as of January 31, 2025, from $306.7 million as of January 31, 2024, an increase of 8.8$422.5 million as of January 31, 2025, compared to $400.8 million as of January 31, 2024, reflecting a growth of 5.4$278.5 million as of January 31, 2024, to $240.0 million as of January 31, 2025, a reduction of 13.8$13.4 million, an improvement from a net loss of $24.8 million for the same period in 2024[38]. - The company reported a total of$24.2 million in interest expense for the year ended January 31, 2025, down from $33.7 million in the previous year[38]. - The write-off of liquidated assets was$2.7 million for the three months ended January 31, 2025, compared to $0.8 million in the same period of 2024[38]. - The company incurred restructuring charges related to severance and related costs, amounting to$2.0 million for the three months ended January 31, 2024[38]. - Total depreciation for rental products was $17.0 million for the three months ended January 31, 2025, up from$16.7 million in the same period of 2024[38]. - Proceeds from the sale of rental products amounted to $8.0 million for the three months ended January 31, 2025, compared to$6.5 million in the previous quarter[40].