Revolve(US:RVLV)2025-11-04 21:15Financial 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].