Rent the Runway(US:RENT) Globenewswire·2025-09-11 20:01Core Insights - Rent the Runway has announced a transformative recapitalization plan aimed at strengthening its balance sheet and injecting capital into the business [2][3] - The company reported a 13.4% year-over-year increase in active subscribers as of July 31, 2025, indicating continued growth [1][11] - Customer satisfaction, measured by the Net Promoter Score, has improved significantly, achieving a score of +77% year-over-year [1][5] Financial Performance - Revenue for Q2 2025 was $80.9 million, reflecting a 2.5% increase from $78.9 million in Q2 2024 [11] - The company reported a net loss of $(26.4) million for Q2 2025, compared to a net loss of $(15.6) million in Q2 2024 [11] - Adjusted EBITDA for Q2 2025 was $3.6 million, down from $13.7 million in Q2 2024, with an Adjusted EBITDA margin of 4.4% compared to 17.4% in the prior year [11][35] Recapitalization Plan - The recapitalization plan will reduce the company's debt from $340 million to $120 million and extend the maturity to 2029, providing financial flexibility [3][5] - The transaction involves converting over $100 million of debt into common equity and adding $20 million in incremental cash [5] Inventory and Customer Engagement - The company has significantly increased its inventory, posting nearly double the inventory units compared to the previous year, with substantial increases in styles [5] - Customer engagement metrics have improved, with share of views up 84% year-over-year and new units at home up 57% year-over-year [5] Market Position and Strategy - Rent the Runway is positioned to capitalize on growing interest in clothing rental, supported by a bold inventory strategy [2] - The company plans to add over 80 new brands in FY 2025, with 56 already launched in the first half of the year [5]