Core Insights - Rent the Runway reported a 12.4% year-over-year increase in active subscribers and a 15.4% increase in revenue for Q3 2025, indicating strong business growth [1][12] - The company successfully closed a transformative recapitalization plan, which significantly improved its balance sheet by reducing debt and extending maturity dates [2][5] - A community-driven organic growth strategy has been expanded to enhance brand awareness and customer acquisition [5][12] Financial Performance - Revenue for Q3 2025 was $87.6 million, up from $75.9 million in Q3 2024, marking a 15.4% increase [12] - The number of ending active subscribers reached 148,916, a 12.4% increase from 132,518 in the previous year [12] - Net income for Q3 2025 was $76.5 million, compared to a net loss of $18.9 million in Q3 2024, reflecting a significant turnaround [12][30] Strategic Initiatives - The company made its largest inventory investment in history, nearly doubling the new inventory added to its site, which has driven substantial growth [2][5] - Subscriber retention improved, leading to a nearly 30% reduction in inventory-related churn year-over-year [5] - New community-driven initiatives, such as the RTR Muse and City Ambassador programs, were launched to enhance customer engagement and acquisition [5][12] Operational Metrics - Average active subscribers increased by 12.9% year-over-year, reaching 147,645 [12] - Gross profit for Q3 2025 was $25.9 million, with a gross margin of 29.6%, down from 34.7% in Q3 2024 [12] - Adjusted EBITDA for Q3 2025 was $4.3 million, down from $9.3 million in the same quarter last year, with an adjusted EBITDA margin of 4.9% [12][36] Future Outlook - For the fiscal fourth quarter of 2025, Rent the Runway expects revenue between $85 million and $87 million and an adjusted EBITDA margin between 11% and 13% [13] - The company anticipates continued double-digit growth in ending active subscribers compared to fiscal year 2024 [13]