Stock of the Day

Today's Trend

Rent the Runway, Inc. (NASDAQ: RENT) shares moved lower as investors weighed strong second-quarter operating results against weaker near-term guidance, declining active subscribers and the company’s ongoing liquidity needs.

• Revenue increased 20.8% year over year to a record $97.7 million, while gross margin expanded 609 basis points to 36.1%. Adjusted EBITDA rose to $12.6 million from $3.6 million, and the net loss narrowed to $12.9 million from $26.4 million. Rent the Runway Second Quarter 2026 Results
• Management reaffirmed its fiscal 2026 outlook for double-digit revenue growth and a 4%-7% adjusted EBITDA margin. Add-on bookings increased 81% year over year, while the company said its AI-powered outfit-generation tools were fully rolled out. Rent the Runway Q2 Results and Leadership Changes
• Paige Thomas, a former Nordstrom and Saks OFF 5TH executive, was named CEO and president. Her retail experience could support the company’s sharper focus on its core rental and resale businesses. Rent the Runway Names Paige Thomas CEO
• Teri Bariquit will become board chair after serving as interim CEO, creating a leadership transition that management expects to complete on September 14.
• Third-quarter revenue is projected at only $87 million-$90 million, with an adjusted EBITDA margin of negative 3% to negative 6%, signaling a meaningful near-term slowdown after the second-quarter revenue record. Rent the Runway Q3 Outlook and Rights Offering
• Ending active subscribers fell 3.8% year over year to 140,826, and cash declined to $29.0 million while the company continued to post negative operating cash flow. A reported $15 million rights offering highlights funding and dilution concerns. Rent the Runway Shares and Cash Needs