Rent the Runway, Inc. (RENT): Business Model Canvas [Dec-2025 Updated]

You're looking at Rent the Runway, Inc. right now, trying to map out how they manage the twin pressures of aggressive growth and financial restructuring, especially after reducing debt to about $120 million and sinking $70-75 million into new inventory this fiscal year. Honestly, seeing that investment alongside their 146,400 active subscribers in Q2 2025 and Q2 revenue hitting $80.9 million shows a clear bet on their 'Closet in the Cloud' value proposition. I've mapped out the entire nine-block structure-from their designer brand partnerships to the tech driving personalization-so you can see exactly how the engine is configured to handle this inventory push. Dive into the canvas below for the precise breakdown.

Rent the Runway, Inc. (RENT) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel the inventory engine at Rent the Runway, Inc. (RENT) as of late 2025. These partnerships are critical for maintaining the 'Closet in the Cloud' assortment.

Designer Brands for Inventory Supply

Rent the Runway, Inc. works with hundreds of designer brands to source its product. The 2025 strategy involved a massive investment to increase selection, aiming to double the new inventory coming onto the platform that year. This focus on supply depth is directly tied to subscriber retention.

Here's a look at the scale of the inventory expansion and brand engagement as reported through the second quarter of fiscal year 2025:

Metric	Data Point (Late 2025 Context)	Source/Period
New Inventory Units Deployed (YoY)	Almost twice the inventory units posted as of August 2025 vs. prior year	Q2 2025 Report
New Styles Added (YoY)	323% more styles in May, 235% more in June, and 253% more in July	Q2 2025 Report
New Styles Target (Overall)	75%+ more new styles expected in 2025	2025 Inventory Plan
New Brands Planned for FY 2025	Plan to add 80+ new brands, with 56 already launched in H1	Q2 2025 Report
Favorite Brand Inventory Increase	3-4X more inventory from the 25 favorite brands	2025 Inventory Plan

The company has fostered strong relationships, noting extremely limited voluntary attrition among brand partners over its history.

Financial Partners for Debt Recapitalization

A key financial move in late 2025 involved a recapitalization transaction to strengthen the balance sheet. This deal was led by existing lender Aranda Principal Strategies (APS) in partnership with STORY 3 Capital Partners and Nexus Capital Management.

The financial impact of this partnership structure is concrete:

• Debt reduced from $340 million to $120 million.
• APS converting debt in excess of $100M into common equity.
• APS, STORY3, and Nexus contributing $20M of incremental cash via new debt.
• Debt maturity extended to 2029.

This transaction was expected to be finalized by December 31, 2025.

Logistics Providers and Garment Care Services

Rent the Runway, Inc. relies on external providers for its nationwide reach and garment maintenance. These include major logistics providers like UPS and FedEx for shipping the 'Closet in the Cloud' to customers across the country. Also essential are the specialized dry cleaning and garment care services required to maintain the high-quality inventory.

Brands for Revenue-Share and Exclusive Design Collections

To manage the cost of inventory growth, Rent the Runway, Inc. deepens its ties with brands through non-traditional agreements. This includes brands designing apparel exclusively for the platform or providing inventory at a lower cost in exchange for a share of the rental revenue.

The results of these revenue-share arrangements show significant growth:

• Revenue share units from existing partners were up 40% Year-over-Year (YoY) as of the Q2 2025 report.
• Total revenue share units were up 119% YoY.
• The company launched 7 new exclusive brand collaborations year to date in 2025.

The company also announced plans to launch 15 incredible, fashion-forward, exclusive-to-RTR collections in 2025.

Finance: draft 13-week cash view by Friday.

Rent the Runway, Inc. (RENT) - Canvas Business Model: Key Activities

You're focused on the operational engine that keeps the Closet in the Cloud running. Here's the breakdown of the core activities Rent the Runway, Inc. is executing as of late 2025, grounded in the latest numbers.

Aggressive rental product acquisition, doubling new inventory in 2025

The central activity is aggressively fueling the platform with fresh, desirable product. Rent the Runway, Inc. announced the largest inventory acquisition in company history, with a stated goal to approximately double the new inventory coming onto the platform in fiscal year 2025. This is being executed through capital-light avenues like revenue share agreements.

The initial execution in the first quarter of fiscal year 2025 showed strong momentum:

Inventory Metric	Q1 2025 Result vs. Q1 2024	FY 2025 Full Year Expectation
New Inventory Receipts Increase	+24%	+134% YoY for remainder of year
New Brands Launched (YTD Q1)	36	Over 40 new brands planned
New Styles Launched (YTD Q1)	Over 1,000	Over 2,700 new styles planned
Revenue Share Units YoY (Q2)	Up 40% from existing partners	Total Revenue Share Units up 119% YoY

This inventory push is directly tied to engagement; Spring 2025 inventory saw a 23% higher share of views and 46% more hearts than the Spring 2024 buy.

Operating proprietary logistics and garment cleaning infrastructure

The physical backbone involves managing a complex, vertically integrated reverse logistics system. As of 2021, this infrastructure included two fulfillment centers totaling 540,000 square feet and the capacity to store more than two million garments and accessories. The cleaning process utilizes a curated set of over 430 pieces of digitally integrated garment care hardware.

The cost efficiency of this operation is a key focus, as reflected in the margin performance. The Gross Margin for the second quarter of fiscal year 2025 was reported at 30.0%, compared to 41.1% in the second quarter of fiscal year 2024.

Developing AI for personalized fit recommendations and review summaries

Rent the Runway, Inc. is actively integrating Artificial Intelligence to refine the customer experience and reduce friction points like poor fit. The company began deploying AI in the second quarter of 2025 specifically to summarize customer reviews and improve fit recommendations.

Key AI-driven activity points include:

• Launching features in August 2025 to personalize browsing with relevant recommendations based on preferences.
• Planning to use AI to surface insights from member reviews to aid style and fit selection.
• The broader AI in fashion market is projected to reach $1.77 billion in 2025, showing the scale of this technological shift.

The goal is a continuously smarter product experience. That's the long game here.

Managing subscription and à la carte rental platform

The platform management centers on driving and retaining the subscriber base while monetizing add-ons. As of the second quarter of fiscal year 2025, Rent the Runway, Inc. reported 146,400 Active Subscribers, marking a 13.4% increase year-over-year. Total Subscribers ended Q2 2025 at 185,102, up 5.7% from the prior year.

Revenue for Q2 2025 reached $80.9 million, a 2.5% increase year-over-year. The subscription base drives the majority of revenue; in Q3 2024, 87% of revenue came from subscribers. The à la carte/add-on revenue stream is also growing, with April add-on gross bookings in Q1 2025 being +11% versus the prior year. Customer satisfaction is also improving, with the Net Promoter Score up 77% from last year as of Q2 2025.

Organic social media and influencer marketing to drive engagement

Driving discovery and engagement through owned channels is a major focus, shifting toward organic content. Following a new strategy launch in April/May 2025, the engagement rate on social channels was reported as up 163% compared to the two months prior.

The second quarter of 2025 saw particularly strong results from this organic push:

• Overall engagement with social media channels was up ~800% YoY.
• Social media views were up 175% YoY in Q2 2025.
• The company launched 11 new social series and a new 'face of RTR'.

This organic effort supports the inventory strategy, as seen by the 46% increase in "hearts" on new Spring 2025 inventory. Finance: draft 13-week cash view by Friday.

Rent the Runway, Inc. (RENT) - Canvas Business Model: Key Resources

You're looking at the hard assets and intangible advantages that power Rent the Runway, Inc. as of late 2025. These are the things they own or control that let them deliver their value proposition.

Extensive designer apparel and accessory inventory is the core physical asset. The company has been aggressively investing here, aiming to keep the offering fresh and deep. As of Q2 2025, Rent the Runway, Inc. reported posting almost twice the inventory units compared to the prior year. This acceleration in asset acquisition is visible in the style count growth: May saw 323% more styles posted year-over-year, June saw 235% more, and July saw 253% more styles added to the platform. This inventory forms the basis for their subscription and rental offerings.

The proprietary fulfillment and dry-cleaning technology/infrastructure is critical for managing that massive, circulating inventory. While specific technology metrics aren't always public, the operational scale suggests significant proprietary systems are in place to handle the logistics of millions of items moving in and out of customer hands. This infrastructure supports the customer base, which ended Q2 2025 at 146,373 active subscribers, up 13.4% year-over-year from the prior year's Q2 figure.

Customer data and AI-driven personalization engine translate that inventory into revenue. The engagement with the newer inventory in Q2 2025 showed strong results, indicating the personalization engine is working to match items to the right customer. For example, engagement metrics included share of views up 84% year-over-year, hearts per style up 15% YoY, and new units at home up 57% YoY. This data fuels the discovery engine connecting customers and brands.

Rent the Runway, Inc. maintains strong brand relationships with 100s of designers. To manage the cost of this growing inventory, the company has been forming agreements where brands either design apparel exclusively for Rent the Runway, Inc. or provide apparel at no cost or lower cost in exchange for a share of the rental revenue. This strategic approach helps mitigate the capital intensity of inventory growth.

Financially, a key resource gained through recent restructuring is a cleaner balance sheet. Following the recapitalization transactions announced in August 2025, the total outstanding debt balance was reduced to approximately $120 million, with the maturity extended to 2029. This reduction from over $340 million provides significant financial flexibility to execute on growth initiatives. For context, the fiscal year ended January 31, 2025, saw revenue of $264.9 million and a reported loss of $113.2 million.

Here's a quick look at some of the key operational and financial figures underpinning these resources as of the mid-to-late 2025 period:

Metric	Value/Period	Context
Ending Active Subscribers	146,373	Q2 Fiscal Year 2025
Total Outstanding Debt (Post-Recap)	$120 million	As of October 2025 closing
Q2 2025 Revenue	$80.9 million	Up 2.5% Year-over-Year
Projected Q3 2025 Revenue Range	$82 million to $84 million	Expectation
Inventory Styles Posted (May 2025 YoY Increase)	323%	Inventory Acceleration Strategy

The AI engine's effectiveness is tied directly to the volume of interactions, which is supported by the subscriber base. The platform offers a wide assortment across millions of items, including:

• Evening wear and accessories
• Ready-to-wear and workwear
• Denim, casual, and maternity items
• Outerwear, blouses, and knitwear
• Jewelry, handbags, activewear, and ski wear

This breadth of offering, managed by the logistics infrastructure, is a direct result of the brand relationships and inventory investment strategy.

Rent the Runway, Inc. (RENT) - Canvas Business Model: Value Propositions

Access to a rotating, unlimited wardrobe of designer fashion

You're looking at a massive commitment of capital to keep the closet fresh. Rent the Runway, Inc. is making its largest-ever investment in inventory for fiscal year 2025, planning to double the new inventory coming onto the platform. This translates to 75%+ more new styles and increased availability for each style. Furthermore, they are targeting 3-4X more inventory from their top 25 favorite brands. As of H1 2025, 56 new brands have launched, with a goal of 80+ new brands for the full fiscal year 2025. They also launched 7 new exclusive brand collaborations year to date.

Cost-effective alternative to purchasing high-end clothing

The value proposition here is avoiding the sticker shock of ownership. To counter inflationary pressures and tariffs in the fashion industry, Rent the Runway, Inc. raised subscription plan prices on average by ~$2 per item in August 2025. Despite this, the core value remains in access over ownership. For context on the cost structure supporting this, the Gross Margin for Q2 2025 was 30.0%, a decrease from 41.1% in Q2 2024. The company ended Q2 2025 with 146,373 Active Subscribers, up 13.4% year-over-year, showing the price adjustment hasn't stopped subscriber acquisition.

Convenience of a Closet in the Cloud model with cleaning included

The operational scale required to support this convenience is significant. The platform ended Q2 2025 with 185,102 Total Subscribers. Customer satisfaction reflects the service quality; the average Q2 Subscription Net Promoter Score was up 77% year-over-year. This convenience is being reinforced by high engagement with the refreshed selection, evidenced by share of views on new inventory being up 84% year-over-year, and new units at home up 57% year-over-year.

Sustainability through a circular fashion ecosystem

This model inherently offers environmental savings compared to traditional retail. As of January 31, 2025, Rent the Runway, Inc. has displaced the production of more than 1.7 million estimated new garments since 2010. Life Cycle Assessment data shows that renting leads to 24% less water, 6% less energy, and 3% less emissions on average, per garment, versus purchasing new. Furthermore, 100% of estimated carbon emissions from shipments to and from customers have been offset since fiscal year 2022. The company also diverted 1.8 million rental product from landfill via resale, donation, or recycling as of January 31, 2025, and performed 6.5 million garment repairs since fiscal year 2019 through January 31, 2025.

High-quality, curated selection of new and exclusive styles

The focus on curation drives customer interest. Engagement metrics show this focus is paying off: hearts per style on new inventory are up 15% year-over-year in Q2 2025. The company is executing on its strategy to offer more desirable items, with revenue share units from existing partners up 40% year-over-year, and total revenue share units up 119% year-over-year. They plan to add over 90 new brands in fiscal year 2025.

Here's a quick look at the operational scale as of the Q2 2025 report:

Metric	Value (Q2 2025)	Year-over-Year Change
Total Revenue	$80.9 million	+2.5%
Ending Active Subscribers	146,373	+13.4%
Gross Margin	30.0%	Down from 41.1% (Q2 2024)
Net Loss	$(26.4) million	Wider than $(15.6) million (Q2 2024)
Inventory Styles Added (H1 2025)	56 new brands launched	Goal of 80+ for FY 2025

Finance: draft 13-week cash view by Friday.

Rent the Runway, Inc. (RENT) - Canvas Business Model: Customer Relationships

The relationship with the customer is fundamentally anchored in the subscription model, which as of the end of Q2 2025, included 146,400 ending active subscribers, marking a 13.4% year-over-year increase. This represents a significant acceleration from the 0.9% year-over-year growth seen in Q1 2025. The company reported its strongest quarterly customer retention in four years as of Q1 2025, with retention continuing to be higher than the prior year in Q2 2025.

Rent the Runway, Inc. formalized its commitment to long-term subscribers with the launch of the RTR Rewards program on June 30, 2025. This program automatically assigns members to tiers based on active subscription tenure, with rewards unlocking at each stage. The structure is as follows:

Tier Name	Membership Tenure Requirement	Key Benefit Example (Anniversary)
Insider	1 to 3 months	Free spot at 3 months anniversary
Enthusiast	4 to 9 months	Free spot at 6 months anniversary
Maven	10 to 23 months	Free spot at 12 months anniversary
Icon	24+ months	Free spot at 24 months anniversary

Anniversary free spots begin deployment in July 2025, awarded at 3 months, 6 months, 12 months, and every additional 12 months thereafter.

Personalization is delivered through the digital experience, which is designed to enhance discovery and satisfaction. Customer engagement with the new inventory strategy in Q2 2025 showed strong resonance, with key metrics showing significant year-over-year increases:

• Share of views: up 84% YoY.
• Hearts per style: up 15% YoY.
• New units at home: up 57% YoY.

This follows Q1 2025 data where Spring 2025 inventory saw a 23% higher share of views and a 14% higher love rate compared to Spring 2024. Also, April add-on gross bookings increased +11% versus the prior year. The company also offers stylist consultations via text or Zoom to new subscribers to help design their first shipment.

High-touch customer service is a stated priority, with customer satisfaction (CSAT) scores consistently maintained between 80% and 90% for the past three years (as of April 2025). To further build loyalty, the customer service team now dedicates approximately 14% of its workdays to proactive customer contact.

The 60-day customer promise targets new and rejoining subscribers to mitigate initial fit risk. If an item does not fit or feel right within the first 60 days of subscription, Rent the Runway, Inc. will add a free extra spot to the member's next shipment.

Community engagement is supported by a base of approximately ~3M lifetime customers, with 80%+ acquired organically. The company has actively engaged with its community members on platforms like Reddit and through new social media content series.

Rent the Runway, Inc. (RENT) - Canvas Business Model: Channels

The primary channel for Rent the Runway, Inc. (RENT) remains its digital storefront, which includes the main website and the mobile application. As of September 2025, the website, renttherunway.com, was estimated to have 3,333,000 visitors. The company has been actively enhancing this digital interface; for instance, in Q2 2025, they redesigned the app home screen to feature contextual education and real-time inventory previews. Despite this focus, Rent the Runway underperforms its industry peers in terms of raw website traffic, ranking dead last among them.

The core of the service delivery relies on direct shipping and returns, managed through a sophisticated logistics backbone. Rent the Runway, Inc. operates its 'Dream Fulfillment Centers' in Secaucus, New Jersey, and Dallas, Texas, which handle the cleaning, repair, and dispatch of designer styles. Returns are facilitated via prepaid shipping labels included with shipments. While specific current logistics partner counts aren't available, the physical reach is broad, as the company ships to 76% of the zip codes in the U.S.. The company has moved away from dedicated retail stores, instead focusing on a dropbox network at partner sites like WeWork locations, Nordstrom Local stores, and hotels to serve customers for drop-off and pick-up.

Brand discovery and customer engagement are heavily channeled through organic digital marketing efforts. In Q2 2025, the company saw overall engagement with its social media channels rise by approximately 800% year-over-year (YoY), with views increasing 175% YoY. This was driven by a shift toward user-generated content and community events, which saw demand at 3x capacity for RTR-hosted subscriber events in Q2 2025. The platform also uses in-app notifications and email to drive engagement with inventory, which is crucial given the massive inventory expansion efforts.

To support personalized alerts and drive discovery, Rent the Runway, Inc. has significantly increased its available inventory, which directly impacts the effectiveness of its digital channels. As of August 2025, posted inventory units were almost double the prior year, with style availability surging 323% in May, 235% in June, and 253% in July compared to the previous year's corresponding months. This increased inventory is surfaced to users through personalized digital features.

Key performance indicators across these channels for the second quarter of fiscal year 2025 illustrate the service's reach and engagement:

Channel Metric	Value (as of Q2 2025 or latest report)	Period/Context
Estimated Monthly Website Visitors	3,333,000	September 2025 Estimate
Ending Active Subscribers	146,373	End of Q2 2025
Active Subscriber YoY Growth	13.4%	Q2 2025 vs Q2 2024
Social Media Engagement YoY Growth	~800%	Q2 2025
New Units at Home YoY Growth	57%	Q2 2025
Net Promoter Score Change	Up 77%	From last year

The digital experience is further refined by technology integration aimed at improving fit and feedback, including the deployment of artificial intelligence to summarize customer reviews. The company's focus on its two-sided discovery engine connects engaged customers with brand partners directly through the platform.

Specific digital engagement metrics related to inventory browsing in Q2 2025 show:

• Share of views on new inventory: up 84% YoY
• Hearts per style on new inventory: up 15% YoY
• Total revenue share units: up 119% YoY

Rent the Runway, Inc. (RENT) - Canvas Business Model: Customer Segments

You're looking at the core audience for Rent the Runway, Inc. as of late 2025. This isn't just about renting a dress for a wedding; it's about a lifestyle shift for a specific demographic. The customer segments are quite defined, driven by a desire for access over ownership and a focus on experience.

The primary group is definitely the B2C segment, heavily weighted toward Millennial and Gen Z women. These consumers value variety and self-expression, using the platform to constantly refresh their look without the commitment of purchase. To be fair, this group is highly responsive to the platform's inventory investments.

We see these fashion-conscious consumers concentrated in urban and suburban areas, places where access to high-end retail might be easier but the desire for novelty is even higher. They are the ones driving the engagement metrics we saw in Q2 2025.

There's a distinct group within the B2C base: customers specifically seeking designer apparel for special occasions, which Rent the Runway, Inc. calls the Reserve segment. This is the traditional use case, but it's supported by the broader subscription base now.

Also critical is the segment prioritizing sustainable and circular consumption. While Rent the Runway, Inc. doesn't always lead with pure sustainability metrics, the model inherently appeals to those looking to reduce fashion waste. This aligns with the growth in their resale channel, which generated $40.7 million in Other Revenue for the fiscal year ended January 31, 2025, a 22.2% increase year-over-year.

The health of the business is directly tied to its active subscriber base. Here's a look at where that stood recently:

Metric	Value	Period
Ending Active Subscribers	146,373	Q2 2025
Average Active Subscribers	146,765	Q2 2025
Active Subscribers (Total)	164,004	January 31, 2025
Active Subscribers (Active Only)	119,778	January 31, 2025

The growth in this core group is what management is pointing to as proof of concept. The year-over-year growth in ending active subscribers accelerated significantly.

• Active subscribers, which reached 146,400 in Q2 2025.
• Year-over-year Ending Active Subscriber growth in Q2 2025 was 13.4%.
• Customer retention in Q1 2025 was the strongest in four years.
• Q2 2025 Net Promoter Score (NPS) was up 77% year-over-year.
• Lifetime customers served is approximately 3 million.

Customer engagement with the platform's expanded offerings shows this segment is actively using the service. For instance, engagement with new inventory in Q2 2025 showed strong uptake:

• Share of views increased 84% year-over-year.
• Heart per style metric was up 15% year-over-year.
• New units at home increased by 57% year-over-year.

The inventory strategy is clearly aimed at satisfying these segments, with the Share by RTR program expected to account for approximately 62% of total units in fiscal year 2025. Finance: draft the Q3 2025 customer acquisition cost analysis by next Tuesday.

Rent the Runway, Inc. (RENT) - Canvas Business Model: Cost Structure

You're looking at the major drains on cash flow as Rent the Runway, Inc. pivots back to aggressive growth in late 2025. The cost structure is heavily weighted toward getting the right product in front of the customer, which is why inventory investment is the headline cost.

High cost of rental product acquisition (inventory investment of $70-75 million in FY2025)

The company is executing its largest inventory acquisition in history for fiscal year 2025. This is a deliberate choice to reignite subscriber growth after a period of cost discipline. The planned investment signals a major commitment to the core asset.

The projected spend for this key resource is substantial:

• FY 2025 Rental Product Acquisition Projection: $70 million to $75 million.
• New inventory units expected to double platform-wide in FY 2025.
• Anticipated 3-4x increase in units from the top 25 most desired brands.

Fulfillment costs, including logistics, dry cleaning, and repair

Fulfillment costs are a direct, variable cost tied to every rental transaction. While the company is working to improve efficiency, these costs remain a significant portion of revenue, as seen in the Q2 2025 figures.

Here's how fulfillment costs stacked up in the second quarter of fiscal year 2025:

Metric	Q2 2025 Amount (in millions)	Q2 2025 as % of Revenue
Fulfillment Costs	$22.5 million	27.8%
Gross Margin	$24.3 million	30.0%

Note that Gross Profit is defined as total revenue less fulfillment, rental product depreciation, and revenue share expenses.

Revenue share expenses paid to designer brand partners

Rent the Runway, Inc. is actively shifting its inventory model to be more capital-light by expanding revenue-sharing agreements. This means a larger portion of revenue is being paid out to brand partners instead of being spent on upfront inventory purchases.

The shift in this cost component is aggressive:

• Total units from the Share by Rent the Runway program are expected to reach approximately 62% of total units in FY 2025.
• This represents a 150% increase (or 2.5x) in revenue share units versus fiscal year 2024 levels.
• Revenue share costs were cited as a primary driver for the year-over-year decrease in Adjusted EBITDA margin in Q2 2025.
• Total revenue share units increased by 119% YoY in Q2 2025.

Technology development and platform maintenance costs

These costs fall under the broader umbrella of Operating Expenses, which include technology, marketing, and General & Administrative (G&A). The company is investing in platform features like waitlisting and back-in-stock notifications to support the new inventory strategy.

In Q2 2025, the combined total operating expenses were:

Expense Category (Combined)	Q2 2025 as % of Revenue	Q2 2024 as % of Revenue
Total Operating Expenses (Technology, Marketing, G&A)	51.7%	49%

Total operating expenses were 8% higher year-over-year in Q2 2025, driven primarily by transaction-related expenses.

Marketing and promotional spend to drive subscriber growth

Marketing spend is embedded within the Total Operating Expenses percentage above, as specific marketing dollar amounts are not broken out separately from G&A and Technology in the latest reports. However, the company noted higher promotional activity versus Q2 2024, indicating increased spend to drive new customer acquisition.

The company is using organic media strategies, including engagement on Reddit and new social media content series, to support this push.

The overall financial expectation for this growth-focused spending phase is reflected in the Free Cash Flow guidance:

• FY 2025 Free Cash Flow is projected to be worse than $(40) million.
• This negative cash flow is primarily attributed to the inventory investment and recapitalization transaction costs.

Rent the Runway, Inc. (RENT) - Canvas Business Model: Revenue Streams

Rent the Runway, Inc. (RENT) generates revenue through a mix of recurring subscription fees, one-time rental transactions, and inventory monetization outside of rentals.

For the second quarter of fiscal year 2025, Rent the Runway, Inc. reported total revenue of $80.9 million, representing a 2.5% increase year-over-year from $78.9 million in Q2 2024. Looking ahead, the company provided guidance for the fiscal third quarter of 2025, expecting revenue to fall between $82 million and $84 million.

Subscription Rental Fees

Subscription fees form the core recurring revenue stream. Rent the Runway, Inc. implemented a pricing adjustment on August 1, 2025, citing inflationary pressures and tariffs, with an average increase of approximately $2 per item. This was the first pricing adjustment since 2022.

The change directly impacted the 10-item plan, which increased from $144 per month to $164 per month, a 13.9% increase. The subscription revenue component for Q2 2025, which includes Reserve rental revenue, was $69.2 million, up 1% year-over-year. Ending Active Subscribers for Q2 2025 stood at 146,373.

Here is a comparison of the subscription price changes effective August 1, 2025:

Item Count	Old Price (Pre-Aug 1, 2025)	New Price (Post-Aug 1, 2025)	Percentage Increase
5 Items	$119	$129	8.40%
10 Items	$144	$164	13.89%
15 Items	$193	$223	15.54%
20 Items	$235	$275	17.02%

Other Revenue Streams

Revenue outside of the core subscription and reserve rentals is categorized as Other Revenue, which includes the sale of used rental inventory (resale) and advertising revenue. Other Revenue in Q2 2025 was $11.7 million, an increase of 12.5% year-over-year from $10.4 million in Q2 2024.

The focus on resale is a key component of this segment:

• Revenue from advertising and resale rose 48.6% or $3.4 million year-over-year in Q4 2024.
• These areas are noted as having considerable cash generation potential.
• The company plans to add 80+ new brands in FY 2025.

The platform also generates revenue from transactional rentals and ancillary fees, though specific 2025 figures for these are less detailed in recent reports.

• À la carte Reserve rental fees: For customers needing an outfit for a one-off event without a subscription.
• Add-on fees: Potential charges for extra items or expedited shipping services.
• Late fees or damage fees may also contribute to revenue, offsetting inventory management costs.

The subscription and reserve rental revenue stream was $69.2 million in Q2 2025, while Other Revenue was $11.7 million, totaling the $80.9 million in net revenue.

Finance: draft 13-week cash view by Friday.