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Overview
Rent the Runway enables people to rent designer clothing and accessories instead of buying them. It offers membership plans that let customers borrow a certain number of items per month (or swap unlimited items) and also provides one-time rentals for special occasions. Customers browse items online, reserve what they want, and the company handles shipping and dry cleaning, making the process easy. The service works by giving access to a rotating wardrobe at a fraction of retail prices, with logistics managed by Rent the Runway. It differentiates itself by combining a subscription model with a large selection of high-end brands and convenient maintenance, positioned within the growing sharing economy and sustainability trend. The goal is to provide affordable, flexible, and sustainable access to fashion, reducing the need to buy new clothes and cutting down waste.
About Rent the Runway
Industries
Consumer Software
Social Impact
Consumer Goods
Company Size
501-1,000
Company Stage
IPO
Headquarters
New York City, New York
Founded
2009
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Simplify's Take
What believers are saying
- Q2 2026 revenue hit $97.7 million, up 20.8%, with EBITDA margin at 12.9%.
- Gross margin expanded 609 basis points to 36.1% in Q2 2026.
- Paige Thomas starts September 14, 2026, bringing Nordstrom and Saks operating discipline.
What critics are saying
- September 2026 liquidity still requires a $15 million rights offering and $10 million term loan.
- Pausing marketplace, ad monetization, and new B2B dry-cleaning shows weak adjacency execution.
- Nuuly’s 500,000-plus subscribers and $568 million sales pressure RTR’s growth and pricing.
What makes Rent the Runway unique
- Rent the Runway combines designer access with proprietary reverse logistics and dry-cleaning infrastructure.
- September 11, 2026 AI outfit generation and avatar discovery now reach every customer.
- The platform’s Reserve business and rental library create premium occasionwear depth Nuuly lacks.
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Funding
Total Funding
$1B
Above
Industry Average
Funded Over
15 Rounds
Kleiner PerkinsBenefits
Paid Time Off including vacation, paid bereavement, and family sick leave - every employee needs time to take care of themselves and their family.
Universal Paid Parental Leave for both parents + flexible return to work program - because we know your newest family member(s) deserve your undivided attention.
Paid Sabbatical after 5 years of continuous service - Unplug, recharge, and have some fun!
Exclusive employee subscription and rental discounts - to ensure you experience the magic of renting the runway (and give us valued feedback!).
Comprehensive health, vision, dental, FSA and dependent care from day 1 of employment - Your health comes first and we’ve got you covered.
401k match - an investment in your future.
Company wide events and outings - our team spirit is no joke - we know how to have fun!
Flexible Work Policy: Hybrid Work - when our corporate employees return to the office post COVID they will have the option to work remotely 2-3 days a week, in accordance with Company policies.
Stock Price
Growth & Insights and Company News
6 month growth
↓ -1%1 year growth
↑ 0%2 year growth
↑ 0%Rent the Runway has secured a $15 million rights offering backstopped by its largest investors. The fashion rental company entered into an agreement on 11 September 2026 with CHS US Investments, Gateway Runway and S3 RR Aggregator, which will purchase any unsubscribed shares. Under the arrangement, existing Class A shareholders will receive transferable subscription rights to buy shares at a price equal to the greater of $3.55 or the 15-day volume-weighted average price through the record date. CHS will backstop 70% of the offering, with Gateway and S3 each covering 15%. The backstop ensures Rent the Runway receives the full $15 million regardless of shareholder participation. The company said the capital raise aims to strengthen its financial position and flexibility.
Rent the Runway reported second quarter 2026 revenue of $97.7 million, up 20.8% year-over-year. The fashion rental company's net loss narrowed to $12.9 million from $26.4 million in the same period last year. Adjusted EBITDA reached $12.6 million, or 12.9% of revenue, compared to $3.6 million a year earlier, driven by gross margin expansion of 609 basis points. Add-on bookings increased 81% year-over-year, with 33% of subscribers using add-ons during the quarter. The company completed its rollout of AI-powered outfit generation to all customers. Rent the Runway also announced leadership changes, appointing Paige Thomas as chief executive officer and president effective 14 September 2026. Teri Bariquit, who served as interim CEO, will become non-executive chair of the board.
Rent the Runway reported second quarter 2026 revenue of $97.7 million, up 20.8% year-over-year. Gross margin expanded 609 basis points to 36.1%. Net loss narrowed to $12.9 million from $26.4 million in the prior year period. Adjusted EBITDA reached $12.6 million, or 12.9% of revenue, compared to $3.6 million a year earlier. The company reaffirmed its fiscal 2026 guidance for revenue and adjusted EBITDA. Rent the Runway announced Paige Thomas as chief executive officer and president, effective 14 September. Thomas joined as chief commercial officer in June 2026 and previously held leadership roles at Signet Jewelers, Saks OFF 5TH, and Nordstrom. Teri Bariquit, who served as interim CEO, will become non-executive chair of the board.
Rent the Runway has secured a $10 million incremental term loan facility through a third amendment to its credit agreement. The company entered into the agreement on 1 September 2026. The proceeds will be used for working capital and other general corporate purposes. The loan is provided by a group of lenders including CHS (US) Investments LLC, APS RTR Blocker Inc., Gateway Runway, LLC, and S3 RR Aggregator, L.P. The facility will be secured on a pari passu basis with existing term loans and guaranteed by the same guarantors. It matures on 28 October 2029, aligned with the existing credit agreement. The filing confirms that no default or event of default has occurred as of the effective date.
Rent the Runway is undergoing a strategic overhaul under new ownership after accumulating a $1.1 billion deficit since its founding. The company was recapitalised last year by Story3 Capital and other investors, who see opportunity in the established brand despite past losses. Managing partner Peter Comisar noted the firm inherited 17 years of brand-building and customer trust. Interim chief executive Teri Bariquit is refocusing on the company's original event-rental business, which had been neglected as subscription services grew. The company posted revenues of $329.8 million last year, up 7.7 percent, with 143,558 active subscribers and net earnings of $22.6 million. Bariquit is exploring new revenue models including revenue-sharing with brands and leveraging the company's dry-cleaning infrastructure to handle returns for fashion partners. A permanent chief executive search is underway.
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About Rent the Runway
Industries
Consumer Software
Social Impact
Consumer Goods
Company Size
501-1,000
Company Stage
IPO
Headquarters
New York City, New York
Founded
2009
Rent the Runway is Hiring for 19 Jobs on Simplify!
Find jobs on Simplify and start your career today