Full-Time
Posted on 4/12/2025
Rent designer clothing via subscription service
$22/hr
Union City, NJ, USA
In Person
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.
Company Size
501-1,000
Company Stage
IPO
Headquarters
New York City, New York
Founded
2009
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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.
Rent the Runway plans to enhance its product discovery experience through AI-powered features rolling out in coming quarters. The company will present curated outfits on individual product pages, add options to view items on different models and sizes, and introduce conversational search allowing specific queries like "dress for destination wedding in Italy." The fashion rental company has been pursuing a CX-focused turnaround, improving personalisation and inventory whilst restructuring customer service. A new search algorithm introduced in February increased subscription conversion rates by approximately 10%. Active subscribers grew 20% year over year to 143,800 in Q4 2025, whilst revenue rose 20% to $91.7 million. However, the company remains unprofitable, with free cash flow declining to negative $46 million for fiscal year 2025 due to inventory investments.
Rent the Runway reported record fourth-quarter revenue of $91.7 million, up 20% year-over-year, and ended fiscal year 2025 with 143,796 active subscribers, a 20% increase. The clothing rental company achieved its highest quarterly revenue in company history. Subscription add-on revenue grew 67% year-over-year in Q4 2025. The company's subscription Net Promoter Score increased 39% year-over-year, more than tripling since 2022. In March 2026, Rent the Runway launched a marketplace pilot testing curated purchases of shoes, beauty products and basics for select subscribers. The company introduced AI-driven search improvements and quick browsing features, with a new search algorithm boosting subscription conversion rates by approximately 10%. Rent the Runway expects double-digit revenue growth in fiscal year 2026, driven by product and inventory improvements.
Rent the Runway has granted 802,395 restricted stock units to Dhiren Fonseca, the company's executive chair, as an inducement award effective 27 February 2026. The RSUs will vest 25% on 28 October 2026, with the remaining 75% vesting quarterly through 28 October 2029, subject to continued service. The award was unanimously approved by Rent the Runway's board, including all independent directors, and granted under Nasdaq Listing Rule 5635(c)(4) as material inducement for Fonseca entering employment. Whilst granted outside the company's 2021 incentive award plan, the terms remain substantially consistent with that plan. Founded in 2009, Rent the Runway operates a fashion rental and resale platform connecting customers with designer brands.
Rent the Runway stock soars after announcing growth recapitalization
Rent the Runway wins New Talent award at itag awards.