Rent the Runway posts Q3 profit in major turnaround fueled by subscriber growth.

Rent the Runway announced strong financial results for the third quarter, reporting a 15.4% rise in sales to reach $87.6 million. The U.S. rental platform attributed this growth to an expansion of its subscriber base during the three-month period.

The New York-based firm reported significant growth in key subscriber metrics. Ending active subscribers grew by 12.4% to 148,916, while average active subscribers totaled 147,645, marking a 12.9% increase from the prior year. Additionally, total subscriber numbers increased by 6.1% during the quarter ending October 31, reaching 185,166.

In a major turnaround, the company reported a net income of $76.5 million for the quarter, compared to a net loss of $18.9 million in the third quarter last year. Co-founder and CEO Jennifer Hyman commented on the results, stating, "This year we’ve repositioned ourselves for sustained growth in the category." She added that the company not only "executed operationally on our stated goals to return to our customer-obsessed origins, reinvigorate our brand, and drive double-digit growth in subscribers," but also "restructured our balance sheet, closing the recapitalization transactions in October that offer improved financial flexibility to better position us for continued growth.”

Earlier in the year, Rent the Runway had outlined a plan to cut debt and grow by handing over a controlling stake in the company. According to an emailed statement released in August, the deal with lender Aranda Principal Strategies and other partners is expected to eliminate more than $240 million of debt from Rent the Runway’s balance sheet.

Looking ahead, Rent the Runway provided a full-year revenue forecast between $323.1 million and $325.1 million, signaling confidence in its future performance and strategic trajectory.