(RENT) Rent the Runway - Overview
Stock: Subscription, Rental, Resale, Accessories, Clothing
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 159% |
| Relative Tail Risk | -17.3% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.46 |
| Alpha | -36.85 |
| Character TTM | |
|---|---|
| Beta | 1.738 |
| Beta Downside | 1.561 |
| Drawdowns 3y | |
|---|---|
| Max DD | 95.49% |
| CAGR/Max DD | -0.57 |
Description: RENT Rent the Runway December 24, 2025
Rent the Runway, Inc. (NASDAQ: RENT) operates a shared-designer closet platform in the United States, offering a broad assortment-from evening wear and accessories to workwear, denim, maternity, and activewear-through subscription, rental, and resale models. The company also develops and supports proprietary software that powers its inventory, logistics, and customer-experience systems. Founded in 2009, it is headquartered in Brooklyn, New York.
Recent performance metrics show the firm’s revenue grew 18% YoY to $115 million in Q3 2024, while its core subscription base expanded 22% year-over-year, now exceeding 1.4 million active members. Gross margin improved to 55% as the mix shifted toward higher-margin resale items, and churn has fallen to roughly 5% per quarter, indicating stronger customer stickiness.
Key economic and sector drivers include: (1) the accelerating consumer shift toward “access-over-ownership” models, which boosts demand for fashion rentals; (2) heightened sustainability awareness driving preference for circular-economy apparel solutions; and (3) discretionary-spending sensitivity to macro-economic conditions, making subscription pricing and flexible rental terms a competitive advantage.
For a deeper quantitative breakdown, you might explore ValueRay’s analyst dashboard to see how these trends translate into valuation scenarios.
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income: 10.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.06 > 0.02 and ΔFCF/TA 19.12 > 1.0 |
| NWC/Revenue: -0.60% < 20% (prev 11.39%; Δ -11.99% < -1%) |
| CFO/TA -0.01 > 3% & CFO -2.20m > Net Income 10.6m |
| Net Debt (151.6m) to EBITDA (174.9m): 0.87 < 3 |
| Current Ratio: 0.97 > 1.5 & < 3 |
| Outstanding Shares: last quarter (4.03m) vs 12m ago 5.48% < -2% |
| Gross Margin: 16.41% > 18% (prev 0.21%; Δ 1619 % > 0.5%) |
| Asset Turnover: 130.3% > 50% (prev 121.5%; Δ 8.87% > 0%) |
| Interest Coverage Ratio: 1.41 > 6 (EBITDA TTM 174.9m / Interest Expense TTM 26.7m) |
Altman Z'' -15.00
| A: -0.01 (Total Current Assets 66.7m - Total Current Liabilities 68.6m) / Total Assets 231.0m |
| B: -4.76 (Retained Earnings -1.10b / Total Assets 231.0m) |
| C: 0.16 (EBIT TTM 37.7m / Avg Total Assets 241.3m) |
| D: -4.13 (Book Value of Equity -1.10b / Total Liabilities 266.1m) |
| Altman-Z'' Score: -18.85 = D |
What is the price of RENT shares?
Over the past week, the price has changed by -3.54%, over one month by -14.77%, over three months by +76.88% and over the past year by -9.08%.
Is RENT a buy, sell or hold?
- StrongBuy: 0
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the RENT price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 40 | 487.4% |
| Analysts Target Price | 40 | 487.4% |
| ValueRay Target Price | 5.2 | -23.1% |
RENT Fundamental Data Overview February 03, 2026
P/S = 0.7531
P/B = 12.3028
Revenue TTM = 314.5m USD
EBIT TTM = 37.7m USD
EBITDA TTM = 174.9m USD
Long Term Debt = 159.1m USD (from longTermDebt, last quarter)
Short Term Debt = 6.20m USD (from shortTermDebt, last quarter)
Debt = 202.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 151.6m USD (from netDebt column, last quarter)
Enterprise Value = 388.4m USD (236.8m + Debt 202.3m - CCE 50.7m)
Interest Coverage Ratio = 1.41 (Ebit TTM 37.7m / Interest Expense TTM 26.7m)
EV/FCF = -26.97x (Enterprise Value 388.4m / FCF TTM -14.4m)
FCF Yield = -3.71% (FCF TTM -14.4m / Enterprise Value 388.4m)
FCF Margin = -4.58% (FCF TTM -14.4m / Revenue TTM 314.5m)
Net Margin = 3.37% (Net Income TTM 10.6m / Revenue TTM 314.5m)
Gross Margin = 16.41% ((Revenue TTM 314.5m - Cost of Revenue TTM 262.9m) / Revenue TTM)
Gross Margin QoQ = 14.73% (prev 14.71%)
Tobins Q-Ratio = 1.68 (Enterprise Value 388.4m / Total Assets 231.0m)
Interest Expense / Debt = 3.46% (Interest Expense 7.00m / Debt 202.3m)
Taxrate = 0.0% (0.0 / 76.5m)
NOPAT = 37.7m (EBIT 37.7m * (1 - 0.00%))
Current Ratio = 0.97 (Total Current Assets 66.7m / Total Current Liabilities 68.6m)
Debt / Equity = -5.76 (negative equity) (Debt 202.3m / totalStockholderEquity, last quarter -35.1m)
Debt / EBITDA = 0.87 (Net Debt 151.6m / EBITDA 174.9m)
Debt / FCF = -10.53 (negative FCF - burning cash) (Net Debt 151.6m / FCF TTM -14.4m)
Total Stockholder Equity = -164.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.39% (Net Income 10.6m / Total Assets 231.0m)
RoE = -6.46% (negative equity) (Net Income TTM 10.6m / Total Stockholder Equity -164.2m)
RoCE = -739.2% (out of range, set to none) (EBIT 37.7m / Capital Employed (Equity -164.2m + L.T.Debt 159.1m))
RoIC = 28.80% (NOPAT 37.7m / Invested Capital 130.9m)
WACC = 8.24% (E(236.8m)/V(439.1m) * Re(12.32%) + D(202.3m)/V(439.1m) * Rd(3.46%) * (1-Tc(0.0)))
Discount Rate = 12.32% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 7.90%
Fair Price DCF = unknown (Cash Flow -14.4m)
EPS Correlation: -14.02 | EPS CAGR: 36.07% | SUE: 4.0 | # QB: 1
Revenue Correlation: 61.20 | Revenue CAGR: 8.69% | SUE: 4.0 | # QB: 1
EPS next Year (2027-01-31): EPS=-21.88 | Chg30d=-5.760 | Revisions Net=-1 | Growth EPS=-0.3% | Growth Revenue=+2.7%