Rent the Runway Inc. (RENT) stock rose Friday after the company reported record second-quarter revenue, narrowed its loss and reaffirmed its fiscal 2026 outlook.

Revenue Hits Record

Second-quarter revenue rose 20.8% year over year to $97.7 million from $80.9 million.

Gross profit jumped 45.3% to $35.3 million from $24.3 million. Gross margin expanded to 36.1% from 30%.

Adjusted EBITDA climbed to $12.6 million from $3.6 million. The adjusted EBITDA margin improved to 12.9% from 4.4%.

Net loss narrowed to $12.9 million from $26.4 million. The company reported a loss of 38 cents per share, compared with a loss of $6.23 per share a year earlier.

Interim CFO and Treasurer Dave Loretta said revenue reached an all-time high as operating discipline helped expand profit margins.

Subscriber Trends Remain Mixed

Rent the Runway ended the quarter with 140,826 active subscribers, down 3.8% year over year.

However, average active subscribers rose 1% to 148,259. Total subscribers edged 0.5% higher to 186,019.

Add-on bookings jumped 81% year over year. About 33% of subscribers used an add-on, up from 29% a year earlier.

Operating Cash Use Increases

Net cash used in operating activities increased to $5 million from $2.2 million a year earlier.

Cash and cash equivalents fell to $29 million as of July 31 from $43.6 million a year earlier.

Loretta said Rent the Runway remains focused on strengthening liquidity through improved first-half free cash flow and additional investor funding.

Rent the Runway Names New CEO

Rent the Runway appointed Paige Thomas as CEO and president, effective Sept. 14. She succeeds interim CEO Teri Bariquit, who will become non-executive board chair.

Dhiren Fonseca will step down as executive chairman but remain on the board.

"This is not a new direction — it's an acceleration of the strong foundation the team has built," Thomas said.

For the third quarter, Rent the Runway expects revenue of $87 million to $90 million and an adjusted EBITDA margin loss of 3% to 6%.

For fiscal 2026, the company reaffirmed its forecast for double-digit revenue growth and an adjusted EBITDA margin of 4% to 7%.

Rent the Runway also lowered its expected rental product purchases to $53 million to $55 million, compared with $74.9 million in fiscal 2025.

RENT Price Action: Rent the Runway shares were up 9.93% at $3.10 during premarket trading on Friday, according to market data.