📊 RENT Key Takeaways
Is Rent the Runway, Inc. (RENT) a Good Investment?
Rent the Runway exhibits severe financial distress despite exceptional 653% revenue growth. Negative stockholders equity of -$53.3M, negative operating cash flow of -$3.8M, and a current ratio of 0.75x indicate an insolvent balance sheet with critical liquidity concerns. While improving losses and strong top-line momentum are encouraging, the company requires urgent profitability achievement or additional capital to avoid insolvency.
Revenue has surged, but core operations remain deeply loss‑making and liquidity is tight with negative equity, sub‑1.0 current ratio, and significant debt. Reported net profitability likely reflects non‑operating/one‑time items; until operating margins turn positive and cash generation is sustained, the balance sheet risk outweighs the growth.
Rent the Runway, Inc. Key Strengths (RENT)
- Exceptional revenue growth of 653% YoY demonstrating strong market demand
- Net loss improvement of 132.3% YoY showing trajectory toward profitability
- Retained $37.1M in cash providing near-term operational runway
- Explosive revenue growth (+652% YoY)
- Reported net income and EPS improvement
- Cash burn near breakeven with modest FCF deficit
RENT Stock Risks: Rent the Runway, Inc. Investment Risks
- Negative stockholders equity of -$53.3M indicates technical insolvency and structural balance sheet failure
- Negative operating cash flow of -$3.8M showing company burns cash operationally
- Current ratio of 0.75x signals liquidity crisis and inability to cover short-term obligations
- Operating losses of -$19.7M and net margin of -21.0% despite massive revenue base
- High long-term debt of $157.1M creating unsustainable leverage relative to negative equity
- Negative equity and high leverage increase refinancing/solvency risk
- Operating losses persist; margins remain materially negative
- Earnings quality concerns from non‑operating/one‑time gains
Key Metrics to Watch
- Path to operating profitability and positive EBITDA margins
- Operating cash flow improvement and achievement of positive FCF
- Debt reduction strategy and recapitalization to restore positive equity
- Operating margin (path to break-even/positive)
- Operating cash flow / sustained positive FCF
Rent the Runway, Inc. (RENT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
RENT Profit Margin, ROE & Profitability Analysis
RENT vs Consumer Sector: How Rent the Runway, Inc. Compares
How Rent the Runway, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Rent the Runway, Inc. Stock Overvalued? RENT Valuation Analysis 2026
Based on fundamental analysis, Rent the Runway, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Rent the Runway, Inc. Balance Sheet: RENT Debt, Cash & Liquidity
RENT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Rent the Runway, Inc.'s revenue has grown significantly by 103% over the 5-year period, indicating strong business expansion. The most recent EPS of $-31.52 indicates the company is currently unprofitable.
RENT Revenue Growth, EPS Growth & YoY Performance
RENT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $7.6M | -$18.9M | $-0.57 |
| Q3 2025 | $9.6M | -$18.9M | $-4.70 |
| Q2 2025 | $10.4M | -$15.6M | $-4.17 |
| Q1 2025 | $7.6M | -$22.0M | $-6.03 |
| Q3 2024 | $7.8M | -$18.9M | $-4.94 |
| Q2 2024 | $7.7M | -$15.6M | $-4.17 |
| Q1 2024 | $7.4M | -$22.0M | $-6.03 |
| Q3 2023 | $7.8M | -$31.5M | $-0.45 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Rent the Runway, Inc. Dividends, Buybacks & Capital Allocation
RENT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Rent the Runway, Inc. (CIK: 0001468327)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RENT
What is the AI rating for RENT?
Rent the Runway, Inc. (RENT) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RENT's key strengths?
Claude: Exceptional revenue growth of 653% YoY demonstrating strong market demand. Net loss improvement of 132.3% YoY showing trajectory toward profitability. ChatGPT: Explosive revenue growth (+652% YoY). Reported net income and EPS improvement.
What are the risks of investing in RENT?
Claude: Negative stockholders equity of -$53.3M indicates technical insolvency and structural balance sheet failure. Negative operating cash flow of -$3.8M showing company burns cash operationally. ChatGPT: Negative equity and high leverage increase refinancing/solvency risk. Operating losses persist; margins remain materially negative.
What is RENT's revenue and growth?
Rent the Runway, Inc. reported revenue of $89.9M.
Does RENT pay dividends?
Rent the Runway, Inc. does not currently pay dividends.
Where can I find RENT SEC filings?
Official SEC filings for Rent the Runway, Inc. (CIK: 0001468327) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RENT's EPS?
Rent the Runway, Inc. has a diluted EPS of $-0.57.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is RENT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Rent the Runway, Inc. has a C grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is RENT stock overvalued or undervalued?
Valuation metrics for RENT: ROE of N/A (sector avg: 18%), net margin of -21.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is RENT's AI grade for 2026?
Our dual AI analysis gives Rent the Runway, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RENT's free cash flow?
Rent the Runway, Inc.'s operating cash flow is $-3.8M, with capital expenditures of N/A. FCF margin is -4.2%.
How does RENT compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -21.0% (avg: 8%), ROE N/A (avg: 18%), current ratio 0.75 (avg: 1.5).