Rent the Runway Names New CEO, Announces $15M Rights Offering

Rent the Runway reported strong second-quarter financial results but announced a leadership transition and a new capital raise, with its stock price falling sharply below the offering's minimum price. The fashion rental company's revenue rose 20.8% year-over-year to $97.7 million for the quarter ended July 31, 2026, while its net loss narrowed to $12.9 million from $26.4 million a year earlier. Adjusted EBITDA improved to $12.6 million, or 12.9% of revenue, up from $3.6 million. Gross margin expanded by 609 basis points to 36.1%. Despite the improved profitability, the company's active subscriber base declined 3.8% year-over-year to 140,826. Interim CFO Dave Loretta attributed the decline primarily to a higher rate of subscription pauses and fewer subscriber acquisitions due to reduced promotional activity. Paige Thomas will become CEO, president, and a board member effective September 14, 2026, replacing interim CEO Teri Bariquit, who will become nonexecutive chair of the board. Thomas, a retail veteran with previous leadership roles at Signet Jewelers, Saks Off 5th, and Nordstrom, joined the company as chief commercial officer in June.