Rent the Runway, Inc. (RENT) Stock

Rent the Runway, Inc. (RENT) is a Consumer Discretionary stock trading at $3.66 (as of 2026-08-20), with a market capitalization of $122.33M and a trailing P/E of 4.1. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Rent the Runway, Inc. rents designer clothing and accessories for women through its retail locations and online channels, offering a range of apparel categories from ready-to-wear to maternity, outerwear, and evening wear. It also carries out software development and support activities.

Understand Rent the Runway, Inc.: how it makes money

Rent the Runway rents designer wear and accessories for women through its stores and online retail, and makes money primarily from subscription and resale revenue (plus smaller other revenue).

The company’s profit model depends on how well it turns an active subscriber base into recurring subscription and resale revenue, while managing inventory availability and churn to keep inventory circulating for those subscribers.

Revenue by segment (latest quarter)
Sub & Resale	$0.1B
Other	$0.0B
Pilot Wholesale	$0.0B

Business quality (Weak): Strengths include a large active subscriber base and high gross margin (73.7%). Main risk is that the business is not currently translating gross profit into operating profit, with operating margin at -21.9%.

Valuation: At 0× earnings, RENT trades 98% below the Retail average (19×). Note: one-time items can distort reported P/E.

Bull case

Subscriber scale: Active Subscribers (End of Period) were 155,692, providing a base for recurring subscription and resale activity.
Incremental monetization from add-ons: 28% of active subscribers purchasing one or more add-ons, and 24% of subscribers paying for one or more additional items.
Gross margin profile: Gross margin was 73.7%, indicating substantial gross profit generation relative to revenue.
Customer experience signals: Net Promoter Score Improvement was 20, alongside reported engagement and community activity metrics.

Bear case

Operating losses: Operating margin was -21.9%, meaning gross profit is not currently covering operating expenses.
Inventory availability can limit revenue capture: Inventory In-Stock Rates were 24%, which can constrain which subscriber orders and timing the business can fulfill.
Paused customer reactivation is a swing factor: Pause Reactivation Rate was 35%, which can impact how quickly paused subscribers return to generating revenue.

Valuation — source: SEC EDGAR (first-party)
Price	$3.66
Market Cap	$122.33M
P/E Ratio	4.1
Price / Sales	0.35
DCF Value (model)	$0.38
DCF Upside vs Price	-89.6%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$329.80M
Net Margin	6.9%
Revenue Growth (YoY)	29.2%
EPS Growth (YoY)	-91.3%

Financial Health — source: SEC EDGAR
Altman Z-Score	-6.22 (distress)
Piotroski F-Score	6/9 (moderate)

Valuation vs Sector & Industry
Stock P/E	4.1
Sector P/E (Consumer Discretionary)	20.5
Industry P/E (Retail)	19.5
vs Sector	-80.0%
vs Industry	-79.0%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock Fund Advisors ($14.92M)
Institutional Holders Tracked	10

Company
Sector	Consumer Discretionary
Industry	Retail
CEO	Jennifer Y. Hyman
Employees	912
Country	US
IPO Date	2021-10-27

Related Companies (Business model: Brick-and-Mortar Retail (incl. Omnichannel); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.