Rent the Runway Inc is an e-commerce platform that allows users to rent, subscribe to, or buy designer apparel and accessories... Show more
Founded in 2009 and publicly listed on Nasdaq since 2021, Rent the Runway operates a subscription-based fashion rental platform it calls the "Closet in the Cloud." Customers can subscribe for unlimited rental access, rent items à la carte through its Reserve offering, or purchase pre-owned pieces through its Resale channel, all spanning hundreds of designer brands.
The company's two-sided model connects highly engaged customers with brand partners through a platform built around brand curation, logistics, data, and technology. As of the end of its fiscal second quarter, the company reported 140,826 active subscribers. Investors follow RENT closely because the business sits at the intersection of consumer discretionary spending, subscription economics, and the growing resale and circular-fashion market.
Over the last 30 days, RENT has moved from a closing price of approximately $1.86 to roughly $2.06, a gain of about 10.5%. This advance, however, comes off a depressed base. The stock reached a local high near $3.9 in early September before a sharp post-earnings decline pushed shares toward the $1.50 to $1.70 range in late September and early October.
The broader quarterly picture tells a different story. Measured from a closing level near $3.09 in mid-July, RENT has declined roughly 33% over the last three months. In short, the recent 30-day rebound represents a partial recovery from a steep correction rather than a return to prior highs.
The most significant event shaping the recent trading range was the company's fiscal second-quarter earnings report on September 11, 2026. While Rent the Runway delivered record revenue of $97.7 million, up 20.8% year over year, and improved its adjusted EBITDA to $12.6 million, the report also contained several concerns that pressured the stock, which fell 13.12% to $2.45 that day.
Active subscribers declined 3.8% year over year to 140,826, and management issued third-quarter revenue guidance of $87 million to $90 million, implying only flat to 3% growth. The company also guided to a negative adjusted EBITDA margin of 3% to 6% for the quarter. Separately, Rent the Runway announced a $15 million rights offering and a $10 million term loan, moves that raised dilution and leverage questions even as they aimed to support liquidity.
In the weeks that followed, the appointment of Paige Thomas as CEO on September 14 provided a degree of leadership clarity, while a securities-law investigation announced by the Pomerantz firm in late September added a layer of uncertainty. As shares stabilized above the $1.50 level, the stock gradually recovered toward $2.06, reflecting a period of consolidation and repositioning rather than a single dominant catalyst.
The three-month decline reflects a broader narrative shift. Earlier in the period, shares rallied from roughly $3 toward the $3.9 level into early September, supported by optimism around improving gross margins and strong revenue growth. That momentum reversed abruptly after the second-quarter report, when concerns about subscriber attrition, decelerating growth, and the financing package came into focus.
The leadership transition also shaped the quarter. After the departure of the company's co-founder as CEO earlier in the year, an interim chief executive oversaw operations before Paige Thomas assumed the role in mid-September. Combined with the dilutive capital raise and paused growth initiatives, these factors drove the stock's sharp repricing and left RENT trading well below its summer peak despite the recent partial recovery.
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Several factors are likely to influence RENT in the months ahead. The company's fiscal third-quarter earnings report, expected around early December, will be closely watched for signs of stabilization in active subscribers, progress on the Reserve and Resale channels, and updated guidance for adjusted EBITDA. Investors are also likely to monitor execution of the rights offering and term loan, along with the company's cash position and free cash flow trajectory.
Beyond company-specific items, consumer spending trends, tariffs, fuel surcharges, and broader apparel-sector conditions could affect demand. The ongoing securities-law investigation adds a further element of uncertainty. As always, these considerations are informational and are not a basis for investment decisions.
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The RSI Oscillator for RENT moved out of oversold territory on October 06, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 44 similar instances when the indicator left oversold territory. In 39 of the 44 cases the stock moved higher. This puts the odds of a move higher at 89%.
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on RENT as a result. In 67 of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 85%.
The Moving Average Convergence Divergence (MACD) for RENT just turned positive on October 05, 2026. Looking at past instances where RENT's MACD turned positive, the stock continued to rise in 35 of 43 cases over the following month. The odds of a continued upward trend are 81%.
Following a +17.20% 3-day Advance, the price is estimated to grow further. Considering data from situations where RENT advanced for three days, in 196 of 229 cases, the price rose further within the following month. The odds of a continued upward trend are 86%.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RENT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 90%.
RENT broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for RENT entered a downward trend on October 14, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of 32 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (-1.129) is normal, around the industry mean (1.893). P/E Ratio (0.162) is within average values for comparable stocks, (12.336). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (0.517). Dividend Yield (0.000) settles around the average of (0.063) among similar stocks. P/S Ratio (0.140) is also within normal values, averaging (0.652).
The Tickeron Seasonality Score of 42 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating fairly steady price growth. RENT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 96 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RENT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Industry ApparelFootwearRetail