The news: Rent the Runway reported record Q4 2025 revenues, which the company credited to its largest-ever investment in inventory, expanded membership flexibility, and community-led marketing strategy.

• Quarterly revenues rose 20% YoY to $91.7 million.
• Active subscribers also increased 20% YoY.

How we got here: Rent the Runway’s decision to double its inventory last year was the primary driver of its outsize revenue and membership growth, according to management. The platform’s increased selection of brands and styles is making its core rental services stickier and encouraging upsells in the form of supplemental items or shipments. Expanded membership options made the service easier to adopt and use.

In 2026, Rent the Runway plans to maximize this strategy.

• It expects the “tumultuous retail environment” to help it secure premium inventory at more attractive prices.
• It will also add at least 30 brands this year while expanding its slate of exclusive design partnerships.
• The company will increase its orders of everyday and workwear apparel by roughly 20% to better align its assortment with demand.

The implications: Rent the Runway’s strong growth in Q4 reflects consumers’ desire for flexibility and value, especially as tariffs and other cost concerns pressure budgets.

It may also signal rising GLP-1 use. Services like Rent the Runway and Stitch Fix are poised to benefit as consumers seek styling guidance and more affordable wardrobe solutions during weight loss. While Rent the Runway has so far not said how GLP-1s are affecting its business, Stitch Fix CEO Matt Baer noted last month that client mentions involving weight loss have tripled over the past two years, rising 75% YoY in the previous quarter alone.

With rising gas prices threatening to crimp buying power further this year, clothing rental services like Rent the Runway, Nuuly, and Stitch Fix could make big gains as shoppers search for more wallet-friendly ways to dress themselves.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.