Revolve Group Announces Third Quarter 2025 Financial Results

LOS ANGELES, Nov. 4, 2025 /PRNewswire/ -- Revolve Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for Millennial and Generation Z consumers, today announced financial results for the third quarter ended September 30, 2025.

Third Quarter 2025 Financial Summary

Three Months Ended September 30,

2025

2024

YoY Change

(in thousands, except percentages)

Net sales

295,631

283,146

4 %

Gross profit

161,516

144,867

11 %

Gross margin

54.6

51.2

Net income

21,179

10,751

97 %

Adjusted EBITDA (non-GAAP financial measure)

25,347

17,503

45 %

Net cash provided by operating activities

11,818

9,052

31 %

Free cash flow (non-GAAP financial measure)

6,627

6,171

7 %

Operational Metrics

Three Months Ended September 30,

2025

2024

YoY Change

(in thousands, except average order value and percentages)

Active customers (trailing 12 months)

2,747

2,628

5 %

Total orders placed

2,300

2,200

5 %

Average order value

306

303

1 %

"We had a very solid third quarter, highlighted by exceptional gross margin performance that drove an 11% increase in gross profit year-over-year and a 45% increase in Adjusted EBITDA to $25 million, our highest ever for a third quarter," said co-founder and co-CEO Mike Karanikolas. "Particularly in the current tariff environment, I am extremely pleased by our nearly 350 basis point increase in gross margin year-over-year that further validates the competitive advantage of our data-driven merchandising and puts us on track to expand our gross margin and Adjusted EBITDA margin in the full year 2025 for the second straight year."

"At a time when the dynamic operating environment has forced key competitors to dial back investment, our healthy cash flow and rock-solid balance sheet, highlighted by a cash balance of $315 million, enables us to continue to invest in exciting long-term initiatives such as international expansion, development of new owned brands, further leveraging AI technology, and the physical retail opportunity that we believe positions us to accelerate our market share capture and achieve profitable growth for years to come," said co-founder and co-CEO Michael Mente.

Additional Third Quarter 2025 Metrics and Results Commentary

Additional Net Sales Commentary

Cash Flow and Balance Sheet

Additional trend information regarding Revolve Group's third quarter of 2025 financial results and operating metrics is available in the Q3 2025 Financial Highlights presentation available on our investor relations website: https://investors.revolve.com/events-and-presentations

Results Since the End of the Third Quarter of 2025

Net sales in October 2025 increased by a mid-single digit percentage year-over-year.

2025 Business Outlook

Based on information available to us as of November 4, 2025, we are providing the following guidance for the fourth quarter and full year ending December 31, 2025.

Our outlook takes into account our assessment of the current macroeconomic environment and related cost pressures and potential headwinds to consumer spending, including, but not limited to, tariffs, inflationary pressures, supply chain disruptions and foreign currency volatility. Importantly, our outlook for gross margin is based on the current level of tariffs as of November 4, 2025 and our estimate of the impact of mitigating activities that we are currently undertaking or will undertake. However, actual gross margin will be particularly susceptible to variability based on the timing and level of tariffs that will ultimately be in effect during relevant periods, as well as the potential impact from mitigating activities that we are undertaking or may undertake.

Updated FY 2025 Outlook

Prior FY 2025 Outlook

Gross margin

53.5 %

52.1% to 52.6%

Fulfillment expenses

3.2% of net sales

3.1% to 3.2% of net sales

Selling and distribution expenses

17.3% of net sales

17.2% to 17.5% of net sales

Marketing expenses

14.6% of net sales

14.8% to 15.0% of net sales

General and administrative expenses

$153.5 million

$152 million to $154 million

Effective tax rate

27% to 28%

28% to 29%

Fourth Quarter 2025 Outlook

Gross margin

53.1% to 53.6%

Fulfillment expenses

3.3% of net sales

Selling and distribution expenses

17.6% of net sales

Marketing expenses

15.0% of net sales

General and administrative expenses

$38.7 million

Conference Call Information

Revolve Group management will host a call today at 4:30 pm ET / 1:30 pm PT to discuss today's results in more detail. To participate, please dial (888) 596-4144 within the United States or (646) 968-2525 outside the United States approximately 10 minutes before the scheduled start of the call. The conference ID for the call is 2756104. The conference call will also be accessible, live via audio broadcast, on the Investor Relations section of the Revolve Group website at investors.revolve.com. A replay of the conference call will be available online at investors.revolve.com. In addition, an audio replay of the call will be available for one week following the call and can be accessed by dialing (800) 770-2030 within the United States or (609) 800-9909 outside the United States. The replay conference ID is 2756104.

Forward-Looking Statements

This press release contains ''forward-looking statements'' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding our growth prospects, market share gains and business initiatives, and our outlook for the fourth quarter and full year of 2025. Forward-looking statements include statements containing words such as "expect," "anticipate," "believe," "project," "will" and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on our current expectations. Forward-looking statements involve risks and uncertainties. Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to changing economic conditions and their impact on consumer demand and our business; the effects of tariffs and our efforts to mitigate such effects; demand for our products; the investment in long-term initiatives such as international expansion, development of owned brands, AI technology and our physical retail stores; supply chain challenges; inflationary pressures; wars and conflicts in Ukraine/Russia, Israel/Gaza and the Middle East; other geopolitical tensions; our fluctuating operating results; seasonality in our business; our ability to acquire products on reasonable terms; our e-commerce business model; our ability to attract customers in a cost effective manner; our ability to source goods in a cost effective manner; the strength of our brand; competition; fraud; system interruptions; our ability to fulfill orders; the impact of public health crises on our business, operations and financial results; the effect of claims, lawsuits, government investigations, other legal or regulatory proceedings or commercial or contractual disputes; and other risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission, or SEC, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2024 and our subsequent Quarterly Reports on Form 10-Q, including for the quarter ended September 30, 2025, which we expect to file with the SEC on November 4, 2025. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

Use of Non-GAAP Financial Measures and Other Operating Metrics

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we reference in this press release and the accompanying tables the following non-GAAP financial measures: Adjusted EBITDA and free cash flow.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

We use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting, and analyzing future periods.

For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, please see the tables captioned "Reconciliation of Non-GAAP Financial Measures" included at the end of this release. We encourage reviewing the reconciliation in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future periods, we may exclude similar items, may incur income and expenses similar to these excluded items and may include other expenses, costs and non-recurring items.

Definitions of our non-GAAP financial measures and other operating metrics are presented below.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other income, net; taxes; and depreciation and amortization; adjusted to exclude the effects of equity-based compensation expense, certain transaction costs and certain non-routine items. Adjusted EBITDA is a key measure used by management to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of equity-based compensation, excludes an item that we do not consider to be indicative of our core operating performance.

Free Cash Flow

Free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used in purchases of property and equipment, and purchases of rental product, net of proceeds from the sale of rental product. We view free cash flow as an important indicator of our liquidity because it measures the amount of cash we generate. Free cash flow also reflects changes in working capital.

Active Customers

We define an active customer as a unique customer account from which a purchase was made across our platform at least once in the preceding 12-month period. In any particular period, we determine our number of active customers by counting the total number of customers who have made at least one purchase in the preceding 12-month period, measured from the last date of such period. We view the number of active customers as a key indicator of our growth, the reach of our sites, the value proposition and consumer awareness of our brand, the continued use of our sites by our customers and their desire to purchase our products.

Total Orders Placed

We define total orders placed as the total number of orders placed by our customers, prior to product returns, across our platform in any given period. We view total orders placed as a key indicator of the velocity of our business and an indication of the desirability of our products and sites to our customers. Total orders placed, together with average order value, is an indicator of the net sales we expect to recognize in a given period.

Average Order Value

We define average order value as the sum of the total gross sales from our sites in a given period, prior to product returns, divided by the total orders placed in that period. We believe our high average order value demonstrates the premium nature of our product assortment. Average order value varies depending on the site through which we sell merchandise, the mix of product categories sold, the number of units in each order, the percentage of sales at full price, and for sales at less than full price, the level of markdowns.

About Revolve Group, Inc.

Revolve Group, Inc. (NYSE: RVLV) is the next-generation fashion retailer for Millennial and Generation Z consumers. As a trusted premium lifestyle brand and a go-to online source for discovery and inspiration, we deliver an engaging customer experience from a vast yet curated offering of apparel, footwear, accessories, beauty and home products. Our dynamic platform connects a deeply engaged community of millions of consumers, thousands of global fashion influencers and more than 1,000 emerging, established and owned brands.

We were founded in 2003 by our co-CEOs, Michael Mente and Mike Karanikolas. We sell merchandise through two complementary segments, REVOLVE and FWRD, that leverage one platform. Through REVOLVE, we offer an assortment of premium apparel, footwear, accessories and beauty products from emerging, established and owned brands. Through FWRD, we offer an assortment of curated and elevated iconic and emerging luxury brands. For more information, visit www.revolve.com.

Contacts:

Investors:

Erik Randerson, CFA

562.677.9513

IR@revolve.com

Media:

Karla Otto

revolveus@karlaotto.com

REVOLVE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Net sales

295,631

283,146

901,311

836,183

Cost of sales

134,115

138,279

418,447

397,208

Gross profit

161,516

144,867

482,864

438,975

Operating expenses:

Fulfillment

9,839

9,268

29,025

27,933

Selling and distribution

51,705

47,930

155,455

146,810

Marketing

40,429

39,510

129,940

123,850

General and administrative

38,552

33,906

114,762

100,366

Total operating expenses

140,525

130,614

429,182

398,959

Income from operations

20,991

14,253

53,682

40,016

Other income, net

(7,310)

(192)

(5,290)

(9,784)

Income before income taxes

28,301

14,445

58,972

49,800

Provision for income taxes

7,122

3,694

16,376

12,799

Net income

21,179

10,751

42,596

37,001

Less: Net loss attributable to non-controlling interest

—

220

563

220

Net income attributable to Revolve Group, Inc. stockholders

21,179

10,971

43,159

37,221

Earnings per share of Class A and Class B

common stock:

Basic

0.30

0.16

0.61

0.53

Diluted

0.29

0.15

0.60

0.52

Weighted average number of shares of Class A and

Class B common stock outstanding:

Basic

71,302

70,673

71,282

70,802

Diluted

72,003

71,523

72,062

71,524

REVOLVE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share data)

September 30,

December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

315,427

256,600

Accounts receivable, net

21,108

10,338

Inventory

238,833

229,244

Income taxes receivable

—

1,195

Prepaid expenses and other current assets

62,755

63,711

Total current assets

638,123

561,088

Property and equipment (net of accumulated depreciation of $25,109 and $22,230 as of

September 30, 2025 and December 31, 2024, respectively)

13,578

8,937

Right-of-use lease assets

30,983

36,259

Intangible assets, net

2,309

2,294

Goodwill

2,042

Other assets

27,362

18,067

Deferred income taxes

36,860

Total assets

751,257

665,547

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

61,992

45,098

Income taxes payable

2,349

Accrued expenses

42,871

38,524

Returns reserve

71,722

69,661

Current lease liabilities

10,223

9,066

Other current liabilities

46,825

33,744

Total current liabilities

235,982

196,097

Non-current lease liabilities

25,068

31,665

Total liabilities

261,050

227,762

Stockholders' equity:

Class A common stock, $0.001 par value; 1,000,000,000 shares authorized as of

September 30, 2025 and December 31, 2024; 40,415,438 and 39,699,150 shares

issued and outstanding as of September 30, 2025 and December 31, 2024,

respectively

Class B common stock, $0.001 par value; 125,000,000 shares authorized as of

September 30, 2025 and December 31, 2024; 30,918,796 and 31,501,330 shares

issued and outstanding as of September 30, 2025 and December 31, 2024,

respectively

Additional paid-in capital

140,601

133,046

Retained earnings

349,535

305,070

Non-controlling interest

—

(403)

Total stockholders' equity

490,207

437,785

Total liabilities and stockholders' equity

751,257

665,547

REVOLVE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Nine Months Ended September 30,

2025

2024

Operating activities:

Net income

42,596

37,001

Adjustments to reconcile net income to net cash provided by operating

activities:

Depreciation and amortization

3,395

3,501

Rental product depreciation

1,324

416

Gain on sale of rental product

(222)

—

Equity-based compensation

7,414

6,751

Loss on disposal of subsidiary

2,425

—

Bargain purchase gain

—

(1,883)

Changes in operating assets and liabilities:

Accounts receivable

(10,770)

878

Inventories

(10,541)

(33,704)

Income taxes receivable

1,195

(2,433)

Prepaid expenses and other current assets

968

(11,006)

Other assets

(8,362)

(459)

Accounts payable

17,429

12,567

Income taxes payable

2,345

674

Accrued expenses

4,504

(2,506)

Returns reserve

2,061

12,407

Right-of-use lease assets and current and non-current lease liabilities

(592)

Other current liabilities

13,821

1,162

Net cash provided by operating activities

69,583

22,774

Investing activities:

Purchases of property and equipment

(8,306)

(3,819)

Purchases of rental product

(3,569)

(2,781)

Proceeds from sale of rental product

1,330

—

Cash divested upon disposal of subsidiary

(1,657)

—

Cash paid for acquisition

—

(427)

Net cash used in investing activities

(12,202)

(7,027)

Financing activities:

Proceeds from the exercise of stock options, net of

tax withholdings on share-based payment awards

141

890

Repurchases of Class A common stock

(2,024)

(11,876)

Net cash used in financing activities

(1,883)

(10,986)

Effect of exchange rate changes on cash and cash equivalents

3,329

2,631

Net increase in cash and cash equivalents

58,827

7,392

Cash and cash equivalents, beginning of period

256,600

245,449

Cash and cash equivalents, end of period

315,427

252,841

Supplemental disclosure of cash flow information:

Cash paid during the period for:

Income taxes, net of refund

12,981

14,339

Operating leases

9,201

7,185

Supplemental disclosure of non-cash activities:

Lease assets obtained in exchange for new operating lease liabilities

6,096

7,180

REVOLVE GROUP, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Unaudited)

The following table summarizes our net sales, cost of sales and gross profit for each of our reportable segments (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

Net sales

2025

2024

2025

2024

REVOLVE

254,646

243,421

777,462

718,545

FWRD

40,985

39,725

123,849

117,638

Total

295,631

283,146

901,311

836,183

Cost of sales

REVOLVE

111,540

111,945

345,631

321,502

FWRD

22,575

26,334

72,816

75,706

Total

134,115

138,279

418,447

397,208

Gross profit

REVOLVE

143,106

131,476

431,831

397,043

FWRD

18,410

13,391

51,033

41,932

Total

161,516

144,867

482,864

438,975

The following table lists net sales by geographic area (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

United States

231,424

222,650

712,290

666,840

Rest of the world

64,207

60,496

189,021

169,343

Total

295,631

283,146

901,311

836,183

REVOLVE GROUP, INC. AND SUBSIDIARIES

KEY OPERATING AND FINANCIAL METRICS

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

(in thousands, except average order value and percentages)

Gross margin

54.6

51.2

53.6

52.5

Adjusted EBITDA

25,347

17,503

67,533

51,244

Free cash flow

6,627

6,171

59,038

16,174

Active customers

2,747

2,628

2,747

2,628

Total orders placed

2,300

2,200

7,032

6,694

Average order value

306

303

300

303

REVOLVE GROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited)

A reconciliation of non-GAAP Adjusted EBITDA to net income for the three and nine months ended September 30, 2025 and 2024 is as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

(in thousands)

Net income

21,179

10,751

42,596

37,001

Excluding:

Other income, net

(7,310)

(192)

(5,290)

(9,784)

Provision for income taxes

7,122

3,694

16,376

12,799

Depreciation and amortization

1,007

983

3,395

3,501

Equity-based compensation

2,357

2,098

7,414

6,751

Transaction costs (1)

—

169

900

494

Non-routine items (2)

992

—

2,142

482

Adjusted EBITDA

25,347

17,503

67,533

51,244

(1)

Includes legal and professional service fees related to potential and consummated strategic acquisitions and investments.

(2)

Non-routine items in the three and nine months ended September 30, 2025 primarily represent an accrual for certain pending legal matters. Non-routine items in the nine months ended September 30, 2024 represent an accrual and a charge for a previously disclosed and settled matter related to non-routine import and export fees.

A reconciliation of non-GAAP free cash flow to net cash provided by operating activities for the three and nine months ended September 30, 2025 and 2024 is as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

(in thousands)

Net cash provided by operating activities

11,818

9,052

69,583

22,774

Purchases of property and equipment

(4,320)

(1,037)

(8,306)

(3,819)

Purchases of rental product, net of proceeds from the sale of rental product

(871)

(1,844)

(2,239)

(2,781)

Free cash flow

6,627

6,171

59,038

16,174

Net cash used in investing activities

(5,191)

(2,881)

(12,202)

(7,027)

Net cash provided by (used in) financing activities

215

(936)

(1,883)

(10,986)

SOURCE Revolve Group, Inc.