Rent the Runway, Inc. (RENT) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Rent the Runway, Inc. (RENT) trades at $3.66 with AI Score 21/100 (Grade F). Rent the Runway, Inc. Market cap: $123M, Sector: Consumer cyclical.
Price as of Aug 21, 2026 · Last analyzed: May 9, 2026Analyst Coverage for RENT: RENT does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates RENT against Consumer Cyclical peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
RENT: 2/3 scored disciplines lean bearish. Dominant signal: Seth Klarman bearish.
How is this calculated? →Why this analysis is different
- A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
- An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
- Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.
Rent the Runway, Inc. (RENT) Consumer Business Overview
Rent the Runway, Inc. stands at the forefront of the apparel rental market, offering a diverse range of designer clothing and accessories for women, leveraging a unique business model that promotes sustainability and affordability in fashion.
What Is the Investment Thesis for RENT?
Rent the Runway, Inc. presents a compelling investment thesis characterized by its unique business model and strong market positioning within the apparel rental industry. The company has demonstrated a profit margin of 6.9% and a gross margin of 59.4%, indicating effective cost management and pricing strategies. With a P/E ratio of 2.4, RENT stock appears undervalued relative to its earnings potential, suggesting room for growth as the rental fashion market expands. Key growth catalysts include the increasing consumer shift towards sustainable fashion, projected to grow at a CAGR of 10% over the next five years, and the company's ongoing efforts to enhance its online presence and customer engagement. Additionally, Rent the Runway's diverse product offerings and strong brand recognition position it favorably against competitors. However, investors should remain vigilant regarding potential risks, including supply chain disruptions and changing consumer preferences, which could impact revenue stability. Overall, Rent the Runway's strategic initiatives and market trends indicate a positive outlook for the company's future growth.
Based on FMP financials and quantitative analysis
RENT Key Highlights
Market Cap of $123M reflects a niche yet growing presence in the apparel rental market.
- P/E ratio of 2.4 suggests potential undervaluation compared to industry peers.
- Gross margin of 59.4% indicates strong pricing power and cost efficiency.
- Profit margin of 6.9% showcases the company's ability to maintain profitability amidst competitive pressures.
- Beta of 1.36 indicates higher volatility compared to the market, reflecting the company's growth stage.
Who Are RENT's Competitors?
RENT is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| STAY Extended Stay America, Inc. | $20.46 | +0.00% | 45 | |
| FWRD Forward Air Corporation | $17.79 | -3.94% | $563M | — |
| BMBL Bumble Inc. | $2.80 | +0.36% | $365M | — |
| DLTH Duluth Holdings Inc. | $3.84 | +0.79% | $146M | 65 |
| RROTF Roots Corporation | $2.63 | +5.20% | $103M | 47 |
| ENMHF ENM Holdings Limited | $0.06 | +0.00% | $99.0M | 49 |
| RTMNF Reitmans (Canada) Limited | $1.51 | +0.00% | $75.6M | 47 |
| GLFGF Global Fashion Group S.A. | $0.33 | +0.00% | $75.4M | 51 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are RENT's Key Strengths?
Innovative rental model that appeals to modern consumer preferences.
- Strong gross margins indicating effective cost management.
- Established market presence with a loyal customer base.
What Are RENT's Weaknesses?
Limited market capitalization may restrict growth opportunities.
- Dependence on a niche market could pose risks during economic downturns.
- Potential logistical challenges in managing inventory and returns.
What Could Drive RENT Stock Higher?
Expansion into new U.S. cities to increase market reach and customer base.
- Development of subscription models to create stable revenue streams.
- Partnerships with designers to enhance exclusive offerings and attract new customers.
What Are the Key Risks for RENT?
Financial-distress signal — its Altman Z-Score of -5.33 sits in the distress zone (elevated bankruptcy risk).
- Supply chain disruptions could impact inventory availability and customer satisfaction.
- Intense competition from both established brands and new entrants in the rental space.
- Economic downturns may reduce consumer spending on discretionary fashion items.
What Are the Growth Opportunities for RENT?
- Expansion into new geographic markets: Rent the Runway plans to expand its operations into additional U.S. cities and potentially international markets, targeting urban areas with high demand for rental services. This expansion could tap into a market size of approximately $1.5 billion in urban apparel rentals by 2028, leveraging existing brand recognition and customer loyalty.
- Enhancement of online platform: By investing in technology and user experience, Rent the Runway aims to improve its online rental platform, making it more user-friendly and efficient. This enhancement could lead to increased customer retention and acquisition, with the online rental market projected to grow at a CAGR of 12% over the next five years.
- Introduction of subscription models: The company is exploring subscription-based offerings, allowing customers to access a rotating wardrobe of designer pieces for a fixed monthly fee.
- Partnerships with designers and brands: Collaborating with emerging designers and established brands to offer exclusive collections could differentiate Rent the Runway from competitors. Such partnerships could attract new customers and enhance brand loyalty, contributing to an anticipated market growth of 15% in exclusive rental offerings over the next three years.
- Sustainability initiatives: As consumers become more environmentally conscious, Rent the Runway's commitment to sustainability could resonate well with its target demographic. Implementing eco-friendly practices and promoting sustainable fashion could enhance brand image and attract a broader customer base, aligning with the projected 20% growth in sustainable fashion rentals by 2026.
What Are RENT's Competitive Advantages?
- Strong brand recognition in the designer rental space, differentiating from traditional retailers.
- Established relationships with top designers and brands, providing exclusive rental options.
- Robust online platform that enhances customer experience and convenience.
- Commitment to sustainability, appealing to a growing demographic of eco-conscious consumers.
- Diverse product offerings that cater to various customer needs and occasions.
What Does RENT Do?
Founded in 2009 and headquartered in Brooklyn, New York, Rent the Runway, Inc. revolutionized the fashion industry by providing women with access to high-end designer wear through a rental model. The company began its journey with a mission to democratize fashion, allowing customers to rent clothing for special occasions without the burden of ownership. Over the years, Rent the Runway has expanded its offerings to include a wide array of apparel categories such as ready-to-wear, workwear, casual wear, maternity, outerwear, and even children’s clothing. In addition to clothing, the company provides a selection of accessories, including handbags and jewelry, enhancing the overall rental experience. The company operates both online and through physical retail locations, catering to a growing customer base that values convenience and sustainability. Rent the Runway also engages in software development and support activities, further diversifying its business model. With a current employee count of 912, the company has positioned itself as a leader in the rental apparel market, appealing to consumers seeking fashionable options without the commitment of purchase. This innovative approach not only addresses the evolving consumer preferences for sustainable fashion but also taps into the increasing demand for rental services in the retail sector.
What Products and Services Does RENT Offer?
- Rent designer clothing and accessories for women through an online platform and physical stores.
- Offer a wide range of apparel categories including workwear, casual wear, and evening wear.
- Provide options for maternity and kids' clothing, expanding the target audience.
- Engage in software development to enhance customer experience and operational efficiency.
- Focus on sustainability by promoting a rental model that reduces waste in the fashion industry.
- Facilitate an easy return process for rented items, ensuring customer satisfaction.
How Does RENT Make Money?
- Generate revenue through rental fees charged for clothing and accessories.
- Offer subscription services for customers to access a rotating wardrobe for a monthly fee.
- Engage in partnerships with designers to provide exclusive collections, enhancing product offerings.
- Utilize an online platform to reach a broader customer base, increasing sales potential.
- Implement a pricing strategy that balances affordability with premium offerings.
What Industry Does RENT Operate In?
The apparel rental industry is experiencing significant growth, driven by changing consumer behaviors favoring sustainability and affordability. As consumers increasingly seek alternatives to fast fashion, the rental model offers a viable solution, allowing access to high-quality clothing without the financial burden of ownership. The global online apparel rental market is projected to reach $1.96 billion by 2027, growing at a CAGR of 10.4%. Rent the Runway, Inc. is well-positioned within this landscape, competing with other rental services by offering a diverse range of designer options and a robust online platform. The competitive landscape includes both established brands and new entrants, emphasizing the need for continuous innovation and customer engagement to maintain market share.
Who Are RENT's Key Customers?
- Target primarily women aged 18-40 who seek fashionable options without the commitment of purchase.
- Appeal to environmentally conscious consumers looking for sustainable fashion solutions.
- Serve customers preparing for special occasions, such as weddings and parties, who prefer rental options.
- Attract working professionals needing versatile workwear without the high cost of ownership.
- Engage with families seeking affordable clothing solutions for children.
Key Financial Metrics
Return on equity for Rent the Runway, Inc. stands at 0.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -14.5%, showing how much profit it generates from its asset base. RENT trades at a trailing price-to-earnings ratio of 2.40, below the Consumer Cyclical sector average of ~34x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.75 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.
Rent the Runway, Inc. (RENT) Valuation Context
Valued at $123M, RENT is classified as a micro-cap stock. Relative to its peer group, RENT's quantitative score of 21/100 is below the peer average of 52/100.
Company Profile
Rent the Runway, Inc. operates in the Apparel - Retail industry within the Consumer Cyclical sector. It is headquartered in Brooklyn, US. The company is led by CEO Teri J. Bariquit. RENT has traded publicly since 2021.
Financial Health
Rent the Runway, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -5.33 places it in the distress zone, a signal of elevated financial risk.
Forward Outlook
Wall Street analysts project Rent the Runway, Inc. revenue of about $302.6M for fiscal 2027, with EPS near $-19.64.
RENT Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Rent the Runway's subscription model seems to be resonating with a growing segment of consumers who value access over ownership, especially in a fluctuating economic environment.
- Insider activity suggests confidence in the company's long-term strategy, as key personnel have recently increased their holdings.
- Community sentiment indicates a positive shift in perception, with more users highlighting the convenience and cost-effectiveness of the service.
- The 'closet in the cloud' concept aligns with broader sustainability trends, attracting environmentally conscious consumers and potentially boosting brand loyalty.
Bear Case
- Increased competition from other rental services and fast-fashion brands could erode Rent the Runway's market share.
- Recent market developments suggest a potential slowdown in consumer spending on discretionary items, impacting demand for rental services.
- Negative community feedback points to concerns about inventory availability and customer service issues, potentially leading to subscriber churn.
- Insider selling activity, although not necessarily indicative of negative sentiment, could create uncertainty among investors regarding the company's future prospects.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · April 2026
RENT Latest News
No recent news available for RENT.
RENT Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for RENT.
Price Targets
Wall Street price target analysis for RENT.
RENT MoonshotScore
What does this score mean?
The MoonshotScore rates RENT 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: Jennifer Y. Hyman
CEO
Jennifer Y. Hyman co-founded Rent the Runway in 2009, bringing a wealth of experience in entrepreneurship and strategy. She holds an MBA from Harvard Business School and has previously worked in various roles in the fashion and technology sectors. Under her leadership, the company has grown significantly, becoming a leader in the rental fashion industry.
Track Record: Hyman has successfully navigated Rent the Runway through various funding rounds, raising over $300 million to date. Her strategic vision has led to the expansion of the company's product offerings and the enhancement of its online platform, positioning it for future growth.
Rent the Runway, Inc. Consumer Cyclical Stock: Key Questions Answered
What does the AI Score mean for RENT?
RENT holds an AI Score of 21/100 (Grade: F). This is an educational research signal, not a buy or sell recommendation. Rent the Runway, Inc. is a leading apparel rental service specializing in designer wear for women, operating both online and through physical stores. The company aims to provide a sustainable …
What does Rent the Runway, Inc. do?
Rent the Runway, Inc. specializes in renting designer clothing and accessories for women. The company operates both online and through physical retail locations, offering a wide variety of apparel categories including workwear, casual wear, and evening wear. By providing an affordable and sustainable alternative to traditional retail, Rent the Runway allows customers to enjoy high-quality fashion without the commitment of ownership.
What do analysts say about RENT stock?
Analysts view Rent the Runway, Inc. as a unique player in the apparel rental market, with a focus on sustainability and innovation. Key valuation metrics suggest the stock is undervalued, particularly with a P/E ratio of 2.4 compared to industry averages. Growth considerations include the company's potential for market expansion and the increasing consumer shift towards rental services.
What are the main risks for RENT?
Rent the Runway, Inc. faces several risks, including supply chain disruptions that could affect inventory management and customer satisfaction. Additionally, the company operates in a highly competitive landscape, with both established brands and new entrants vying for market share. Economic fluctuations may also impact consumer spending on discretionary fashion items, posing a risk to revenue stability.
What are the key factors to evaluate for RENT?
Rent the Runway, Inc. (RENT) holds an AI score of 21/100 (low). P/E: 2.4x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does RENT data refresh on this page?
RENT's price was last updated on Aug 21, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven RENT's recent stock price performance?
Rent the Runway, Inc. (RENT) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Innovative rental model that appeals to modern consumer preferences. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider RENT overvalued or undervalued right now?
Rent the Runway, Inc. (RENT) trades at 2.4x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research RENT before investing?
Before investing in Rent the Runway, Inc. (RENT), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Data sourced from company profile and financial metrics.