Oct. 14 at 7:44 PM
$RENT - Research Notes (Part 2 of2)
Date/time checked: (you’d insert your local/time‐zone)
Identity & price: Rent the Runway, Inc. (NASDAQ: RENT). Current price ~
$4.75 per public sources.
Filings / news last 90d:
Announced a growth recapitalization to strengthen balance sheet; debt conversion + new equity injection expected.
Q1 2025 results: revenue down ~7.2% YoY to
$69.6M; net loss
$26.1M; adjusted EBITDA slightly negative.
In Q4/FY2024, cash consumption narrowed dramatically (from –
$70.5M to –
$6.6M) as guidance of inventory expansion and improved capital management.
Dilution risk:
Reverse stock split was executed in 2024 to maintain listing.
The recapitalization includes debt conversion (≈
$243M of debt into equity) at ~
$9.23 per share.
These moves are dilutive or have optionality exposure, so risk is material.
Liquidity:
Float is relatively small: public float estimates vary ~2M shares in some sources.
Sources:
https://investors.renttherunway.com/news-releases
https://stockanalysis.com/stocks/rent/statistics/
https://us.fashionnetwork.com/news/Rent-the-runway-to-swap-debt-for-equity-in-revival-effort,1757372.html
