EX-99.1 2 rvlv-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

img94756311_0.jpg

 

Revolve Group Announces Second Quarter 2025 Financial Results

 

Los Angeles, CA – August 5, 2025 - Revolve Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for Millennial and Generation Z consumers, today announced financial results for the second quarter ended June 30, 2025.

 

Co-Founder and Co-CEO Commentary

“We delivered strong second quarter results, highlighted by 9% growth in net sales year-over-year, 10% growth in operating income year-over-year, our highest Adjusted EBITDA margin in three years, and our highest operating cash flow for any second quarter in the past four years,” said co-founder and co-CEO Mike Karanikolas. “I am especially proud of the team for delivering the strong second quarter results within such a volatile environment and amidst all the macro uncertainty surrounding tariff policy announcements in early April.”

 

“Our ability to deliver profitable growth and market share gains in the second quarter, while at the same time continuing to invest in exciting long-term growth drivers, is a true reflection of the platform we have built, our operating excellence, and the team’s ability to execute,” said co-founder and co-CEO Michael Mente. “Importantly, our healthy cash flow generation gives us the capacity to continue to invest in exciting initiatives such as AI enhancements, developing new owned brands, physical retail exploration, and category expansion that collectively have the potential to accelerate our profitable growth and market share gains for years to come.”

 

Second Quarter 2025 Financial Summary

 

 

Three Months Ended June 30,

 

 

2025

 

 

2024

 

 

YoY Change

 

 

(in thousands, except percentages)

Net sales

 

$

308,971

 

 

$

282,456

 

 

9%

Gross profit

 

$

167,062

 

 

$

152,606

 

 

9%

Gross margin

 

 

54.1

%

 

 

54.0

%

 

 

Net income

 

$

10,011

 

 

$

15,377

 

 

(35%)

Adjusted EBITDA (non-GAAP financial measure)

 

$

22,887

 

 

$

20,474

 

 

12%

Net cash provided by operating activities

 

$

12,620

 

 

$

(24,669

)

 

NM

Free cash flow (non-GAAP financial measure)

 

$

9,607

 

 

$

(26,653

)

 

NM

NM - Not meaningful

 

Operational Metrics

 

 

Three Months Ended June 30,

 

 

2025

 

 

2024

 

 

YoY Change

 

 

(in thousands, except average order value and percentages)

Active customers (trailing 12 months)

 

 

2,743

 

 

 

2,577

 

 

6%

Total orders placed

 

 

2,424

 

 

 

2,271

 

 

7%

Average order value

 

$

300

 

 

$

306

 

 

(2%)

 

 


 

Additional Second Quarter 2025 Metrics and Results Commentary

Trailing 12-month active customers grew to 2,743,000 as of June 30, 2025, an increase of 6% year-over-year.
Net sales were $309.0 million, a year-over-year increase of 9%.
Gross profit was $167.1 million, a year-over-year increase of 9%.
Gross margin was 54.1%, an increase of 4 basis points year-over-year. The increase primarily reflects a higher mix of Owned Brand net sales that carry higher margins than third-party brands, partially offset by a lower mix of full price sales year-over-year.
Fulfillment costs were $9.8 million, or 3.2% of net sales, compared to $9.3 million, or 3.3% of net sales, in the second quarter of 2024. The increased fulfillment efficiency year-over-year as a percentage of net sales primarily reflects a lower proportion of returned purchases, partially offset by a decrease in average order value.
Selling and distribution costs were $53.8 million, or 17.4% of net sales, compared to $50.4 million, or 17.9% of net sales, in the second quarter of 2024. The increased efficiency year-over-year as a percentage of net sales primarily reflects a lower proportion of returned purchases and lower shipping rates year-over-year, partially offset by a decrease in average order value.
Marketing costs were $47.1 million, or 15.2% of net sales, compared to $43.0 million, or 15.2% of net sales, in the second quarter of 2024.
Income from operations was $18.0 million, a year-over-year increase of 10%.
Other expense (income) was $2.9 million recorded in other expense, a decrease of $7.2 million year-over-year compared to $4.3 million recorded in other income in the second quarter of 2024. The swing from other income to other expense year-over-year primarily reflects a $2.8 million year-over-year increase in losses from foreign currency exchange and a non-cash charge of $2.4 million in the second quarter of 2025 related to the disposal of a subsidiary, as compared to a bargain purchase gain of $1.9 million related to the acquisition of the same subsidiary in the second quarter of 2024.
The effective tax rate was 33.7%, an increase of approximately 8 points from 25.7% in the second quarter of 2024. The increased effective tax rate primarily reflects certain discrete tax items recorded in the second quarter of 2025 that the company had previously expected to be reflected in its tax provision for the third quarter of 2025.
Net income was $10.0 million, a decrease from $15.4 million in the second quarter of 2024, primarily due to the significant year-over-year decrease in other income and the increased effective tax rate as described above.
Adjusted EBITDA was $22.9 million, a year-over-year increase of 12% that primarily reflects a year-over-year increase in net sales and gross profit combined with increased year-over-year efficiency in our selling and distribution and fulfillment costs, partially offset by increased general and administrative expenses year-over-year.
Diluted earnings per share (EPS) was $0.14, a decrease from $0.21 in the second quarter of 2024, primarily due to the significant year-over-year decrease in other income and the increased effective tax rate as described above.

Additional Net Sales Commentary

REVOLVE segment net sales were $268.4 million, a year-over-year increase of 9%.
FWRD segment net sales were $40.6 million, a year-over-year increase of 10%.
Domestic net sales were $241.6 million, a year-over-year increase of 7%.
International net sales were $67.3 million, a year-over-year increase of 17%.

Cash Flow and Balance Sheet

Net cash provided by operating activities was $12.6 million for the quarter and $57.8 million for the six months ended June 30, 2025, a year-over-year increase of $44.1 million, or 321%, compared to the six months ended June 30, 2024.
Free cash flow was $9.6 million for the quarter and $52.4 million for the six months ended June 30, 2025, a year-over-year increase of $42.4 million, or 424%, compared to the six months ended June 30, 2024.

 


 

Stock repurchases were $1.7 million for the second quarter ended June 30, 2025, exclusive of broker fees and
excise taxes. The company repurchased 92,583 shares of its Class A common stock during the second quarter at an
average cost of $18.78 per share. $55.9 million remained available under the company's $100 million stock
repurchase program as of June 30, 2025.
Cash and cash equivalents: The strong cash flow generation has further strengthened our balance sheet and liquidity. Cash and cash equivalents as of June 30, 2025 were $310.7 million, an increase of $9.9 million, or 3%, from $300.8 million as of March 31, 2025, and an increase of $66.0 million, or 27%, from $244.7 million as of June 30, 2024. Our balance sheet as of June 30, 2025 remains debt free.
Inventory as of June 30, 2025 was $221.0 million, a decrease of $13.3 million, or 6%, year-over-year, from the inventory balance of $234.3 million as of June 30, 2024.

 

Additional trend information regarding Revolve Group’s second quarter of 2025 financial results and operating metrics is available in the Q2 2025 Financial Highlights presentation available on our investor relations website: https://investors.revolve.com/events-and-presentations

 

Results Since the End of the Second Quarter of 2025

Net sales in July 2025 increased approximately 7% year-over-year.

 

2025 Business Outlook

Based on information available to us as of August 5, 2025, we are providing the following guidance for the full year ending December 31, 2025 and the third quarter ending September 30, 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 August 5, 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

52.1% to 52.6%

50.0% to 52.0%

Fulfillment expenses

3.1% to 3.2% of net sales

3.0% to 3.2% of net sales

Selling and distribution expenses

17.2% to 17.5% of net sales

17.2% to 17.5% of net sales

Marketing expenses

14.8% to 15.0% of net sales

14.9% to 15.1% of net sales

General and administrative expenses

$152 million to $154 million

$154 million to $157 million

Effective tax rate

28% to 29%

27% to 28%

Third Quarter 2025 Outlook

Gross margin

51.2% to 51.7%

Fulfillment expenses

3.2% of net sales

Selling and distribution expenses

17.5% of net sales

Marketing expenses

14.5% of net sales

General and administrative expenses

$38.5 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 third 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 effect; operating results and financial condition; demand for our products; 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 June 30, 2025, which we expect to file with the SEC on August 5, 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) expense, 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. 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:

 

Jennifer Walker

revolve@walkerdrawas.com

 

 


 

REVOLVE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share data)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net sales

 

$

308,971

 

 

$

282,456

 

 

$

605,680

 

 

$

553,037

 

Cost of sales

 

 

141,909

 

 

 

129,850

 

 

 

284,332

 

 

 

258,929

 

Gross profit

 

 

167,062

 

 

 

152,606

 

 

 

321,348

 

 

 

294,108

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Fulfillment

 

 

9,828

 

 

 

9,272

 

 

 

19,186

 

 

 

18,665

 

Selling and distribution

 

 

53,794

 

 

 

50,442

 

 

 

103,750

 

 

 

98,880

 

Marketing

 

 

47,109

 

 

 

42,961

 

 

 

89,511

 

 

 

84,340

 

General and administrative

 

 

38,328

 

 

 

33,496

 

 

 

76,210

 

 

 

66,460

 

Total operating expenses

 

 

149,059

 

 

 

136,171

 

 

 

288,657

 

 

 

268,345

 

Income from operations

 

 

18,003

 

 

 

16,435

 

 

 

32,691

 

 

 

25,763

 

Other expense (income), net

 

 

2,913

 

 

 

(4,271

)

 

 

2,020

 

 

 

(9,592

)

Income before income taxes

 

 

15,090

 

 

 

20,706

 

 

 

30,671

 

 

 

35,355

 

Provision for income taxes

 

 

5,079

 

 

 

5,329

 

 

 

9,254

 

 

 

9,105

 

Net income

 

 

10,011

 

 

 

15,377

 

 

 

21,417

 

 

 

26,250

 

Less: Net loss attributable to non-controlling interest

 

 

150

 

 

 

 

 

 

563

 

 

 

 

Net income attributable to Revolve Group, Inc. stockholders

 

$

10,161

 

 

$

15,377

 

 

$

21,980

 

 

$

26,250

 

Earnings per share of Class A and Class B
   common stock:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.14

 

 

$

0.22

 

 

$

0.31

 

 

$

0.37

 

Diluted

 

$

0.14

 

 

$

0.21

 

 

$

0.30

 

 

$

0.37

 

Weighted average number of shares of Class A and
   Class B common stock outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

71,283

 

 

 

70,833

 

 

 

71,270

 

 

 

70,880

 

Diluted

 

 

71,898

 

 

 

71,544

 

 

 

72,085

 

 

 

71,538

 

 

 


 

REVOLVE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share data)

 

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

310,716

 

 

$

256,600

 

Accounts receivable, net

 

 

19,352

 

 

 

10,338

 

Inventory

 

 

221,011

 

 

 

229,244

 

Income taxes receivable

 

 

1,151

 

 

 

1,195

 

Prepaid expenses and other current assets

 

 

61,949

 

 

 

63,711

 

Total current assets

 

 

614,179

 

 

 

561,088

 

Property and equipment (net of accumulated depreciation of $24,166 and $22,230 as of
   June 30, 2025 and December 31, 2024, respectively)

 

 

10,406

 

 

 

8,937

 

Right-of-use lease assets

 

 

33,149

 

 

 

36,259

 

Intangible assets, net

 

 

2,170

 

 

 

2,294

 

Goodwill

 

 

2,042

 

 

 

2,042

 

Other assets

 

 

24,116

 

 

 

18,067

 

Deferred income taxes

 

 

36,860

 

 

 

36,860

 

Total assets

 

$

722,922

 

 

$

665,547

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

56,190

 

 

$

45,098

 

Income taxes payable

 

 

 

 

 

4

 

Accrued expenses

 

 

44,229

 

 

 

38,524

 

Returns reserve

 

 

75,486

 

 

 

69,661

 

Current lease liabilities

 

 

9,932

 

 

 

9,066

 

Other current liabilities

 

 

40,899

 

 

 

33,744

 

Total current liabilities

 

 

226,736

 

 

 

196,097

 

Non-current lease liabilities

 

 

27,599

 

 

 

31,665

 

Total liabilities

 

 

254,335

 

 

 

227,762

 

Stockholders’ equity:

 

 

 

 

 

 

Class A common stock, $0.001 par value; 1,000,000,000 shares authorized as of
   June 30, 2025 and December 31, 2024; 40,361,953 and 39,699,150 shares
   issued and outstanding as of June 30, 2025 and December 31, 2024,
   respectively

 

 

40

 

 

 

40

 

Class B common stock, $0.001 par value; 125,000,000 shares authorized as of
   June 30, 2025 and December 31, 2024; 30,918,796 and 31,501,330 shares
   issued and outstanding as of June 30, 2025 and December 31, 2024,
   respectively

 

 

31

 

 

 

32

 

Additional paid-in capital

 

 

136,006

 

 

 

133,046

 

Retained earnings

 

 

332,510

 

 

 

305,070

 

Non-controlling interest

 

 

 

 

 

(403

)

Total stockholders’ equity

 

 

468,587

 

 

 

437,785

 

Total liabilities and stockholders’ equity

 

$

722,922

 

 

$

665,547

 

 

 


 

REVOLVE GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

Operating activities:

 

 

 

 

 

 

Net income

 

$

21,417

 

 

$

26,250

 

Adjustments to reconcile net income to net cash provided by operating
   activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

2,388

 

 

 

2,518

 

Rental product depreciation

 

 

775

 

 

 

107

 

Equity-based compensation

 

 

5,057

 

 

 

4,653

 

Loss on disposal of subsidiary

 

 

2,425

 

 

 

 

Bargain purchase gain

 

 

 

 

 

(1,883

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(9,014

)

 

 

(5,144

)

Inventories

 

 

7,281

 

 

 

(27,988

)

Income taxes receivable

 

 

44

 

 

 

996

 

Prepaid expenses and other current assets

 

 

1,774

 

 

 

(9,462

)

Other assets

 

 

(5,660

)

 

 

(275

)

Accounts payable

 

 

11,625

 

 

 

14,992

 

Income taxes payable

 

 

(4

)

 

 

1,269

 

Accrued expenses

 

 

5,862

 

 

 

(330

)

Returns reserve

 

 

5,825

 

 

 

8,278

 

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

 

 

75

 

 

 

(266

)

Other current liabilities

 

 

7,895

 

 

 

7

 

Net cash provided by operating activities

 

 

57,765

 

 

 

13,722

 

Investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(3,986

)

 

 

(2,782

)

Purchases of rental product

 

 

(1,368

)

 

 

(937

)

Cash divested upon disposal of subsidiary

 

 

(1,657

)

 

 

 

Cash paid for acquisition

 

 

 

 

 

(427

)

Net cash used in investing activities

 

 

(7,011

)

 

 

(4,146

)

Financing activities:

 

 

 

 

 

 

Proceeds from the exercise of stock options, net of
   tax withholdings on share-based payment awards

 

 

(357

)

 

 

(32

)

Repurchases of Class A common stock

 

 

(1,741

)

 

 

(10,018

)

Net cash used in financing activities

 

 

(2,098

)

 

 

(10,050

)

Effect of exchange rate changes on cash and cash equivalents

 

 

5,460

 

 

 

(238

)

Net increase in cash and cash equivalents

 

 

54,116

 

 

 

(712

)

Cash and cash equivalents, beginning of period

 

 

256,600

 

 

 

245,449

 

Cash and cash equivalents, end of period

 

$

310,716

 

 

$

244,737

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

Income taxes, net of refund

 

$

8,623

 

 

$

6,867

 

Operating leases

 

$

5,761

 

 

$

4,585

 

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 June 30,

 

 

Six Months Ended June 30,

 

Net sales

 

2025

 

 

2024

 

 

2025

 

 

2024

 

REVOLVE

 

$

268,421

 

 

$

245,535

 

 

$

522,816

 

 

$

475,124

 

FWRD

 

 

40,550

 

 

 

36,921

 

 

 

82,864

 

 

 

77,913

 

Total

 

$

308,971

 

 

$

282,456

 

 

$

605,680

 

 

$

553,037

 

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

REVOLVE

 

$

118,481

 

 

$

107,640

 

 

$

234,091

 

 

$

209,557

 

FWRD

 

 

23,428

 

 

 

22,210

 

 

 

50,241

 

 

 

49,372

 

Total

 

$

141,909

 

 

$

129,850

 

 

$

284,332

 

 

$

258,929

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

REVOLVE

 

$

149,940

 

 

$

137,895

 

 

$

288,725

 

 

$

265,567

 

FWRD

 

 

17,122

 

 

 

14,711

 

 

 

32,623

 

 

 

28,541

 

Total

 

$

167,062

 

 

$

152,606

 

 

$

321,348

 

 

$

294,108

 

 

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

United States

 

$

241,623

 

 

$

225,057

 

 

$

480,866

 

 

$

444,190

 

Rest of the world

 

 

67,348

 

 

 

57,399

 

 

 

124,814

 

 

 

108,847

 

Total

 

$

308,971

 

 

$

282,456

 

 

$

605,680

 

 

$

553,037

 

 

 


 

REVOLVE GROUP, INC. AND SUBSIDIARIES

KEY OPERATING AND FINANCIAL METRICS

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(in thousands, except average order value and percentages)

 

Gross margin

 

 

54.1

%

 

 

54.0

%

 

 

53.1

%

 

 

53.2

%

Adjusted EBITDA

 

$

22,887

 

 

$

20,474

 

 

$

42,186

 

 

$

33,741

 

Free cash flow

 

$

9,607

 

 

$

(26,653

)

 

$

52,411

 

 

$

10,003

 

Active customers

 

 

2,743

 

 

 

2,577

 

 

 

2,743

 

 

 

2,577

 

Total orders placed

 

 

2,424

 

 

 

2,271

 

 

 

4,732

 

 

 

4,494

 

Average order value

 

$

300

 

 

$

306

 

 

$

298

 

 

$

302

 

 

 


 

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 six months ended June 30, 2025 and 2024 is as follows:

 

 

 

Three Months Ended June 30,

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Net income

 

$

10,011

 

 

$

15,377

 

 

$

21,417

 

 

$

26,250

 

Excluding:

 

 

 

 

 

 

 

 

 

 

 

 

Other expense (income), net

 

 

2,913

 

 

 

(4,271

)

 

 

2,020

 

 

 

(9,592

)

Provision for income taxes

 

 

5,079

 

 

 

5,329

 

 

 

9,254

 

 

 

9,105

 

Depreciation and amortization

 

 

1,370

 

 

 

1,175

 

 

 

2,388

 

 

 

2,518

 

Equity-based compensation

 

 

2,304

 

 

 

2,094

 

 

 

5,057

 

 

 

4,653

 

Transaction costs(1)

 

 

60

 

 

 

325

 

 

 

900

 

 

 

325

 

Non-routine items(2)

 

 

1,150

 

 

 

445

 

 

 

1,150

 

 

 

482

 

Adjusted EBITDA

 

$

22,887

 

 

$

20,474

 

 

$

42,186

 

 

$

33,741

 

 

(1)

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

(2)

Non-routine items in the three and six months ended June 30, 2025 primarily represent an accrual for certain pending legal matters. Non-routine items in the three and six months ended June 30, 2024 represent an accrual and a charge for a previously disclosed and settled legal matter.

 

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(in thousands)

 

Net cash provided by (used in) operating activities

 

$

12,620

 

 

$

(24,669

)

 

$

57,765

 

 

$

13,722

 

Purchases of property and equipment

 

 

(2,207

)

 

 

(1,047

)

 

 

(3,986

)

 

 

(2,782

)

Purchases of rental product

 

 

(806

)

 

 

(937

)

 

 

(1,368

)

 

 

(937

)

Free cash flow

 

$

9,607

 

 

$

(26,653

)

 

$

52,411

 

 

$

10,003

 

Net cash used in investing activities

 

$

(4,670

)

 

$

(2,411

)

 

$

(7,011

)

 

$

(4,146

)

Net cash used in financing activities

 

$

(1,567

)

 

$

(1,786

)

 

$

(2,098

)

 

$

(10,050

)