Revolve Group, Inc. Earnings Recaps
Q1 2026
May 6, 2026
Revolve's shares fell 13.9% after the first quarter report as investors reacted negatively to signs of decelerating growth momentum and cautious outlook, despite solid headline sales growth. The market likely penalized the company for slowing category trends and geopolitical headwinds, particularly the ongoing Middle East slowdown, which overshadowed margin and cash flow strengths.
Key takeaways
- Net sales increased 16% year-over-year to $343 million, an improvement but still implying moderating enthusiasm given the stock drop.
- Domestic net sales grew 15% and international sales rose 20%, though international progress was hampered by continued geopolitical uncertainty in the Middle East.
- Diluted EPS rose 25% year-over-year to $0.20 and adjusted EBITDA increased 9% to $21 million, reflecting ongoing profitability despite elevated marketing spend.
- Operating cash flow reached $49 million, boosting cash and equivalents to $336 million, reinforcing a solid balance sheet.
- The company highlighted investments in new growth initiatives like Revolve Los Angeles and AI enhancements but offered a cautious outlook amid uncertain macro conditions.
Q3 2025
Nov 5, 2025
Revolve Group delivered a solid Q3 2025, with a 45% year-over-year increase in adjusted EBITDA to a record $25 million, driven by impressive gross margin expansion despite only 4% net sales growth.
Key takeaways
- Achieved gross margin of 54.6%, a nearly 350 basis point increase year-over-year, significantly surpassing expectations.
- Adjusted EBITDA rose 45% year-over-year, highlighting strong operational performance amid challenging market conditions.
- Free cash flow more than tripled in the first nine months of 2025, bolstering cash position by 25% to $63 million.
- Ongoing investments in international markets and brand activations are expected to bolster long-term growth prospects, particularly in Mainland China.