Revolve Group, Inc. Q3 2025 Earnings Recap

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.