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
