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Reformation Financial Performance for Q2 2026

Reformation Inc., the prominent sustainable women’s fashion brand, has taken significant strides in fiscal Q2 2026, showcasing an impressive financial performance. In a recent announcement, Reformation revealed that its net revenue surged by 24.1% compared to the same quarter in the previous year, reaching $155.2 million. This remarkable growth reflects the company's strategic focus on its direct-to-consumer (DTC) and wholesale channels, with the DTC segment increasing by 21.2% to $135.3 million and wholesale revenues soaring by an astounding 48.7% to $19.9 million.

Key Highlights of Q2 2026

The company’s gross margin also experienced a positive trend, expanding by 230 basis points from last year to hit 66.7%. The net income for this quarter was reported at $12.4 million, translating to $0.23 per diluted share, showcasing a year-over-year growth of 79.4%. Moreover, adjusted EBITDA grew significantly by 53.9%, culminating at $25.4 million, effectively boosting the adjusted EBITDA margin to 16.4%.

CEO Hali Borenstein expressed confidence in the company’s trajectory, noting, “Reformation is beginning its public company journey from a position of strength. In the second quarter, we delivered 24% net revenue growth across channels and geographies alongside strong profitability.” This statement underlines the sustained strength of the Reformation brand, exemplified by its 21 consecutive quarters of double-digit revenue growth.

The continuous expansion of Reformation’s retail presence played a crucial role in these results, as the company launched four new stores during the quarter, bringing its total to 70 locations globally. The growth in active customers is promising; the company noted a 22.9% increase in active customers, a sign that both customer retention and new customer acquisitions are on the rise.

A Closer Look at Expenses

While revenues increased, Reformation also saw a rise in operating expenses, which went up 24.2% to $84.4 million. Marketing expenses alone grew by 28.8% as the company continued its investments in customer acquisition and retention strategies. However, the company managed to maintain operational efficiency, maintaining selling, general, and administrative expenses as a percentage of revenue roughly equivalent to the previous year.

With total cash and cash equivalents reaching $76.6 million, the financial position of Reformation remains robust. Enhanced by its recent credit agreement amendment, which allowed for an additional $92 million in term loans, Reformation plans to utilize these funds for growth-related expenses, including a dividend payout to its shareholders.

Outlook for Fiscal Year 2026

Looking ahead, Reformation forecasts net revenue to fall in the range of $602 to $606 million for the full year, projecting growth of approximately 18.6% to 19.5% compared to the previous year. The company also estimates an adjusted EBITDA margin between 14% and 14.2%, underpinning its strategy that balances growth with profitability.

Reformation's commitment to sustainability and innovative practices in fashion continues to resonate with consumers, and with a growth-oriented strategy, the brand is set to maintain its upward trajectory. As the marketplace for sustainable fashion becomes more competitive, Reformation's ability to adapt and lead may define its future in the industry.
For detailed insights, stakeholders can tune into the conference call hosted today at 5:00 PM ET to discuss these results further.

Overall, Reformation’s financial results not only highlight a successful second quarter in fiscal 2026, but they also signify the brand's impressive adaptability and commitment to sustainable fashion amidst a rapidly evolving retail landscape.