#USA #Los Angeles #financial results #Revolve Group #Millennial Fashion

Revolve Group Reports Strong Financial Performance for 2025

Revolve Group, Inc. (NYSE: RVLV), recognized as a pioneer among fashion retailers targeting Millennial and Generation Z consumers, recently revealed its financial results for the fourth quarter and entire year of 2025. The results were met with enthusiasm, showcasing remarkable growth across several key metrics.

Co-founders and co-CEOs, Mike Karanikolas and Michael Mente, expressed their excitement about the solid performance, with Karanikolas stating, "Our fourth quarter concluded successfully, highlighted by double-digit revenue growth and a significant increase in net income. Our 2025 initiatives have not only set the stage for future growth but have also contributed to a robust market share expansion heading into 2026."

Financial Highlights

In Q4 2025, Revolve achieved net sales of $324.4 million, marking a 10% increase compared to Q4 2024. The company's gross profit climbed to $172.9 million, up 12% year-over-year, while gross margins improved to 53.3%. This was largely attributable to an upward trend in the FWRD product segment, which also saw increased efficiency in operating expenses, reducing them as a percentage of net sales.

Net income surged by 58%, reaching $18.6 million, while the Adjusted EBITDA rose to $26.3 million - a notable 44% increase compared to the previous year. From an operational perspective, the brand now boasts approximately 2.84 million active customers, growing by 6% over the same period in 2024. During this quarter alone, users placed 2,445 orders, up 13% year-on-year.

Despite an industry shift towards beauty and lower-cost items, Revolve's average order value only slightly dipped by 2%. Executives pointed out that this minor reduction was primarily due to the burgeoning category of beauty products. Mente noted, "We are consistently focused on innovation within our offerings, which aids in retaining our customer base and attracting new shoppers."

Yearly Performance Summary

For the entirety of 2025, total net sales reached $1.23 billion, reflecting an 8% annual growth. Gross profits saw an 11% rise, totaling $655.8 million, with net income for the year settled at $61.1 million, a 25% increase from the previous year's earnings. Adjusted EBITDA for 2025 was recorded at $93.8 million, increasing by 35% year-over-year.

The segment performance also highlights growth, with the REVOLVE segment generating net sales of $1.05 billion, up 9%, as the FWRD segment achieved sales of $171.6 million, a growth of 8%.

Cash flow dynamics have also improved significantly, as the company's net cash from operating activities surged by 123% to $59.4 million; free cash flow also increased substantially to $46.2 million, up from $18 million in 2024.

Forward-Looking Statements

As the company moves into 2026, it is strategically positioning itself amid various global economic conditions. With potential challenges like inflationary pressures and tariffs influencing consumer spending, Revolve plans to utilize its strong financial foundation to foray into more innovative and tech-driven initiatives.

"We acknowledge the uncertain macroeconomic landscapes but plan to press forward diligently. By further investing in technology and our brands, we aim to build upon our momentum and enhance our market leadership, especially in the face of the evolving AI landscape," said Karanikolas.

Conclusion

The impressive results reflect Revolve Group's commitment to growth, profitability, and adaptation strategies. As the company gears for another dynamic year, stakeholders and market watchers will keep a close eye on its forthcoming initiatives and market ventures. With their innovative approach and a consumer-first stance, Revolve appears poised to tackle the upcoming challenges of 2026 with confidence and ambition.