#USA #Los Angeles #Financial Performance #Revolve Group #NYSE: RVLV

Revolve Group's Q3 2025 Financial Results

On November 4, 2025, Revolve Group, Inc. (NYSE: RVLV), a prominent online fashion retailer catering to Millennial and Generation Z consumers, disclosed its financial outcomes for the third quarter ending September 30, 2025. With a noticeable increase in net sales and robust profitability, the company's performance this quarter highlights its strategic advantage in a competitive environment.

Financial Highlights

In Q3 2025, Revolve Group reported net sales reaching approximately $295.6 million, marking a 4% increase compared to $283.1 million in the same period last year. Gross profit also saw a significant rise to $161.5 million, which is an 11% year-over-year increase. As a result, the gross margin improved to 54.6% from 51.2% in the previous year, due in part to reduced markdowns and a greater proportion of full-price sales.

Profitability Metrics

Net income surged dramatically by 97%, reaching $21.2 million in Q3 2025, up from $10.8 million in Q3 2024. This impressive performance also translated into an Adjusted EBITDA—a crucial non-GAAP financial measure—of $25.3 million, indicating a 45% increase year-over-year. Furthermore, the company's diluted earnings per share grew significantly to $0.29, reflecting a 93% increase from $0.15 in the same quarter last year.

Operational Insights

Revolve Group's operational metrics also presented encouraging signs of growth. The total number of active customers surged to 2.75 million, demonstrating a 5% year-over-year growth. The average order value for the quarter was recorded at $306, a modest increase showcasing the brand's effective pricing strategy and customer engagement.

Cash Flow and Investments

The firm experienced substantial cash flow from operating activities, amounting to $11.8 million, which is a 31% increase compared to the same quarter of the previous year. The free cash flow stood at $6.6 million, also up by 7%. This remarkable cash generation ability underscores the firm's robust balance sheet, with $315 million in cash reserves enabling continued investments in international expansion and new brand developments.

Strategic Vision

Revolve Group's co-CEOs, Mike Karanikolas and Michael Mente, expressed satisfaction with the quarterly results. They highlighted how adaptive strategies, such as leveraging data-driven merchandising and enhancing AI technology, are primed to facilitate long-term growth and market share expansion. The firm's decision to invest in physical retail opportunities, despite the dynamic economic landscape, reflects their belief in a sustainable growth trajectory.

Conclusion and Future Outlook

Revolve Group's strong performance in Q3 2025 positions it well for ongoing success, even amidst economic challenges such as inflation and fluctuating tariffs. As the company navigates these challenges while expanding its global presence and focusing on innovative solutions, the future looks promising for both the brand and its shareholders. Their next earnings conference call will provide further insights into their strategies and projections moving forward, solidifying their commitment to growth and profitability.