Revolve Group (RVLV) Q1 2026 earnings summary

Executive summary

• Net sales grew 16% year-over-year to $342.9 million, marking the highest growth rate in nearly four years and a sequential improvement from Q4 2025, driven by higher order volume, increased average order value, and lower return rates.

• Diluted EPS increased 25% year-over-year to $0.20, and net income rose 21% to $14.4 million, despite higher marketing investments supporting new initiatives.

• Operating cash flow reached $49.4 million, with cash and equivalents rising to $335.8 million and no debt.

• Active customers grew 8% year-over-year to 2.93 million, with increased revenue per active customer and lower product return rates.

• Strategic initiatives in international expansion, AI, and physical retail, including the launch of REVOLVE Los Angeles and Grow-Good Beauty, are driving momentum and market share gains.

Financial highlights

• Gross profit increased 17% year-over-year to $180.6 million, with gross margin expanding to 52.7% (up 68 bps year-over-year), driven by FWRD segment margin expansion.

• Adjusted EBITDA was $21.1 million, up 9% year-over-year; adjusted EBITDA margin improved to 6.1%.

• Free cash flow was $44.9 million, up 5% year-over-year.

• Cash and cash equivalents increased by $33 million in Q1 to $335.8 million; no debt.

• Average order value rose 1% to $298, with total orders up 12% year-over-year.

Outlook and guidance

• FY 2026 gross margin expected between 53.5% and 54.0%; Q2 2026 gross margin outlook is 54.1% to 54.6%.

• April 2026 net sales up 14% year-over-year; tougher comps expected for the rest of Q2.

• Fulfillment costs expected at 3.2%-3.4% of net sales for 2026; selling and distribution at 17.1%-17.3%.

• Marketing investment to remain elevated at 15.3%-15.8% of net sales for 2026; G&A expense for 2026 guided at $164-$168 million.

• Guidance reflects caution due to macroeconomic headwinds, including inflation, tariffs, and geopolitical risks.