Revolve Group (RVLV) Q2 2026 earnings summary

Executive summary

• Achieved double-digit net sales growth for the third consecutive quarter, with Q2 2026 net sales up 12.4% year-over-year to $347.4 million, driven by strong performance across REVOLVE and FWRD segments and both domestic and international markets.

• Active customers grew 11% year-over-year to 3.04 million, the highest growth rate in nearly three years, supported by record new customer acquisition and engagement.

• Net income increased 86% year-over-year to $18.6 million, with diluted EPS of $0.26, positively impacted by $5.9 million in IEEPA tariff refunds.

• Strategic investments in brand, technology, AI, physical retail, and new product launches, including the REVOLVE Los Angeles label and Cardi B Grow-Good beauty joint venture, are fueling momentum and market share gains.

• Repurchased nearly 500,000 shares (~$10 million), reducing Class A shares by over 1% in Q2 2026.

Financial highlights

• Gross margin improved to 56.6%, up 254 basis points year-over-year, including a 162 bps benefit from tariff refunds; excluding refunds, gross margin expanded about 90 bps.

• Adjusted EBITDA rose 17% year-over-year to $26.8 million, with margin at 7.7%.

• Free cash flow was $(10.9) million for Q2 2026 due to working capital movements, but positive $34 million year-to-date.

• Inventory at quarter-end was $276 million, up 25% year-over-year, reflecting normalization after prior-year tariff delays.

• Ended Q2 2026 with $311.6 million in cash and no debt.

Outlook and guidance

• July 2026 net sales grew approximately 18% year-over-year, signaling continued acceleration into Q3.

• Full-year 2026 gross margin expected between 53.5% and 54%, with marketing investment guided to 15.8%-16% of net sales and G&A expense at $170-$172 million.

• Effective tax rate expected at 24%-26% for the full year.

• Management expects continued growth in active customers and orders, with ongoing investments in marketing and international expansion.

• Tariff and macroeconomic uncertainties may impact gross margin and demand.