Reformation Announces Second Quarter Fiscal 2026 Results
Reformation Inc. (REF) filed an SEC Form 8-K — Results of Operations and Financial Condition. Reformation Announces Second Quarter Fiscal 2026 Results Net Revenue increased 24.1% Net Income grew 79.4% Adjusted EBITDA Margin expanded 320 basis points to 16.4% LOS ANGELES, Sept. 10, 2026 - Reformation Inc. (NYSE: REF) (the "Company"), the sustainable women’s fashion brand,
How this was made
The 30-second read
Why it matters
The earnings beat and issued full‑year revenue outlook provide fresh data for valuation models and may trigger re‑rating by analysts.
Market read
Earnings beat and guidance lift sentiment for the company and could positively influence the broader consumer discretionary sector.
What to watch
Higher operating expenses and rising inventory levels may pressure cash flow despite revenue growth.
Net Revenue increased 24.1%; Net Income grew 79.4%; Adjusted EBITDA Margin expanded 320 basis points to 16.4%.
Net revenue increased 24.1% across DTC and Wholesale and Other, gross margin expanded 230 basis points, net income increased 79.4%, and Adjusted EBITDA margin expanded 320 basis points. The company maintained full-year fiscal 2026 revenue, Adjusted EBITDA margin, capital expenditure, and store-opening outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenue, 13 Weeks Ended June 27, 2026GAAP | $155.2M | – | 24.1% |
| Cost of goods sold, 13 Weeks Ended June 27, 2026GAAP | 51.76M | – | – |
| Gross profit, 13 Weeks Ended June 27, 2026GAAP | 103.5M | – | – |
| Gross margin, second quarterGAAP | 66.7% | – | 230 basis points |
| Marketing expenses, 13 Weeks Ended June 27, 2026GAAP | $14.49M | – | 28.8% |
| Selling, general and administrative expense, 13 Weeks Ended June 27, 2026GAAP | 69.96M | – | 23.3% |
| Total operating expenses, 13 Weeks Ended June 27, 2026GAAP | $84.45M | – | 24.2% |
| Income from operations, 13 Weeks Ended June 27, 2026GAAP | $19.02M | – | – |
| Income before income taxes, 13 Weeks Ended June 27, 2026GAAP | $17.11M | – | – |
| Income tax provision, 13 Weeks Ended June 27, 2026GAAP | $4.70M | – | – |
| Net income, 13 Weeks Ended June 27, 2026GAAP | $12.41M | – | 79.4% |
| Basic earnings per share, 13 Weeks Ended June 27, 2026GAAP | $ 0.25 | – | – |
| Diluted earnings per share, 13 Weeks Ended June 27, 2026GAAP | $ 0.23 | – | – |
| Net income margin, 13 Weeks Ended June 27, 2026GAAP | 8.0 % | – | – |
| Adjusted EBITDA, 13 Weeks Ended June 27, 2026non-GAAP | $25.42M | – | 53.9% |
| Adjusted EBITDA margin, 13 Weeks Ended June 27, 2026non-GAAP | 16.4 % | – | 320 bps |
| Net revenue, 26 Weeks Ended June 27, 2026GAAP | $267.5M | – | – |
| Gross profit, 26 Weeks Ended June 27, 2026GAAP | 182.5M | – | – |
| Income from operations, 26 Weeks Ended June 27, 2026GAAP | $6.18M | – | – |
| Net income, 26 Weeks Ended June 27, 2026GAAP | $260K | – | – |
| Adjusted EBITDA, 26 Weeks Ended June 27, 2026non-GAAP | $41.28M | – | – |
| Adjusted EBITDA margin, 26 Weeks Ended June 27, 2026non-GAAP | 15.4 % | – | – |
| Net cash provided by (used in) operating activities, 26 Weeks Ended June 27, 2026GAAP | $26K | – | – |
| Purchases of property and equipment, 26 Weeks Ended June 27, 2026GAAP | −$13.22M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Direct-to-consumer (DTC)Primarily driven by a 22.9% increase in Active Customers, partially offset by a 1.4% decline in DTC Net Revenue per Customer. | $135.3M | – | 21.2% |
| Wholesale and OtherDriven by increased demand from existing wholesale partners. | $19.9M | – | 48.7% |
| United StatesReflecting strength across channels, product categories, and growth in our Active Customer base. | $124.0M | – | 21.3% |
| Rest of the worldDriven by widespread growth across our focus markets and the continued expansion of our retail footprint in France. | $31.25M | – | 36.8% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full Year Fiscal 2026 outlook
- Revenue$602 to $606 million
- Noteapproximately 18.6% to 19.5% growth as compared to last year
- NoteAdjusted EBITDA margin between 14% and 14.2%.
- NoteCapital expenditures of approximately $23 million to $27 million for the year.
- Note15 to 16 planned new store openings for the full year.
Capital returns
- Proceeds were used to fund an approximately $90.0 million dividend to shareholders, or $1.63 per share.
- Payment of dividends declared: $ (59,066) (in thousands), 26 Weeks Ended June 27, 2026.
- Recapitalization dividend accrued but not paid: 29,056 (in thousands).
What drove it
- DTC net revenue growth was primarily driven by a 22.9% increase in Active Customers.
- Active Customer growth reflected strength across both customer retention and new customer acquisition.
- Wholesale and Other growth was driven by increased demand from existing wholesale partners.
- Gross-margin expansion was primarily driven by lower average tariff rates and higher average unit retail (AUR), partially offset by accelerated wholesale growth.
- Adjusted EBITDA margin expansion was driven by gross margin expansion and fixed cost leverage from strong revenue growth and disciplined execution.
- The Company opened four new stores during the quarter, ending the period with 70 stores globally.
Concerns
- DTC Net Revenue per Customer declined 1.4%, primarily reflecting accelerated growth in new customers, who typically enter the brand at lower initial spend levels.
- Accelerated wholesale growth partially offset gross-margin expansion.
- Marketing expenses were 9.3% of net revenue, compared to 9.0% of net revenue in the prior-year period.
- SG&A dollar growth was due primarily to increased shipping expenses, higher stock based compensation and new stores.
- Inventories increased primarily due to new store openings and higher sales volume.
- Total debt outstanding was $246.7 million and net debt was $170.1 million at the end of the second quarter.
What to watch
- DTC Net Revenue per Customer following the reported 1.4% decline.
- The pace of Active Customer growth, which increased 22.9% in the quarter.
- Execution against 15 to 16 planned new store openings for the full year.
- Execution of the $602 to $606 million full-year net revenue outlook and the 14% to 14.2% Adjusted EBITDA margin outlook.
- The effect of lower average tariff rates and potential future tariffs on gross margin.
- Working-capital effects from inventories and the IEEPA tariff receivable.
Balance sheet and cash flow
- Cash and cash equivalents totaled $76.6 million at the end of the second quarter of 2026.
- Inventories were $81.8 million, compared to $65.0 million at the end of the second quarter of 2025.
- Total debt outstanding was $246.7 million and net debt was $170.1 million at the end of the second quarter.
- On June 17, 2026, the Company amended its Credit Agreement, obtaining an additional $92.0 million of term loans and extending the maturity to June 2031.
- Net cash provided by (used in) operating activities was $ 26 (in thousands) for the 26 Weeks Ended June 27, 2026, compared to $ (14,210) (in thousands) for the 26 Weeks Ended June 28, 2025.
- Net cash used in investing activities was $ (13,216) (in thousands) for the 26 Weeks Ended June 27, 2026, compared to $ (21,060) (in thousands) for the 26 Weeks Ended June 28, 2025.
- Net change in cash and cash equivalents was 11,154 (in thousands) for the 26 Weeks Ended June 27, 2026.
Analysis
Reformation reported broad-based second-quarter growth, with net revenue increasing 24.1% to $155.2 million. DTC net revenue increased 21.2% to $135.3 million, supported primarily by a 22.9% increase in Active Customers. Wholesale and Other net revenue increased 48.7% to $19.9 million on increased demand from existing wholesale partners. International revenue increased 36.8% to $31.2 million, while U.S. revenue increased 21.3% to $124.0 million.
Profitability strengthened materially. Gross margin was 66.7%, compared with 64.4% in the second quarter of 2025, as lower average tariff rates and higher average unit retail outweighed the dilution from accelerated wholesale growth. Total operating expenses increased 24.2% to $84.4 million and remained 54.4% of net revenue, while SG&A improved 30 basis points as a percentage of revenue through payroll leverage and the lapping of LA distribution-center relocation costs. Net income increased 79.4% to $12.4 million, and Adjusted EBITDA increased 53.9% to $25.4 million, with Adjusted EBITDA margin reaching 16.4% from 13.2%.
The customer and channel mix warrants attention. Active Customer growth reflected both retention and new customer acquisition, but DTC Net Revenue per Customer declined 1.4% because new customers typically enter the brand at lower initial spend levels. The company opened four stores in the quarter and ended with 70 stores globally. Management attributed inventory growth to new store openings and higher sales volume.
Capital allocation included a June 17 Credit Agreement amendment that added $92.0 million of term loans and extended maturity to June 2031. The proceeds funded an approximately $90.0 million dividend, or $1.63 per share. Total debt outstanding was $246.7 million and net debt was $170.1 million at quarter-end. Cash and cash equivalents totaled $76.6 million. For the first 26 weeks, net cash provided by operating activities was $26 (in thousands), while purchases of property and equipment were $13,216 (in thousands).
The full-year outlook calls for net revenue of $602 to $606 million, approximately 18.6% to 19.5% growth, and Adjusted EBITDA margin between 14% and 14.2%. The company also expects approximately $23 million to $27 million of capital expenditures associated with 15 to 16 planned new store openings. The outlook places focus on sustaining DTC customer growth, managing the DTC revenue-per-customer trend, executing store expansion, and preserving margin amid wholesale mix and tariff exposure.
Management, verbatim
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,
Hali Borenstein, Chief Executive Officer
This marks our 21st consecutive quarter of double-digit revenue growth, reinforcing our confidence in our ability to deliver against our long-term growth algorithm. The consistency of these results reflects the enduring strength of our brand, agile merchandising model, and disciplined execution. We see significant runway ahead and believe we are well positioned to continue delivering strong, profitable growth and to create meaningful long-term value for our shareholders.
Hali Borenstein, Chief Executive Officer
Not in the filing
stated, not guessed- Previous earnings release outlook was not provided; comparison with prior guidance is unavailable.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Prior-quarter comparisons were not reported for the presented metrics.
- Full-year fiscal 2026 guidance for gross margin, operating expenses, and tax rate was not reported.
- A numerical Active Customer count was not reported.
- A numerical DTC Net Revenue per Customer value was not reported.
- CFO commentary was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Reformation Inc., a sustainable women's fashion brand listed on NYSE, filed its quarterly results via an SEC 8‑K.
Ticker impact
SEC 8‑K reports Reformation Inc.'s Q2 2026 earnings with 24% revenue growth and full‑year revenue guidance of $602‑$606 M.
potential upside as investors price in higher revenue growth and margin expansion
Revenue beat expectations, net income up 79%, and guidance above prior year indicate solid fundamentals; market typically rewards such earnings beats with price appreciation.
Market effects
Highlights strength in sustainable fashion and DTC channels, may lift peer apparel stocks.
Positive for U.S. consumer discretionary sector; modest effect on international markets.
Reinforces demand for ESG‑focused apparel globally.
Counterpoint
If inventory buildup accelerates, margin expansion could stall, limiting upside.
Key entities
- ExecutiveHali Borenstein
Chief Executive Officer of Reformation Inc.
