Reformation posts 19% Q3 revenue growth and raises full‑year outlook
Reformation Inc. reported third‑quarter fiscal 2026 net revenue of $173.6 million, up 19.1% year over year, driven by growth in both direct‑to‑consumer and wholesale channels. Gross margin widened 252 basis points to 60.4% and adjusted EBITDA rose 64.2% to $23.1 million. The company posted a net loss of $1.1 million, or $0.02 per share, largely due to tax effects from its recent IPO. Based on the results, Reformation lifted its full‑year net‑revenue guidance to $610 million‑$612 million and its adjusted EBITDA‑margin outlook to roughly 14.2%.
Why it matters
The raised revenue and margin guidance suggests higher top‑line growth and profitability for the year, which may support a higher valuation for REF, as noted by BTIG’s new $21 price target. Investors should also note the one‑time tax impact that caused the net loss, which is not expected to recur.
Key facts
- 1Net revenue increased 19.1% to $173.6 million. sec.gov
- 2Direct‑to‑consumer revenue was $152.8 million, up 16.7%. fool.com
- 3Wholesale and other revenue was $20.8 million, up 40.8%. fool.com
- 4Active customers grew 23.4% to 1.25 million. sec.gov
- 5Gross margin expanded 252 basis points to 60.4%. sec.gov
- 6Adjusted EBITDA rose 64.2% to $23.1 million, margin 13.3%. fool.com
Summary written by AlphAI AI Desk from 8 of 8 sources. Not investment advice. Figures are as stated by the linked sources.