Rent the Runway, Inc.
RENT Consumer Cyclical Apparel Retail
Rent the Runway, Inc.’s revenue for fiscal 2026 (year ended January 2026) was $329.8 million, up 7.71% from fiscal 2025. In the quarter to July 2026, revenue grew 20.8%, EPS grew 94.2%, free cash flow grew 75.4% and total debt fell 54.2%, each against the same quarter a year earlier. Revenue growth for five consecutive years.
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Rent the Runway, Inc. (RENT) Altman Z-score
Rent the Runway, Inc.'s Altman Z-score for fiscal 2026 is −6.12, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | −6.12 | (0.47) |
| FY2025 | −5.65 | (0.78) |
| FY2024 | −4.87 | (1.67) |
| FY2023 | −3.20 | (0.98) |
| FY2022 | −2.23 | — |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.02 | — | 0.02 | |
| Retained earnings / total assets | (4.98) | — | −6.97 | |
| EBIT / total assets | (0.26) | — | −0.86 | |
| Market value of equity / total liabilities | 0.33 | — | 0.20 | |
| Sales / total assets | 1.49 | — | 1.49 | |
| Altman Z-score | Distress zone | −6.12 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −18.02 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| BRIA BrilliA Inc compare | 4.9× |
| DLTH Duluth Holdings Inc. compare | 1.9× |
| CATO Cato Corporation (The) compare | 1.8× |
| JEM 707 Cayman Holdings Limited compare | 1.4× |
| TLYS Tilly's, Inc. compare | 1.4× |
| AKA a.k.a. Brands Holding Corp. compare | 0.5× |
| LVLU Lulu's Fashion Lounge Holdings, Inc. compare | −1.7× |
| RENT Rent the Runway, Inc. | −6.1× |
| BIRD Smartbird, Inc. compare | −7.5× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets