Reformation (REF) Q2 2026 earnings summary

Executive summary

• Achieved 24.1% year-over-year net revenue growth to $155.2 million in Q2 2026, marking 21 consecutive quarters of double-digit growth.

• Completed IPO in July 2026, raising $132.2 million in net proceeds, with $110 million used to repay debt and listing on NYSE.

• Net income rose 79.4% to $12.4 million, or $0.23 per diluted share, reflecting strong profitability.

• Growth driven by DTC (21.2%) and wholesale (48.7%) channels, with international revenue up 36.8% and international markets contributing 20% of net revenue.

• Customer base grew 23% year-over-year to 1.2 million active customers on an LTM basis; store count increased to 70.

Financial highlights

• Q2 2026 net revenue: $155.2 million, up 24.1% year-over-year; 26-week net revenue: $267.5 million, up 26.7%.

• Adjusted EBITDA: $25.4 million (16.4% margin), up 54% year-over-year.

• Net income: $12.4 million (8.0% margin), up from $6.9 million in Q2 2025.

• Gross margin: 66.7%, up 230 bps from prior year, driven by lower tariffs and higher AUR.

• Operating cash flow for 26 weeks: $26,000, impacted by inventory build and tariff receivable timing.

Outlook and guidance

• FY 2026 net revenue expected between $602M–$606M, representing 18.6%–19.5% growth.

• Adjusted EBITDA margin guidance: 14%–14.2%.

• Gross margin expected to expand year-over-year, with Q3 typically lower due to summer sales.

• 15–16 new stores planned for 2026, ending with 79–80 stores.

• Capital expenditures for 2026 projected at $23M–$27M (approx. 4% of sales).