RENT (Rent the Runway) Operating Margin %: -21.91% (As of Apr. 2026)


RENT Rent the Runway Inc RENT
51 GF Score
Price $3.10
GF Value $3.70
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Rent the Runway Operating Margin %?

Rent the Runway RENT -2.67% 51 Operating Margin % is -21.91% as of Apr. 2026. GuruFocus rates RENT with a GF Score™ of 51/100 and a GF Value™ of $3.70 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Rent the Runway ranks worse than 92.64% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Rent the Runway's Operating Income for the three months ended in Apr. 2026 was $-19.7 Mil. Rent the Runway's Revenue for the three months ended in Apr. 2026 was $89.9 Mil. Therefore, Rent the Runway's Operating Margin % for the quarter that ended in Apr. 2026 was -21.91%.

Good Sign:

Rent the Runway Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Rent the Runway's Operating Margin % or its related term are showing as below:

RENT' s Operating Margin % Range Over the Past 10 Years
Min: -82.86   Med: -32.35   Max: -15.45
Current: -16.42


RENT's Operating Margin % is ranked worse than
92.64% of 1128 companies
in the Retail - Cyclical industry
Industry Median: 3.905 vs RENT: -16.42

Rent the Runway's 5-Year Average Operating Margin % Growth Rate was 29.40% per year.

Rent the Runway's Operating Income for the three months ended in Apr. 2026 was $-19.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was $-57.5 Mil.


Rent the Runway  (NAS:RENT) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Rent the Runway Operating Margin % Related Terms


Rent the Runway Operating Margin % Historical Data

* Premium members only.

The historical data trend for Rent the Runway's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Rent the Runway Operating Margin % Chart

Rent the Runway Annual Data
Trend Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Operating Margin %
Get a 7-Day Free Trial -61.93 -32.35 -25.79 -15.45 -17.43

Rent the Runway Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -28.30 -24.85 -18.49 -1.64 -21.91

RENT vs TLYS, DLTH, CURV: Operating Margin % Comparison

For the Apparel Retail subindustry, Rent the Runway's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Rent the Runway Operating Margin % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Rent the Runway's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Rent the Runway's Operating Margin % falls into.


RENT
51GF Score
Rent the Runway Inc RENT
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Rent the Runway Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Rent the Runway's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as

Operating Margin %=Operating Income (A: Jan. 2026 ) / Revenue (A: Jan. 2026 )
=-57.5 / 329.8
=-17.43 %

Rent the Runway's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as

Operating Margin %=Operating Income (Q: Apr. 2026 ) / Revenue (Q: Apr. 2026 )
=-19.7 / 89.9
=-21.91 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -21.91% mean?
Rent the Runway (RENT) has a Operating Margin % of -21.91% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Rent the Runway and its competitors. According to the industry distribution chart, Rent the Runway ranks #1045 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 92.6%.
Is Rent the Runway's Operating Margin % too high?
Rent the Runway's current Operating Margin % is -21.91%. Based on the distribution chart, Rent the Runway ranks #1045 out of 1128 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Rent the Runway has a GF Score™ of 51/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rent the Runway's Operating Margin % compare to TLYS and DLTH?
According to the Retail - Cyclical industry distribution chart, Rent the Runway ranks #1045 out of 1128 companies for Operating Margin %. This places Rent the Runway in the lower half of its industry. The industry median Operating Margin % is 3.91. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Rent the Runway and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rent the Runway's current Operating Margin % is -21.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rent the Runway stock overvalued right now?
Based on GuruFocus' analysis, Rent the Runway (RENT) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.70, compared to a current price of $3.10 — trading 16.2% below its estimated fair value. The current Operating Margin % is -21.91%. Rent the Runway's overall GF Score™ is 51/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Rent the Runway (RENT), the current Operating Margin % is -21.91% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Rent the Runway (RENT) Overvalued in 2026?

Based on GuruFocus' analysis, Rent the Runway stock appears to be undervalued. The current stock price of $3.10 is trading 16.2% below its estimated GF Value™ of $3.70. GuruFocus considers Rent the Runway to be Modestly Undervalued.

Key valuation signals for RENT:

  • Operating Margin %: -21.91%
  • GF Value™: $3.70 vs. price of $3.10 (16.2% below fair value)
  • GF Score™: 51/100 with 5 warning signs

No single metric tells the full story. See the RENT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Rent the Runway Business Description

Address 10 Jay Street, Brooklyn, NY, USA, 11201
Rent the Runway Inc is an e-commerce platform that allows users to rent, subscribe to, or buy designer apparel and accessories. The company gives customers access to its unlimited closet through its subscription offering (Subscription) or the ability to rent a-la-carte through its reserve offering (Reserve). The company also gives its subscribers and customers the ability to buy its products through its Resale offering. The Closet in the Cloud offers a wide assortment of items for every occasion, from evening wear and accessories to ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear.
51GF Score

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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$3.10
Price
$3.70
GF Value