Reformation reported second-quarter fiscal 2026 net revenue of $155.2 million, up 24.1% from $125.1 million a year earlier, as the sustainable women’s fashion company generated growth across direct-to-consumer, wholesale and international channels.
The results marked Reformation’s 21st consecutive quarter of double-digit revenue growth and came as the company began its first reporting cycle as a public company.
Direct-to-consumer revenue increased 21.2% to $135.3 million, supported by a 22.9% increase in active customers. DTC net revenue per customer declined 1.4%, which management attributed primarily to faster growth among new customers who generally enter the brand at lower initial spending levels.
Wholesale and other revenue increased 48.7% to $19.9 million.
International revenue increased 36.8% to $31.2 million, while U.S. revenue increased 21.3% to $124.0 million.
Reformation opened four stores during the quarter and ended the period with 70 stores globally.
Gross margin increased 230 basis points to 66.7%, driven primarily by lower average tariff rates and higher average unit retail prices, partially offset by faster wholesale growth.
Net income increased 79.4% to $12.4 million, or $0.23 per diluted share, compared with $6.9 million, or $0.13 per diluted share, a year earlier.
Adjusted EBITDA increased 53.9% to $25.4 million, while adjusted EBITDA margin expanded 320 basis points to 16.4%.
Reformation ended the quarter with $76.6 million of cash and cash equivalents and $81.8 million in inventory.
In June, the company amended its credit agreement and received another $92 million of term loans while extending maturity to June 2031. Approximately $90 million of the proceeds was used to fund a $1.63-per-share dividend to shareholders. Total debt at quarter-end was $246.7 million, with net debt of $170.1 million.
For fiscal 2026, Reformation expects net revenue of $602 million to $606 million, representing growth of approximately 18.6% to 19.5%.
Adjusted EBITDA margin is expected to range from 14% to 14.2%, while capital expenditures are projected at $23 million to $27 million. The company plans to open approximately 15 to 16 new stores during the year.
KEY QUOTES:
“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. 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 of Reformation
