RENT — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-09-11

• •AI-Powered Outfits Generation Now Live to All Customers: In May 2026, we piloted outfits generation, and by the end of June the experience was live to all customers. Customers can now discover complete looks rather than individual items, making it easier to imagine what to wear together. Engagement…

• •Using AI to Help Customers See Themselves in the Product: In August 2026, we rolled out avatars within the outfits experience to all customers, so they can see recommended looks on a variety of figures. We also began piloting virtual try-on tools, designed to show a customer how a specific item wil…

• •Sharpened Focus on the Core Business: We concentrated our resources on our rental and selling offerings this quarter. We paused the online marketplace pilot until it can be fully integrated with the core rental experience, we paused on-site advertising and monetization to prioritize a premium exper…

• Key Operating and Financial Results. We have achieved the following operating and financial results for the three months ended July 31, 2026 and 2025, respectively:

• •Revenue was $97.7 million and $80.9 million, respectively, representing 20.8% growth year-over-year;

Text removed vs the prior filing · source: 10-Q · 2026-06-03

• •Expanded Personalized Discovery Across the RTR Platform: In April 2026, we launched personalized carousels across our platform, now live for all subscribers. Customers can now discover items similar to their recent favorites and explore a curated “For You” feed tailored to their individual style pr…

• •Enhanced Visual Experience with AI-Driven Imagery: In April 2026, we significantly improved imagery across our platform by moving away from outdated visuals and introducing more relatable, true-to-life imagery designed to help customers better envision themselves wearing each item. These updates ar…

• •Advancing AI-Powered Outfit Discovery: In May 2026, we began internal testing of outfit generation capabilities, enabling RTR to recommend complete looks rather than individual items. We expect to roll out this functionality to subscribers in the coming months and believe it has the potential to me…

• •Continued Progress Across New Revenue Stream Initiatives: We continue to advance a set of early-stage growth initiatives across our online marketplace, advertising and media platform, and B2B business. Across each initiative introduced last quarter, we have moved from pilot programs to early operat…

• Key Operating and Financial Results. We have achieved the following operating and financial results for the three months ended April 30, 2026 and 2025, respectively:

Text added vs the prior filing · source: 10-Q · 2026-09-11

• We believe we have substantially designed and implemented the internal controls necessary to remediate the material weakness related to IT general controls for information systems that are relevant to the preparation of our consolidated financial statements. During the quarter ended July 31, 2026, w…

• As described in the “Remediation Efforts to Address Material Weaknesses” above, there were changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the three months ended July 31, 2026, that have materially aff…

Text removed vs the prior filing · source: 10-Q · 2026-06-03

• During fiscal year 2025, we established a comprehensive framework for our IT general controls and substantially completed the design of these controls across our key financial systems.

• There have been no changes in the Company’s internal control over financial reporting that occurred during the quarter ended April 30, 2026, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Text added vs the prior filing · source: 10-Q · 2026-09-11

• •revitalize our Reserve offering and grow our Resale offering;

• A decrease in the number of customers, their tenures with us, and/or a reduction in the amount customers spend on our offerings could negatively affect our operating results. Notably, a high proportion of our revenue comes from longer-tenured subscribers.

• To facilitate the Recapitalization Transactions, the Board was restructured in 2025, and has continued to experience changes, including new and departing members, changes to the Audit Committee composition, and updates to Board leadership, which may cause temporary uncertainty and disruption.

• From time to time, we may be subject to claims, lawsuits, government investigations, and other proceedings involving products liability, competition and antitrust, intellectual property, data privacy, data security and data protection, consumer protection, securities, tax, labor and employment, comm…

• •the ability of our directors to amend our Amended Bylaws without stockholder consent;and

Text removed vs the prior filing · source: 10-Q · 2026-06-03

• A high proportion of our revenue comes from longer-tenured subscribers. A decrease in the number of customers, their tenures with us, and/or a reduction in the amount customers spend on our offerings could negatively affect our operating results.

• To facilitate the Recapitalization Transactions, the Board has been restructured, including new and departing members, changes to the Audit Committee composition, and the designation of Mr. Fonseca as Executive Chair, and this transition may cause temporary uncertainty and disruption. Additionally, …

• Our New Credit Agreement contains covenants and other restrictions on our actions that may limit our operational flexibility or otherwise adversely affect our business, financial condition and results of operations.

• The terms of our New Credit Agreement include a number of covenants that limit our ability to (subject to negotiated exceptions), among other things, incur additional indebtedness, incur liens on assets, enter into agreements related to mergers and acquisitions, dispose of assets or pay dividends an…

• A failure by us to comply with the covenants specified in the New Credit Agreement could result in an event of default under the agreement, which would give the lender the right to declare all borrowings outstanding, together with accrued and unpaid interest and fees, to be immediately due and payab…

Text added vs the prior filing · source: 10-Q · 2026-09-11

• On September 11, 2026 (the “Appointment Date”), our Board of Directors (the “Board”) appointed Paige Thomas as our Chief Executive Officer, principal executive officer, President and member of the Board, effective as of September 14, 2026 (the “Effective Date”).

• Ms. Thomas, age 55, served as Chief Merchant & Product Innovation Officer at Signet Jewelers from June 2024 to August 2025. Prior to that, she served as President & CEO of Saks OFF 5th from 2020 to 2023. From 2012 to 2020, Ms. Thomas served in various executive roles at Nordstrom, most recently as E…

• In connection with her appointment as Chief Executive Officer and President, we entered into an offer letter with Ms. Thomas (the “Offer Letter”) providing for, among other things, (i) an annual base salary of $650,000, (ii) a target annual bonus opportunity equal to 100% of her annual base salary, …

• There are no family relationships between Ms. Thomas and any director or executive officer of the Company, and other than as described above, there are no arrangements or understandings between Ms. Thomas and any other person pursuant to which she was selected as Chief Executive Officer, President o…

• In connection with Ms. Thomas’ appointment, on the Appointment Date, Ms. Bariquit stepped down as our Interim Chief Executive Officer and President and was appointed by the Board to serve as non-executive Chair of the Board, effective as of the Effective Date. In connection with such appointment, Dh…

Text removed vs the prior filing · source: 10-Q · 2026-06-03

• On June 3, 2026, the Company announced the appointment of David Loretta as interim Chief Financial Officer and Treasurer, effective June 8, 2026, to serve until a permanent Chief Financial Officer and Treasurer is appointed. Mr. Loretta, age 58, served as Chief Financial Officer of The Honest Compan…

• In connection with his temporary employment, Mr. Loretta will be paid an annual base salary of $540,000 and will be eligible to receive bonus compensation under our cash incentive program for fiscal year 2026 with a target cash bonus of 35% of his annual base salary for the current fiscal year, pro-…

• Dhiren Fonseca, Executive Chairman adopted a Rule 10b5-1 trading arrangement on April 24, 2026, that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act solely for the sale of the appropriate number of shares of our Class A common stock needed to satisfy minimum r…

• On April 17, 2026, Cara Schembri, Chief Legal & Administrative Officer, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act for the sale of up to 20,335 shares of our Class A stock and up to 16,636 restricted stock un…