MeritValue

Rent the Runway, Inc.

RENTdata completeness 88%7 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

Rent the Runway, Inc. earns about -77% on invested capital, but has diluted owners by 865% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$17.5M1$27.8M2$33.3M3$40.7M3$43.8M3
Net income−$211.8M4−$138.7M5−$113.2M6−$69.9M6$22.6M6
Operating cash flow−$42.3M7−$47.7M8−$15.7M9$12.9M9$3.5M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$525.1M10$272.5M11$307.9M12$335.1M13$157M13
Cash & equivalents$247.6M14$154.5M15$84M16$77.4M16$50.4M16
Diluted shares1.2M3.2M3.6M4.0M12.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
−$30.09
your share of equity
Profit it earned you last year
$18.84
Free cash flow it threw off
—
Debt you’d be carrying
$130.86

10 shares is a claim on −$30.09 of net worth that earned you $18.84 last year, against $130.86 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-77% avg · 5y
FY22 -60%FY23 -168%FY24 -114%FY25 -73%FY26 32%

It earned an average -77% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+865% shares · 5y

Share count is up 865% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 70% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
book value / share count missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-01-31 · accession 0001468327-24-000114 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-01-31 · accession 0001468327-25-000056 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-01-31 · accession 0001468327-26-000020 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-01-31 · accession 0001468327-24-000114 (NetIncomeLoss)
  5. 10-K · period ending 2023-01-31 · accession 0001468327-25-000056 (NetIncomeLoss)
  6. 10-K · period ending 2024-01-31 · accession 0001468327-26-000020 (NetIncomeLoss)
  7. 10-K · period ending 2022-01-31 · accession 0001468327-24-000114 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-01-31 · accession 0001468327-25-000056 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-01-31 · accession 0001468327-26-000020 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-01-31 · accession 0001468327-23-000051 (LongTermDebtNoncurrent)
  11. 10-K · period ending 2023-01-31 · accession 0001468327-24-000114 (LongTermDebtNoncurrent)
  12. 10-K · period ending 2024-01-31 · accession 0001468327-25-000056 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2025-01-31 · accession 0001468327-26-000020 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-01-31 · accession 0001468327-24-000114 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-01-31 · accession 0001468327-25-000056 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-01-31 · accession 0001468327-26-000020 (CashAndCashEquivalentsAtCarryingValue)