Revolve Group, Inc. filed its third-quarter 2026 earnings press release on November 3, 2026, reporting net sales of $355,959 thousand and net income of $15,524 thousand for the three months ended September 30, 2026.

Key Highlights

  • Net sales up 20%: Total net sales reached $355,959 thousand in Q3 2026, compared to $295,631 thousand in Q3 2025.
  • Net income declined 27%: Net income was $15,524 thousand, down from $21,179 thousand in the prior-year quarter, which included a $4.5 million insurance recovery.
  • Active customers grew 18%: Trailing 12-month active customers reached 3,243,000 as of September 30, 2026, described by the company as its highest year-over-year growth rate in three and a half years.
  • Adjusted EBITDA fell 7%: Adjusted EBITDA (non-GAAP) was $23,491 thousand, compared to $25,347 thousand in Q3 2025.
  • Free cash flow negative: Free cash flow (non-GAAP) was $(26,963) thousand in the quarter, compared to $6,627 thousand in Q3 2025.
  • Balance sheet remains debt free: Cash and cash equivalents were $284.6 million as of September 30, 2026, with no debt reported.
  • Both segments grew 20%: REVOLVE segment net sales were $306.8 million and FWRD segment net sales were $49.2 million, each up 20% year-over-year.

Revolve Group Third Quarter 2026 Results: Sales Growth and Profitability Diverge

According to the filing, Revolve Group (NYSE:RVLV) reported net sales of $355,959 thousand for the three months ended September 30, 2026, a 20% increase year-over-year. The company attributed the top-line growth to a 19% increase in total orders placed and a reduced product return rate, partially offset by a lower average order value of $292 compared to $306 in Q3 2025. The decline in average order value was described as primarily attributable to initial sales of Grow-Good beauty products at much lower price points.

Gross profit was $191,795 thousand, up 19% year-over-year, while gross margin declined to 53.9% from 54.6%, a decrease of 75 basis points. The filing noted this comparison was against a prior-year quarter that included 347 basis points of gross margin expansion. Net income fell to $15,524 thousand from $21,179 thousand, a 27% decrease the company said was meaningfully affected by the absence of a $4.5 million insurance recovery that benefited Q3 2025 results (approximately $3.4 million net of taxes). Diluted EPS was $0.20 versus $0.29 in the prior-year period.

Operating cash flow was $(24,334) thousand in the quarter, compared to $11,818 thousand in Q3 2025. The filing stated the reduced operating cash flow "primarily reflects unfavorable changes in working capital." Inventory rose to $293.3 million, an increase of $54.5 million, or 23%, year-over-year. For the full year 2026, the company disclosed an updated gross margin outlook of 53.9% to 54.0% and updated general and administrative expenses guidance of $178.0 million. The company noted that its outlook incorporates considerations including "geopolitical uncertainty, tariffs, inflationary pressures, supply chain disruptions and foreign currency volatility," and that the gross margin outlook "does not assume any additional IEEPA tariff refunds." The filing also stated that net sales in October 2026 increased by a mid-teen percentage year-over-year. The company noted that forward-looking statements involve risks and uncertainties and are subject to its cautionary language under the U.S. Private Securities Litigation Reform Act of 1995.

What Was Disclosed

Revolve Group reported Q3 2026 financial results showing 20% net sales growth to $355,959 thousand alongside a 27% decline in net income to $15,524 thousand, negative free cash flow of $(26,963) thousand, and an updated full-year 2026 outlook as of November 3, 2026.