Revolve Group reported an uptick in profits in the second quarter ended June 30, boosted by tariff refunds, improving gross margins and a 12 percent hike in sales.

“We delivered a very solid quarter, highlighted by double-digit net sales growth across Revolve, FWRD, domestic, and international for the third consecutive quarter and accelerated growth in active customers that reflects increasing engagement with next-generation consumers,” said co-founder and co-CEO Mike Karanikolas.

“We’re encouraged by the top-line momentum across our business and especially the breadth of initiatives underway that we believe will support continued profitable growth for years to come,” said co-founder and co-CEO Michael Mente. “Our investments in building our physical retail capabilities, the continued development of our first-ever Revolve namesake label within our Owned Brand portfolio, and the successful launch of Grow-Good beauty products created in partnership with Cardi B lay the groundwork for meaningful growth opportunities ahead.”

Additional Second Quarter 2026 Metrics and Results Commentary

  • Trailing 12-month active customers grew to 3,041,000 as of June 30, 2026, an increase of 11 percent year-over-year, our highest year-over-year growth rate in nearly three years.
  • Net sales were $347.4 million, a year-over-year increase of 12 percent.
  • Gross profit was $196.7 million, which was positively impacted by a $5.6 million reduction in cost of sales due to IEEPA tariff refunds received during the quarter. Gross profit increased 18 percent year-over-year from $167.1 million in the second quarter of 2025.
  • Gross margin was 56.6 percent, an increase of 254 basis points year-over-year that was positively impacted by an increase of 162 basis points from IEEPA tariff refunds received during the quarter. Excluding the tariff refunds, gross margin increased approximately 90 basis points year-over-year compared to 54.1 percent in the second quarter of 2025.
  • Fulfillment costs were $11.6 million, or 3.3 percent of net sales, compared to $9.8 million, or 3.2 percent of net sales, in the second quarter of 2025.
  • Selling and distribution costs were $62.1 million, or 17.9 percent of net sales, compared to $53.8 million, or 17.4 percent of net sales, in the second quarter of 2025. The reduced efficiency year-over-year as a percentage of net sales was primarily due to higher shipping rates, partially offset by a decrease in our product return rate year-over-year.
  • Marketing costs were $57.5 million, or 16.5 percent of net sales, compared to $47.1 million, or 15.2 percent of net sales, in the second quarter of 2025.
  • The increased marketing investment year-over-year as a percentage of net sales primarily reflects incremental marketing investments to support various growth initiatives, including our first-ever namesake label, REVOLVE Los Angeles, within our owned brand assortment.
  • General and administrative costs were $43.4 million, or 12.5 percent of net sales, compared to $38.3 million, or 12.4 percent of net sales, in the second quarter of 2025.
  • Other income, net was $2.3 million compared to $2.9 million recorded in other expense in the second quarter of 2025. Other expense, net in the prior-year quarter was negatively impacted by a non-cash charge of $2.4 million related to the disposal of a subsidiary and higher-than-typical foreign currency exchange losses.
  • Net income was $18.6 million, which was positively impacted by $5.9 million due to IEEPA tariff refunds received during the second quarter ($4.4 million, net of tax effects). This compares to net income of $10.0 million in the second quarter of 2025, which was negatively impacted by the non-cash charge related to the disposal of a subsidiary and higher-than-typical foreign currency exchange losses as noted above, and a higher-than-normal effective tax rate.
  • Adjusted EBITDA was $26.8 million, which was positively impacted by a $5.6 million reduction in cost of sales due to IEEPA tariff refunds received during the second quarter. Adjusted EBITDA increased 17 percent year-over-year compared to $22.9 million in the second quarter of 2025.
  • Diluted earnings per share (EPS) was $0.26, which was positively impacted by $0.06 per diluted share resulting from IEEPA tariff refunds received during the second quarter. This compares to diluted EPS of $0.14 in the second quarter of 2025, which was negatively impacted by the charge from disposal of a former subsidiary and higher-than-typical foreign currency exchange losses noted above, as well as a higher-than-normal effective tax rate.

Additional Net Sales Commentary

  • Revolve segment net sales were $302.5 million, a year-over-year increase of 13 percent.
  • FWRD segment net sales were $44.9 million, a year-over-year increase of 11 percent.
  • Domestic net sales were $269.1 million, a year-over-year increase of 11 percent.
  • International net sales were $78.4 million, a year-over-year increase of 16 percent.

Cash Flow and Balance Sheet

  • Net cash (used in) provided by operating activities was $(8.2) million in the second quarter and $41.2 million in
    the 6-month year-to-date period ended June 30, 2026, compared to $12.6 million and $57.8 million, respectively, in the comparable 2025 periods. The reduced operating cash flow year-over-year for the three- and six-month periods of 2026 primarily reflects unfavorable changes in working capital, partially offset by higher net income.
  • Free cash flow was $(10.9) million in the second quarter and $34.0 million in the 6-month year-to-date period ended June 30, 2026, compared to $9.6 million and $52.4 million, respectively, in the comparable 2025 periods.
  • Stock repurchases were $9.9 million for the second quarter ended June 30, 2026, exclusive of broker fees and excise taxes. We repurchased 497,675 shares of our Class A common stock during the second quarter at an average cost of $19.98 per share. $45.7 million remained available under our $100 million stock repurchase program as of June 30, 2026.
  • Cash and cash equivalents as of June 30, 2026, were $311.6 million, an increase of $0.9 million, or 0.3 percent, from $310.7 million in total cash as of June 30, 2025. Our balance sheet as of June 30, 2026 remains debt free.
  • Inventory as of June 30, 2026 was $275.8 million, an increase of $54.7 million, or 25 percent, year-over-year, from the inventory balance of $221.0 million as of June 30, 2025.

Results Since the End of the Second Quarter of 2026
Net sales in July 2026 increased by approximately 18 percent year-over-year.

2026 Business Outlook

Images courtesy Revolve