Reformation Q2 Earnings Call Highlights

Reformation delivered a strong Q2 2026: Revenue rose 24.1% year over year to $155.2 million, while net income increased to $12.4 million and adjusted EBITDA climbed 54% to $25.4 million, lifting the margin to 16.4%. Growth was broad-based: Active customers rose 23% to 1.2 million, direct-to-consumer revenue increased 21.2%, wholesale revenue grew 48.7%, and international revenue advanced 36.8%. The company also expanded to 70 stores and plans to open nine to 10 more in the second half. The company maintained its full-year outlook: Reformation expects 2026 revenue of $602 million to $606 million, adjusted EBITDA margins of 14% to 14.2%, and year-end store count of 79 to 80. Following its IPO, it used about $110 million of proceeds to reduce debt.

Reformation NYSE: REF reported second-quarter 2026 revenue and profitability above the high end of the company’s estimates provided at the time of its initial public offering, as growth in active customers, direct-to-consumer sales, wholesale and international markets supported results. In its first earnings call as a public company, Reformation said net revenue increased 24.1% year over year to $155.2 million, marking its 21st consecutive quarter of double-digit revenue growth. Net income rose to $12.4 million from $6.9 million a year earlier, while adjusted EBITDA increased 54% to $25.4 million. Adjusted EBITDA margin expanded to 16.4% from 13.2% in the prior-year quarter.

Direct-to-consumer net revenue rose 21.2% to $135.3 million, driven by growth in the company’s trailing-12-month active customer base, which increased about 23% to 1.2 million. Chief Executive Officer Hali Borenstein said the growth reflected both new customer additions and continued engagement from returning customers. Reformation’s DTC net revenue per customer declined 1.4% year over year to $417 on a trailing-12-month basis. Management attributed the decline to the rapid addition of new customers, who typically spend less initially than longer-tenured shoppers. Borenstein said returning customers spent nearly twice as much as new customers in 2025, while customer value has continued to rise with tenure. During the question-and-answer session, Borenstein said the company continues to see mid-single-digit growth in value among established customer cohorts, particularly those in their first several years with the brand. She said Reformation retained 80% of revenue on a one-year basis and 98% on a two-year basis. The company said about 70% of its 2025 revenue came from repeat customers. Customers who shop through both stores and e-commerce represented 34% of revenue and spent 3.1 times more than single-channel customers, according to management.

Wholesale and other revenue increased 48.7% to $19.9 million in the second quarter. Chief Financial Officer Joshua Moore said the growth was fueled by strong customer response to Reformation’s spring and summer products, which increased order volumes from existing wholesale partners. Borenstein said Reformation plans to remain selective in wholesale, prioritizing broader assortments and additional doors with current accounts. The company may add one or two new strategic wholesale partners in coming quarters, particularly where they can introduce the brand to new markets. Reformation said 90% of its 2025 revenue came from direct-to-consumer channels. International revenue rose 36.8% to $31.2 million, accounting for approximately 20% of second-quarter revenue. The company cited growth in its core international markets of the United Kingdom, Canada and France.