Revolve Group, Inc. (RVLV) · Nov 3, 2026 · Earnings
Miss — Diluted EPS $0.20 vs ~$0.21-$0.22 consensus
Revolve Group’s third-quarter earnings beat revenue expectations but missed on EPS, while heavier investment and working capital pressure weakened cash generation.
Revolve is in a growth-investment phase, expanding owned brands, physical retail, international sales and customer acquisition while trying to turn renewed demand into profitable growth. The quarter confirms the demand recovery, but the cost and cash profile makes the progress less clean than management’s “strong quarter” framing suggests. Published estimates clustered around roughly $345 million-$352 million of revenue and $0.21-$0.22 of EPS, making the revenue result a beat but the earnings result a miss.
| Q3 2026 | Q3 2025 | Consensus / prior guide | |
|---|---|---|---|
| Net sales (Financial Summary) | $356.0M (+20%) | $295.6M | ~$345M-$352M |
| Diluted EPS (Financial Summary) | $0.20 | $0.29 | ~$0.21-$0.22 |
| Gross margin (Financial Summary) | 53.9% | 54.6% | |
| Adjusted EBITDA (Financial Summary) | $23.5M (-7%) | $25.3M | |
| Free cash flow (Financial Summary) | $(27.0)M | $6.6M | |
| FY G&A expense (2026 Business Outlook) | $178.0M | $170M-$172M prior guide |
Demand is clearly accelerating. Revenue grew 20% to $356.0 million, with both REVOLVE and FWRD up 20%, international sales up 22%, orders up 19%, and active customers up 18%. The customer and order growth shows the platform is regaining momentum rather than relying only on pricing or promotions. 〔0〕
The profit result did not keep pace with the sales growth. Gross margin fell 75 basis points, marketing rose to 14.3% of sales, selling and distribution costs rose to 17.8%, and adjusted EBITDA declined 7%. Management is spending to build REVOLVE Los Angeles, owned brands and broader customer reach, but this quarter shows those investments are currently diluting operating leverage rather than expanding it.
Cash conversion is the biggest deterioration. Nine-month operating cash flow dropped to $16.9 million from $69.6 million, while inventory increased 23% year over year to $293.3 million. The company remains debt free with $284.6 million of cash, so this is not an immediate balance-sheet problem; it is a warning that the faster growth is consuming substantially more working capital.
The full-year outlook is mixed, not cleanly raised. Gross-margin guidance improved modestly to 53.9%-54.0%, but the company raised its G&A expense outlook to $178 million from $170 million-$172 million and narrowed selling and distribution guidance to a less efficient 17.5%. October sales were up mid-teens, but management explicitly flags tougher November and December comparisons, leaving the holiday period as the test of whether the demand acceleration can translate into profit.
Bottom line: Revolve is winning customers and growing revenue faster, but the quarter weakens the near-term earnings and cash-conversion story. The business is advancing on demand while straining to fund that growth efficiently, making this a mixed result that leans negative versus expectations.
Q4 2026 results, early 2027
A buy-side analyst on every ticker — it reads every public company's filing the instant it drops and decodes it into plain English.
A buy-side analyst on every ticker — the whole market decoded the second it moves, before it's a headline. Free gives you a taste. Pro takes the cap off and opens the full read on every company.
by Signing in NOW, claim your FREE 14-day Pro trial!