Reformation Inc. (REF) Q2 FY2026 earnings

Reported results

• Net revenue increased 24.1% to $155.2 million; DTC net revenue increased 21.2% to $135.3 million; Wholesale and Other net revenue increased 48.7% to $19.9 million
• Gross margin expanded 230 basis points to 66.7% compared to 64.4% in Q2 FY2025
• GAAP net income increased 79.4% to $12.4 million, or $0.23 per diluted share, compared to $6.9 million, or $0.13 per diluted share, in the prior-year period
• Non-GAAP Adjusted EBITDA increased 53.9% to $25.4 million with non-GAAP Adjusted EBITDA margin expanding 320 basis points to 16.4%
• Total operating expenses increased 24.2% to $84.4 million, or 54.4% of net revenue, consistent with the prior-year period
• International revenue increased 36.8% to $31.2 million; U.S. revenue increased 21.3% to $124.0 million

Guidance

• Full year fiscal 2026 net revenue expected in the range of $602 to $606 million, representing approximately 18.6% to 19.5% growth compared to prior year
• Full year fiscal 2026 non-GAAP Adjusted EBITDA margin expected between 14% and 14.2%
• Capital expenditures of approximately $23 million to $27 million for the year, associated with 15 to 16 planned new store openings for the full year

Notes

Company amended its Credit Agreement on June 17, 2026, obtaining an additional $92.0 million of term loans and extending maturity to June 2031. Proceeds were used to fund an approximately $90.0 million dividend to shareholders, or $1.63 per share. Cash and cash equivalents totaled $76.6 million at end of Q2 FY2026. Total debt outstanding was $246.7 million and net debt was $170.1 million at end of Q2 FY2026. Company opened four new stores during the quarter, ending with 70 stores globally. This is the 21st consecutive quarter of double-digit revenue growth. The company notes it is unable to provide reconciliation of non-GAAP Adjusted EBITDA margin guidance to GAAP net income margin without unreasonable effort due to challenges in quantifying various significant items including foreign currency fluctuations, taxes, tariffs, and potential restructuring charges.

Price and volatility reaction

Source

The figures above come from the earnings release the company filed with the SEC on 2026-09-10 (8-K, Item 2.02). Read the original filing on sec.gov.