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Wearing a designer dress once and never touching it again is one of fashion’s most familiar frustrations, and it’s exactly the problem Rent the Runway was built to solve. More than 15 years after it launched, the company is going through one of the biggest transitions in its history, with a new CEO and a sharper focus on its core rental business. Here’s a full, up-to-date breakdown of how Rent the Runway works, what changed in 2026, and whether it’s worth using.
What Is Rent the Runway?
Rent the Runway is an American fashion rental company that lets customers rent, subscribe to, or buy designer clothing and accessories. It was founded in November 2009 by Jennifer Hyman and Jennifer Fleiss, who met as classmates at Harvard Business School, and it’s headquartered in New York City. The idea came from a very relatable moment: Hyman watched her sister spend a large amount of money on a dress for a wedding, only to wear it once. That observation led to a business built around access to designer fashion instead of ownership.
The company offers pieces from hundreds of designers, covering occasion wear like formal dresses and wedding-guest outfits, as well as everyday clothing, outerwear, accessories, jewelry, and handbags. Customers can choose from a few ways to shop: a monthly subscription that lets you rotate items, a one-time rental (often called Reserve) for a specific event, or buying pieces outright. Over the years, the company has described subscriptions as the largest part of its business.
Rent the Runway’s 2026 Leadership Change
This is the most important recent development for anyone researching the brand. In May 2026, cofounder Jennifer Hyman stepped down as CEO after roughly 18 years leading the company. Board member Teri Bariquit, a former Nordstrom merchandising executive, served as interim CEO while the board searched for a permanent successor, and Hyman stayed on as an adviser to help with the transition.
In September 2026, Rent the Runway named Paige Thomas as CEO. Thomas is a retail veteran who joined the company in June as chief commercial officer and previously held senior roles at Signet Jewelers, Saks Off 5th, and Nordstrom. Bariquit moved into the role of non-executive board chair. The company has said it wants to position Rent the Runway as a premium fashion service platform, giving customers access to premium fashion whether they’re renting or buying, with a renewed focus on the customer and the core rental business.
How Is Rent the Runway Doing Financially?
For a shopper, a company’s financial health matters because it affects how long the service will be around and how well it operates. Here’s what the most recent quarterly results (for the second quarter of 2026) showed:
- Revenue grew by nearly 21% year over year to about $97.7 million
- Net loss narrowed by more than half, to about $12.9 million
- Gross margin improved to about 36%
- Active subscribers dipped by roughly 4% to about 140,800
In plain terms, the business is growing revenue and losing less money, but it’s still not consistently profitable and its subscriber count slipped slightly. Rent the Runway went public in October 2021 and trades on Nasdaq under the ticker RENT, and it has closed its standalone retail stores as it refocuses on its online business. None of this means the service is going away, but it’s a useful reminder that this is a company still working toward profitability.
What Makes Rent the Runway Different?
- Access over ownership — you can wear designer pieces for an event or a month without paying full retail or storing them afterward
- Pioneer of the category — Rent the Runway is widely credited with popularizing the modern fashion rental model in the US
- Flexible ways to shop — rent for an occasion, subscribe for ongoing rotation, or buy outright
- Wide range of occasions — beyond formalwear, the catalog includes everyday clothing, accessories, and more
- Sustainability angle — renting shared garments can reduce how many clothes end up sitting unworn in closets, which is a big part of the brand’s appeal
What Does Rent the Runway Offer?
Subscriptions
Monthly plans that let you keep a set number of items at a time and swap them out. Plans vary in price and number of items, so check the current options on the official website.
One-Time Rentals (Reserve)
Rent a specific dress or outfit for a set rental period without committing to a subscription, ideal for a single event like a wedding or gala.
Buying
Options to purchase pieces, including previously rented items, which can be a way to get designer fashion at a lower price.
Accessories and More
Jewelry, handbags, and other accessories to complete an outfit, plus additional categories beyond womenswear.
Is Rent the Runway Worth It?
Rent the Runway makes the most sense for specific situations. If you regularly attend weddings, galas, or events where you don’t want to repeat outfits, renting can cost far less than buying multiple designer dresses. It can also be a way to try higher-end brands without a big commitment. It’s a weaker fit if you tend to wear the same few pieces constantly, since buying a few versatile items you love may cost less over time than a monthly subscription.
A few honest things to keep in mind:
- Subscriptions are an ongoing cost. A monthly plan can add up, so it works best if you’ll genuinely use it every month.
- Timing matters for events. For a specific occasion, reserving early gives you a better chance of getting your preferred style and size.
- Fit varies by designer. As with any designer clothing, sizing can differ between brands, so read fit notes and reviews.
- Terms can change. Pricing, plan details, and policies are updated regularly, so always confirm current details on the official site before signing up.
How Does Rent the Runway Compare to Buying Designer Clothing?
| Feature | Rent the Runway | Buying Designer Clothing |
|---|---|---|
| Cost per wear | Lower for occasional or one-off events | Lower only if you wear the piece often |
| Variety | Rotate through many styles | Limited to what you own |
| Storage and care | Return items after use | You store and maintain them |
| Commitment | Subscription or single rental | Full purchase price upfront |
| Resale value | None on rentals | Possible if the piece holds value |
| Best for | Events, trying new brands, changing wardrobes | Everyday staples you’ll wear repeatedly |
Tips for Using Rent the Runway
- Book event rentals early to secure your first-choice style and size
- Read the fit and sizing notes for each designer, since sizing varies
- Choose a subscription only if you’ll use it monthly, and check how to pause or cancel before you sign up
- Look at the buy option if you fall in love with a piece you’d wear again
- Check the current terms for late fees, damage policies, and return timelines on the official website
Final Verdict: Is Rent the Runway Worth It in 2026?
Rent the Runway remains the best-known name in fashion rental, and its 2026 leadership change under new CEO Paige Thomas signals a company refocusing on its core strength: helping customers get dressed in premium fashion without buying every piece. Revenue is growing and losses are narrowing, though profitability isn’t guaranteed and subscriber numbers dipped slightly. For anyone who regularly needs event outfits or wants to try designer brands without full retail prices, Rent the Runway is well worth considering, just be sure to check current plans and policies before you commit.
Frequently Asked Questions
Who founded Rent the Runway?
Rent the Runway was founded in November 2009 by Jennifer Hyman and Jennifer Fleiss, who met at Harvard Business School.
Who is the CEO of Rent the Runway now?
Paige Thomas was named CEO in September 2026. She succeeded interim CEO Teri Bariquit, who had led the company since cofounder Jennifer Hyman stepped down in May 2026.
Is Rent the Runway a public company?
Yes, Rent the Runway went public in October 2021 and trades on Nasdaq under the ticker RENT.
How does Rent the Runway work?
Customers can subscribe to rent a set number of items at a time, reserve a one-time rental for a specific event, or buy pieces outright.
Is Rent the Runway worth it?
It’s most worthwhile for people who attend many events or want to wear designer brands without full retail prices. If you wear the same items often, buying may be cheaper over time.
Does Rent the Runway still have physical stores?
No, the company has closed its standalone retail stores and now focuses on its online business.
Is Rent the Runway profitable?
Not consistently. In the second quarter of 2026, revenue grew and losses narrowed significantly, but the company still reported a net loss.
