Revolve Group achieves record profitability in third quarter 2025

Revolve Group, Inc., the online fashion retailer, reported a "very solid" third quarter ended September 30, 2025, marked by exceptional profitability. The company's net income surged by 97 percent to 21.2 million dollars, and adjusted EBITDA climbed 45 percent to 25.3 million dollars, setting a new all-time high for a third quarter. Total net sales grew 4 percent year-over-year to 295.6 million dollars, supported by a 5 percent increase in active customers to 2.747 million.

This performance was primarily driven by a significant 347 basis point expansion in gross margin to 54.6 percent, which co-CEO Mike Karanikolas attributed to the competitive advantage of its data-driven merchandising, resulting in an 11 percent increase in gross profit to 161.5 million dollars.

"Particularly in the current tariff environment, I am extremely pleased by our nearly 350 basis point increase in gross margin year-over-year that further validates the competitive advantage of our data-driven merchandising and puts us on track to expand our gross margin and adjusted EBITDA margin in the full year 2025 for the second straight year," Karanikolas added.

Breaking down sales, the Revolve segment grew 5 percent to 254.6 million dollars, while the luxury FWRD segment increased 3 percent to 41 million dollars. Furthermore, domestic net sales rose 4 percent to 231.4 million dollars, and international net sales increased 6 percent to 64.2 million dollars.

Co-CEO Michael Mente emphasised the company's strong balance sheet, with 315 million dollars in cash, which allows it to continue investing in long-term strategic initiatives like international expansion, leveraging AI technology, and exploring physical retail, positioning Revolve to "accelerate our market share capture and achieve profitable growth for years to come."