Reformation Posts Record DTC Growth in Q2
Reformation delivered its strongest quarter yet as a public company, with net revenue up 24.1% to $155.2 million and adjusted EBITDA margin expanding to 16.4%. The results were driven by a 23% increase in active customers and accelerated international expansion.
Reformation reported second-quarter 2026 results that exceeded the high end of its initial public offering guidance, marking its 21st consecutive quarter of double-digit revenue growth. Net revenue reached $155.2 million, a 24.1% increase year over year, while net income climbed to $12.4 million from $6.9 million in the prior year period. Adjusted EBITDA rose 54% to $25.4 million, reflecting an efficiency gain that pushed the margin to 16.4% from 13.2% a year earlier.
The performance was underpinned by significant expansion in the direct-to-consumer channel, which contributed $135.3 million to total revenue. This segment grew 21.2% year over year, supported by a trailing-12-month active customer base that expanded approximately 23% to 1.2 million. Management attributed the volume increase to both new customer acquisition and sustained engagement from established shoppers, with CEO Hali Borenstein noting that returning customers spend nearly twice as much as new arrivals.
Customer Retention Drives Revenue Stability
Reformation’s business model relies heavily on repeat purchases, with approximately 70% of 2025 revenue generated by returning customers. The company reported an 80% one-year revenue retention rate and a 98% two-year retention rate, indicating strong brand loyalty. Although net revenue per customer declined 1.4% to $417 due to the influx of new, lower-spending shoppers, management highlighted that value continues to rise with tenure. Customers who engage across both physical stores and e-commerce platforms spent 3.1 times more than those using a single channel.
Wholesale And International Segments Accelerate
Wholesale and other revenue surged 48.7% to $19.9 million, driven by strong demand for spring and summer collections among existing partners. International revenue grew 36.8% to $31.2 million, representing roughly 20% of total second-quarter sales. Growth was particularly pronounced in France, where new customer acquisitions exceeded 180% year over year in the first half of 2026 following the opening of two Paris locations. The company ended the quarter with 10 international stores and serves over 150 countries via digital channels.
Store Network Expansion Continues
Reformation opened four new stores during the quarter, including locations in Raleigh, Paris, and Chicago, bringing its total footprint to 70 locations. The company has added 17 stores over the past 12 months and projects a path to doubling its store count within five years. Management stated that these physical locations are designed to drive both local retail sales and e-commerce activity within their surrounding markets. In Chicago, new customer growth accelerated to 50% year over year in the 11 weeks following the opening of two additional stores.
