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Case

Rent the Runway: the 2021 IPO and subscribers after the pandemic

Rent the Runway, founded in 2008, priced its IPO at $21 a share on 26 October 2021, opened on Nasdaq at $23 on 27 October (a valuation above $1.7 billion) and closed the day at $19.29 (CNBC). In 2020 active subscribers fell from over 133,000 to about 55,000 and revenue fell 39% to $157.5 million (CNBC). For the year to 31 January 2026 the company reported revenue of $329.8 million, 143,796 ending active subscribers and net income of $22.6 million, after a $69.9 million loss a year earlier (Form 10-K).

Industry
Subscription fashion rental (USA)
Frameworks applied
Six recurring-revenue modelsThree forces behind subscription growth
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Frameworks applied

This case is read through the frameworks below.

  • Six recurring-revenue modelsWhen a business owner wants to move from one-off sales to recurring income, which model should they choose so that the same customer keeps paying over time?
  • Three forces behind subscription growthWhen weighing a move to subscription selling, what should a business owner understand about the technology, customer preferences and business benefits driving its spread?

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Rent the Runway, Inc. (2026) Form 10-K for the fiscal year ended January 31, 2026. Washington, DC: U.S. Securities and Exchange Commission.No DOIsec.govSource page
  2. Thomas, L. (2021) Rent the Runway's strong debut fizzles, as shares close the day down 8%. CNBC.No DOIcnbc.comSource page