Rent the Runway is undergoing a sweeping digital transformation in 2025, harnessing AI to reshape fashion discovery, inventory management, and personalized service for its more than 170,000 active subscribers. Led by Co-Founder and CEO Jennifer Hyman, the company’s strategy marries rapid product innovation with sharper business fundamentals, including a $100 million recapitalization plan, to solidify Rent the Runway’s role as the go-to platform for fashion subscription, rental, and resale.
Personalized Shopping Powered by AI
Recent upgrades have positioned Rent the Runway at the forefront of personalized, AI-driven style curation. In August, the platform rolled out product features that recommend clothing based on each subscriber’s favorite designers, style preferences, and planned occasions.
“Recent product launches that enable personalized recommendations include features based on each customer’s favorite designers, styles and occasions…with relevant recommendations based on her preferences and interests to make picking easy,” explained Hyman during a company earnings call.
Looking ahead, Rent the Runway plans to use artificial intelligence to summarize member reviews and surface actionable fit insights—improving the browsing and selection process for every customer. “Product improvements will focus on incorporating more personalized recommendations […] and using AI for review summaries and fit improvements to build a continuously improved product for our customers,” Hyman added.
Rapid Inventory Expansion and Community Growth
Another pillar of Rent the Runway’s transformation has been historic investments in inventory. In 2025 alone, the company added 2,200 new styles and 56 new designer brands to its platform, giving customers one of the most varied selections in the online rental market.
This expanded inventory, combined with AI-driven discovery, has paid off. During the quarter ending July 31, Rent the Runway reported a year-over-year revenue increase of 2.5%, a 13.4% jump in active subscribers, and a 5.7% rise in total subscribers. Perhaps most telling: average subscription Net Promoter Score (NPS) reached a record 77%, indicating rising satisfaction and loyalty among the company’s user base.
New Shopper Touchpoints: Affiliate Emails, Events, and Social
Rent the Runway has further broadened its engagement via affiliate email programs, allowing customers to purchase featured styles directly from brands through email links. At the same time, new social media campaigns target users where they are—across platforms like Instagram, TikTok, and Reddit—turning brand discovery into a continuous, multi-channel experience.
Offline, the company’s exclusive in-person events for subscribers have sparked outsized demand, drawing three times as many RSVPs as capacity could accommodate, highlighting the enduring appetite for real-life community among digital-first shoppers.
Recapitalization “IPO 2.0” and the Road Ahead
On the business side, Rent the Runway has taken decisive steps to strengthen its financials, unveiling a recapitalization plan announced August 21, which is expected to bring $100 million in fresh capital and reinforce the company’s balance sheet. Hyman explained, “Since COVID, I believe that our capital structure has been the thing holding us back from making a full comeback, and we’re happy to be moving forward into a new chapter…. We’re ready to be reacquainted with the investor community and I view this as our IPO 2.0”.
Tech-Driven Results in Fashion’s New Era
The story of Rent the Runway in 2025 is one of fast-paced digital adaptatio,n meeting human-centric service. Through AI-enabled recommendation engines, scalable inventory strategies, and a relentless focus on customer experience, the company is not just keeping pace with change, it’s setting the standard for accessible, flexible, and personalized luxury fashion as a service.
