Revolve Group, Inc. closed 2025 with a strong finish, delivering double digit fourth quarter net sales growth, higher margins, and sharply improved profitability as it leans into AI, owned brands, and global expansion for 2026.
Q4 2025: acceleration into year-end
In the fourth quarter of 2025, Revolve Group grew total net sales to $324.4 million, up 10% year over year, an acceleration from the 4% growth posted in Q3 2025. Trailing 12 month active customers increased by 94,000 in the quarter, its best quarterly gain in more than three years, taking the active base up 6% year over year to 2,841,000 as of December 31, 2025.
Gross profit climbed to $172.9 million, up 12% year over year, with gross margin expanding 78 basis points to 53.3%, driven largely by stronger margins in the FWRD segment. Net income jumped 58% to $18.6 million, Adjusted EBITDA rose 44% to $26.3 million, and diluted EPS reached $0.26, up 53% versus the prior year period.
Segment and category trends
Both operating segments posted double digit top line growth in Q4 2025. REVOLVE segment net sales reached $276.6 million, up 10% year over year, while FWRD segment net sales were $47.8 million, up 14%.
By geography, domestic net sales were $260.1 million, up 10%, and international net sales were $64.2 million, up 13% year over year. Management noted that average order value edged down slightly, primarily due to mix shift as beauty sales grew an exceptional 43% year over year, pulling in more first time customers at lower order values.
Full-year 2025: profitable growth
For full year 2025, total net sales reached $1.23 billion, an 8% increase year over year. Gross profit rose 11% to $655.8 million, and gross margin expanded 100 basis points to 53.5%, reflecting better product mix and disciplined discounting.
Net income grew 25% to $61.1 million, with Adjusted EBITDA up 35% to $93.8 million. Diluted EPS for 2025 was $0.86, another 25% increase, signaling that profitability is scaling faster than revenue.
Segment performance remained broadly balanced: REVOLVE segment net sales were $1.05 billion, up 9%, while FWRD delivered $171.6 million, up 8%. Domestic net sales were $972.4 million (up 8%), and international net sales were $253.3 million (up 12%), showing steady growth outside the U.S. market.
Co founder and co CEO Mike Karanikolas said, “We finished the year with an outstanding fourth quarter, highlighted by double-digit top-line growth, a 58% increase in net income and a 44% increase in Adjusted EBITDA year-over-year.” Co founder and co CEO Michael Mente said, “We are confident that our culture of innovation and technology DNA will allow us to remain a leader in the continued wave of AI innovation, driving higher conversion and efficiency. We are in a unique and opportunistic time, and with our strong financial position, powerful brand and momentum in the business, we intend to invest significantly and thoughtfully to take our brands to new heights.”
Cash, balance sheet, and capital returns
The business exited 2025 with a debt free balance sheet and a stronger cash position. Cash and cash equivalents (including restricted cash) totaled $303.2 million at December 31, 2025, up $46.6 million or 18% from $256.6 million a year earlier.
For the year, net cash provided by operating activities was $59.4 million and free cash flow was $46.2 million, increases of 123% and 157%, respectively, driven by higher net income and favorable working capital movements. Inventory stood at $251.8 million, up 10% from $229.2 million, in line with Q4’s 10% net sales growth, suggesting inventory build is tracking demand rather than running ahead of it.
On capital returns, stock repurchases totaled $2.0 million in 2025, with 107,195 Class A shares bought back at an average price of $18.86 per share; $55.6 million remained available under the $100 million repurchase program at year’s end.
Early 2026 momentum and outlook
In the first seven weeks of 2026 (from January 1, 2026, to February 18, 2026), net sales increased by approximately 16% year over year. Management noted that the comparison is against a softer January 2025, when Los Angeles wildfires temporarily impacted demand in California and prompted a pause in social media activity, with trends normalizing again in February 2025.
Looking ahead, Revolve Group provided 2026 guidance for the first quarter and full year that factors in macro headwinds such as tariffs, inflation, supply chain disruptions, and foreign currency volatility. The company highlighted that gross margin will remain particularly sensitive to tariff timing and levels, as well as to mitigation strategies currently underway.
