Reformation Inc. (NYSE: REF) announced its financial results for the second fiscal quarter ended June 27, 2026, in a press release dated September 10, 2026. The company reported a 24.1% increase in net revenue, reaching $155.2 million for the quarter. This growth was driven by strength across both Direct-to-Consumer (DTC) and Wholesale channels.
Within the DTC segment, net revenue increased by 21.2% to $135.3 million. This growth was supported by a 22.9% increase in Active Customers, though DTC Net Revenue per Customer declined by 1.4%. The Wholesale and Other segment saw a 48.7% increase in net revenue, totaling $19.9 million. International revenue also grew significantly, rising 36.8% to $31.2 million.
On the profitability side, the company reported a gross margin of 66.7%, an expansion of 230 basis points compared to the prior year. Net income increased 79.4% to $12.4 million, or $0.23 per diluted share. Adjusted EBITDA grew 53.9% to $25.4 million, with a margin expansion of 320 basis points to 16.4%.
Reformation ended the quarter with 70 stores globally and reported cash and cash equivalents of $76.6 million. Inventory stood at $81.8 million. The company amended its Credit Agreement on June 17, 2026, securing an additional $92.0 million in term loans and extending the maturity to June 2031. Proceeds from the amendment were used to pay a dividend of approximately $90.0 million, or $1.63 per share.
For the full fiscal year 2026, Reformation expects net revenue to be between $602 million and $606 million, representing growth of approximately 18.6% to 19.5%. The company anticipates Adjusted EBITDA margin between 14% and 14.2% and capital expenditures of $23 million to $27 million, associated with 15 to 16 planned new store openings.
