Reformation (NYSE:REF) Announces Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Reformation (NYSE:REF) announced its earnings results on Thursday. The company reported ($0.02) earnings per share for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.04), Briefing.com reports. The business had revenue of $173.57 million for the quarter, compared to analyst estimates of $170.48 million. The firm’s revenue for the quarter was up 19.1% compared to the same quarter last year.

Here are the key takeaways from Reformation’s conference call:

• Revenue rose 19.1% to $173.6 million, marking Reformation’s 22nd consecutive quarter of double-digit growth. Active customers increased 23.4% to 1.25 million, with growth across channels and geographies.
• The company raised its 2026 revenue outlook to $610 million–$612 million, or approximately 20%–21% growth, and expects adjusted EBITDA margin of about 14.2%, at the high end of its prior range. Management cited continued momentum, while noting that holiday sales are weighted toward the back half of Q4 and the macro environment remains dynamic.
• Adjusted EBITDA increased 64.2% to $23.1 million, and gross margin expanded 250 basis points to 60.4%; about 50 basis points of gross-margin expansion came from tariff refunds. However, the company reported a $1.1 million net loss versus $5 million of net income a year earlier, citing higher expenses, IPO-related stock compensation, and discrete tax items.
• Growth initiatives showed momentum: wholesale revenue increased 40.8%, international revenue rose 24.7%, and the company ended the quarter with 77 stores. It plans to finish 2026 with 80 stores and sees a path to more than doubling its store count over five years.

Reformation Stock Performance

Shares of NYSE:REF traded up $1.16 during trading on Friday, hitting $18.01. The company’s stock had a trading volume of 930,877 shares, compared to its average volume of 391,807. The firm’s 50 day simple moving average is $14.37. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.58 and a quick ratio of 0.96. The stock has a market cap of $1.06 billion and a P/E ratio of -1,801.00. Reformation has a fifty-two week low of $11.85 and a fifty-two week high of $18.44.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on REF shares. Zacks Research raised Reformation to a “hold” rating in a research note on Tuesday, August 25th. Robert W. Baird initiated coverage on Reformation in a research report on Monday, August 24th. They set an “outperform” rating and a $19.00 target price on the stock. Royal Bank Of Canada boosted their target price on shares of Reformation from $18.00 to $21.00 and gave the company an “outperform” rating in a research note on Friday. Morgan Stanley began coverage on shares of Reformation in a report on Monday, August 24th. They issued an “equal weight” rating and a $16.00 price target for the company. Finally, BTIG Research boosted their target price on Reformation from $20.00 to $21.00 and gave the stock a “buy” rating in a research note on Friday. Eight investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $19.75.

Key Reformation News

Here are the key news stories impacting Reformation this week:

• Positive Sentiment: Royal Bank of Canada raised its price target to $21 from $18 and maintained an “outperform” rating. Tickerreport article
• Positive Sentiment: BTIG Research increased its target to $21 from $20 and assigned a “buy” rating, adding to the analyst support for the shares. Tickerreport article
• Positive Sentiment: Fiscal Q3 revenue rose 19.1% year over year to $173.6 million, topping estimates. Active customers grew 23%, gross margin expanded to 60.4%, and adjusted EBITDA increased 64.2% to $23.1 million. Q3 results
• Positive Sentiment: Reformation raised its fiscal 2026 net revenue growth outlook to about 20% and expects its adjusted EBITDA margin to reach the high end of its prior guidance, around 14.2%. 2026 outlook
• Negative Sentiment: Quarterly loss was $0.02 per share, missing consensus expectations for earnings of $0.02 per share. The company reported a net loss of $1.1 million. Earnings report

Insider Activity at Reformation

In other Reformation news, Director Yael Aflalo sold 60,298 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $13.95, for a total value of $841,157.10. Following the sale, the director directly owned 11,665,505 shares of the company’s stock, valued at approximately $162,733,794.75. This represents a 0.51% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, major shareholder Scsp Refo sold 149,596 shares of the stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $13.95, for a total value of $2,086,864.20. Following the completion of the transaction, the insider directly owned 28,942,153 shares in the company, valued at $403,743,034.35. This trade represents a 0.51% decrease in their position. The SEC filing for this sale provides additional information.

Reformation Company Profile

Reformation is a fashion company that designs and sells women’s clothing, footwear, accessories and related products. Its assortment includes dresses, tops, denim, knitwear, outerwear, shoes, handbags and wedding apparel, with products offered through its direct-to-consumer website and retail stores.

Founded in 2009 by Yael Aflalo, Reformation built its brand around combining contemporary style with sustainability-focused production practices. The company has emphasized the use of lower-impact materials, reuse of vintage garments and deadstock fabrics, and efforts to reduce the environmental impact of its operations and supply chain.

Reformation serves customers in the United States and internationally through its online platform and a network of retail locations.