Quick Facts
- Jennifer Hyman stepped down as CEO effective May 15, 2026 after 17 years leading Rent the Runway
- Company posted its first annual profit of $22.6 million in 2025 after accumulating over $1.1 billion in losses
- Teri Bariquit, former Nordstrom Chief Merchandising Officer, serves as interim CEO while board searches for permanent replacement
Rent the Runway co-founder Jennifer Hyman stepped down as CEO, president and board member on May 15, 2026, ending her 17-year leadership of the clothing rental company. The departure comes as the business achieved its strongest financial position in company history.
The company posted its first annual profit of $22.6 million in 2025 after accumulating more than $1.1 billion in losses since launch. Revenue increased 7.7 percent to $329.8 million while active subscribers rose 8.3 percent to 143,558.
“It’s always best to leave at your happiest point, at the strongest point for your business,” Hyman said. She reflected on her tenure: “I’ve spent more time building Rent the Runway over the last 18 years than I’ve spent with my family. It’s been, honestly, the most important part of my life.”
Teri Bariquit, a board member and former Nordstrom executive, assumed the role of interim CEO. Bariquit served at Nordstrom for nearly four decades, most recently as Chief Merchandising Officer from 2019 to 2023, where she oversaw digital transformation and inventory optimization.
The leadership change triggered a sharp market reaction. Shares fell 10.81 percent in mid-day trading to $3.96, erasing roughly $14 million in market value.
Q4 2025 delivered record results with revenue of $91.7 million, a 20 percent increase year-over-year representing the highest quarterly revenue in company history. The company ended 2025 with 143,796 active subscribers, up 20 percent from the prior year.
Rent the Runway reaffirmed its 2026 guidance calling for double-digit revenue growth and adjusted EBITDA margin between 4 and 7 percent. The company continues pushing diversification efforts including AI investments, marketplace expansion, and B2B services.
“Rent the Runway is in its strongest financial position in years, with clear momentum across key initiatives,” Bariquit said. Her interim compensation includes a $50,000 monthly fee, up to $125,000 in annual bonuses, and 100,000 performance stock units.
Hyman co-founded the company in 2009 at age 27 with Jenny Fleiss while pursuing her MBA at Harvard University. She pioneered the “Closet in the Cloud” concept, inventing the clothing rental category and normalizing secondhand clothing.
The transition occurred after successful debt restructuring in late 2025 that avoided bankruptcy, with private equity group Story3 and Nexus now holding majority control. Hyman plans to launch a new project focused on helping women accomplish their goals.
Read more: Rent the Runway co-founder Jennifer Hyman steps down as CEO
