Quick Facts
- Reformation reported $507.1 million in revenue for fiscal year 2025, a 15.7% year-over-year increase, with net profit falling 61.8% to $12.6 million.
- The brand posted its 20th consecutive quarter of double-digit net revenue growth in Q1 2026, with revenue up 30.4% to $112.3 million.
- About 90% of revenue comes from direct-to-consumer channels, and the brand spent just 9% of net revenue on marketing over the past four years.
Reformation filed a registration statement with the U.S. Securities and Exchange Commission on June 25, 2026, for a proposed initial public offering on the New York Stock Exchange under the ticker symbol REF. Renaissance Capital estimated the offering at approximately $200 million. JP Morgan, Morgan Stanley, Citigroup, and RBC Capital Markets are serving as lead underwriters.
The Los Angeles-based womenswear brand reported net revenue of $507.1 million for the fiscal year ending December 27, 2025, up 15.7% year over year. The company grew net revenue at a 34% compound annual growth rate from 2015 to 2025. Adjusted EBITDA for 2025 came in at $45 million, or 8.9% of net revenue.
Profitability Under Pressure
Net profit dropped sharply, falling 61.8% to $12.6 million in 2025 from $32.6 million in 2024. Gross margin declined 360 basis points to 60.2%, driven by tariff exposure under the International Emergency Economic Powers Act. Reformation absorbed roughly $10 million in direct IEEPA tariffs and an additional $8 million passed on by vendors.
The brand reported a net loss of $12.1 million in Q1 2026, though adjusted EBITDA for the quarter reached $15.9 million. The company said it is evaluating administrative and legal options to pursue tariff refunds but acknowledged uncertainty around timing.
DTC Model and Customer Retention
Reformation surpassed 1 million active customers in its DTC channel in 2025. Nearly 70% of total DTC net revenue came from returning customers. Of customers acquired before 2025, 54% have made more than one purchase.
The brand stated in its SEC filing that it has maintained a marketing-to-net-revenue ratio of 9% for four consecutive years and is profitable on a first-order basis. Over 70% of its customer base falls between ages 25 and 50.
Retail X Store Model
Reformation operates 70 owned stores globally and works with 15 wholesale accounts spanning 142 locations. Its patented Retail X model, a showroom format where customers use touchscreens to build dressing rooms from a single displayed sample, made up about 75% of its retail stores as of Q1 2026.
Stores using the Retail X model generate 8.5% higher average order value than locations without the technology. Full-price retail locations open for all of fiscal 2025 generated $2.7 million in net revenue per door and typically recover their initial investment in under 24 months.
IPO Structure and Ownership
Private equity firm Permira, which acquired a majority stake in 2019, is expected to retain significant influence post-IPO. Reformation stated that some proceeds may go toward debt repayment and buying back shares from existing investors. The number of shares and price range have not been set.
CEO Hali Borenstein has argued that sustainability and profitability are complementary. The brand stated its goal is to prove it is possible to build a global fashion brand that delivers both financial and environmental results. As of June 22, 2026, the company reported approximately 4 million social media followers and 3 million email subscribers.
