Quick Facts
- Reformation priced its IPO at $15 per share, raising $210.9 million and debuting on the NYSE under ticker REF on July 30, 2026.
- The company posted $507.1 million in 2025 net revenue but saw net profit fall to $12.6 million from $33 million the prior year.
- Private equity backer Permira retains approximately 49% ownership post-IPO; the company plans to use $125.1 million of proceeds to pay down debt.
Reformation began trading on the New York Stock Exchange on Thursday, opening at $15 per share and ending the day essentially unchanged. The debut gave the Los Angeles-based womenswear brand a market valuation of approximately $886 million, short of the $1 billion target it had set when it launched its roadshow earlier this month.
The company offered 14,062,500 shares in total. Reformation marketed 9.48 million shares while selling shareholders offered 4.58 million, priced between $15 and $17 apiece. JPMorgan Chase and Morgan Stanley led the offering, with Citigroup and RBC Capital Markets serving as joint bookrunning managers.
Revenue Growth, Profitability Pressure
Reformation reported $507.1 million in net revenue for 2025, representing a 19% compound annual growth rate from 2023 and marking 20 consecutive quarters of double-digit revenue growth. Despite that run, net profit fell to $12.6 million from $33 million in the prior year, even as revenue grew nearly 16%.
The first quarter of 2026 showed continued pressure. The company posted a net loss of $12.1 million on revenue of $112.3 million in the 13 weeks ending March 28, compared with a net loss of $5.6 million on revenue of $86.1 million in the same period a year earlier. Gross margin hit 70% for the period, boosted by approximately 900 basis points from tariff refunds. Adjusted EBITDA stood at $45 million, or 8.9% of net revenue.
As of June 27, 2026, Reformation carried $250.3 million in total outstanding debt. The company intends to use approximately $125.1 million of IPO proceeds to partially repay that balance.
DTC Model and Customer Base
Roughly 90% of Reformation’s 2025 revenue came from its direct-to-consumer channel. The brand passed one million active DTC customers last year and counted approximately 1.14 million as of March 28, 2026. Nearly 70% of DTC revenue in 2025 came from returning customers, who buy from the brand an average of 2.6 times per year.
CEO Hali Borenstein told CNBC the company’s average customer earns over $100,000 annually. Seventy percent of customers are between 25 and 50 years old. Borenstein said that positioning insulates the brand from the macroeconomic pressures hitting other retailers.
Reformation operates more than 70 stores across the US, UK, Canada, and France, and sells in more than 150 countries through its e-commerce platform. About 75% of its stores use the company’s patented Retail X model, a showroom format where customers build dressing rooms via touchscreen. That format drives an 8.5% higher average order value than standard locations. Over 30% of new DTC shoppers were acquired through retail stores last year.
Ownership and Growth Plans
Permira, which took a controlling stake in Reformation in 2019, will retain approximately 49% ownership following the listing, down from 64.4% before the IPO. Founder Yael Aflalo’s family trust will hold around 20% of shares. Reformation’s prospectus warned that Permira would retain significant influence over corporate decisions.
Borenstein said the company’s next growth phase centers on opening more stores, accelerating e-commerce, expanding internationally, and diversifying product categories. COO Ivan Tchakarov told investors that technology, data, and AI are embedded across the company’s value chain.
Analyst Mark Bage, founder of Not Studio, noted that the valuation at roughly twice annual revenue is not aggressive compared to peers. Birkenstock went public at more than six times sales. Reformation’s IPO arrives as DTC brands face increased scrutiny from public market investors on the path to sustained profitability.
