Retail / news
Reformation reports first public-quarter revenue of $155.2M as active customers climb 23%
Reformation used its debut earnings call as a public company to pitch the durability of its direct-to-consumer model, reporting second-quarter net revenue of $155.2 million and 23% growth in active customers.
Chief executive Hali Bornstein told analysts on the call that the brand has now logged 21 straight quarters of double-digit revenue growth, framing customer retention as the engine behind the streak. She said 70% of revenue in 2025 came from shoppers who had bought before, adding that acquired customers tend to remain with the brand.
Second-quarter net revenue rose 24% year over year to $155.2 million, while net income reached $12.4 million. The company also reported that active customers grew 23% during the quarter.
The figures put Reformation at odds with several other direct-to-consumer-first names. Everlane and Allbirds both struggled this year, and some venture investors have cooled on the DTC playbook on the view that it can cap growth. Reformation does hold wholesale partnerships with selected retailers including Nordstrom, but it said 90% of its 2025 revenue came through its own website or stores.
Executives flagged one caveat in the customer data: newer shoppers spend less, particularly in the first year after acquisition. Direct-to-consumer net revenue per customer slipped 1.4% in the quarter, which the company tied to outsized growth in customer acquisition.
Analysts pressed management on the call over how quickly newly acquired customers mature into higher-spending repeat buyers.