US-based e-commerce retailer targeting millennial and Gen Z consumers, Revolve Group announced strong financial results for Q2, FY26. The company's performance was highlighted by a 9 per cent Y-o-Y increase in net sales, reaching $309 million.

This growth was driven by both its core Revolve segment, which rose by 9 per cent, and its luxury FWRD segment, which grew by 10 per cent.

The company’s international sales rose by 17 per cent Y-o-Y to $67.3 million. Domestic sales also grew by 7 per cent to $241.6 million.

Despite a challenging macroeconomic environment, the company achieved its highest adjusted EBITDA margin in three years, with adjusted EBITDA increasing by 12 per cent to $22.9 million. This was attributed to increased sales, a higher mix of their own branded products (which have higher margins), and improved operational efficiencies.

During the quarter, Revolve Group demonstrated exceptional cash flow generation, with free cash flow for the first half of the year increasing by an impressive 424 per cent compared to the same period last year. The company's active customer base grew by 6 per cent to 2.74 million, and the total number of orders placed increased by 7 per cent.

However, the company’s net income decreased 35 per cent to $10 million primarily due to non-operational factors such as a change in other income and a higher effective tax rate, rather than issues with the core business.