Hi. Weβre Reformation, the largest sustainable womenswear brand on the planet
(that we know of, anyways). Since 2009, weβve been on a mission to bring
beautiful, sustainable fashion to everyone and look damn good doing it.
We make timeless, modern apparel and accessories that instill confidence and
generate deep brand love from our loyal customers spanning generations and
geographies. Our goal is to have a positive impact on people and the planet and
prove that itβs possible to build a global fashion brand that delivers both
impressive financial and environmental results. From 2015 to 2025, we grew net
revenue at a compound annual growth rate (βCAGRβ) of 34%, reaching over half a
billion dollars of net revenue and over one million Active Customers, all while
boasting strong margins. In 2026, our momentum has continued, with net revenue
growing 30% during the first quarter of 2026 compared to the first quarter of
2025.
We built Reformation to challenge the conventional fashion model and reimagine
how brands interact and engage with consumers. Our business stands in contrast
to traditional retail businesses that can often be characterized by limited
direct connection to the customer, imprecise product forecasting and
merchandising, frequent promotions, long manufacturing lead times, and slow
technological adoption. At Ref, we arenβt afraid to say what everyone else is
thinking and do our own thing. As a result, over the last 17 years, weβve helped
pave the way for what we consider to be a smarter approach to retail.
Hereβs how we operate differently:
β’ Beloved lifestyle brand β Weβre known and loved for our unique brand identity,
which helps us connect authentically with customers and the broader cultural
zeitgeist. Our customers love us: 77% of Active Customers cited Reformation as
one of their favorite brands or their all-time favorite brand in our July 2025
Customer Survey and, in 2025, nearly 70% of our direct-to-consumer (βDTCβ) net
revenue came from our returning customers.
β’ Product and merchandising optimization β We make great products our customers
are obsessed with across categories and occasions. Our strategy is based on 1)
testing new styles in small quantities and 2) iterating on proven designs. As
a result, full-price sales consistently represented approximately 80% of our
DTC net revenue from 2021 to 2025.
β’ Agile, sustainable supply chain β We have proven that speed, sustainability,
and profitability can coexist in fashion. Supported by our efficient supply
chain and well-defined Sustainability Framework, we maintain industry leading
manufacturing lead times compared to key peers in the apparel industry, with
50% of our product arriving in our distribution center in 60 days or less for
the past three years.
β’ Technology-forward shopping experiences β We directly own the relationship
with our customer with approximately 90% of our net revenue coming from our
DTC channel in 2025. We leverage technology to build smarter and more elevated
retail shopping experiences. For example, in 2025, our tech-enabled and
patented Retail Xβ’ store model generated approximately 8.5% higher average
order value and approximately 270 basis points higher conversion compared to
non-Retail Xβ’ stores.
Weβre super proud of our success to date and have lofty ambitions as we continue
on our mission to βbring sustainable fashion to everyone.β We operate within the
highly fragmented fashion industry, while also benefiting from increased
consumer demand for sustainable fashion. With less than 1% customer penetration
of our core U.S. addressable market today, we believe we are well positioned to
capture significant growth over the long term. Our path forward is clear: we
intend to grow by deploying the same strategies that helped get us to where we
are today. Specifically, that means increasing our distribution through both DTC
and wholesale channels, expanding our product assortment within existing and new
product categories, growing in international markets, and driving operational
excellence.
As we pursue these goals and continue building an industry-leading lifestyle
brand, we will define success in three ways:
β’ Customer love. Weβre proud to have a highly desirable, loyal, and growing
customer base. Our goal is to continue acquiring new customers as we grow
brand awareness and geographic reach, while retaining longtime fans of the
brand. We believe the strength of our customer retention and repeat purchasing
behavior has contributed to a durable and repeatable revenue base over time.
β’ Sustainability outcomes. We believe companies should also be accountable for
their environmental impact, so we aim to continue to set a high standard for
sustainability in the fashion industry as we scale.
β’ Financial performance. Most of the time we donβt take ourselves too seriously,
but when it comes to financial performance, we operate with rigor and
commitment to our stakeholders. This has enabled us to effectively deliver
topline growth and profitability that we will strive to build on in the
decades to come.
All of this adds up to some pretty great results, if we do say so ourselves.
Weβve achieved:
β’ A strong customer base. In 2025, we surpassed one million Active Customers
across our DTC channel and have approximately 1,140,000 Active Customers as of
March 28, 2026.
β’ Steady net revenue growth. In 2025, we reported net revenue of $507.1 million,
representing a 19% CAGR from 2023. And, in the first quarter of 2026, we
reported net revenue of $112.3 million compared to $86.1 million in the first
quarter of 2025, a 30.4% increase year-over-year. That means weβve delivered
20 consecutive quarters of double-digit net revenue growth through the first
quarter of 2026.
β’ Strong gross margins. From 2021 to 2024, we consistently generated gross
margins of 64.0% or more. In 2025, we generated a gross margin of 60.2%, which
was negatively impacted by 360 basis points due to the impact of the IEEPA
tariffs. During the first quarter of 2026, we generated a gross margin of
70.3%, which was positively impacted by approximately 900 basis points
resulting from the refund of the IEEPA tariffs.
β’ Sustained profitability. We have generated positive net income from 2018 to
2025, with the exception of 2020 due to the impact of the COVID-19 pandemic.
In 2025, we generated $12.6 million of net income, inclusive of the impact of
IEEPA tariffs.
β’ Robust Adjusted EBITDA. In 2025, we generated $45.0 million in Adjusted
EBITDA, which represented 8.9% of net revenue, and in the first quarter of
2026, we incurred $(12.1) million in net loss and generated $15.9 million in
Adjusted EBITDA, which represented 14.1% of net revenue and reflected a 1,450
basis point improvement from the first quarter of 2025. The
quarter-over-quarter improvement includes approximately 900 basis points
resulting from the refund recorded for IEEPA tariffs that were recognized in
cost of goods sold in 2025.
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. For further
information about how we calculate Adjusted EBITDA and Adjusted EBITDA margin
(including limitations of their use and reconciliation to the most comparable
GAAP measures). Adjusted EBITDA margin is Adjusted EBITDA as a percentage of
total net revenue.
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Reformation was founded in 2009, and REF Topco, Inc. was incorporated as a
Delaware corporation in 2019 in connection with the acquisition by Permira of a
majority interest in us. We changed our name to Reformation Inc. on April 11,
2025. Our principal offices are located at 5801 S. 2nd St., Vernon, California
90058. Our telephone number is (213) 282-2025. We maintain a website at
www.thereformation.com.
