Reformation (NYSE:REF) Releases Earnings Results, Misses Estimates By $0.04 EPS

Reformation (NYSE:REF) issued its earnings results on Thursday. The company reported ($0.02) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.04), Briefing.com reports. The company had revenue of $173.57 million for the quarter, compared to analyst estimates of $170.48 million. The business’s revenue for the quarter was up 19.1% compared to the same quarter last year.

Here are the key takeaways from Reformation’s conference call:

• Revenue rose 19.1% to $173.6 million, marking Reformation’s 22nd consecutive quarter of double-digit growth. Active customers increased 23.4% to 1.25 million, with growth across channels and geographies.
• The company raised its 2026 revenue outlook to $610 million–$612 million, or approximately 20%–21% growth, and expects adjusted EBITDA margin of about 14.2%, at the high end of its prior range. Management cited continued momentum, while noting that holiday sales are weighted toward the back half of Q4 and the macro environment remains dynamic.
• Adjusted EBITDA increased 64.2% to $23.1 million, and gross margin expanded 250 basis points to 60.4%; about 50 basis points of gross-margin expansion came from tariff refunds. However, the company reported a $1.1 million net loss versus $5 million of net income a year earlier, citing higher expenses, IPO-related stock compensation, and discrete tax items.
• Growth initiatives showed momentum: wholesale revenue increased 40.8%, international revenue rose 24.7%, and the company ended the quarter with 77 stores. It plans to finish 2026 with 80 stores and sees a path to more than doubling its store count over five years.

Reformation Trading Down 3.7%

Reformation stock traded down $0.62 during trading on Friday, hitting $16.23. 23,358 shares of the company were exchanged, compared to its average volume of 493,677. The company has a market capitalization of $958.85 million and a P/E ratio of -1,623.00. The firm has a 50 day simple moving average of $14.31. Reformation has a 52 week low of $11.85 and a 52 week high of $18.44. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.58 and a quick ratio of 0.96.

Insider Buying and Selling at Reformation

In related news, Director Yael Aflalo sold 60,298 shares of the business’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $13.95, for a total transaction of $841,157.10. Following the transaction, the director directly owned 11,665,505 shares in the company, valued at approximately $162,733,794.75. The trade was a 0.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Scsp Refo sold 149,596 shares of the business’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $13.95, for a total transaction of $2,086,864.20. Following the transaction, the insider owned 28,942,153 shares in the company, valued at approximately $403,743,034.35. This trade represents a 0.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Key Reformation News

Here are the key news stories impacting Reformation this week:

• Positive Sentiment: Q3 revenue rose 19.1% to $173.6 million, beating estimates. Gross margin expanded 252 basis points to 60.4%, and adjusted EBITDA increased 64.2% to $23.1 million. Active customers grew 23%. Reformation Announces Third Quarter Fiscal 2026 Results
• Positive Sentiment: The company raised its fiscal 2026 revenue-growth outlook to about 20%, projecting $610 million–$612 million in net revenue, and expects an adjusted EBITDA margin of approximately 14.2%. Reformation projects 2026 revenue and margin targets
• Positive Sentiment: BTIG Research raised its price target from $20 to $21 and reiterated a Buy rating, signaling improved analyst confidence. Tickerreport coverage of BTIG Research’s price target change
• Negative Sentiment: Reformation posted a loss of $0.02 per share, missing analysts’ expectation of $0.02 earnings. The company attributed the reported net loss in part to a high effective tax rate tied to stock-based compensation from its IPO. Reformation Q3 earnings report

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the stock. Telsey Advisory Group started coverage on shares of Reformation in a research report on Monday, August 24th. They set an “outperform” rating and a $20.00 price objective on the stock. William Blair initiated coverage on Reformation in a research report on Monday, August 24th. They issued an “outperform” rating for the company. Weiss Ratings initiated coverage on Reformation in a research note on Monday, October 26th. They set a “sell (e)” rating on the stock. BTIG Research increased their price target on Reformation from $20.00 to $21.00 and gave the stock a “buy” rating in a report on Friday. Finally, Guggenheim reissued a “buy” rating and issued a $20.00 price objective on shares of Reformation in a research note on Friday, September 11th. Eight analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Reformation currently has an average rating of “Moderate Buy” and a consensus target price of $19.38.

About Reformation

Reformation is a fashion company that designs and sells women’s clothing, footwear, accessories and related products. Its assortment includes dresses, tops, denim, knitwear, outerwear, shoes, handbags and wedding apparel, with products offered through its direct-to-consumer website and retail stores.

Founded in 2009 by Yael Aflalo, Reformation built its brand around combining contemporary style with sustainability-focused production practices. The company has emphasized the use of lower-impact materials, reuse of vintage garments and deadstock fabrics, and efforts to reduce the environmental impact of its operations and supply chain.

Reformation serves customers in the United States and internationally through its online platform and a network of retail locations.