Revolve Group (RVLV), a Zack Rank #1 (Sturdy Purchase), is a digital trend retailer constructed round a curated, trend-forward on-line buying expertise largely aimed toward Millennial and Gen-Z customers.
Revolve is primarily an e-commerce vacation spot that blends buying with life-style and content material, utilizing influencer and social media advertising and data-driven merchandising to draw and interact its viewers.
The inventory recouped most of its 2025 losses within the closing month of the yr, although early 2026 has seen modest promoting stress. Buyers ought to watch key technical ranges and upcoming earnings as potential catalysts for a longer-term alternative.
In regards to the Firm
Revolve Group was based in 2003 and is headquartered in Cerritos, California. The corporate operated beneath the identify Advance Holdings, LLC earlier than rebranding as Revolve Group, Inc. in October 2018.
The corporate operates two primary on-line platforms. REVOLVE, which gives a large assortment of premium attire, footwear, magnificence, equipment, and residential merchandise from each rising and established manufacturers, and FWRD, which focuses on higher-end and luxurious trend.
RVLV is valued at $2 billion and has a Ahead PE of 33. The inventory has Zacks Model Scores of “C” in Worth, however “A” in Progress.
Q3 Earnings Beat
Revolve delivered a powerful Q3 earnings, beating expectations by 118%. This was the 8th straight EPS beat and the second largest beat throughout that stretch.
The quarter was pushed by margin efficiency, whilst income got here in beneath expectations. The underside line mirrored a virtually 350 foundation level yr over yr enlargement in gross margin to 54.6%. That margin power powered an 11% enhance in gross revenue and a forty five% leap in adjusted EBITDA to $25.3 million, the corporate’s highest ever for a 3rd quarter.
Energetic clients reached 2.75 million, up 5% yr over yr, whereas administration raised full yr 2025 gross margin steering to 53.5%, properly above prior expectations. Free money circulation greater than tripled by means of the primary 9 months of the yr, including $63 million to money and lifting the steadiness to $315 million.
Administration emphasised that Revolve is gaining aggressive benefit in a difficult retail and tariff atmosphere, supported by knowledge pushed merchandising, rising its personal model penetration, and enhancing advertising effectivity.
Worldwide momentum remained a standout, led by 50% yr over yr progress in mainland China alongside robust leads to Europe and the Center East.Wanting forward, the corporate plans to reinvest its robust money circulation into worldwide enlargement, new owned manufacturers, AI pushed efficiencies, and selective bodily retail initiatives.
Estimates Tick Larger
Revolve is a smaller firm nonetheless so there may be not lots of analyst protection on the identify. Nonetheless, estimates have been ticking increased from the analysts that do cowl the identify.
During the last 90 days, we’ve got seen enchancment in earnings estimates throughout all time frames.
For the present quarter, numbers have been taken up 45%, going from $0.11 to $0.16.
For the present yr we see a 44% leap, going from $0.52 to $0.75.
And for subsequent yr, estimates have gone from $0.62 to $0.82, or 33%.
Revolve Group, Inc. Value and Consensus
Revolve Group, Inc. price-consensus-chart | Revolve Group, Inc. Quote
KeyBanc maintains an Obese score and a $35 value goal, citing Revolve’s increased earnings buyer base, increasing personal manufacturers and classes, and disciplined concentrate on margin safety.
Analysts word that current rightsizing initiatives and constructive comparable traits have pushed a interval of operational outperformance. At roughly 16.7x 2027E EV EBITDA and 1.3x EV gross sales, RVLV trades at what many view as a horny valuation given strengthening income progress and continued margin enlargement, supporting confidence within the firm’s long term funding thesis.
The Technical Take
Revolve struggled for many of 2025, however closed out the yr near highs. Not too long ago, the inventory has pulled again in sympathy with the general market. This drop would possibly present buyers with a strong long-term entry, so let’s take a look at some ranges of curiosity.
Allow us to take a look at these transferring averages
21-day: $30.00 (present resistance)
50-day: $28.15 (just lately failed to carry)
200-day: $23.00 (Lengthy-term assist)
Together with these transferring averages there are some Fibonacci ranges to look at.
At $26, is the midway again or 50% retreatment. Whereas at $24.65, we’ve got the 61.8% retrace.
These ranges ought to be monitored for assist and when confirmed, buyers can enter for a longer-term escape.
In Abstract
Revolve Group is executing properly in a difficult retail atmosphere, with increasing margins, enhancing money circulation, and constant earnings outperformance. Whereas income progress stays measured, disciplined price controls, rising personal model penetration, and accelerating worldwide momentum are driving significant profitability good points.
With estimates transferring increased, a Zacks Rank #1 score, and shares pulling again from current highs alongside the broader market, RVLV is shaping up as a horny longer-term alternative for buyers.
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Revolve Group, Inc. (RVLV) : Free Inventory Evaluation Report
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
