Rent the Runway vs Cardlytics

Rent the Runway and Cardlytics are examined side by side to explain their business models, financial performance, and market context in clear, accessible language. This comparison highlights how each company creates value, sources revenue, and navigates industry dynamics without assuming results, helping readers form informed, neutral perspectives. Educational content, not financial advice.

Rent the Runway and Cardlytics are examined side by side to explain their business models, financial performance, and market context in clear, accessible language. This comparison highlights how each ...

Comparison Snapshot

Key Financial Metrics

RENT

Metric

CDLX

$256.78M

Market Cap

$62.17M

N/A

Potential Profit

160.56%

Hold

Analyst Rating

Hold

Investment Analysis

Rent the Runway

RENT

Pros

Q2 2025 revenue rose 2.5% year-over-year to $80.9 million, demonstrating steady top-line growth.
Active subscribers increased by 13.4% year-over-year, indicating expanding customer engagement and retention.
Successful recapitalization plan reduced total debt from $340 million to $120 million and extended debt maturity to 2029, strengthening the balance sheet.

Considerations

Gross margins declined significantly from 41.1% to 30% in Q2 2025, pressuring profitability.
Despite revenue growth, the company reported a net loss of $26.4 million in Q2 2025, worsening compared to $15.6 million loss in Q2 2024.
RTR's stock has high volatility and a relatively low market cap around $19 million, reflecting a riskier investment profile.

Cardlytics

CDLX

Pros

Cardlytics operates a unique purchase intelligence platform offering data-driven marketing solutions, serving a niche in digital advertising.
It benefits from partnerships with major banks and card issuers, providing broad reach and data access.
The company has shown consistent revenue growth driven by increased digital ad spend and expanding client base.

Considerations

Cardlytics faces regulatory scrutiny over data privacy and consumer protection, which could increase compliance costs.
Its business model is sensitive to economic slowdowns affecting ad spending and consumer transaction volumes.
Competitive pressure from larger digital ad platforms and data analytics companies poses ongoing risks to market share.

About The Companies

Rent the Runway (RENT)

Rent the Runway, Inc (RENT) operates an online and physical rental service for apparel and accessories, offering subscriptions and one-off hires for women’s fashion. The company combines inventory management, logistics and data-driven personalisation to extend the life of clothing and appeal to cost-conscious or sustainability-minded consumers. With a market capitalisation reported around $19 million, the stock is currently small and likely to be volatile; investors should note this can reflect financial stress, heavy competition from traditional retailers and resale platforms, and execution risks tied to inventory and logistics costs. Opportunities include growing consumer interest in experiential spending and circular fashion, plus potential margin improvements from scale. Risks are material: performance can fluctuate, returns are uncertain and the firm has capital and profitability challenges typical of early-stage or restructuring firms. This summary is educational only and not personalised investment advice; consider your own circumstances and consult a professional if needed.

Cardlytics (CDLX)

Cardlytics, Inc. operates a digital advertising platform that connects marketers with millions of bank customers. Through its partnerships with financial institutions in the United States and the United Kingdom, Cardlytics provides a channel for brands to deliver targeted advertising and reward offers directly within a bank's digital environment. When a customer makes a qualifying purchase, they receive cash back, which is funded by the fees Cardlytics collects from the marketers. This model aims to help businesses acquire new customers and increase loyalty with existing ones by using transaction data to inform campaigns. The company also operates the Bridg platform, a customer data platform that utilises point-of-sale data to offer deeper insights. For investors, Cardlytics represents a play on the convergence of financial technology, data analytics, and digital marketing, though its performance can be subject to changes in advertising spend and consumer behaviour.

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Which Baskets Do They Appear In?

Subscription Box Economy

Companies that have mastered recurring revenue are reshaping how we consume everything from entertainment to software. These carefully selected stocks represent businesses that have transformed one-time purchases into ongoing relationships, creating more predictable income and stronger customer loyalty.

Published: June 18, 2025

Explore Basket

Ethical Fashion

Invest in companies shaping the sustainable future of fashion. These carefully selected stocks represent innovators who are transforming how clothes are made, sold, and reused while meeting growing consumer demand for responsible apparel.

Published: June 17, 2025

Explore Basket

Zeitgeist Surfers

Ready to back companies that know how to stay popular? This carefully selected group of stocks represents businesses with an uncanny ability to ride cultural waves and capitalize on what's trending now. Our analysts have identified these companies for their potential to turn cultural momentum into growth.

Published: June 17, 2025

Explore Basket

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Comparison Snapshot