Reformation (REF) delivered its first quarterly report as a public company at or above the high end of its preliminary range, supporting RBC's investment thesis while prompting modest forecast adjustments, RBC Capital Markets said.
Fiscal Q2 revenue rose 24.1% to $155.2 million which was above RBC's $154.7 million estimate. Adjusted EBITDA increased 53.9% to $25.4 million and exceeded RBC's $24.7 million forecast. It also marked the company's 21st consecutive quarter of double-digit revenue growth.
The company expect fiscal 2026 adjusted EBITDA margin of 14.0% to 14.2%, implying adjusted EBITDA of $84 million to $86 million. RBC raised its fiscal 2026 adjusted EBITDA estimate to $85 million.
Management's growth outlook remains supported by store expansion and customer acquisition, with 15 to 16 new stores planned, while its growth and margin strategy remains intact, RBC said in a note Thursday.
RBC maintained its outperform rating and a $18 price target on the stock.
Reformation shares were up 6.1% in Friday trading.
Price: $13.96, Change: $+0.81, Percent Change: +6.12%