Earnings release
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Revolve Group Announces Third Quarter 2026 Financial Results Los Angeles, CA – November 3, 2026 - Revolve Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for Millennial and Generation Z consumers, today announced financial results for the third quarter ended September 30, 2026. “We delivered a strong third quarter, highlighted by net sales growth of 20% or more across our segments, REVOLVE and FWRD, and in domestic and international markets,” said co-founder and co-CEO Mike Karanikolas. “Supporting our top- line momentum was 18% growth in active customers year-over-year, our fourth consecutive quarter of growth acceleration.” “Our strong top line growth and customer engagement metrics are a reflection of our brand strength and a result of our investments in brand building, physical retail expansion and key partnerships, including the recent launch of REVOLVE Los Angeles and our inaugural REVOLVE Magazine, our new joint venture with Donatella Versace, and recently- announced expanded partnerships with Kendall Jenner and Dwyane Wade,” said co-founder and co-CEO Michael Mente. “We couldn’t be more happy with our momentum and we are excited about our progress on longer-term investments that we believe strengthen our foundation for future profitable growth.” Third Quarter 2026 Financial Summary Three Months Ended September 30, 2026 2025 YoY Change (in thousands, except percentages) Net sales $ 355,959 $ 295,631 20% Gross profit $ 191,795 $ 161,516 19% Gross margin 53.9 % 54.6 % Net income $ 15,524 $ 21,179 (27%) Adjusted EBITDA (non-GAAP financial measure) $ 23,491 $ 25,347 (7%) Net cash (used in) provided by operating activities $ (24,334 ) $ 11,818 NM Free cash flow (non-GAAP financial measure) $ (26,963 ) $ 6,627 NM NM - Not meaningful Operational Metrics Three Months Ended September 30, 2026 2025 YoY Change (in thousands, except average order value and percentages) Active customers (trailing 12 months) 3,243 2,747 18% Total orders placed 2,745 2,300 19% Average order value $ 292 $ 306 (5%)
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Additional Third Quarter 2026 Metrics and Results Commentary • Trailing 12-month active customers grew to 3,243,000 as of September 30, 2026, an increase of 18% year-over-year, our highest year-over-year growth rate in three and a half years. • Net sales were $356.0 million, a year-over-year increase of 20%. The strong top-line growth was fueled by a 19% increase in total orders placed year-over-year and a reduced product return rate, partially offset by a lower average order value primarily attributable to initial sales of Grow-Good beauty products at much lower price points. • Gross profit was $191.8 million, an increase of 19% year-over-year. • Gross margin was 53.9%, a decrease of 75 basis points year-over-year, against a prior-year comparison in the third quarter of 2025 that included 347 basis points of expansion. • Fulfillment costs were $12.2 million, or 3.4% of net sales, compared to $9.8 million, or 3.3% of net sales, in the third quarter of 2025. • Selling and distribution costs were $63.5 million, or 17.8% of net sales, compared to $51.7 million, or 17.5% of net sales, in the third quarter of 2025. The reduced efficiency year-over-year as a percentage of net sales was primarily due to higher shipping rates, partially offset by a decrease in our product return rate year-over-year. • Marketing costs were $50.8 million, or 14.3% of net sales, compared to $40.4 million, or 13.7% of net sales, in the third quarter of 2025. The increased marketing investment year-over-year as a percentage of net sales primarily reflects an increase in performance marketing and brand marketing investments to support various growth initiatives, including our first-ever namesake label, REVOLVE Los Angeles, within our owned brand assortment. • General and administrative costs were $46.2 million, or 13.0% of net sales, compared to $38.6 million, or 13.0% of net sales, in the third quarter of 2025. • Other income, net was $2.0 million compared to $7.3 million in the third quarter of 2025. Other income, net in the prior-year quarter was positively impacted by an insurance recovery of $4.5 million. • Net income was $15.5 million, compared to net income of $21.2 million in the third quarter of 2025, which was positively impacted by the $4.5 million insurance recovery (approximately $3.4 million, net of taxes). • Adjusted EBITDA was $23.5 million, a decrease of 7% year-over-year. • Diluted earnings per share (EPS) was $0.20, compared to diluted EPS of $0.29 in the third quarter of 2025, which was positively impacted by an insurance recovery equivalent to approximately $0.05 per diluted share. Additional Net Sales Commentary • REVOLVE segment net sales were $306.8 million, a year-over-year increase of 20%. • FWRD segment net sales were $49.2 million, a year-over-year increase of 20%. • Domestic net sales were $277.4 million, a year-over-year increase of 20%. • International net sales were $78.6 million, a year-over-year increase of 22%. Cash Flow and Balance Sheet • Net cash (used in) provided by operating activities was $(24.3) million in the third quarter and $16.9 million in the 9-month year-to-date period ended September 30, 2026, compared to $11.8 million and $69.6 million, respectively, in the comparable 2025 periods. The reduced operating cash flow year-over-year for the three- and nine-month periods of 2026 primarily reflects unfavorable changes in working capital. • Free cash flow was $(27.0) million in the third quarter and $7.0 million in the 9-month year-to-date period ended September 30, 2026, compared to $6.6 million and $59.0 million, respectively, in the comparable 2025 periods. • Cash and cash equivalents as of September 30, 2026 were $284.6 million, a decrease of $30.8 million, or 10%, from $315.4 million as of September 30, 2025. Our balance sheet as of September 30, 2026 remains debt free. • Inventory as of September 30, 2026 was $293.3 million, an increase of $54.5 million, or 23%, year-over-year, from the inventory balance of $238.8 million as of September 30, 2025.
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Additional trend information regarding Revolve Group’s third quarter of 2026 financial results and operating metrics is available in the Q3 2026 Financial Highlights presentation available on our investor relations website: https://investors.revolve.com/events-and-presentations Results Since the End of the Third Quarter of 2026 Net sales in October 2026 increased by a mid-teen percentage year-over-year. Of note, the net sales growth comparisons for November and December are much more difficult than the October year-over-year comparison. As background and as previously disclosed, our prior-year net sales comparison in October 2025 increased by a mid-single digit percentage year-over-year, and improved net sales growth in the months of November 2025 and December 2025 led to 10% year-over-year net sales growth for the fourth quarter of 2025. 2026 Business Outlook Based on information available to us as of November 3, 2026, we are providing the following guidance for the fourth quarter and full year ending December 31, 2026. Our outlook takes into account our assessment of the current macroeconomic environment and related cost pressures and potential headwinds to consumer spending, including, but not limited to, geopolitical uncertainty, tariffs, inflationary pressures, supply chain disruptions and foreign currency volatility. The gross margin outlook does not assume any additional IEEPA tariff refunds. Updated FY 2026 Outlook Prior FY 2026 Outlook Gross margin 53.9% to 54.0% 53.5% to 54.0% Fulfillment expenses 3.3% of net sales 3.2% to 3.4% of net sales Selling and distribution expenses 17.5% of net sales 17.1% to 17.3% of net sales Marketing expenses 15.9% of net sales 15.8% to 16.0% of net sales General and administrative expenses $178.0 million $170 million to $172 million Effective tax rate 25% to 26% 24% to 26% Fourth Quarter 2026 Outlook Gross margin 52.3% to 52.8% Fulfillment expenses 3.3% of net sales Selling and distribution expenses 17.6% of net sales Marketing expenses 16.9% of net sales General and administrative expenses $46.1 million Conference Call Information Revolve Group management will host a call today at 4:30 pm ET / 1:30 pm PT to discuss today’s results in more detail. To access the conference call by phone, participants can pre-register using the following Conference Call Registration Link to receive dial-in details, including a unique PIN that will enable access to the conference call immediately without requiring operator assistance. Participants are encouraged to register in advance to avoid delays. If you are unable to pre-register, the conference call may also be accessed by dialing 1-833-461-5787 (U.S./Toll Free) or 1-585-542-9983 (International) and entering the Meeting ID, 281 225 051. A live audio webcast can be accessed on the company's investor relations website at investors.revolve.com, and a webcast replay of the conference call will also be available on the company's investor relations website for a limited time following the event.
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Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding our growth prospects, business initiatives and innovation, our owned brand expansion, our use of AI, our physical retail stores, our partnerships, and our outlook for the fourth quarter and full year of 2026. Forward-looking statements include statements containing words such as "expect," "anticipate," "believe," "project," "will" and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on our current expectations. Forward-looking statements involve risks and uncertainties. Our actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to changing economic conditions and their impact on consumer demand and our business; the effects of tariffs and our efforts to mitigate such effects; demand for our products; the investment in long-term initiatives such as international expansion, development of owned brands, AI technology and our physical retail stores; the impact of AI and machine learning; supply chain challenges; inflationary pressures; shipping costs and rates; wars and conflicts; other geopolitical tensions; our fluctuating operating results; seasonality in our business; elevated merchandise returns; our ability to acquire products on reasonable terms; our e- commerce business model; our ability to attract customers in a cost effective manner; our ability to source goods in a cost effective manner; the strength of our brand; competition; fraud; system interruptions; our ability to fulfill orders; the impact of public health crises on our business, operations and financial results; the effect of claims, lawsuits, government investigations, other legal or regulatory proceedings or commercial or contractual disputes; and other risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission, or SEC, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2025, and our subsequent Quarterly Reports on Form 10-Q, including for the quarter ended September 30, 2026, which we expect to file with the SEC on November 3, 2026. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof. Use of Non-GAAP Financial Measures and Other Operating Metrics To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we reference in this press release and the accompanying tables the following non-GAAP financial measures: Adjusted EBITDA and free cash flow. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies. We use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting, and analyzing future periods. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, please see the tables captioned “Reconciliation of Non-GAAP Financial Measures” included at the end of this release. We encourage reviewing the reconciliation in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future periods, we may exclude similar items, may incur income and expenses similar to these excluded items and may include other expenses, costs and non-recurring items. Definitions of our non-GAAP financial measures and other operating metrics are presented below.
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Adjusted EBITDA Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other income, net; taxes; and depreciation and amortization; adjusted to exclude the effects of equity-based compensation expense, certain transaction costs and certain non-routine items. Adjusted EBITDA is a key measure used by management to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis and, in the case of exclusion of the impact of equity-based compensation, excludes an item that we do not consider to be indicative of our core operating performance. Free Cash Flow Free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used in purchases of property and equipment, and purchases of rental product, net of proceeds from the sale of rental product. We view free cash flow as an important indicator of our liquidity because it measures the amount of cash we generate. Free cash flow also reflects changes in working capital. Active Customers We define an active customer as a unique customer account from which a purchase was made across our platform at least once in the preceding 12-month period. In any particular period, we determine our number of active customers by counting the total number of customers who have made at least one purchase in the preceding 12-month period, measured from the last date of such period. We view the number of active customers as a key indicator of our growth, the reach of our sites, the value proposition and consumer awareness of our brand, the continued use of our sites by our customers and their desire to purchase our products. Total Orders Placed We define total orders placed as the total number of orders placed by our customers, prior to product returns, across our platform in any given period. We view total orders placed as a key indicator of the velocity of our business and an indication of the desirability of our products and sites to our customers. Total orders placed, together with average order value, is an indicator of the net sales we expect to recognize in a given period. Average Order Value We define average order value as the sum of the total gross sales from our sites in a given period, prior to product returns, divided by the total orders placed in that period. We believe our high average order value demonstrates the premium nature of our product assortment. Average order value varies depending on the site through which we sell merchandise, the mix of product categories sold, the number of units in each order, the percentage of sales at full price, and for sales at less than full price, the level of markdowns.
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About Revolve Group, Inc. Revolve Group, Inc. (NYSE: RVLV) is the next-generation fashion retailer for Millennial and Generation Z consumers. As a trusted premium lifestyle brand and a go-to online source for discovery and inspiration, we deliver an engaging customer experience from a vast yet curated offering of apparel, footwear, accessories, and beauty products. Our dynamic platform connects a deeply engaged community of millions of consumers, thousands of global fashion influencers and more than 1,600 emerging, established and owned brands. We were founded in 2003 by our co-CEOs, Michael Mente and Mike Karanikolas. We sell merchandise through two complementary segments, REVOLVE and FWRD, that leverage one platform. Through REVOLVE, we offer an assortment of premium apparel, footwear, accessories and beauty products from emerging, established and owned brands. Through FWRD, we offer an assortment of curated and elevated iconic and emerging luxury brands. For more information, visit www.revolve.com. Contacts: Investors: Erik Randerson, CFA 562.677.9513 IR@revolve.com Media: Karla Otto revolveus@karlaotto.com
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REVOLVE GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net sales $ 355,959 $ 295,631 $ 1,046,244 $ 901,311 Cost of sales 164,164 134,115 477,169 418,447 Gross profit 191,795 161,516 569,075 482,864 Operating expenses: Fulfillment 12,177 9,839 34,544 29,025 Selling and distribution 63,516 51,705 183,336 155,455 Marketing 50,825 40,429 162,542 129,940 General and administrative 46,239 38,552 131,860 114,762 Total operating expenses 172,757 140,525 512,282 429,182 Income from operations 19,038 20,991 56,793 53,682 Equity earnings in unconsolidated subsidiaries (228 ) — (863 ) — Other income, net (1,990 ) (7,310 ) (6,931 ) (5,290 ) Income before income taxes 21,256 28,301 64,587 58,972 Provision for income taxes 5,732 7,122 16,682 16,376 Net income 15,524 21,179 47,905 42,596 Less: Net (income) loss attributable to non-controlling interest (1,059 ) — (529 ) 563 Net income attributable to Revolve Group, Inc. stockholders $ 14,465 $ 21,179 $ 47,376 $ 43,159 Earnings per share of Class A and Class B common stock: Basic $ 0.20 $ 0.30 $ 0.66 $ 0.61 Diluted $ 0.20 $ 0.29 $ 0.66 $ 0.60 Weighted average number of shares of Class A and Class B common stock outstanding: Basic 71,090 71,302 71,286 71,282 Diluted 71,858 72,003 72,068 72,062
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REVOLVE GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share data) September 30, December 31, 2026 2025 Assets Current assets: Cash and cash equivalents $ 284,640 $ 292,256 Restricted cash — 10,943 Accounts receivable, net 31,853 16,561 Inventory 293,296 251,844 Income taxes receivable 8,606 1,717 Prepaid expenses and other current assets 83,966 73,706 Total current assets 702,361 647,027 Property and equipment (net of accumulated depreciation of $30,718 and $26,245 as of September 30, 2026 and December 31, 2025, respectively) 21,117 15,371 Right-of-use lease assets 42,928 28,832 Intangible assets, net 2,828 2,410 Goodwill 2,042 2,042 Other assets 50,544 29,560 Deferred income taxes 39,759 39,759 Total assets $ 861,579 $ 765,001 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 63,865 $ 56,409 Income taxes payable 830 1,357 Accrued expenses 50,868 44,297 Returns reserve 83,804 76,985 Current lease liabilities 11,431 10,534 Other current liabilities 58,491 40,963 Total current liabilities 269,289 230,545 Non-current lease liabilities 35,216 21,921 Total liabilities 304,505 252,466 Stockholders’ equity: Class A common stock, $0.001 par value; 1,000,000,000 shares authorized as of September 30, 2026 and December 31, 2025; 41,071,709 and 40,861,973 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively 41 41 Class B common stock, $0.001 par value; 125,000,000 shares authorized as of September 30, 2026 and December 31, 2025; 30,023,937 and 30,509,949 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively 30 30 Additional paid-in capital 150,122 144,249 Retained earnings 404,603 368,215 Non-controlling interest 2,278 — Total stockholders’ equity 557,074 512,535 Total liabilities and stockholders’ equity $ 861,579 $ 765,001
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REVOLVE GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Nine Months Ended September 30, 2026 2025 Operating activities: Net income $ 47,905 $ 42,596 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,692 3,395 Rental product depreciation 1,270 1,324 Gain on sale of rental product (703 ) (222 ) Equity-based compensation 7,664 7,414 Loss on disposal of subsidiary — 2,425 Equity earnings in unconsolidated subsidiaries (863 ) — Changes in operating assets and liabilities: Accounts receivable (15,292 ) (10,770 ) Inventories (41,452 ) (10,541 ) Income taxes receivable (6,889 ) 1,195 Prepaid expenses and other current assets (10,260 ) 968 Other assets (7,142 ) (8,362 ) Accounts payable 7,456 17,429 Income taxes payable (527 ) 2,345 Accrued expenses 6,571 4,504 Returns reserve 6,819 2,061 Right-of-use lease assets and current and non-current lease liabilities 96 1 Other current liabilities 17,528 13,821 Net cash provided by operating activities 16,873 69,583 Investing activities: Purchases of property and equipment (10,856 ) (8,306 ) Purchases of rental product — (3,569 ) Proceeds from sale of rental product 988 1,330 Cash divested upon disposal of subsidiary — (1,657 ) Investments in unconsolidated entities (14,534 ) — Net cash used in investing activities (24,402 ) (12,202 ) Financing activities: Proceeds from the exercise of stock options, net of tax withholdings on share-based payment awards (42 ) 141 Repurchases of Class A common stock (10,051 ) (2,024 ) Net cash used in financing activities (10,093 ) (1,883 ) Effect of exchange rate changes on cash and cash equivalents (937 ) 3,329 Net (decrease) increase in cash and cash equivalents (18,559 ) 58,827 Cash, cash equivalents and restricted cash, beginning of period 303,199 256,600 Cash, cash equivalents and restricted cash, end of period $ 284,640 $ 315,427 Supplemental disclosure of cash flow information: Cash paid during the period for: Income taxes, net of refund $ 24,278 $ 12,981 Operating leases $ 10,761 $ 9,201 Supplemental disclosure of non-cash activities: Lease assets obtained in exchange for new operating lease liabilities $ 22,823 $ 6,096
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REVOLVE GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited) The following table summarizes our net sales, cost of sales and gross profit for each of our reportable segments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Net sales 2026 2025 2026 2025 REVOLVE $ 306,764 $ 254,646 $ 902,522 $ 777,462 FWRD 49,195 40,985 143,722 123,849 Total $ 355,959 $ 295,631 $ 1,046,244 $ 901,311 Cost of sales REVOLVE $ 136,159 $ 111,540 $ 395,469 $ 345,631 FWRD 28,005 22,575 81,700 72,816 Total $ 164,164 $ 134,115 $ 477,169 $ 418,447 Gross profit REVOLVE $ 170,605 $ 143,106 $ 507,053 $ 431,831 FWRD 21,190 18,410 62,022 51,033 Total $ 191,795 $ 161,516 $ 569,075 $ 482,864 The following table lists net sales by geographic area (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 United States $ 277,374 $ 231,424 $ 820,414 $ 712,290 Rest of the world 78,585 64,207 225,830 189,021 Total $ 355,959 $ 295,631 $ 1,046,244 $ 901,311
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REVOLVE GROUP, INC. AND SUBSIDIARIES KEY OPERATING AND FINANCIAL METRICS (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands, except average order value and percentages) Gross margin 53.9 % 54.6 % 54.4 % 53.6 % Adjusted EBITDA $ 23,491 $ 25,347 $ 71,336 $ 67,533 Free cash flow $ (26,963 ) $ 6,627 $ 7,005 $ 59,038 Active customers 3,243 2,747 3,243 2,747 Total orders placed 2,745 2,300 8,028 7,032 Average order value $ 292 $ 306 $ 296 $ 300
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REVOLVE GROUP, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) A reconciliation of non-GAAP Adjusted EBITDA to net income for the three and nine months ended September 30, 2026 and 2025 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Net income $ 15,524 $ 21,179 $ 47,905 $ 42,596 Excluding: Other income, net (1,990 ) (7,310 ) (6,931 ) (5,290 ) Provision for income taxes 5,732 7,122 16,682 16,376 Depreciation and amortization 1,683 1,007 4,692 3,395 Equity-based compensation 2,117 2,357 7,664 7,414 Transaction costs(1) 425 — 781 900 Non-routine items(2) — 992 543 2,142 Adjusted EBITDA $ 23,491 $ 25,347 $ 71,336 $ 67,533 (1) Includes legal and professional service fees related to potential and consummated strategic acquisitions and investments. (2) Non-routine items in the nine months ended September 30, 2026 and three and nine months ended September 30, 2025, represent an accrual for certain pending legal matters. A reconciliation of non-GAAP free cash flow to net cash provided by operating activities for the three and nine months ended September 30, 2026 and 2025 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Net cash (used in) provided by operating activities $ (24,334 ) $ 11,818 $ 16,873 $ 69,583 Purchases of property and equipment (3,062 ) (4,320 ) (10,856 ) (8,306 ) Purchases of rental product, net of proceeds from the sale of rental product 433 (871 ) 988 (2,239 ) Free cash flow $ (26,963 ) $ 6,627 $ 7,005 $ 59,038 Net cash used in investing activities $ (2,629 ) $ (5,191 ) $ (24,402 ) $ (12,202 ) Net cash provided by (used in) financing activities $ 143 $ 215 $ (10,093 ) $ (1,883 )