---
title: Spending per Reformation Customer Has Barely Moved in Three Years, Even as Revenue Passed Half a Billion Dollars
description: Reformation priced its IPO at $15.00 a share. Its prospectus shows revenue of $507.1 million and spending per customer flat at about $420 for three years.
author: Darie Nani (Editor-in-Chief)
updated: 2026-07-30T05:32:13.003Z
canonical: https://www.sovereignmagazine.com/article/reformation-ipo-first-public-numbers-customers-stores
categories: Markets
content_type: News
region: United States
publication: Sovereign Magazine
schema_type: Article
---

Reformation priced its initial public offering at $15.00 a share on July 29, and the prospectus behind it opens the books of a 17-year-old womenswear company for the first time. Revenue reached $507.1 million in fiscal 2025, 41.0 percent higher than three years earlier. Almost all of that growth came from selling to more people rather than from selling more to each of them.

Direct-to-consumer net revenue per customer, the trailing twelve-month average across buyers who ordered through the website, the stores or the outlets, was $422 in fiscal 2025 and $421 in the first quarter of 2026. In fiscal 2023 it was $390. Over the same stretch active customers, meaning unique buyers who placed at least one order in the preceding twelve months, rose 36.7 percent, from 834,000 to 1,140,000 at the end of the first quarter of 2026. The store count went from 40 at the end of fiscal 2023 to 66 at the end of that quarter. Reformation says it now operates 70 stores across the United States, the United Kingdom, Canada and France, and ships to more than 150 countries.

## Revenue Growth Picked Up Again in the First Quarter

Fiscal 2024 revenue of $438.2 million was 21.9 percent above fiscal 2023. Fiscal 2025's $507.1 million was 15.7 percent above that. In the first quarter of 2026, revenue of $112.3 million came in 30.4 percent above the $86.1 million of the same quarter a year earlier.

## A Tariff Refund Accounts for Nine of the Ten Points of Margin Gain

Gross margin in the first quarter of 2026 was 70.3 percent, against 60.3 percent a year earlier. The filing attributes that 1000 basis point increase primarily to the recognition of a receivable for a refund of IEEPA tariffs on imported goods, of which 904 basis points related to sales recorded in 2025, together with strong full-price sales growth. Set the tariff item aside and the improvement is closer to a single percentage point.

## A $23.8 Million Pay Charge Drove the Quarterly Loss

Reformation lost $12.1 million in the first quarter of 2026, against a $5.6 million loss a year earlier. Selling, general and administrative expenses rose $35.1 million, or 74.4 percent, to $82.4 million, and the filing attributes that increase primarily to a stock-based compensation modification during the quarter that produced $23.8 million of incremental expense. Higher selling and shipping costs on greater sales volume added $6.3 million, and wage rises and extra headcount for new stores and the relocation and upgrade of a Los Angeles distribution center added $2.6 million. Marketing spending rose 10.7 percent to $9.5 million while falling from 9.9 percent of revenue to 8.4 percent, which the company puts down to greater efficiency in what it spends. Adjusted EBITDA, a measure the company reports itself, was $15.9 million for the quarter against a $322,000 loss a year earlier.

## Net Income Fell to $12.6 Million in Fiscal 2025

Reformation earned $12.6 million in fiscal 2025, 2.5 percent of revenue, down from $32.9 million and 7.5 percent in fiscal 2024. Interest expense over the year rose to $14.6 million from $10.7 million, and the company carried none at all in fiscal 2023. Adjusted EBITDA was $45.0 million in fiscal 2025 against $67.9 million the year before.

## The Offering Values the Company at About $886 Million

Reformation sold 9,478,821 new shares and existing stockholders sold 4,583,679, for gross proceeds of about $211 million, of which roughly $142 million goes to the company before underwriting discounts and expenses. The selling stockholders granted the underwriters a 30-day option over a further 2,109,375 shares. With 59,076,208 shares outstanding after the offering, the $15.00 price values the company at about $886 million. Shares were expected to begin trading on the New York Stock Exchange on July 30 under the ticker REF, with the offering closing on July 31. J.P. Morgan and Morgan Stanley acted as joint lead bookrunning managers. As of March 28, 2026 the company carried a net tangible book deficit of about $67.1 million, or $1.35 a share.

Reformation describes itself as "the largest sustainable womenswear brand on the planet (that we know of, anyways)", and says it has spent 17 years building a brand designed to challenge retail conventions.

Reformation's stores and collections are listed at [thereformation.com](https://www.thereformation.com/).

## FAQ

**Q: What does Reformation sell?**
Apparel and accessories, sold directly to customers through its own website, its retail and outlet stores and concession space inside other retailers.

**Q: When did Reformation go public?**
It priced its initial public offering at $15.00 a share on July 29, 2026, with trading expected to begin on the New York Stock Exchange on July 30 under the ticker REF and the offering closing on July 31.

**Q: What does direct-to-consumer mean?**
It is the channel where Reformation sells straight to the buyer, through its e-commerce platform, its branded retail stores, its outlets and its concession space, rather than wholesaling to another retailer.

**Q: How many stores does Reformation have?**
The company says it operates 70 stores across the United States, the United Kingdom, Canada and France. Its filing counted 66 at the end of the first quarter of 2026, so the number has moved during the year.