Reformation says active customers grew 23% in first public earnings report

Earnings // September 11, 2026 Reformation says active customers grew 23% in first public earnings report By Anna Hensel Reformation Reformation touted the strength of its loyal customer base during its first call as a publicly traded company, as executives sought to sell Wall Street analysts on the power of its direct-to-consumer flywheel.

“We have now delivered 21 consecutive quarters of double-digit revenue growth,” Reformation CEO Hali Bornstein said during the earnings call. Net revenue during the second quarter grew 24% compared to the prior year, hitting $155. 2 million. Net income was $12. 4 million. What’s more, active customers grew 23% during the second quarter.

“Once we acquire customers, they stay with us,” Bornstein said, noting that 70% of revenue in 2025 came from repeat customers. While other DTC-first brands like Everlane and Allbirds have flamed out this year, Reformation is bucking the trend.

While Reformation does have some wholesale partnerships with select partners like Nordstrom, 90% of its revenue came from its website or owned stores in 2025. Some venture capitalists have soured on DTC brands in recent years, believing that being a DTC-first brand can restrict growth.

But Reformation’s pitch is that being a DTC-first brand actually accelerates growth, as it can respond more quickly to what its customers want and, in turn, keep them loyal. There are some catches — new customers, especially within the first year they are acquired, don’t spend as much. For Reformation, DTC net revenue per customer was actually down 1.

4% during the quarter, because the brand saw outsized growth in customer acquisition. Reformation got a number of questions during the earnings call about how quickly it sees new customers maturing. “We know that these new customers, as we give them more time with the brand, their value will increase,” Bornstein said.

“We see a big step up [in spend] in that second year, and then subsequently healthy growth year over year. In quarters where Reformation sees outsized new customer growth, it “will temporarily pressure blended DTC net revenue,” Bornstein said. In 2025, for example, returning customers spent double what new customers did.

Bornstein said Reformation’s data-driven, fast-turnaround approach to merchandising is what helps fuel customer loyalty. More than 50% of its products are produced in 60 days or less. “We combine real-time customer data with a fast, flexible supply chain that allows us to test, learn and quickly scale winning products.

“Rather than making large inventory bets up to 12 months in advance, like many brands, we respond to what customers actually tell us they want.” There are other data points, beyond sales, that Bornstein pointed to during the earnings call to drive home the strength of Reformation’s brand.

Eighty-four percent of the brand’s customers, for example, say that wearing Reformation makes them feel confident. Store openings will play a critical role in attracting new customers to the Reformation ecosystem. “At the end of Q2, we operated 70 stores, and we see a clear path to doubling our fleet over the next five years,” Bornstein said.

Only 10 of those stores are in international markets, which accounted for 20% of Reformation’s net revenue during the second quarter. Bornstein also laid out a path to reaching new types of customers during the company’s earnings call.

“In 2025, 20% of our new customers were under the age of 25, and 20% were over the age of 50,” Bornstein said, also noting that three-fourths of customers who come to Reformation to shop for their daughters end up shopping for themselves, as well.

“Reformation is a multi-generational brand that appeals to an attitude and mindset, rather than a specific demographic,” she added. Copy link