Reformation Inc. (REF) AI Stock Analysis

Reformation Inc. manufactures and sells sustainable women's clothing and accessories in the United States and internationally. Founded in 2009 and headquartered in Vernon, California, the company offers dresses, tops, pants, skirts, shorts, jeans, sweaters, shoes, jumpsuits, two-piece sets, outerwear, sleep and loungewear, swimwear, and accessories, alongside a wedding collection. Reformation retails its products through its website, online channels, physical stores, wholesalers, and other retail channels. Formerly known as REF Topco, Inc., the business changed its name to Reformation Inc. in April 2025 and completed its initial public offering in 2026.

Annual revenue rose from $359.5M in FY2023 to $438.2M in FY2024 (up 21.9%), and reached $507.1M in FY2025 (up 15.7%), achieving a two-year revenue CAGR of 18.8%. Net income rose from $23.9M in FY2023 to $32.9M in FY2024 before decreasing to $12.6M in FY2025. Gross margin contracted from 64.1% in FY2023 and 64.5% in FY2024 to 60.2% in FY2025, while operating margin fell to 5.7% from 12.0% in FY2024. Over the trailing twelve months, revenue reached $563.5M with an operating margin of 12.4% and net profit margin of 2.1%. For the latest quarter ended June 30, 2026, quarterly revenue grew 24.1% year-over-year, while quarterly earnings grew 76.9%.

As of June 30, 2026, Reformation held $76.6M in cash and short-term investments against total debt of $435.3M, resulting in net debt of $358.7M. Total assets stood at $1.01B compared to shareholders' equity of $376.7M, yielding a debt-to-equity ratio of 1.16 and a current ratio of 1.58. Operating cash flow fell to $26.7M in FY2025 from $44.3M in FY2024. Free cash flow turned negative at -$17.9M in FY2025 as the company incurred $44.5M in capital expenditures and spent $165.5M on share buybacks.

At a last close of $13.63 on October 16, 2026, Reformation has a market cap of $805.3M and an enterprise value of $1.10B. The stock trades at a trailing P/E of 68.2x and a forward P/E of 20.4x, higher than the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its price-to-sales of 1.4x and EV/EBITDA of 24.3x also stand above peer medians of 0.7x and 11.1x. Over the past 52 weeks, REF has traded between $11.85 and $17.26, while the S&P 500 (SPY) delivered a one-year return of 16.8%.

Wall Street analysts covering REF maintain 6 Strong Buy, 2 Buy, and 1 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target is $19.25, indicating an upside of 41.2% over the last close of $13.63. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $0.51 on revenue of $605.4M. For the following fiscal year, 6 analysts anticipate EPS of $0.75, representing 46.1% growth, on revenue of $703.7M. Reformation is scheduled to report earnings next on December 10, 2026.

This page is an AI-written research summary of Reformation Inc. (REF). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: REF income statement, REF balance sheet, REF key metrics, REF analyst forecast, REF chart. See the REF stock overview for the latest quote and news.