Reformation Inc.
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
Yellow, because the business plainly works while several material operating questions remain open — and none of them yet evidences a threat to the substance of the company. The supporting facts: there is no going-concern language, equity is clearly positive at $376.7 million, all financial covenants under the credit agreement were met at June 27, 2026, the $30.0 million revolver was undrawn, and $110.0 million of debt was repaid after the IPO. Four things are open. First, earnings power: $12.6 million of net income on $507.1 million of revenue in fiscal 2025, and $0.26 million in the first half of 2026, is a thin cushion for a company this size, even allowing for the one-time $23.8 million option charge. Second, the quality of growth: revenue per customer fell 1.4 percent to $417 in the second quarter of 2026, so the growth comes from more customers and more stores, not from deeper baskets. Third, the supply chain: 76 percent of units from ten suppliers and 32 percent from China tie the margin to trade policy, and the $10.2 million refund in the first quarter of 2026 was a one-off. Fourth, the record: there is exactly one quarterly report as a public company and no annual report against which to measure the guidance. Explicitly not relevant to this rating: that the price sits 6 percent below the $15.00 offering price, that the trailing price-to-earnings ratio looks extreme, or that the float of roughly 14.3 million shares is thin. Those are price and trading arguments, not quality arguments. Green would come into view once a full annual report shows a mid-single-digit net margin without one-off help and revenue per customer turns up again. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Reformation is a well-run fashion business with an unusually strong brand: $507.1 million of fiscal 2025 revenue, 24.1 percent growth in the second quarter of 2026, a 66.7 percent gross margin and 1.2 million active customers. The balance sheet behind it, however, was loaded up right before the listing: an $89.7 million debt-funded special dividend on June 17, 2026, term loans at $246.7 million, retained earnings down from $82.5 million to $1.3 million — and $110.0 million of the offering proceeds then went into repayment. Of first-half 2026 revenue, $0.26 million remained as net income, while Adjusted EBITDA is reported at $41.3 million. Add a very short public record: one quarterly report, no annual report yet. Not investment advice.
Growth and brand
Revenue rose from $359.5 million (fiscal 2023) through $438.2 million (2024) to $507.1 million (2025), and by a further 24.1 percent to $155.2 million in the second quarter of 2026. Active Customers grew 22.9 percent year over year to 1,204,000 and the store count went from 53 to 70. Guidance for fiscal 2026 is $602 million to $606 million.
Margin quality
A 66.7 percent gross margin in the second quarter of 2026 sits well above what apparel retailers typically achieve, and roughly 80 percent of 2025 direct-to-consumer revenue sold at full price. The dip to 60.2 percent in fiscal 2025 is fully explained by $18.5 million of tariff costs.
Earnings and earnings quality
Out of $507.1 million of fiscal 2025 revenue, only $12.6 million remained as net income (a 2.5 percent margin, down from $32.9 million). In the first half of 2026 it was $0.26 million on $267.5 million of revenue, while the company reports $41.3 million of Adjusted EBITDA for the same period. Operating cash flow fell from $44.3 million (2024) to $26.7 million (2025) and stood at $26 thousand in the first half of 2026; after $44.5 million of capital expenditure, 2025 saw net cash leave the business. Operating income across those 26 weeks ($6.2 million) did not quite cover interest expense ($6.8 million) — although in the second quarter alone it covered it more than five times over.
Balance sheet and capital structure
Six weeks before the IPO, $89.7 million left the company as a debt-funded special dividend; term loans rose to $246.7 million and retained earnings fell from $82.5 million to $1.3 million as of June 27, 2026. $518.5 million of the $1,005.2 million balance sheet is trade name and goodwill from the 2019 buyout, leaving tangible equity at roughly negative $143 million. On the other side: $110.0 million of the IPO proceeds went into repayment and all financial covenants were met.
Supply chain and tariffs
Ten suppliers accounted for roughly 76 percent of units in 2025 and roughly 32 percent came from Chinese manufacturing, after a 19 percent reduction in single-country exposure that year. The $10.2 million tariff refund in the first quarter of 2026 was a one-off, with nothing recognized in the second quarter. The company's own sustainability requirements, the prospectus says, shrink the pool of replacement suppliers.
Ownership and tradability
45,013,708 shares, or 76.2 percent of the company, are restricted and locked up for up to 180 days after the July 29, 2026 prospectus date; only 14,062,500 shares plus 229,546 from the over-allotment were freely tradable at the start. Permira holds roughly 49.2 percent and the Aflalo Family Trust roughly 19.8 percent. A Form S-8 covering 11,761,807 shares for employee plans has already been filed.
Worth Noting
Reformation reached our research list through the SEC filing stream: on September 11, 2026 the company filed its first quarterly report on Form 10-Q as a public company, one day after its first earnings release. It is not a classic scanner hit — multi-year momentum or valuation history simply do not exist yet.
Recency: the most recent periodic report analyzed is the Form 10-Q for the quarter ended June 27, 2026, filed September 11, 2026. We also read the earnings release (Form 8-K, Item 2.02) of September 10, 2026 with the full-year guidance, the Form 8-K of August 3, 2026 on the closing of the IPO, and the Form 424B4 prospectus of July 29, 2026. No further filing had been submitted between September 11, 2026 and our editorial cut-off on September 13, 2026.
On the data basis: Reformation shares have only traded since July 30, 2026, and the IPO closed on July 31, 2026. Every multi-year comparison in this analysis comes from the audited financial statements in the IPO prospectus; there is no annual report on Form 10-K as a listed company yet. Not to be confused: the SEC files carry the "lymi" prefix of the operating subsidiary LYMI Inc., and the holding company was named REF Topco, Inc. until April 11, 2025. CIK 0001787117 is the authoritative identifier.
Stock Watch
This analysis is as of September 13, 2026. Stock Watch will tell you what's changed at REF since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 12.40 $ to 16.80 $ · Last price: 12.40 $ (As of: September 28, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/29/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Apparel Retail
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Reformation Inc. REF | 0.7 | 112.7 | 27.2 | 61.3 | -11.0 | 15.7 | – |
| The TJX Companies Inc TJX | 143.9 | 25.9 | 16.1 | 31.5 | 11.8 | 7.1 | -7.9 |
| Ross Stores Inc ROST | 76.1 | 33.7 | 18.3 | 33.4 | 13.4 | 7.7 | 57.8 |
| Burlington Stores Inc BURL | 16.8 | 29.3 | 14.6 | 44.1 | 5.9 | 8.8 | -3.0 |
| Lululemon Athletica Inc. LULU | 11.4 | 8.7 | 4.9 | 54.9 | 11.2 | 4.9 | -41.1 |
| The Gap, Inc. GAP | 8.4 | 9.4 | 4.7 | 40.5 | 12.7 | 1.9 | 1.4 |
| Victoria's Secret & Co VSXY | 7.0 | 35.7 | 11.5 | 37.8 | 5.2 | 5.2 | – |
| Urban Outfitters Inc URBN | 6.6 | 15.7 | 8.0 | 36.0 | 9.0 | 11.1 | 5.7 |
| Abercrombie & Fitch Company ANF | 6.1 | 13.5 | 6.8 | 63.7 | 8.0 | 6.4 | 54.5 |
| Median of companies shown | 8.4 | 25.9 | 11.5 | 40.5 | 9.0 | 7.1 | 1.4 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2023 | 360 | 38 | 24 | – | 38 | – | – |
| 2024 | 438 | 53 | 33 | 0.56 | 44 | 427 | 874 |
| 2025 | 507 | 29 | 13 | 0.25 | 27 | 441 | 938 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2026: Q1 | – | – | 112 | 30.40 | -10.80 | -17 | -22 |
| 2026: Q2 | 0.23 | – | 155 | – | 8.00 | – | – |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 3 of our scanner strategies — each hit links to the scanner.
Momentum & Trend
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 0.53 | 0.18 – 0.94 | 605 | – | 4 |
| 12/31/2027 | 0.77 | 0.59 – 1.06 | 704 | 44.9% | 6 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
AI classification
AI Rating
Reformation verkauft keine KI-Produkte, setzt KI und maschinelles Lernen aber nach eigener Darstellung in den Filings operativ ein — für Sortimentsplanung, Nachfrageprognose und Warenverteilung auf die Filialen.
View the full file — quotes, sources, reviewed filings
„We increasingly rely on AI and machine learning to inform our product assortment, quantify future demand and customize inventory allocation."
Wir stützen uns zunehmend auf künstliche Intelligenz und maschinelles Lernen, um unser Sortiment festzulegen, die künftige Nachfrage zu beziffern und die Warenverteilung anzupassen.
10-Q · 2026-09-11 · View SEC filing
„Our insights, coupled with AI and machine learning technologies, also allow us to strategically customize product allocation in order to best respond to customer dynamics within each store and manage inventory effectively."
Unsere Erkenntnisse erlauben es uns zusammen mit Technologien der künstlichen Intelligenz und des maschinellen Lernens außerdem, die Warenverteilung gezielt anzupassen, um auf die Kundendynamik in jeder einzelnen Filiale bestmöglich zu reagieren und die Bestände wirksam zu steuern.
424B4 · 2026-07-30 · View SEC filing
„We have invested significantly in our in-house technology teams and systems, positioning us to adopt new e-commerce technologies, including emerging AI-driven solutions for product buying, merchandising, and allocation decisions."
Wir haben erheblich in unsere hauseigenen Technologieteams und -systeme investiert und sind damit in der Lage, neue E-Commerce-Technologien einzuführen, darunter aufkommende KI-gestützte Lösungen für Einkaufs-, Sortiments- und Verteilungsentscheidungen.
424B4 · 2026-07-30 · View SEC filing
Filings Reviewed: 10-Q 2026-09-11 · 8-K 2026-09-10 · 8-K 2026-08-03 · 424B4 2026-07-30 · S-1/A 2026-07-23 · S-1 2026-06-25
Rated on September 13, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years no data
- More than 10% revenue growth is expected for the coming year -66.4%
- Share count grows by less than 3% a year no data
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 12.2%
- Gross margin at 40% or higher and without meaningful erosion 60.2%
- Goodwill from acquisitions does not grow faster than revenue no data
- Net debt below twice EBITDA 6.1 x EBITDA
- Operating cash flow covers the profits of the last three years 39 m
- Return on capital at 15% or higher, or up versus two years ago 3.5%
- Insiders hold at least 10% or are net buyers 66.7%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
3/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% –
- Exp. sales growth 3Y > 5% 17.8%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% 77.2%
- Net debt < 4x EBIT 9.5x
- EBIT positive, 10Y straight –
- Max. EBIT decline < 50% –
- Return on equity > 15% –
- ROCE > 15% 3.5%
- Expected return > 10% 72.9%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 1, 2026 | Aflalo Yael | Director | Sell | 60,298 | 13.95 | 841,157 |
| Sep 1, 2026 | Refo SCSp | 10% Owner | Sell | 149,596 | 13.95 | 2,086,864 |
The company
About the Company
Reformation Inc. manufactures and sells sustainable women's clothing and accessories in the United States and Internationally. It offers dresses, tops, pants, skirts, shorts, jeans, sweaters, shoes, jumpsuits, two-piece sets, outerwear, sleep and loungewear, swimwear, and accessories. The company also offers wedding collection. It retails its product through website, online channels, and stores, well as through wholesalers and other channels. The company was formerly known as REF Topco, Inc. and changed its name to Reformation Inc. in April 2025. Reformation Inc. was founded in 2009 and is headquartered in Vernon, California.
- Employees
- 1,353
- Headquarters
- Vernon, CA
- Address
- 5801 S. 2nd St., 90058 Vernon, United States
- Phone
- 213 282 2025
- Website
- thereformation.com
- IPO Date
- 07/30/2026
Management
| Name | Title | Birth Year |
|---|---|---|
| Hali Borenstein | CEO, President & Director | 1985 |
| Joshua Moore | Chief Financial Officer | 1975 |
| Ivan Tchakarov | Chief Operating Officer | 1975 |
| Fred Clark | Chief Technology Officer | – |
| Christina Halliday | General Counsel & Corporate Secretary | – |
| Kelly Rew-Porter | Chief People Officer | – |
| Lauren Cohan | Chief Creative & Brand Officer | – |
| Kathleen Talbot | Chief Sustainability Officer & VP of Operations | – |
| Jessica Ozella | Chief Digital Officer | – |
| Alison Melville | Chief Innovation Officer | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 09/10/2026 Reformation Inc. (REF): Results of Operations and Financial Condition; Financial Statements and Exhibits SEC ↗
Data as of: September 28, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.