Reformation, the 2009-founded mid-tier luxury brand, filed for an IPO on Thursday. The brand, which has been majority-owned by private equity firm Permira since 2019, will list on the New York Stock Exchange under the ticker symbol “REF”.
Per the prospectus, Los Angeles-based Reformation qualifies as an “emerging growth company” under US federal securities laws. The filing outlines a strategy for growth, essentially dialing up the approach taken so far by increasing distribution through direct-to-consumer and wholesale channels, expanding ranges and categories, scaling internationally, and optimizing operations.
The figures shared suggest that the brand’s reliance on DTC so far — accounting for 90% of net revenue in 2025 — works. In 2025, Reformation reported net revenue of $507.1 million, a 19% compound annual growth rate from 2023. In Q1 this year, the company reported $112.3 million in net revenue, a 30.4% increase from $86.1 million in Q1 2025. As such, Reformation can confirm double-digit growth in net revenue in the past 20 quarters up to Q1 this year.
The filing also highlights impressive gross margins of 64% or more between 2021 and 2024, conceding a drop to 60.2% in 2025, which the brand attributed to US tariff exposure. In Q1 2026, gross margin reached 70.3%, spurred by the subsequent tariff refunds. In 2025, the firm made $45 million in adjusted EBITDA (8.9% of net revenue), and for Q1 this year, it reported $15.9 million (14.1% of net revenue).
An IPO makes Reformation a rare case study among the DTC-era brand cohort it grew up with. While many have gone out of business or sold off at steep discounts from once-high valuations (see, most recently, Everlane’s shock-sale to Shein for $100 million), few made the jump to Wall Street. Some that did, like Allbirds, eventually delisted. The challenge for Reformation now will be to demonstrate that scaling and sustainability can coexist harmoniously within a business model. Certainly, other disruptor-style millennial brands looking to sell out will be watching closely.
What’s inside the filing?
It’s no mean feat. In April this year, Reformation discussed its ongoing journey towards climate sustainability with Vogue Business, outlining a plan to become “fully circular” by 2030 (a promise made in 2023). For context, in 2020, the brand committed to achieving “climate positive” status by 2025, a task it partly fell short of; granted, it’s not black-and-white. The company’s chief sustainability officer and VP of operations, Kathleen Talbot, detailed the brand’s current roadmap, highlighting the introduction of a data-driven, on-demand production model — not dissimilar to that used by Shein to relatively tap into market demands.
To this point, the recent filing homed in on that development, describing a “responsive merchandising model” and manufacturing agility. As part of this, the company launches new SKUs in small quantities, testing them twice-weekly on the website and once weekly in stores, building a real-time picture of demand. The brand then doubles down on best-sellers. Furthermore, fast production and distribution give the company exceptional lead times compared to industry benchmarks, supporting this shift to demand-driven merchandising.
In the last three years, Reformation delivered half of its products in 60 days or less from the purchase order to its LA-based distribution base. Plus, 65% of Reformation’s SKU reorders were manufactured within 60 days. The company also detailed a new venture into AI and machine learning to enhance product development and identify market trends to capitalize on, reducing redundant SKUs or the need for markdowns — all supporting strong margins. The evidence of success looks strong, too. Between 2021 and 2025, 80% of net revenue via DTC came from full-price sales.
