Q1 2026 earnings snapshot

Revolve Group (RVLV) opened 2026 with Q1 revenue of US$342.9 million and basic EPS of US$0.20, while trailing twelve month revenue stood at about US$1.27 billion and EPS at US$0.90. Over recent quarters, the company has seen revenue range from US$293.7 million in Q4 2024 to US$324.4 million in Q4 2025, with basic EPS moving between US$0.14 and US$0.30 across the 2025 fiscal year. This gives investors a fuller view of how the latest quarter fits into its earnings rhythm as net profit margins have shifted higher.

See our full analysis for Revolve Group.

With the headline numbers on the table, the next step is to set these results against the most common market narratives around Revolve Group to see which stories hold up and which need a rethink.

TTM earnings reach US$64.2 million

• Over the last twelve months, Revolve Group generated US$1.27b of revenue and US$64.2 million of net income, with basic EPS at US$0.90 on a trailing basis.
• Supporters of the bullish view point out that earnings growth of 27.2% over the past year and forecast annual earnings growth of about 12.2% line up with this TTM EPS trend. However, the data also show a five year annual earnings decline of 15.7%, which means
  • recent EPS of US$0.90 and net income of US$64.2 million are consistent with the idea of a recovery phase rather than a long, uninterrupted growth story
  • the contrast between the one year earnings gain and the longer term decline is exactly where you should test how durable you think this improvement will be before leaning on optimistic forecasts

On top of these results, bulls argue that the latest profitability and earnings trends could justify stronger long term expectations if they continue, so it is worth seeing how that case is built out in more detail in the 🐂 Revolve Group Bull Case.

Margins at 5.1% challenge bearish worries

• Net profit margin is currently 5.1%, compared with 4.4% a year ago, off quarterly revenue that moved from US$296.7 million in Q1 2025 to US$342.9 million in Q1 2026 and quarterly net income that went from US$11.8 million to US$14.4 million over the same periods.
• Bears focus on pressure from tariffs, logistics costs and promotions, arguing that margins could compress from 4.4% toward 3.7%. Yet the latest figures show
  • reported margin at 5.1% and Q1 2026 net income of US$14.4 million on US$342.9 million of revenue are not consistent with margin compression so far compared with the 4.4% margin cited for the prior year
  • if costs were already overwhelming the business, you would expect weaker net income than the US$64.2 million produced over the last twelve months on US$1.27b of revenue

Skeptics warn that these margins could still come under pressure if the cost headwinds they highlight start to bite harder, so it can be useful to check how that cautious case is framed in the 🐻 Revolve Group Bear Case.

Premium 22.5x P/E with DCF fair value at US$28.30

• Revolve Group trades on a trailing P/E of 22.5x compared with 19.8x for the US Specialty Retail industry and 15.2x for peers, while the DCF fair value of US$28.30 sits above the current share price of US$20.19.
• What stands out in the consensus style narrative is the tension between paying a premium multiple and the implied upside, because
  • the DCF fair value of US$28.30 is higher than the current price of US$20.19, and analysts as a group reference upside toward an average target of about US$30.29, yet revenue growth is only projected at 7.3% per year versus 11.3% for the broader US market
  • forecast earnings growth around 12.2% a year, together with a net margin of 5.1%, helps explain why some investors are willing to pay 22.5x earnings, but the gap to peer P/E levels means you need to be comfortable that this growth and profitability profile justifies that premium

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Revolve Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mix of bullish and cautious signals feels mixed, use it as a prompt to check the details yourself and decide where you stand. To see what is driving the optimism behind the stock, take a closer look at the 4 key rewards.

See What Else Is Out There

Revolve Group carries a premium 22.5x P/E despite a five year annual earnings decline of 15.7% and revenue growth forecasts that trail the broader US market.

If you are questioning whether that premium is worth paying, it makes sense to compare it with companies screened as 45 high quality undervalued stocks that may offer stronger value for each dollar invested.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.