Reformation Inc., the sustainable womenswear brand supported by private equity firm Permira, has filed for a U.S. initial public offering, aiming to raise up to $239 million. The company plans to list its shares on the New York Stock Exchange under the symbol REF. This move follows a period of significant growth for the Los Angeles-based retailer, which reported $507.1 million in revenue for fiscal year 2025, marking a 15.7% year-over-year increase, and achieving 20 consecutive quarters of double-digit revenue growth.
Despite strong revenue growth, Reformation reported a net loss of $12.1 million on revenue of $112.3 million in the first quarter of 2026. For the full fiscal year 2025, net profit totaled $12.6 million, a decrease from $32.6 million in 2024. This profitability challenge is partly attributed to tariff exposure under the International Emergency Economic Powers Act, which led to approximately $10 million in direct tariffs and an additional $8 million passed on by vendors. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2025 were $45 million, representing 8.9% of net revenue.
Permira, which acquired a majority stake in Reformation in 2019, is expected to maintain substantial influence post-IPO. The brand, founded in 2009 by Yael Aflalo and now led by CEO Hali Borenstein, emphasizes sustainability and has cultivated a direct-to-consumer model, with roughly 90% of its 2025 net revenue coming from DTC channels. The company has also noted the risks associated with its use of AI technologies in its operations. JPMorgan, Morgan Stanley, Citigroup, and RBC Capital Markets are serving as lead underwriters for the offering.
