Torrid Holdings Inc. reported fourth‑quarter and full‑year 2025 results, posting net sales of $1.000 billion and adjusted EBITDA of $63.6 million. The company recorded a net loss of $7 million, a reversal from the $16.3 million profit reported in 2024. Earnings per share of –$0.08 beat the consensus estimate of –$0.12, a beat of $0.04.
Adjusted EBITDA fell from $109.1 million in 2024 to $63.6 million in 2025, a decline of 42 percent, and the adjusted EBITDA margin contracted from 9.9 percent to 6.4 percent. The drop reflects a combination of softer demand, a 460‑basis‑point negative impact from a temporary pause of the shoe business, and promotional activity that eroded gross margin.
In the fourth quarter, net sales were $236.2 million, down 10.8 percent from $275.6 million in the same period a year earlier. Adjusted EBITDA for the quarter was $5.1 million, compared with $16.7 million in Q4 2024. The decline was driven by a 10 percent drop in comparable sales, the shoe pause, and a shift toward lower‑margin product mix.
Management guided for first‑quarter 2026 net sales of $236 million to $244 million and adjusted EBITDA of $14 million to $18 million. For the full fiscal year 2026, the company expects net sales of $940 million to $960 million and adjusted EBITDA of $65 million to $75 million. The sales guidance is below the $1.000 billion reported in 2025, while the EBITDA guidance is above the $63.6 million achieved in 2025, indicating confidence in margin expansion.
The results underscore Torrid’s ongoing turnaround strategy, which includes closing up to 180 stores, launching five sub‑brands that generated approximately $70 million in sales, and shifting toward a digital‑first model that now accounts for roughly 70 percent of demand. The company also plans to re‑introduce footwear later in 2026, a move expected to lift comparable sales and improve gross margin.
Analysts noted the earnings beat and revenue beat as positive signals of cost discipline and execution. The guidance for 2026, particularly the higher adjusted EBITDA range, was viewed as a sign of confidence in the company’s ability to improve profitability despite a modest revenue decline.
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