Reformation has stepped out into the spotlight.
The 17-year-old company filed to go public late Thursday, revealing the inner workings of its business and testing the market for fashion after Elon Musk supercharged Wall Street with the SpaceX IPO.
As is usually the case, there were few details about the actual offering. The registration statement filed with regulators does not specify just how many shares will be sold and at what price. The major stock holders are private equity firm Permira, which holds 224,800 shares, and a family trust controlled by Reformation founder Yael Aflalo, which owns 90,609 shares.
Aflalo led the sustainability-minded brand as chief executive officer from 2009 until 2020, when she gave the reins over to Hali Borenstein.
The change in leadership came at a tough moment for the brand. There were allegations of racism from former employees and whispers that the company was not really all that sustainable — but those are complaints that could extend to much of the rest of the fashion industry and lately the brand has been viewed primarily as a promising business that could eventually go public.
Until now, it was unclear just how promising the business was.
Net revenues grew 15.7 percent to $507.1 million last year, with 90 percent of that coming from its own direct-to-consumer business. That growth came on top of a 21.9 percent increase in 2023.
First-quarter revenues this year jumped 30.4 percent to $112.3 million, marking 20 consecutive quarters of double-digit growth. Reformation’s DTC channel had 1.1 million active customers as of the end of March with revenue per customer of $421 for the quarter.
Right from the outset the Reformation personality shows through the registration statement, with the company leading with the assertion: “Being naked is the #1 most sustainable option. We’re #2.”
But this is a business owned by private equity, so plenty of focus has been put on the financials.
“Most of the time we don’t take ourselves too seriously, but when it comes to financial performance, we operate with rigor and commitment to our stakeholders,” the filing said. “This has enabled us to effectively deliver top-line growth and profitability that we will strive to build on in the decades to come.”
Last year, net profits totaled $12.6 million, down from $32.6 million in 2024 and $23.9 million in 2023.
Adjusted earnings before interest, taxes, depreciation and amortization tallied $45 million for 2025, representing 8.9 percent of net revenue.
IPO paperwork always opens a unique window into a company and can signal how trends are evolving in corporate America.
Several years ago, for instance, artificial intelligence wouldn’t have gotten a callout. But now, Reformation lists it as a risk, in a long list of mostly boilerplate risks.
“We utilize AI, which could expose us to liability or adversely affect our business,” the statement said. “The adoption of generative AI technologies in our operations introduces distinct risks, notably in data management and data privacy. No assurance can be provided that our use of such AI technologies will enhance our products or operations or produce the intended results. These AI systems, capable of synthesizing customer interactions and generating personalized recommendations, could inadvertently use sensitive data to train future models.”
Reformation’s move toward the open market also signals that the time might be right — with Wall Street hitting all-time highs despite worries about inflation and AI — for fashion to jump in.
Kim Kardashian’s Skims is routinely talked about as a company that will go public sooner or later. In another part of the market, Authentic Brands Group is also seen as ready to get its ticker.
