On the same day its CEO Fran Millar announced she was stepping down, Rapha has revealed that more job cuts are expected at the beleaguered British brand, after its trading losses more than doubled to £5.6m last year.
According to Rapha’s latest figures, which will be published in full later this month, the company’s turnover for the year ending January 2026 was £89m, down from £96m the previous year and £110m in 2024.
Those figures mean the British brand has spent its ninth consecutive year in the red, with Rapha recording a net loss of £25.3m last year, just 12 months after another £15.6m loss. The company also lost £19.7m in 2024, resulting in a startling combined loss of £60m over the past three years. Operating losses also increased from £17.2m to £21.2m.
However, as has been the case in recent months, the company continues to focus on its EBITDA pre-exceptional items, a figure for its earnings before interest, tax, depreciation, and amortisation.
That’s largely because a £10m-plus amortisation charge, from when the brand was sold to RZC Investments in 2017, will continue to appear in Rapha’s accounts for most of the next decade, with the brand instead stating that it prefers to focus on how it is performing on its cycling and clothing ranges alone.
However, things are looking even more stark on that front. Following last year’s EBITDA loss of £2.6m, this year Rapha’s trading losses have doubled to £5.6m, a number the brand says is down to a reduction on its previous reliance on discount and promotional related activities. By contrast, Rapha submitted a EBITDA profit of £900,000 in 2023/24.
In a statement released by Rapha on Wednesday afternoon, the company said this shift away from discounting, instigated by Millar, who joined as CEO in 2024, “will strengthen the business over time”.
Earlier on Wednesday morning, former Ineos Grenadiers boss Millar announced that she is stepping down from her role as Rapha’s CEO, insisting that the “vision and strategy” which underpinned her time leading the brand remains in place, but that the “delivery” of that vision will require a change in Rapha’s leadership structure.
The brand thanked Millar for her leadership over the past two years in its statement today, while also admitting that “significant changes are essential to establish a stronger, more sustainable path forward”.
Those changes mean job cuts, with Rapha revealing today that an organisational restructure is being implemented and a formal consultation process set to take place with staff. It has not been revealed how many staff members are expected to lose their jobs.
“This week, Rapha is announcing a number of business updates as part of its ongoing transformation programme,” the company said in its statement.
“The Rapha we are building will set a higher standard for cycling clothing and give more people a reason to ride. Our task now is to establish the financial strength to match that ambition. We need to concentrate resources on the products and experiences that matter most to riders, with a simpler organisation.
“With a new vision and strategy in place, CEO Fran Millar suggested to the Board that she step down to allow new leadership to guide the next phase, a decision the Board has accepted. We extend our sincere thanks to Fran for her leadership over the past two years, during which she stabilised operations, refocused the product roadmap and the global Rapha Cycling Club (RCC) community.”
Focusing on its recent figures, the statement continued: “Rapha continues to execute its financial improvement plan to reach sustainable profitability by 2027. This month we will publish our results for the financial year ending January 2026 to Companies House. Turnover was £89m, with a trading loss (EBITDA) of £5.6m.
“These numbers reflect deliberate decisions to invest in our brand, product quality, cycling communities and customer experiences, while reducing our reliance on discount and promotional related activities – choices that will strengthen the business over time.
“Early signs in the current financial year suggest the strategy is working. We are seeing encouraging revenue growth in a number of our key territories and in our like-for-like Clubhouses, with fewer days on promotion and increased customer acquisition vs last year.
“Rapha Cycling Club membership has returned to growth, increasing by 18 per cent year-to-date. Rapha’s new Clubhouse concept is also performing strongly: Shanghai has recorded some of the highest footfall across the global Clubhouse network, and Bentonville has attracted 31 per cent more new customers year on year.
“Customer lifetime value is growing and product innovation in our pinnacle performance range, Pro Team, is positively impacting sales.”
While the brand is hopeful when it comes to these “green shoots”, it says its attempts to recover sustainably will involve “a proposed organisational restructure”.
“A formal consultation process with affected team members will now take place,” Rapha said. “We believe these proposed changes are necessary but recognise the personal impact on affected colleagues, and we do not take these decisions lightly.
“With support from our Board of Directors, our executive team has a clear strategic roadmap, significant new partnerships including with USA Cycling ahead of the LA28 Olympic Games, and an unwavering commitment to our global cycling community. We are confident in our path forward toward long-term stability.”
Steuart Walton, the Walmart heir who bought Rapha with his brother Tom in 2017, also said: “My brother and I have been majority owners of Rapha for nine years. We love the brand, the product, and what Rapha stands for, and we are deeply grateful to the people who have made the company so special.
“Our belief in Rapha has not changed. We remain committed to the power of cycling to make the world a better place and to Rapha’s unique role in advancing that idea. We are confident in the long-term future of the brand and committed to helping Rapha achieve its ambitions.”
