There are two big bits of Rapha news officially out today that have been circling in the rumor mill for the past week – Rapha will outfit USA Cycling from 2026 through the end of 2029, and Rapha’s latest annual financial statement again showed big losses.
The first is really interesting after the recent end of their EF Pro Cycling partnership, signaling that not only is Rapha staying in the professional and elite cycling sphere, but is branching out a lot to cover more disciplines, including paracycling. A big driver of that deal is the goal of helping USA Cycling athletes haul in a record number of medals when the Summer Olympics return to the states in Los Angeles in 2028. And of course, rebuilding loyalty and growing the brand in the United States along the way.
As for the financials, while they still look pretty dire, Rapha elaborated on how the numbers are still delayed in what they report. And that the brand has already seen a significant reset that both the CEO & COO say optimistically point towards a return to profitability.
Rapha outfits USA Cycling on the path to 2028 LA Olympics
Why has Rapha partnered up with USA Cycling to outfit the national team in Rapha kit for the next 4 years?
The most obvious answer is that they saw what the 2012 London Summer Olympics did to boost interest and participation in cycling in the UK. And Rapha thinks the much bigger US market has the potential to take it even further with the 2028 Los Angeles Summer Olympics on the horizon. At the same time, Rapha has been on the ground in the US since they opened an RCC clubhouse in San Francisco in 2008, yet US sales put the market only in 3rd position behind the UK & Germany, accounting for 20% of their revenue, and offering plenty of room for growth.
“Our vision is to make cycling the most important sport in the world by transforming the lives of millions and there is no greater stage for that ambition than when athletes represent their nation. This is a bold move for Rapha, and USA Cycling shares our intention for the partnership to stand for far more than a jersey; it represents a shared dream for the future of the sport.”
– Fran Millar, Rapha CEO
A record goal of 10 Olympic medals for US cyclists in Los Angeles in 2028!
USA Cycling says they have set a goal of 10 Olympic medals in LA in 2028. And Rapha is on board to help the cyclists meet that, across all cycling disciplines. Especially with new developments in the works for Track, BMX Racing, and BMX Freestyle, Rapha sees opportunities for clothing innovation to help the athletes in disciplines outside of their wheelhouse. Talking with Rapha CEO Fran Millar, she also cited outfitting the USA Cycling paracyclists as something completely new for the clothing brand, but an excellent opportunity to employ their technical clothing development ethos to support all cyclists.
“We are entering a Golden Age for American cycling and Rapha can be a catalyst for that. USA Cycling has a laser focus on delivering 10 cycling medals at the LA28 Summer Olympic Games. That record-breaking performance would be transformative for the sport in America and Rapha will be at the center of that effort. From aerodynamics to thermal regulation, we are relentlessly pursuing every potential advantage for Team USA. Rapha is synonymous with innovation at the pinnacle of the sport and can match our ambition. We know that our athletes will be at their best when they compete in Rapha.”
– Brendan Quirk, USA Cycling CEO and President
Rapha says their first USA Cycling kit will get unveiled in January, and amateur cyclists will get access to team replica kit and fan merch to support the USA Cycling athletes on their road to LA 2028. Read more and stay up to date here.
Rapha FY24 financials show more losses, but lay groundwork for turnaround
Last year, Rapha posted a £17.2m operating loss on £96m of turnover. Their 8th year in a row in the red. And parent company Carpegna Ltd, wrote down the value of the brand from £169m to a more realistic £67m, chopping more than 60% off the company value.
At first glance at the numbers, the UK cycling clothing maker had another really rough year. But in a chat with CEO Fran Millar and COO Michelle Woolaghan a couple weeks ago, the two explained that even though the losses and a big valuation downgrade look dire from the outside, Rapha has actually made big turnarounds already in 2025. And they have a much more optimistic outlook, with a return to profitability in sight for the first time in several years.
See, Millar only took over leadership of the brand 1 year ago. And these FY24 numbers (period ending 26 Jan 2025) only account for her first 4 months on the job, putting an all-new management strategy into effect. Even in the 8 months since, Rapha has moved back towards a focus on premium quality, with a more focused product line-up. And they’ve shifted away from the over-discounting that Millar says really hurt the brand in recent years, after overordering and overstocking following the 2020/21 boom.
A realistic but optimistic look as Rapha rebuilds the path forward
It’s not all doom and gloom.
Rapha says they’re growing more with new customers this past fiscal year, and the ‘lifetime value’ of their direct web store customers has increased too. They also have a new ‘Ready to Race‘ strategy coming with new products, focusing again on ‘cutting edge’ product innovation, and even paring back what had become a somewhat bloated product line-up.
Millar and Woolaghan describe to us a move for the brand to be more transparent in their communication, evidenced by these executives taking time to speak openly to a very small handful of cycling journalists. They say the Rapha board of directors feel comfortable with this “managed cost reduction” strategy that they are executing. And Rapha are already moving back towards profitable growth, likely looking to FY26 to get the brand back in the black.
Starting with new developments with USA Cycling, we’re very curious what new product innovation Rapha will have to share in the new year.
