Stitch Fix Announces Fourth Quarter and Full Fiscal Year 2026 Financial Results

SAN FRANCISCO--(BUSINESS WIRE)--Stitch Fix, Inc. (NASDAQ: SFIX), the leading online personal styling service, today announced its financial results for the fourth quarter and full fiscal year 2026 ended August 1, 2026.

“Fiscal 2026 was a transformative year for Stitch Fix. We closed the year as a significantly healthier business, with a strengthened operating foundation, along with a reimagined client experience and more compelling assortment,” said Matt Baer, CEO, Stitch Fix. “Full-year revenue grew 6.4% year-over-year and we continued to gain share in the U.S. apparel, footwear and accessories market. We remain confident in our transformation strategy and ability to advance our efforts to deliver the most personalized and client-centric shopping experience as we navigate a challenging consumer environment.”

Fourth Quarter Fiscal 2026 Key Metrics and Financial Highlights

• Net revenue of $324.4 million, an increase of 4.2% year-over-year.
• Active clients of 2.277 million, a decrease of 1.4% quarter-over-quarter and a decrease of 1.4% year-over-year.
• Net revenue per active client of $592, an increase of 7.8% year-over-year.
• Gross margin of 43.6%, flat year-over-year.
• Net loss of $2.1 million and net loss margin of 0.6%; diluted loss per share of $0.02.
• Adjusted EBITDA of $10.8 million and Adjusted EBITDA margin of 3.3%.
• Net cash provided by operating activities of $9.1 million and free cash flow of $4.4 million.
• Repurchased 2.7 million shares of Class A common stock for $11.3 million.

Full Fiscal 2026 Key Metrics and Financial Highlights

• Net revenue of $1,348.1 million, an increase of 6.4% year-over-year.
• Gross profit of $588.5 million, an increase of 4.5% year-over-year and gross margin of 43.7%, a decrease of 70 basis points year-over-year.
• Net loss of $12.6 million and net loss margin of 0.9%; diluted loss per share of $0.09.
• Adjusted EBITDA of $53.4 million and Adjusted EBITDA margin of 4.0%.
• Net cash provided by operating activities of $39.1 million and free cash flow of $19.8 million.
• Cash, cash equivalents, and investments of $220.9 million; and no debt.

Financial Outlook

Stitch Fix’s revenue outlook for fiscal year 2027 reflects a more challenging consumer environment and a lower active client starting point, which we expect will temper revenue growth. In addition, Stitch Fix’s revenue outlook for the first quarter of fiscal 2027 was impacted by a reduction in Fix volume due to two primary factors: (1) a decision to adjust the timing of some Fix shipments in the fourth quarter, which shifted Fix volume from the first quarter of fiscal 2027 into the fourth quarter of fiscal 2026, and (2) an unintended change made to the post-checkout offer flow in August that limited the number of clients eligible to request another Fix, which has been corrected and will not affect results beyond the first quarter.

Stitch Fix’s adjusted EBITDA outlook for fiscal year 2027 reflects strategic investments in advertising and technology, including artificial intelligence, to support long-term growth.

Stitch Fix’s financial outlook for the first quarter of fiscal 2027, ending October 31, 2026, is as follows:

	Q1 2027
Net Revenue	$323 million - $328 million	(5.6)% - (4.1)% YoY
Adjusted EBITDA	$3 million - $6 million	0.9% - 1.8% margin

Stitch Fix’s financial outlook for fiscal year 2027 is as follows:

	Fiscal Year 2027
Net Revenue	$1.310 billion - $1.360 billion	(2.8)% - 0.9% YoY
Adjusted EBITDA	$27 million - $42 million	2.1% - 3.1% margin

Stitch Fix expects its full fiscal year 2027 gross margin to be between 43% and 44%. Stitch Fix also expects to generate positive free cash flow for the full year.

Stitch Fix’s fiscal year is a 52- or 53-week period ending on the Saturday closest to July 31. Fiscal years 2025 and 2026 are 52-week years.

Stitch Fix has not reconciled its Adjusted EBITDA outlook to GAAP net income (loss) or free cash flow outlook to net cash flows used in operating activities from continuing operations because it does not provide an outlook for GAAP net income (loss) or net cash flows used in operating activities from continuing operations due to the uncertainty and potential variability of restructuring and other one-time costs, net other income (expense), provision for income taxes, stock-based compensation expense, or net cash flows used in operating activities from continuing operations, which are reconciling items between the non-GAAP financial measure and the corresponding GAAP measure. Because Stitch Fix cannot reasonably predict such items, a reconciliation of the non-GAAP financial measure outlooks to the corresponding GAAP measures are not available without unreasonable effort. We caution, however, that such items could have a significant impact on the calculation of GAAP net income (loss) and free cash flow. For more information regarding the non-GAAP financial measures discussed in this release, please see “Non-GAAP Financial Measures” below.

Discontinued Operations

During the first quarter of fiscal 2024, Stitch Fix ceased operations of its UK business and met the accounting requirements for reporting the UK business as a discontinued operation. Accordingly, its unaudited condensed consolidated financial statements reflect the results of the UK business as a discontinued operation for all periods presented. Unless otherwise noted, amounts and disclosures relate to its continuing operations.

Conference Call and Webcast Information

Matt Baer, Chief Executive Officer of Stitch Fix, and David Aufderhaar, Chief Financial Officer of Stitch Fix, will host a conference call at 2:00 p.m. Pacific Time today to discuss the Company’s financial results and outlook. A live webcast of the call will be accessible on the investor relations section of the Stitch Fix website at https://investors.stitchfix.com.

To access the call by phone, please register at the following link:

Dial-In Registration: https://events.q4inc.com/analyst/547153230?pwd=jiyLQm15

Upon registration, telephone participants will receive the dial-in number along with a unique passcode that can be used to access the call. A replay of the webcast will also be available for a limited time at https://investors.stitchfix.com.

About Stitch Fix, Inc.

Stitch Fix (NASDAQ: SFIX) is the leading online personal styling service that helps people discover the styles they will love that fit perfectly so they always look - and feel - their best. Few things are more personal than getting dressed, but finding clothing that fits and looks great can be a challenge. Stitch Fix solves that problem. By pairing expert stylists with best-in-class AI and recommendation algorithms, the company leverages its assortment of exclusive and national brands to meet each client's individual tastes and needs, making it convenient for clients to express their personal style without having to spend hours in stores or sifting through endless choices online. Stitch Fix, which was founded in 2011, is headquartered in San Francisco. For more information, please visit https://www.stitchfix.com.

Forward-Looking Statements

This press release, and the related conference call and webcast, contain forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact could be deemed forward looking, including but not limited to statements regarding our expectations for future financial performance, including our revenue growth, profitability and long-term targets; our outlook on financial results and metrics; our expectations regarding our market and wallet share, market opportunity, client growth, retention, engagement and other trends, our expectation with respect to the impact of our strategies, priorities, and investments, including our transformation strategy and plans for enhancements to our client experience, our financial results and key metrics; our plans and expectations with respect to our product offerings, AI initiatives and our use of AI technologies, and plans for category expansion; our assessment of the impact of tariffs and the macroeconomic environment on our results of operations and future performance; our ability to navigate a dynamic consumer environment; and our expectations regarding future costs and metrics, including transportation costs, gross margin, average order value, inventory levels, and advertising spend. These statements involve substantial risks and uncertainties, including risks and uncertainties related to the current macroeconomic environment; our ability to generate sufficient net revenue to offset our costs; changing consumer behavior; the effect of changes in and uncertainty regarding tariffs or trade policies and our ability to mitigate tariff-related risks; our ability to acquire, engage, and retain clients; our ability to provide offerings and services that achieve market acceptance; our data science and technology, Stylists, operations, marketing initiatives, and other key strategic areas, including the implementation of our transformation strategy; risks related to our inventory levels and management; risks related to our supply chain, sourcing of materials and shipping of merchandise; our ability to forecast our future operating results; our ability to respond to technical incidents and the impact of the same on our financial performance; and other risks described in the filings we make with the SEC. Further information on these and other factors that could cause our financial results, performance, and achievements to differ materially from any results, performance, or achievements anticipated, expressed, or implied by these forward-looking statements is included in filings we make with the SEC from time to time, including in the sections titled “Risk Factors” in our Quarterly Report on Form 10-Q for the fiscal quarter ended May 2, 2026. These documents are available on the SEC Filings section of the investor relations section of our website at: https://investors.stitchfix.com. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties, and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made.

STITCH FIX, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)	August 1, 2026			August 2, 2025
Assets
Current assets:
Cash and cash equivalents	$	95,301		$	113,952
Short-term investments		77,242			120,901
Inventory, net		122,707			118,370
Prepaid expenses and other current assets		53,058			20,649
Total current assets		348,308			373,872
Long-term investments		48,380			7,894
Property and equipment, net		40,440			43,199
Operating lease right-of-use assets		39,236			51,201
Other long-term assets		3,058			4,456
Total assets	$	479,422		$	480,622
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	89,208		$	89,243
Operating lease liabilities		20,877			22,752
Accrued liabilities		109,767			76,348
Gift card liability		5,923			6,238
Deferred revenue		6,862			8,616
Other current liabilities		3,035			3,030
Total current liabilities		235,672			206,227
Operating lease liabilities, net of current portion		47,468			70,759
Other long-term liabilities		183			658
Total liabilities		283,323			277,644
Commitments and contingencies
Stockholders’ equity:
Class A common stock, $0.00002 par value		1			1
Class B common stock, $0.00002 par value		1			1
Additional paid-in capital		762,006			729,444
Accumulated other comprehensive income (loss)		(884	)		(434	)
Accumulated deficit		(508,598	)		(495,992	)
Treasury stock, at cost		(56,427	)		(30,042	)
Total stockholders’ equity		196,099			202,978
Total liabilities and stockholders’ equity	$	479,422		$	480,622

STITCH FIX, INC.
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS
	For the Three Months Ended						For the Fiscal Year Ended
(In thousands, except share and per share amounts)	August 1, 2026			August 2, 2025			August 1, 2026			August 2, 2025
Revenue, net	$	324,418		$	311,227		$	1,348,119		$	1,267,171
Cost of goods sold		183,034			175,512			759,628			704,232
Gross profit		141,384			135,715			588,491			562,939
Gross margin		43.6	%		43.6	%		43.7	%		44.4	%
Selling, general, and administrative expenses		145,749			146,921			610,187			601,844
Operating loss		(4,365	)		(11,206	)		(21,696	)		(38,905	)
Interest income		2,000			2,487			8,661			10,709
Other income, net		444			383			767			173
Loss before income taxes		(1,921	)		(8,336	)		(12,268	)		(28,023	)
Provision for income taxes		144			241			338			821
Net loss from continuing operations		(2,065	)		(8,577	)		(12,606	)		(28,844	)
Net income (loss) from discontinued operations, net of income taxes		—			1			—			105
Net loss		(2,065	)		(8,576	)		(12,606	)		(28,739	)
Other comprehensive loss:
Change in unrealized gains and losses on available-for-sale securities, net of tax		(256	)		9			(450	)		(99	)
Total other comprehensive income (loss), net of tax		(256	)		9			(450	)		(99	)
Comprehensive loss	$	(2,321	)	$	(8,567	)	$	(13,056	)	$	(28,838	)
Loss per share from continuing operations attributable to common stockholders:
Basic	$	(0.02	)	$	(0.07	)	$	(0.09	)	$	(0.22	)
Diluted	$	(0.02	)	$	(0.07	)	$	(0.09	)	$	(0.22	)
Earnings (loss) per share from discontinued operations attributable to common stockholders:
Basic	$	0.00		$	0.00		$	0.00		$	0.00
Diluted	$	0.00		$	0.00		$	0.00		$	0.00
Loss per share attributable to common stockholders:
Basic	$	(0.02	)	$	(0.07	)	$	(0.09	)	$	(0.22	)
Diluted	$	(0.02	)	$	(0.07	)	$	(0.09	)	$	(0.22	)
Weighted-average shares used to compute earnings (loss) per share attributable to common stockholders:
Basic		132,954,013			131,388,256			134,247,185			128,784,547
Diluted		132,954,013			131,388,256			134,247,185			128,784,547

STITCH FIX, INC.
CONSOLIDATED STATEMENT OF CASH FLOW
	For the Fiscal Year Ended
(In thousands)	August 1, 2026			August 2, 2025
Cash Flows from Operating Activities from Continuing Operations
Net loss from continuing operations	$	(12,606	)	$	(28,844	)
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities from continuing operations:
Change in inventory reserves		(1,576	)		4,312
Stock-based compensation expense		46,401			56,727
Depreciation, amortization, and accretion		22,628			26,124
Other		1,131			50
Change in operating assets and liabilities:
Inventory		(2,761	)		(24,779	)
Prepaid expenses and other assets		998			1,465
Operating lease right-of-use assets and liabilities		(13,201	)		(11,412	)
Accounts payable		(768	)		2,014
Accrued liabilities		1,363			3,149
Deferred revenue		(1,754	)		(601	)
Gift card liability		(315	)		(511	)
Other liabilities		(470	)		(2,119	)
Net cash provided by operating activities from continuing operations		39,070			25,575
Cash Flows from Investing Activities from Continuing Operations
Proceeds from sale of property and equipment		17			—
Purchases of property and equipment		(19,224	)		(16,293	)
Purchases of securities available-for-sale		(118,980	)		(197,865	)
Sales of securities available-for-sale		1,500			10,718
Maturities of securities available-for-sale		121,291			144,319
Net cash used in investing activities from continuing operations		(15,396	)		(59,121	)
Cash Flows from Financing Activities from Continuing Operations
Proceeds from the exercise of stock options, net		1,891			1,093
Payments for tax withholdings related to vesting of share-based awards		(17,616	)		(15,967	)
Repurchase of common stock		(26,385	)		—
Other		(215	)		(93	)
Net cash used in financing activities from continuing operations		(42,325	)		(14,967	)
Net decrease in cash and cash equivalents from continuing operations		(18,651	)		(48,513	)
Cash Flows from Discontinued Operations
Net cash used in operating activities from discontinued operations		—			(397	)
Net decrease in cash and cash equivalents from discontinued operations		—			(397	)
Net decrease in cash and cash equivalents		(18,651	)		(48,910	)
Cash and cash equivalents at beginning of period		113,952			162,862
Cash and cash equivalents at end of period	$	95,301		$	113,952
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment included in accounts payable and accrued liabilities	$	1,915		$	1,127
Capitalized stock-based compensation	$	1,886		$	2,941

Non-GAAP Financial Measures

The Company reports its financial results in accordance with generally accepted accounting principles in the United States (“GAAP”). However, management believes that certain non-GAAP financial measures provide users of its financial information with additional useful information in evaluating the Company’s performance. The Company believes that adjusted EBITDA from continuing operations (“Adjusted EBITDA”) and Adjusted EBITDA margin, which is defined as Adjusted EBITDA divided by net revenue for the period, are frequently used by investors and securities analysts in their evaluations of companies, and that this supplemental measure facilitates comparisons between continuing operations of companies. The Company believes free cash flow from continuing operations (“Free Cash Flow”) is an important metric because it represents a measure of how much cash from continuing operations the Company has available for discretionary and non-discretionary items after the deduction of capital expenditures. These non-GAAP financial measures may be different than similarly titled measures used by other companies.

These non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with GAAP. There are several limitations related to the use of these non-GAAP financial measures as compared to the closest comparable GAAP measures. Some of these limitations include:

• Adjusted EBITDA excludes interest income and other (income) expense, net as these items are not components of our core business;
• Adjusted EBITDA does not reflect provision for income taxes, which may increase or decrease cash available;
• Adjusted EBITDA excludes the recurring, non-cash expenses of depreciation and amortization of property and equipment and, although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced in the future;
• Adjusted EBITDA excludes the non-cash expense of stock-based compensation, which has been, and will continue to be for the foreseeable future, an important part of how we attract and retain employees and a significant recurring expense in our business;
• Adjusted EBITDA excludes costs incurred related to discrete restructuring plans and other one-time costs attributable to continuing operations that are fundamentally different in strategic nature and frequency from ongoing initiatives. We believe exclusion of these items facilitates a more consistent comparison of operating performance over time, however these costs do include cash outflows;
• Adjusted EBITDA excludes non-ordinary course legal fees for specific proceedings that we have determined arise outside of the ordinary course of business and are nonrecurring, infrequent, or unusual; and
• Free Cash Flow does not represent the total residual cash flow available for discretionary purposes and does not reflect future contractual commitments.

Adjusted EBITDA

We define Adjusted EBITDA as net loss from continuing operations excluding interest income, other (income) expense, net, provision for income taxes, depreciation and amortization, stock-based compensation expense, restructuring and other one-time costs, and non-ordinary course legal fees related to our continuing operations. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net revenue for the period. The following table presents a reconciliation of net loss from continuing operations, the most comparable GAAP financial measure, to Adjusted EBITDA, and net loss margin, the most comparable GAAP financial measure, to Adjusted EBITDA margin, for each of the periods presented:

	For the Three Months Ended						For the Fiscal Year Ended
(in thousands)	August 1, 2026			August 2, 2025			August 1, 2026			August 2, 2025
Net loss from continuing operations	$	(2,065	)	$	(8,577	)	$	(12,606	)	$	(28,844	)
Add (deduct):
Interest income		(2,000	)		(2,487	)		(8,661	)		(10,709	)
Other income, net		(444	)		(383	)		(767	)		(173	)
Provision for income taxes		144			241			338			821
Depreciation and amortization		4,839			6,500			23,501			27,860
Stock-based compensation expense		9,361			13,069			46,401			56,727
Restructuring and other one-time costs ^(1)		958			121			958			3,228
Non-ordinary course legal fees ^(2)		—			229			4,223			229
Adjusted EBITDA	$	10,793		$	8,713		$	53,387		$	49,139
Revenue, net	$	324,418		$	311,227		$	1,348,119		$	1,267,171
Net loss margin		(0.6	)%		(2.8	)%		(0.9	)%		(2.3	)%
Adjusted EBITDA margin		3.3	%		2.8	%		4.0	%		3.9	%

^(1)

For the three and twelve months ended August 1, 2026 other one-time costs were $1.0 million for net costs related to an early termination of a sublease. For the three and twelve months ended August 2, 2025, restructuring charges were $0.0 million and $1.2 million, respectively, primarily in severance and employee-related benefits and other restructuring costs; and other one-time costs were $0.1 million and $2.0 million, respectively, in one-time bonuses for certain continuing employees.

^(2)

Non-ordinary course legal fees include costs related to a specific class action lawsuit.

Free Cash Flow

We define Free Cash Flow as cash flows provided by operating activities from continuing operations, reduced by purchases of property and equipment that are included in cash flows from investing activities from continuing operations. The following table presents a reconciliation of net cash flows used in operating activities from continuing operations, the most comparable GAAP financial measure, to Free Cash Flow for each of the periods presented:

	For the Three Months Ended						For the Fiscal Year Ended
(in thousands)	August 1, 2026			August 2, 2025			August 1, 2026			August 2, 2025
Free Cash Flow reconciliation:
Net cash provided by operating activities from continuing operations	$	9,061		$	7,003		$	39,070		$	25,575
Deduct:
Purchases of property and equipment		(4,660	)		(4,228	)		(19,224	)		(16,293	)
Free Cash Flow	$	4,401		$	2,775		$	19,846		$	9,282
Net cash provided by (used in) investing activities from continuing operations	$	11,672		$	568		$	(15,396	)	$	(59,121	)
Net cash used in financing activities from continuing operations	$	(12,768	)	$	(2,535	)	$	(42,325	)	$	(14,967	)

Operating Metrics

	August 1, 2026		May 2, 2026		January 31, 2026		November 1, 2025		August 2, 2025
Active clients (in thousands)		2,277		2,309		2,288		2,307		2,309
Net revenue per active client	$	592	$	578	$	577	$	559	$	549

Active Clients

We believe that the number of active clients is a key indicator of the overall health of our business. We define an active client as a client who checked out a Fix or was shipped an item via Freestyle in the preceding 52 weeks, measured as of the last day of that period. Clients check out a Fix when they indicate what items they are keeping through our mobile application or on our website. We consider each Women’s, Men’s, or Kids account as a client, even if they share the same household. A single person could have multiple accounts and count as multiple active clients.

Net Revenue per Active Client

We believe that net revenue per active client is an indicator of client engagement and satisfaction. We calculate net revenue per active client based on net revenue over the preceding four fiscal quarters divided by the number of active clients measured as of the last day of the period.