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

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; andFree 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. Source: Stitch Fix, Inc.