Stitch Fix Q4 revenue rises 4.2% to $324M
Fiscal 2027 guidance pairs a projected first-quarter revenue decline with a full-year expectation for positive free cash flow.
Rhea-AI Filing Summary
Stitch Fix, Inc. (SFIX) reported fourth-quarter and full fiscal 2026 results for the year ended August 1, 2026. Q4 net revenue was $324.4 million, up 4.2% year over year; active clients totaled 2.277 million, down 1.4%, and net revenue per active client was $592, up 7.8%. Net loss was $2.1 million and Adjusted EBITDA was $10.8 million. Full-year revenue was $1,348.1 million, up 6.4%; net loss was $12.6 million, Adjusted EBITDA was $53.4 million, and free cash flow was $19.8 million. Gross margin was 43.7%, down 70 basis points. Cash, cash equivalents and investments totaled $220.9 million; the company reported no debt.
FY2027 revenue outlook is $1.310 billion to $1.360 billion, with year-over-year change of (2.8)% to 0.9%; Adjusted EBITDA outlook is $27 million to $42 million. Q1 revenue outlook is $323 million to $328 million, with year-over-year change of (5.6)% to (4.1)%, and Adjusted EBITDA is $3 million to $6 million. The company expects FY2027 gross margin of 43% to 44% and positive free cash flow. Q1 revenue was affected by Fix volume shifted from Q1 into Q4 and an August post-checkout change that limited clients eligible to request another Fix; the change was corrected and will not affect results beyond Q1. FY Adjusted EBITDA outlook reflects advertising and technology investments, including AI.
Positive
- Full-year revenue grew 6.4% to $1,348.1 million.
- Full-year Adjusted EBITDA was $53.4 million, versus $49.1 million.
- Full-year operating cash flow was $39.1 million, versus $25.6 million.
- Full-year net loss narrowed to $12.6 million from $28.7 million.
- Q4 Adjusted EBITDA was $10.8 million, versus $8.7 million.
- Q4 net loss narrowed to $2.1 million from $8.6 million.
Negative
- None.
Filing Explained
Beyond the results already summarized, the release reports that Stitch Fix completed fourth-quarter repurchases of 2.7 million Class A shares for
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Q4 net revenue: $324.4 million; up 4.2% year over year
Q4 Adjusted EBITDA: $10.8 million
FY2026 net revenue: $1,348.1 million; up 6.4% year over year
+4 more
7 metrics
Q4 net revenue
$324.4 million; up 4.2% year over year
Fourth quarter fiscal 2026
Q4 Adjusted EBITDA
$10.8 million
Fourth quarter fiscal 2026; $8.7 million in the prior-year quarter
FY2026 net revenue
$1,348.1 million; up 6.4% year over year
Full fiscal year 2026
FY2026 net loss
$12.6 million
Full fiscal year 2026; $28.7 million in fiscal 2025
FY2026 operating cash flow
$39.1 million
Continuing operations; $25.6 million in fiscal 2025
Q1 FY2027 net revenue outlook
$323 million to $328 million
Year-over-year change of (5.6)% to (4.1)%
FY2027 net revenue outlook
$1.310 billion to $1.360 billion
Year-over-year change of (2.8)% to 0.9%
Key Terms
Adjusted EBITDA, Free Cash Flow, active client, Net Revenue per Active Client, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA and Adjusted EBITDA margin"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"We define Free Cash Flow as cash flows provided by operating activities"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
active client financial
"We define an active client as a client who checked out a Fix"
Net Revenue per Active Client financial
"Net revenue per active client is an indicator of client engagement"
discontinued operation financial
"reporting the UK business as a discontinued operation"
A discontinued operation is a part of a company that has been sold, closed, or is planned to be shut down, and will no longer be part of its ongoing business activities. For investors, it matters because it can significantly affect a company's financial results and future outlook, similar to removing a large, ongoing project from a company's operations. Recognizing discontinued operations helps investors better understand a company's current performance separate from parts that are no longer active.
Earnings Snapshot
Q4 net revenue: $324.4 million · Guidance included
Fourth quarter and full fiscal year 2026, ended August 1, 2026
Q4 net revenue
$324.4 million
+4.2% year over year
Q4 active clients
2.277 million
decreased 1.4% quarter over quarter and 1.4% year over year
Q4 net revenue per active client
$592
+7.8% year over year
Q4 gross margin
43.6%
flat year over year
FY2026 net revenue
$1,348.1 million
+6.4% year over year
FY2026 gross margin
43.7%
decreased 70 basis points year over year
Guidance
Q1 FY2027 net revenue: $323 million to $328 million; Adjusted EBITDA: $3 million to $6 million. FY2027 net revenue: $1.310 billion to $1.360 billion; Adjusted EBITDA: $27 million to $42 million; gross margin: 43% to 44%; positive free cash flow.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did SFIX report for Q4 FY2026?
Stitch Fix reported Q4 net revenue of $324.4 million, up 4.2% year over year. Active clients totaled 2.277 million, down 1.4% year over year, and net revenue per active client was $592, up 7.8%.
What is SFIX's FY2027 revenue and Adjusted EBITDA outlook?
Stitch Fix expects FY2027 net revenue of $1.310 billion to $1.360 billion, with year-over-year change of (2.8)% to 0.9%, and Adjusted EBITDA of $27 million to $42 million. It also expects gross margin of 43% to 44% and positive free cash flow.
What affected SFIX's Q1 FY2027 revenue outlook?
The company cited Fix volume shifted from Q1 into Q4 after it adjusted the timing of some Q4 shipments, and an unintended August post-checkout offer-flow change that limited clients eligible to request another Fix. The change was corrected and will not affect results beyond Q1.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 23, 2026
(Exact name of registrant as specified in its charter)
Commission file number: 001-38291
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices and zip code)
(415 ) 882-7765
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On September 23, 2026, Stitch Fix, Inc. (the “Company”) announced its financial results for the fourth quarter and full fiscal year 2026, ended August 1, 2026. In the press release, the Company also announced that it would be holding a conference call on September 23, 2026, at 2:00 p.m Pacific Time to discuss its financial results for the fourth quarter and full fiscal year 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Current Report”) and incorporated by reference herein.
The information included in Item 2.02 of this Current Report and the exhibits attached hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in any such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are provided as part of this Report:
| Exhibit No. | Description | |||||||
| 99.1 | Earnings Press Release dated September 23, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Stitch Fix, Inc. | |||||||||||||||||
| Dated: | September 23, 2026 | By: | /s/ David Aufderhaar | ||||||||||||||
| David Aufderhaar | |||||||||||||||||
| Chief Financial Officer | |||||||||||||||||
Exhibit 99.1
Stitch Fix Announces Fourth Quarter and Full Fiscal Year 2026 Financial Results
SAN FRANCISCO, September 23, 2026 (BUSINESSWIRE) -- 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 | ||||||
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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
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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.
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| 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 | |||||||
4
| 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 | ||||||||||||||||||||||
5
| 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 | |||||||
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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.
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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) | ||||||||||||||||||
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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.
IR Contact: ir@stitchfix.com | PR Contact: media@stitchfix.com | ||||
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