Stitch Fix (NASDAQ: SFIX) posts Q3 2026 growth, tightens loss and raises 2026 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Stitch Fix reported third-quarter fiscal 2026 results showing modest growth and improving profitability metrics. Net revenue was $340.3 million, up 4.7% year-over-year. Net loss from continuing operations narrowed to $1.5 million, with a net loss margin of 0.4% and diluted loss per share of $0.01.
Adjusted EBITDA reached $13.2 million with a 3.9% margin, and free cash flow for the quarter was $6.5 million. Active clients were 2.309 million, up 0.9% quarter-over-quarter but down 1.9% year-over-year, while net revenue per active client rose 6.6% to $578.
For Q4 2026, the company expects net revenue between $322 million and $327 million and Adjusted EBITDA between $7 million and $10 million. For full fiscal 2026, it projects net revenue of $1.346 billion to $1.351 billion, Adjusted EBITDA of $49 million to $52 million, gross margin of 43%–44%, and positive free cash flow.
Positive
- None.
Negative
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Insights
Stitch Fix is stabilizing revenue while inching toward sustained profitability.
Stitch Fix posted Q3 fiscal 2026 net revenue of $340.3M, up 4.7% year-over-year, with net loss tightening to $1.5M. Adjusted EBITDA of $13.2M and a 3.9% margin indicate progress toward more durable earnings, aided by cost control.
Client trends are mixed: active clients of 2.309 million rose sequentially but remain down 1.9% year-over-year, while net revenue per active client improved to $578. This suggests deeper spend among remaining clients, even as total client count has not fully recovered.
Guidance calls for Q4 2026 revenue of $322M–$327M and full-year revenue of $1.346B–$1.351B with Adjusted EBITDA of $49M–$52M and a 3.7%–3.9% margin. Management also expects full-year gross margin of 43%–44% and positive free cash flow, so future filings will clarify whether these profitability targets are met.
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, and exhibit attachments filed with this report.
Key Figures
Q3 2026 Net Revenue: $340.3M
Q3 2026 Net Loss: $1.5M
Q3 2026 Adjusted EBITDA: $13.2M
+5 more
8 metrics
Q3 2026 Net Revenue
$340.3M
Third quarter fiscal 2026, up 4.7% year-over-year
Q3 2026 Net Loss
$1.5M
Net loss from continuing operations, 0.4% margin
Q3 2026 Adjusted EBITDA
$13.2M
Third quarter fiscal 2026, 3.9% Adjusted EBITDA margin
Active Clients
2.309M
As of May 2, 2026; +0.9% QoQ, -1.9% YoY
Net Revenue per Active Client
$578
As of May 2, 2026, up 6.6% year-over-year
Quarter Free Cash Flow
$6.5M
Free cash flow in Q3 fiscal 2026
Cash, Equivalents & Investments
$229.4M
As of May 2, 2026; company reports no debt
FY 2026 Revenue Guidance
$1.346B–$1.351B
Fiscal 2026 outlook, 6.2%–6.6% YoY growth
Key Terms
Adjusted EBITDA, Free Cash Flow, non-GAAP financial measures, discontinued operations, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA of $13.2 million and Adjusted EBITDA margin of 3.9%."
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
"Net cash provided by operating activities of $11.8 million and free cash flow of $6.5 million."
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.
non-GAAP financial measures financial
"For more information regarding the non-GAAP financial measures discussed in this release, please see “Non-GAAP Financial Measures” below."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
discontinued operations financial
"the UK business as a discontinued operation for all periods presented."
Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.
Active clients financial
"Active clients of 2.309 million, an increase of 0.9% quarter-over-quarter and a decrease of 1.9% year-over-year."
gross margin financial
"Gross margin of 43.7%, a decrease of 50 basis points year-over-year."
Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.
Earnings Snapshot
Net Revenue: $340.3M · Guidance included
Q3 fiscal 2026
Net Revenue
$340.3M
+4.7% YoY
Net Loss from Continuing Operations
$1.5M
improved vs prior-year $7.4M loss
Adjusted EBITDA
$13.2M
margin 3.9%
Guidance
Q4 2026 revenue $322M–$327M and Adjusted EBITDA $7M–$10M; FY 2026 revenue $1.346B–$1.351B, Adjusted EBITDA $49M–$52M, gross margin 43%–44%, free cash flow positive.
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): June 10, 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 June 10, 2026, Stitch Fix, Inc. (the “Company”) announced its financial results for the third quarter of fiscal 2026, ended May 2, 2026. In the press release, the Company also announced that it would be holding a conference call on June 10, 2026, at 2:00 p.m Pacific Time to discuss its financial results for the third quarter of fiscal 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 June 10, 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: | June 10, 2026 | By: | /s/ David Aufderhaar | ||||||||||||||
| David Aufderhaar | |||||||||||||||||
| Chief Financial Officer | |||||||||||||||||
Exhibit 99.1
Stitch Fix Announces Third Quarter of Fiscal 2026 Financial Results
SAN FRANCISCO, June 10, 2026 (BUSINESSWIRE) -- Stitch Fix, Inc. (NASDAQ: SFIX), the leading online personal styling service, today announced its financial results for the third quarter of fiscal 2026 ended May 2, 2026.
“In Q3, we delivered another strong quarter, reporting our fifth consecutive quarter of year-over-year revenue growth on an adjusted basis, with both revenue and adjusted EBITDA exceeding our expectations,” said Matt Baer, CEO, Stitch Fix. “We also hit a significant milestone with sequential growth in active clients. These results reflect our team’s consistent execution of our strategy and underscore that the improvements we’ve made to our client experience and assortment are resonating. We remain confident that our disciplined approach will enable us to continue to strengthen our position as our clients’ retailer of choice for apparel, footwear and accessories, as well as navigate today’s dynamic consumer environment.”
Third Quarter Fiscal 2026 Key Metrics and Financial Highlights
•Net revenue of $340.3 million, an increase of 4.7% year-over-year.
•Active clients of 2.309 million, an increase of 0.9% quarter-over-quarter and a decrease of 1.9% year-over-year.
•Net revenue per active client of $578, an increase of 6.6% year-over-year.
•Gross margin of 43.7%, a decrease of 50 basis points year-over-year.
•Net loss of $1.5 million and net loss margin of 0.4%; diluted loss per share of $0.01.
•Adjusted EBITDA of $13.2 million and Adjusted EBITDA margin of 3.9%.
•Net cash provided by operating activities of $11.8 million and free cash flow of $6.5 million.
•Repurchased 4.5 million shares of Class A common stock for $15.1 million.
•Cash, cash equivalents, and investments of $229.4 million. The Company has no debt.
Financial Outlook
Stitch Fix’s financial outlook for the fourth quarter of fiscal 2026, ending August 1, 2026, is as follows:
| Q4 2026 | ||||||||
Net Revenue | $322 million - $327 million | 3.5% - 5.1% YoY | ||||||
Adjusted EBITDA | $7 million - $10 million | 2.2% - 3.1% margin | ||||||
The Company’s fiscal year is a 52-week or 53-week period ending on the Saturday closest to July 31. The fiscal years 2025 and 2026 are 52-week years.
Stitch Fix’s updated financial outlook for fiscal year 2026 is as follows:
| Fiscal Year 2026 | ||||||||
Net Revenue | $1.346 billion - $1.351 billion | 6.2% - 6.6% YoY | ||||||
Adjusted EBITDA | $49 million - $52 million | 3.7% - 3.9% margin | ||||||
The Company expects full fiscal year 2026 gross margin to be between 43% and 44%. It expects full fiscal year 2026 advertising expense as a percentage of revenue to be between 9% and 10%. It also expects to be free cash flow positive for the full year.
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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/328200081?pwd=d6j5FXNt
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 for the fourth quarter and full fiscal year of 2026; 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 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; 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 section titled “Risk Factors” in our Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 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
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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. | ||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(In thousands, except per share amounts) | May 2, 2026 | August 2, 2025 | |||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 87,336 | $ | 113,952 | |||||||
| Short-term investments | 99,478 | 120,901 | |||||||||
| Inventory, net | 132,212 | 118,370 | |||||||||
| Prepaid expenses and other current assets | 56,718 | 20,649 | |||||||||
| Total current assets | 375,744 | 373,872 | |||||||||
| Long-term investments | 42,586 | 7,894 | |||||||||
| Property and equipment, net | 41,348 | 43,199 | |||||||||
| Operating lease right-of-use assets | 42,085 | 51,201 | |||||||||
| Other long-term assets | 4,276 | 4,456 | |||||||||
| Total assets | $ | 506,039 | $ | 480,622 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 106,964 | $ | 89,243 | |||||||
| Operating lease liabilities | 21,308 | 22,752 | |||||||||
| Accrued liabilities | 104,836 | 76,348 | |||||||||
| Gift card liability | 6,343 | 6,238 | |||||||||
| Deferred revenue | 8,299 | 8,616 | |||||||||
| Other current liabilities | 2,981 | 3,030 | |||||||||
| Total current liabilities | 250,731 | 206,227 | |||||||||
| Operating lease liabilities, net of current portion | 53,223 | 70,759 | |||||||||
| Other long-term liabilities | 618 | 658 | |||||||||
| Total liabilities | 304,572 | 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 | 753,758 | 729,444 | |||||||||
| Accumulated other comprehensive income (loss) | (628) | (434) | |||||||||
| Accumulated deficit | (506,533) | (495,992) | |||||||||
| Treasury stock, at cost | (45,132) | (30,042) | |||||||||
| Total stockholders’ equity | 201,467 | 202,978 | |||||||||
| Total liabilities and stockholders’ equity | $ | 506,039 | $ | 480,622 | |||||||
4
| STITCH FIX, INC. | ||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS | ||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||
| (In thousands, except share and per share amounts) | May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | ||||||||||||||||||||||
| Revenue, net | $ | 340,277 | $ | 325,016 | $ | 1,023,701 | $ | 955,944 | ||||||||||||||||||
| Cost of goods sold | 191,439 | 181,458 | 576,594 | 528,720 | ||||||||||||||||||||||
| Gross profit | 148,838 | 143,558 | 447,107 | 427,224 | ||||||||||||||||||||||
| Gross margin | 43.7 | % | 44.2 | % | 43.7 | % | 44.7 | % | ||||||||||||||||||
| Selling, general, and administrative expenses | 152,854 | 153,266 | 464,438 | 454,923 | ||||||||||||||||||||||
| Operating loss | (4,016) | (9,708) | (17,331) | (27,699) | ||||||||||||||||||||||
| Interest income | 2,123 | 2,627 | 6,661 | 8,222 | ||||||||||||||||||||||
| Other income (expense), net | 438 | (59) | 323 | (210) | ||||||||||||||||||||||
| Loss before income taxes | (1,455) | (7,140) | (10,347) | (19,687) | ||||||||||||||||||||||
| Provision for income taxes | 70 | 241 | 194 | 580 | ||||||||||||||||||||||
| Net loss from continuing operations | (1,525) | (7,381) | (10,541) | (20,267) | ||||||||||||||||||||||
| Net income from discontinued operations, net of income taxes | — | 3 | — | 104 | ||||||||||||||||||||||
| Net loss | (1,525) | (7,378) | (10,541) | (20,163) | ||||||||||||||||||||||
| Other comprehensive loss: | ||||||||||||||||||||||||||
| Change in unrealized gains and losses on available-for-sale securities, net of tax | (290) | (91) | (194) | (108) | ||||||||||||||||||||||
| Total other comprehensive loss, net of tax | (290) | (91) | (194) | (108) | ||||||||||||||||||||||
| Comprehensive loss | $ | (1,815) | $ | (7,469) | $ | (10,735) | $ | (20,271) | ||||||||||||||||||
| Loss per share from continuing operations attributable to common stockholders: | ||||||||||||||||||||||||||
| Basic | $ | (0.01) | $ | (0.06) | $ | (0.08) | $ | (0.16) | ||||||||||||||||||
| Diluted | $ | (0.01) | $ | (0.06) | $ | (0.08) | $ | (0.16) | ||||||||||||||||||
| Earnings 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 | $ | (0.01) | $ | (0.06) | $ | (0.08) | $ | (0.16) | ||||||||||||||||||
| Diluted | $ | (0.01) | $ | (0.06) | $ | (0.08) | $ | (0.16) | ||||||||||||||||||
| Weighted-average shares used to compute earnings (loss) per share attributable to common stockholders: | ||||||||||||||||||||||||||
| Basic | 135,334,302 | 129,792,798 | 134,678,242 | 127,916,643 | ||||||||||||||||||||||
| Diluted | 135,334,302 | 129,792,798 | 134,678,242 | 127,916,643 | ||||||||||||||||||||||
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| STITCH FIX, INC. | ||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW | ||
| For the Nine Months Ended | |||||||||||
| (In thousands) | May 2, 2026 | May 3, 2025 | |||||||||
| Cash Flows from Operating Activities from Continuing Operations | |||||||||||
| Net loss from continuing operations | $ | (10,541) | $ | (20,267) | |||||||
| Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities from continuing operations: | |||||||||||
| Change in inventory reserves | 3,915 | 2,984 | |||||||||
| Stock-based compensation expense | 37,040 | 43,658 | |||||||||
| Depreciation, amortization, and accretion | 17,889 | 19,956 | |||||||||
| Other | 1,688 | 54 | |||||||||
| Change in operating assets and liabilities: | |||||||||||
| Inventory | (17,757) | (19,491) | |||||||||
| Prepaid expenses and other assets | (5,407) | (2,520) | |||||||||
| Operating lease right-of-use assets and liabilities | (9,864) | (8,689) | |||||||||
| Accounts payable | 16,904 | 1,699 | |||||||||
| Accrued liabilities | (3,557) | 2,181 | |||||||||
| Deferred revenue | (317) | (195) | |||||||||
| Gift card liability | 105 | (180) | |||||||||
| Other liabilities | (89) | (618) | |||||||||
| Net cash provided by operating activities from continuing operations | 30,009 | 18,572 | |||||||||
| Cash Flows from Investing Activities from Continuing Operations | |||||||||||
| Proceeds from sale of property and equipment | 17 | — | |||||||||
| Purchases of property and equipment | (14,564) | (12,065) | |||||||||
| Purchases of securities available-for-sale | (104,048) | (164,101) | |||||||||
| Sales of securities available-for-sale | 1,500 | 5,468 | |||||||||
| Maturities of securities available-for-sale | 90,027 | 111,009 | |||||||||
| Net cash used in investing activities from continuing operations | (27,068) | (59,689) | |||||||||
| Cash Flows from Financing Activities from Continuing Operations | |||||||||||
| Proceeds from the exercise of stock options, net | 595 | 7 | |||||||||
| Payments for tax withholdings related to vesting of share-based awards | (14,847) | (12,346) | |||||||||
| Repurchase of common stock | (15,090) | — | |||||||||
| Other | (215) | (93) | |||||||||
| Net cash used in financing activities from continuing operations | (29,557) | (12,432) | |||||||||
| Net decrease in cash and cash equivalents from continuing operations | (26,616) | (53,549) | |||||||||
| Cash Flows from Discontinued Operations | |||||||||||
| Net cash used in operating activities from discontinued operations | — | (398) | |||||||||
| Net decrease in cash and cash equivalents from discontinued operations | — | (398) | |||||||||
| Net decrease in cash and cash equivalents | (26,616) | (53,947) | |||||||||
| Cash and cash equivalents at beginning of period | 113,952 | 162,862 | |||||||||
| Cash and cash equivalents at end of period | $ | 87,336 | $ | 108,915 | |||||||
| Supplemental Disclosure | |||||||||||
| Cash paid for income taxes | $ | 206 | $ | 621 | |||||||
| Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||||||||||
| Purchases of property and equipment included in accounts payable and accrued liabilities | $ | 1,988 | $ | 1,134 | |||||||
| Capitalized stock-based compensation | $ | 1,526 | $ | 2,321 | |||||||
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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 the 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 the Company attracts and retains employees and a significant recurring expense in its 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. The Company believes 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 the Company has 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 Nine Months Ended | |||||||||||||||||||||||||
| (in thousands) | May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | ||||||||||||||||||||||
| Net loss from continuing operations | $ | (1,525) | $ | (7,381) | $ | (10,541) | $ | (20,267) | ||||||||||||||||||
| Add (deduct): | ||||||||||||||||||||||||||
| Interest income | (2,123) | (2,627) | (6,661) | (8,222) | ||||||||||||||||||||||
| Other (income) expense, net | (438) | 59 | (323) | 210 | ||||||||||||||||||||||
| Provision for income taxes | 70 | 241 | 194 | 580 | ||||||||||||||||||||||
| Depreciation and amortization | 6,116 | 6,860 | 18,662 | 21,360 | ||||||||||||||||||||||
| Stock-based compensation expense | 11,139 | 13,727 | 37,040 | 43,658 | ||||||||||||||||||||||
Restructuring and other one-time costs (1) | — | 134 | — | 3,107 | ||||||||||||||||||||||
Non-ordinary course legal fees (2) | — | — | 4,223 | — | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 13,239 | $ | 11,013 | $ | 42,594 | $ | 40,426 | ||||||||||||||||||
| Revenue, net | $ | 340,277 | $ | 325,016 | $ | 1,023,701 | $ | 955,944 | ||||||||||||||||||
| Net loss margin | (0.4) | % | (2.3) | % | (1.0) | % | (2.1) | % | ||||||||||||||||||
| Adjusted EBITDA margin | 3.9 | % | 3.4 | % | 4.2 | % | 4.2 | % | ||||||||||||||||||
(1) For the three and nine months ended May 3, 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 $1.9 million, respectively, in one-time bonuses for certain continuing employees.
(2) Non-ordinary course legal fees for the nine months ended May 2, 2026, 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 Nine Months Ended | |||||||||||||||||||||||||
| (in thousands) | May 2, 2026 | May 3, 2025 | May 2, 2026 | May 3, 2025 | ||||||||||||||||||||||
| Free Cash Flow reconciliation: | ||||||||||||||||||||||||||
| Net cash provided by operating activities from continuing operations | $ | 11,774 | $ | 20,516 | $ | 30,009 | $ | 18,572 | ||||||||||||||||||
| Deduct: | ||||||||||||||||||||||||||
| Purchases of property and equipment | (5,254) | (4,518) | (14,564) | (12,065) | ||||||||||||||||||||||
| Free Cash Flow | $ | 6,520 | $ | 15,998 | $ | 15,445 | $ | 6,507 | ||||||||||||||||||
| Net cash used in investing activities from continuing operations | $ | (25,591) | $ | (20,715) | $ | (27,068) | $ | (59,689) | ||||||||||||||||||
| Net cash used in financing activities from continuing operations | $ | (17,629) | $ | (4,239) | $ | (29,557) | $ | (12,432) | ||||||||||||||||||
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Operating Metrics
| May 2, 2026 | January 31, 2026 | November 1, 2025 | August 2, 2025 | May 3, 2025 | ||||||||||||||||||||||||||||
Active clients (in thousands) | 2,309 | 2,288 | 2,307 | 2,309 | 2,353 | |||||||||||||||||||||||||||
Net revenue per active client | $ | 578 | $ | 577 | $ | 559 | $ | 549 | $ | 542 | ||||||||||||||||||||||
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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FAQ
How did Stitch Fix (SFIX) perform in Q3 fiscal 2026?
Stitch Fix reported Q3 fiscal 2026 net revenue of $340.3 million, up 4.7% year-over-year. Net loss from continuing operations narrowed to $1.5 million, with a 0.4% net loss margin and diluted loss per share of $0.01, reflecting improving profitability versus the prior year.
What were Stitch Fix (SFIX) key profitability metrics in Q3 2026?
In Q3 fiscal 2026, Stitch Fix generated Adjusted EBITDA of $13.2 million with a 3.9% margin. Net cash provided by operating activities was $11.8 million, and free cash flow was $6.5 million, indicating the business is producing cash while still reporting a small GAAP net loss.
How are Stitch Fix (SFIX) active clients and revenue per client trending?
Active clients were 2.309 million as of May 2, 2026, up 0.9% quarter-over-quarter but down 1.9% year-over-year. Net revenue per active client reached $578, a 6.6% year-over-year increase, suggesting higher spending and engagement among the existing client base.
What guidance did Stitch Fix (SFIX) give for Q4 fiscal 2026?
For Q4 fiscal 2026, Stitch Fix expects net revenue between $322 million and $327 million, implying 3.5% to 5.1% year-over-year growth. It also forecasts Adjusted EBITDA of $7 million to $10 million, corresponding to an Adjusted EBITDA margin of 2.2% to 3.1% for the quarter.
What is Stitch Fix (SFIX) outlook for full fiscal year 2026?
For fiscal 2026, Stitch Fix projects net revenue of $1.346 billion to $1.351 billion, representing 6.2% to 6.6% year-over-year growth. It expects Adjusted EBITDA of $49 million to $52 million, an Adjusted EBITDA margin of 3.7% to 3.9%, gross margin of 43%–44%, and positive free cash flow.
What is Stitch Fix (SFIX) balance sheet and cash position as of May 2, 2026?
As of May 2, 2026, Stitch Fix had $87.3 million in cash and cash equivalents and $142.1 million in short- and long-term investments, totaling $229.4 million in cash, cash equivalents, and investments. The company reported it has no debt, supporting financial flexibility for operations and investments.