10-Q · June 11, 2026
Stitch Fix reported a positive quarter with Q3 2026 revenue of $340.3 million, surpassing expectations and reflecting a 4.7% year-over-year increase. The net loss shrank significantly to $1.5 million, down from $7.4…
Earnings analysis · 10-K
SFIX earnings analysis
Filed September 24, 2026 · Our reading of the company's report
The latest report
Stitch Fix’s fiscal 2026 results show a meaningful operational recovery: revenue rose 6.4%, operating loss narrowed to $21.7 million, and free cash flow improved to $19.8 million. Growth was driven by monetization and…
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Stitch Fix’s fiscal 2026 results show a meaningful operational recovery: revenue rose 6.4%, operating loss narrowed to $21.7 million, and free cash flow improved to $19.8 million. Growth was driven by monetization and higher order values rather than customer expansion, as active clients declined 1.4% to 2.277 million. The company’s stylist-plus-AI positioning and strong liquidity support continued investment, but macroeconomic pressure, inventory commitments, facility underutilization and the weaker forward environment keep the overall outlook neutral.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.09
- Segment
- One reportable segment: sale of merchandise through curated Fix shipments and direct Freestyle purchases; fiscal 2026 revenue was $1,348.1 million.
What stood out
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Stylist-plus-AI model remains core strategy
Stitch Fix’s model combines expert Stylists with AI and recommendation algorithms across two offerings: curated Fix shipments and individualized Freestyle recommendations. The company introduced this approach in 2011 and is continuing to integrate AI into internal processes and client-facing experiences.
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Higher customer value drove revenue growth
Fiscal 2026 revenue increased 6.4% to $1.348 billion, driven by a 7.8% increase in net revenue per active client to $592 and higher average order values. This more than offset a 1.4% decline in active clients to approximately 2.277 million.
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Three-year loss trajectory improved
Profitability improved materially over three years: operating loss narrowed from $133.4 million in fiscal 2024 to $38.9 million in fiscal 2025 and $21.7 million in fiscal 2026; diluted loss per share improved from $(1.07) to $(0.22) and $(0.09), respectively.
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Free cash flow inflected higher
Free cash flow increased to $19.8 million in fiscal 2026 from $9.3 million in fiscal 2025 and approximately $14.2 million in fiscal 2024, based on operating cash flow less property and equipment purchases. Fiscal 2026 operating cash flow was $39.1 million versus $25.6 million in fiscal 2025.
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Buybacks resumed without dividends
The company repurchased 7.2 million Class A shares for $26.4 million during fiscal 2026, with $93.6 million remaining under its $150.0 million authorization. It paid no cash dividends and said it intends to retain funds for business development and expansion.
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Balance sheet supports turnaround investment
Liquidity remained substantial, with $95.3 million of cash and cash equivalents and $125.6 million of investments at August 1, 2026. The company had no borrowings under its $50.0 million revolving credit facility and stated that liquidity should cover needs for at least the next 12 months and beyond.
What to watch
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Consumer and cost pressures may worsen
The company expects inflation, recessionary concerns, trade-policy uncertainty and other macroeconomic conditions to negatively impact fiscal 2027. Transportation costs and merchandise costs increased, while gross margin fell 70 basis points to 43.7% in fiscal 2026.
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Inventory commitments and markdown risk
Inventory commitments totaled $182.3 million as of August 1, 2026, predominantly due within one year, while inventory was $122.7 million net and reserves were $26.3 million. Management states that shifting demand, pricing volatility, tariffs and merchandise availability can require additional write-downs; a 10% change in the reserve estimate would affect reserves by approximately $2.6 million.
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Freestyle litigation settlement exposure
A new settlement accrual of $32.0 million was recorded for the Securities Class Action related to alleged statements about Freestyle; the settlement remained subject to final court approval and other conditions at year-end. Although the amount was within insurance limits, fiscal 2026 included $4.2 million of non-ordinary-course legal fees and multiple related derivative actions remained stayed.
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Underutilized facilities constrain flexibility
The company continues to carry excess leased capacity: it subleased approximately 1.012 million square feet of former Salt Lake City fulfillment-center space and was marketing 38,000 square feet of San Francisco office space for sublease. Total undiscounted future lease payments were $75.2 million, reduced by approximately $8.7 million of minimum sublease income.
Management's outlook
The 10-K provides no numeric fiscal 2027 revenue or EPS guidance. Qualitatively, management expects macroeconomic uncertainty to negatively impact the business in fiscal 2027; annual outlook was provided in the Q4 earnings materials rather than this filing.
Earlier filings 4
10-Q · March 12, 2026
Stitch Fix reported Q2 (three months ended January 31, 2026) revenue of $341.3M, up $29.2M (≈9.4%) versus prior-year quarter while gross margin compressed to 43.6% from 44.5%. Operating loss narrowed to $(4.7)M (‑1.4%…
10-K · September 25, 2025
Stitch Fix emphasizes a differentiated, AI-enabled stylisting model that pairs human Stylists with proprietary data and algorithms to personalize apparel recommendations. The company reports scale metrics including…
10-Q · June 11, 2025
Stitch Fix reported Q3 revenue of $325,016,000 (vs. consensus $314,340,000) and a GAAP diluted loss per share of $(0.06), beating estimates on both top and bottom lines. Gross margin was 44.2% and operating margin was…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.