Stitch Fix — Fiscal Year 2026 Earnings Summary

Financial Performance

• Full-year 2026 net revenue reached $1,348.1 million, a 6.4% increase year-over-year from $1,267.2 million.
• Q4 2026 net revenue was $324.4 million, a 4.2% increase year-over-year.
• Full-year 2026 gross profit was $588.5 million (up 4.5% YoY) with a gross margin of 43.7%, a decrease of 70 basis points from 44.4% in 2025.
• Q4 2026 gross margin was 43.6%, flat year-over-year.
• Full-year 2026 net loss was $12.6 million (loss per share of $0.09), compared to a net loss of $28.7 million in 2025.
• Q4 2026 net loss was $2.1 million (loss per share of $0.02), compared to a net loss of $8.6 million in Q4 2025.
• Full-year 2026 Adjusted EBITDA was $53.4 million (margin of 4.0%), up from $49.1 million (3.9% margin) in 2025.
• Q4 2026 Adjusted EBITDA was $10.8 million (margin of 3.3%), up from $8.7 million (2.8% margin) in Q4 2025.
• Full-year 2026 net cash provided by operating activities was $39.1 million, compared to $25.6 million in 2025.
• Q4 2026 net cash provided by operating activities was $9.1 million.
• Full-year 2026 free cash flow was $19.8 million, compared to $9.3 million in 2025.
• Q4 2026 free cash flow was $4.4 million.
• Cash, cash equivalents, and investments totaled $220.9 million at the end of fiscal 2026; the company reported no debt.
• Deferred revenue decreased to $6.9 million at August 1, 2026, from $8.6 million at August 2, 2025.

Guidance and Future Outlook

• Fiscal 2027 net revenue is projected between $1.310 billion and $1.360 billion, representing a year-over-year change of (2.8)% to 0.9%.
• Fiscal 2027 Adjusted EBITDA is projected between $27 million and $42 million, with a margin of 2.1% to 3.1%.
• Fiscal 2027 gross margin is expected to be between 43% and 44%.
• The company expects to generate positive free cash flow for the full fiscal year 2027.
• Q1 2027 net revenue guidance is $323 million to $328 million, a year-over-year decline of 5.6% to 4.1%.
• Q1 2027 Adjusted EBITDA guidance is $3 million to $6 million, with a margin of 0.9% to 1.8%.
• Revenue outlook for 2027 reflects a challenging consumer environment and a lower active client starting point.
• Q1 2027 results were impacted by a shift in Fix shipment timing from Q1 2027 to Q4 2026 and a corrected post-checkout offer flow change in August that limited client eligibility for additional Fixes.
• Adjusted EBITDA outlook for 2027 reflects strategic investments in advertising and technology, including artificial intelligence.

Business Segments and Product Lines

• Active clients decreased to 2.277 million at the end of Q4 2026, a 1.4% decline year-over-year.
• Net revenue per active client increased to $592 in Q4 2026, a 7.8% increase year-over-year.
• The company continues to leverage AI and recommendation algorithms alongside expert stylists to deliver personalized shopping experiences.
• The UK business was reported as a discontinued operation following the cessation of operations in Q1 2024.

Market and Competitive Landscape

• The company stated it continued to gain share in the U.S. apparel, footwear, and accessories market during fiscal 2026.
• Management noted navigating a challenging consumer environment.

Risks and Challenges

• Forward-looking statements cite risks including the current macroeconomic environment, changing consumer behavior, and uncertainty regarding tariffs or trade policies.
• Risks include the ability to acquire, engage, and retain clients, as well as the ability to provide offerings that achieve market acceptance.
• Operational risks involve inventory levels, supply chain sourcing, shipping, and forecasting future operating results.
• Technical incidents and the implementation of the transformation strategy are identified as potential risks.
• The company does not provide GAAP net income or free cash flow outlooks due to the uncertainty of restructuring costs, stock-based compensation, and other reconciling items.

Management Commentary and Tone

• CEO Matt Baer described fiscal 2026 as a "transformative year" resulting in a "significantly healthier business" with a strengthened operating foundation.
• Management expressed confidence in the transformation strategy and the ability to deliver a personalized, client-centric shopping experience.
• The tone emphasized the reimagined client experience and more compelling assortment.

Other Key Points

• The company repurchased 2.7 million shares of Class A common stock for $11.3 million during Q4 2026.
• Total repurchases of common stock for the full fiscal year 2026 were $26.4 million.
• Stock-based compensation expense for the full year 2026 was $46.4 million.
• The fiscal year is a 52- or 53-week period ending on the Saturday closest to July 31; fiscal years 2025 and 2026 were 52-week years.
• A conference call and webcast were held on September 23, 2026, with CEO Matt Baer and CFO David Aufderhaar.