{"success":true,"data":{"pressRelease":{"id":"60615","rtpr_id":"nBw69tKtNa","ticker":"SFIX","exchange":"NASDAQ","all_tickers":["SFIX"],"title":"Stitch Fix Announces Third Quarter of Fiscal 2026 Financial Results","author":"Business Wire","published_at":"2026-06-10T20:05:00.466Z","article_body":"Stitch Fix Announces Third Quarter of Fiscal 2026 Financial Results\n\nStitch Fix, Inc. (NASDAQ: SFIX), the leading online personal styling service,\ntoday announced its financial results for the third quarter of fiscal 2026\nended May 2, 2026.\n\n“In Q3, we delivered another strong quarter, reporting our fifth consecutive\nquarter of year-over-year revenue growth on an adjusted basis, with both\nrevenue and adjusted EBITDA exceeding our expectations,” said Matt Baer,\nCEO, Stitch Fix. “We also hit a significant milestone with sequential growth\nin active clients. These results reflect our team’s consistent execution of\nour strategy and underscore that the improvements we’ve made to our client\nexperience and assortment are resonating. We remain confident that our\ndisciplined approach will enable us to continue to strengthen our position as\nour clients’ retailer of choice for apparel, footwear and accessories, as\nwell as navigate today’s dynamic consumer environment.”\n\nThird Quarter Fiscal 2026 Key Metrics and Financial Highlights\n\n\n * Net revenue of $340.3 million, an increase of 4.7% year-over-year.\n\n * Active clients of 2.309 million, an increase of 0.9% quarter-over-quarter and\na decrease of 1.9% year-over-year.\n\n * Net revenue per active client of $578, an increase of 6.6% year-over-year.\n\n * Gross margin of 43.7%, a decrease of 50 basis points year-over-year.\n\n * Net loss of $1.5 million and net loss margin of 0.4%; diluted loss per share\nof $0.01.\n\n * Adjusted EBITDA of $13.2 million and Adjusted EBITDA margin of 3.9%.\n\n * Net cash provided by operating activities of $11.8 million and free cash flow\nof $6.5 million.\n\n * Repurchased 4.5 million shares of Class A common stock for $15.1 million.\n\n * Cash, cash equivalents, and investments of $229.4 million. The Company has no\ndebt.\n\nFinancial Outlook\n\nStitch Fix’s financial outlook for the fourth quarter of fiscal 2026, ending\nAugust 1, 2026, is as follows:\n   Q4 2026 \n Net Revenue $322 million - $327 million 3.5% - 5.1% YoY \n Adjusted EBITDA $7 million - $10 million 2.2% - 3.1% margin \n\n\nThe Company’s fiscal year is a 52-week or 53-week period ending on the\nSaturday closest to July 31. The fiscal years 2025 and 2026 are 52-week years.\n\nStitch Fix’s updated financial outlook for fiscal year 2026 is as follows:\n   Fiscal Year 2026 \n Net Revenue $1.346 billion - $1.351 billion 6.2% - 6.6% YoY \n Adjusted EBITDA $49 million - $52 million 3.7% - 3.9% margin \n\n\nThe Company expects full fiscal year 2026 gross margin to be between 43% and\n44%. It expects full fiscal year 2026 advertising expense as a percentage of\nrevenue to be between 9% and 10%. It also expects to be free cash flow\npositive for the full year.\n\nStitch Fix has not reconciled its Adjusted EBITDA outlook to GAAP net income\n(loss) or free cash flow outlook to net cash flows used in operating\nactivities from continuing operations because it does not provide an outlook\nfor GAAP net income (loss) or net cash flows used in operating activities from\ncontinuing operations due to the uncertainty and potential variability of\nrestructuring and other one-time costs, net other income (expense), provision\nfor income taxes, stock-based compensation expense, or net cash flows used in\noperating activities from continuing operations, which are reconciling items\nbetween the non-GAAP financial measure and the corresponding GAAP measure.\nBecause Stitch Fix cannot reasonably predict such items, a reconciliation of\nthe non-GAAP financial measure outlooks to the corresponding GAAP measures are\nnot available without unreasonable effort. We caution, however, that such\nitems could have a significant impact on the calculation of GAAP net income\n(loss) and free cash flow. For more information regarding the non-GAAP\nfinancial measures discussed in this release, please see “Non-GAAP Financial\nMeasures” below.\n\nDiscontinued Operations\n\nDuring the first quarter of fiscal 2024, Stitch Fix ceased operations of its\nUK business and met the accounting requirements for reporting the UK business\nas a discontinued operation. Accordingly, its unaudited condensed consolidated\nfinancial statements reflect the results of the UK business as a discontinued\noperation for all periods presented. Unless otherwise noted, amounts and\ndisclosures relate to its continuing operations.\n\nConference Call and Webcast Information\n\nMatt Baer, Chief Executive Officer of Stitch Fix, and David Aufderhaar, Chief\nFinancial Officer of Stitch Fix, will host a conference call at 2:00 p.m.\nPacific Time today to discuss the Company’s financial results and outlook. A\nlive webcast of the call will be accessible on the investor relations section\nof the Stitch Fix website at https://investors.stitchfix.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.stitchfix.com&esheet=54551305&newsitemid=20260610426349&lan=en-US&anchor=https%3A%2F%2Finvestors.stitchfix.com&index=1&md5=8c9f7a1c8cf9b0558a19e3b3a4f5c0a1)\n.\n\nTo access the call by phone, please register at the following link:\n\nDial-In Registration:https://events.q4inc.com/analyst/328200081?pwd=d6j5FXNt\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevents.q4inc.com%2Fanalyst%2F328200081%3Fpwd%3Dd6j5FXNt&esheet=54551305&newsitemid=20260610426349&lan=en-US&anchor=https%3A%2F%2Fevents.q4inc.com%2Fanalyst%2F328200081%3Fpwd%3Dd6j5FXNt&index=2&md5=54f8aee13ff4d0f228a49db2a405cd06)\n\nUpon registration, telephone participants will receive the dial-in number\nalong with a unique passcode that can be used to access the call. A replay of\nthe webcast will also be available for a limited time at\nhttps://investors.stitchfix.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.stitchfix.com&esheet=54551305&newsitemid=20260610426349&lan=en-US&anchor=https%3A%2F%2Finvestors.stitchfix.com&index=3&md5=09e618f185d280e1e6488f49e857e98a)\n.\n\nAbout Stitch Fix, Inc.\n\nStitch Fix (NASDAQ: SFIX) is the leading online personal styling service that\nhelps people discover the styles they will love that fit perfectly so they\nalways look - and feel - their best. Few things are more personal than getting\ndressed, but finding clothing that fits and looks great can be a challenge.\nStitch Fix solves that problem. By pairing expert stylists with best-in-class\nAI and recommendation algorithms, the company leverages its assortment of\nexclusive and national brands to meet each client's individual tastes and\nneeds, making it convenient for clients to express their personal style\nwithout having to spend hours in stores or sifting through endless choices\nonline. Stitch Fix, which was founded in 2011, is headquartered in San\nFrancisco. For more information, please visit https://www.stitchfix.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.stitchfix.com&esheet=54551305&newsitemid=20260610426349&lan=en-US&anchor=https%3A%2F%2Fwww.stitchfix.com&index=4&md5=b5fab3fdba00df23784b5bcedd56d36f)\n.\n\nForward-Looking Statements\n\nThis press release and the related conference call and webcast, contain\nforward-looking statements within the meaning of the federal securities laws.\nAll statements other than statements of historical fact could be deemed\nforward looking, including but not limited to statements regarding our\nexpectations for future financial performance, including our revenue growth,\nprofitability and long-term targets; our outlook on financial results and\nmetrics for the fourth quarter and full fiscal year of 2026; our expectations\nregarding our market and wallet share, market opportunity, client growth,\nretention, engagement and other trends, our expectation with respect to the\nimpact of our strategies, priorities, and investments, including our\ntransformation strategy and plans for enhancements to our client experience,\nour financial results and key metrics; our plans and expectations with respect\nto our product offerings, AI initiatives, and plans for category expansion;\nour assessment of the impact of tariffs and the macroeconomic environment on\nour results of operations and future performance; our ability to navigate a\ndynamic consumer environment; and our expectations regarding future costs and\nmetrics, including transportation costs, gross margin, average order value,\ninventory levels, and advertising spend. These statements involve substantial\nrisks and uncertainties, including risks and uncertainties related to the\ncurrent macroeconomic environment; our ability to generate sufficient net\nrevenue to offset our costs; changing consumer behavior; the effect of changes\nin and uncertainty regarding tariffs or trade policies and our ability to\nmitigate tariff-related risks; our ability to acquire, engage, and retain\nclients; our ability to provide offerings and services that achieve market\nacceptance; our data science and technology, Stylists, operations, marketing\ninitiatives, and other key strategic areas, including the implementation of\nour transformation strategy; risks related to our inventory levels and\nmanagement; risks related to our supply chain, sourcing of materials and\nshipping of merchandise; our ability to forecast our future operating results;\nand other risks described in the filings we make with the SEC. Further\ninformation on these and other factors that could cause our financial results,\nperformance, and achievements to differ materially from any results,\nperformance, or achievements anticipated, expressed, or implied by these\nforward-looking statements is included in filings we make with the SEC from\ntime to time, including in the section titled “Risk Factors” in our\nQuarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2026.\nThese documents are available on the SEC Filings section of the investor\nrelations section of our website at: https://investors.stitchfix.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.stitchfix.com&esheet=54551305&newsitemid=20260610426349&lan=en-US&anchor=https%3A%2F%2Finvestors.stitchfix.com&index=5&md5=36063eb091dc18cdaa0452c7a84c7bea)\n. We undertake no obligation to update any forward-looking statements made in\nthis press release to reflect events or circumstances after the date of this\npress release or to reflect new information or the occurrence of unanticipated\nevents, except as required by law. The achievement or success of the matters\ncovered by such forward-looking statements involves known and unknown risks,\nuncertainties, and assumptions. If any such risks or uncertainties materialize\nor if any of the assumptions prove incorrect, our results could differ\nmaterially from the results expressed or implied by the forward-looking\nstatements we make. You should not rely upon forward-looking statements as\npredictions of future events. Forward-looking statements represent our\nmanagement’s beliefs and assumptions only as of the date such statements are\nmade.\n STITCH FIX, INC. \n \n \n \nUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS \n   \n (In thousands, except per share amounts) May 2, 2026   August 2, 2025 \n Assets       \n Current assets:       \n Cash and cash equivalents $ 87,336     $ 113,952   \n Short-term investments   99,478       120,901   \n Inventory, net   132,212       118,370   \n Prepaid expenses and other current assets   56,718       20,649   \n Total current assets   375,744       373,872   \n Long-term investments   42,586       7,894   \n Property and equipment, net   41,348       43,199   \n Operating lease right-of-use assets   42,085       51,201   \n Other long-term assets   4,276       4,456   \n Total assets $ 506,039     $ 480,622   \n Liabilities and Stockholders’ Equity       \n Current liabilities:       \n Accounts payable $ 106,964     $ 89,243   \n Operating lease liabilities   21,308       22,752   \n Accrued liabilities   104,836       76,348   \n Gift card liability   6,343       6,238   \n Deferred revenue   8,299       8,616   \n Other current liabilities   2,981       3,030   \n Total current liabilities   250,731       206,227   \n Operating lease liabilities, net of current portion   53,223       70,759   \n Other long-term liabilities   618       658   \n Total liabilities   304,572       277,644   \n Commitments and contingencies       \n Stockholders’ equity:       \n Class A common stock, $0.00002 par value   1       1   \n Class B common stock, $0.00002 par value   1       1   \n Additional paid-in capital   753,758       729,444   \n Accumulated other comprehensive income (loss)   (628 )     (434 ) \n Accumulated deficit   (506,533 )     (495,992 ) \n Treasury stock, at cost   (45,132 )     (30,042 ) \n Total stockholders’ equity   201,467       202,978   \n Total liabilities and stockholders’ equity $ 506,039     $ 480,622   \n\n STITCH FIX, INC. \n \n \n \nUNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE \n LOSS \n   \n     For the Three Months Ended   For the Nine Months Ended \n (In thousands, except share and per share amounts)   May 2, 2026   May 3, 2025   May 2, 2026   May 3, 2025 \n Revenue, net   $ 340,277     $ 325,016     $ 1,023,701     $ 955,944   \n Cost of goods sold     191,439       181,458       576,594       528,720   \n Gross profit     148,838       143,558       447,107       427,224   \n Gross margin     43.7 %     44.2 %     43.7 %     44.7 % \n Selling, general, and administrative expenses     152,854       153,266       464,438       454,923   \n Operating loss     (4,016 )     (9,708 )     (17,331 )     (27,699 ) \n Interest income     2,123       2,627       6,661       8,222   \n Other income (expense), net     438       (59 )     323       (210 ) \n Loss before income taxes     (1,455 )     (7,140 )     (10,347 )     (19,687 ) \n Provision for income taxes     70       241       194       580   \n Net loss from continuing operations     (1,525 )     (7,381 )     (10,541 )     (20,267 ) \n Net income from discontinued operations, net of income taxes     —       3       —       104   \n Net loss     (1,525 )     (7,378 )     (10,541 )     (20,163 ) \n Other comprehensive loss:                 \n Change in unrealized gains and losses on available-for-sale securities, net of     (290 )     (91 )     (194 )     (108 ) \n tax \n Total other comprehensive loss, net of tax     (290 )     (91 )     (194 )     (108 ) \n Comprehensive loss   $ (1,815 )   $ (7,469 )   $ (10,735 )   $ (20,271 ) \n Loss per share from continuing operations attributable to common stockholders:                 \n Basic   $ (0.01 )   $ (0.06 )   $ (0.08 )   $ (0.16 ) \n Diluted   $ (0.01 )   $ (0.06 )   $ (0.08 )   $ (0.16 ) \n Earnings per share from discontinued operations attributable to common                 \n stockholders: \n Basic   $ 0.00     $ 0.00     $ 0.00     $ 0.00   \n Diluted   $ 0.00     $ 0.00     $ 0.00     $ 0.00   \n Loss per share attributable to common stockholders:                 \n Basic   $ (0.01 )   $ (0.06 )   $ (0.08 )   $ (0.16 ) \n Diluted   $ (0.01 )   $ (0.06 )   $ (0.08 )   $ (0.16 ) \n Weighted-average shares used to compute earnings (loss) per share attributable                 \n to common stockholders: \n Basic     135,334,302       129,792,798       134,678,242       127,916,643   \n Diluted     135,334,302       129,792,798       134,678,242       127,916,643   \n\n STITCH FIX, INC. \n \n \n \nUNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW \n   \n   For the Nine Months Ended \n (In thousands) May 2, 2026   May 3, 2025 \n Cash Flows from Operating Activities from Continuing Operations       \n Net loss from continuing operations $ (10,541 )   $ (20,267 ) \n Adjustments to reconcile net loss from continuing operations to net cash       \n provided by operating activities from continuing operations: \n Change in inventory reserves   3,915       2,984   \n Stock-based compensation expense   37,040       43,658   \n Depreciation, amortization, and accretion   17,889       19,956   \n Other   1,688       54   \n Change in operating assets and liabilities:       \n Inventory   (17,757 )     (19,491 ) \n Prepaid expenses and other assets   (5,407 )     (2,520 ) \n Operating lease right-of-use assets and liabilities   (9,864 )     (8,689 ) \n Accounts payable   16,904       1,699   \n Accrued liabilities   (3,557 )     2,181   \n Deferred revenue   (317 )     (195 ) \n Gift card liability   105       (180 ) \n Other liabilities   (89 )     (618 ) \n Net cash provided by operating activities from continuing operations   30,009       18,572   \n Cash Flows from Investing Activities from Continuing Operations       \n Proceeds from sale of property and equipment   17       —   \n Purchases of property and equipment   (14,564 )     (12,065 ) \n Purchases of securities available-for-sale   (104,048 )     (164,101 ) \n Sales of securities available-for-sale   1,500       5,468   \n Maturities of securities available-for-sale   90,027       111,009   \n Net cash used in investing activities from continuing operations   (27,068 )     (59,689 ) \n Cash Flows from Financing Activities from Continuing Operations       \n Proceeds from the exercise of stock options, net   595       7   \n Payments for tax withholdings related to vesting of share-based awards   (14,847 )     (12,346 ) \n Repurchase of common stock   (15,090 )     —   \n Other   (215 )     (93 ) \n Net cash used in financing activities from continuing operations   (29,557 )     (12,432 ) \n Net decrease in cash and cash equivalents from continuing operations   (26,616 )     (53,549 ) \n Cash Flows from Discontinued Operations       \n Net cash used in operating activities from discontinued operations   —       (398 ) \n Net decrease in cash and cash equivalents from discontinued operations   —       (398 ) \n Net decrease in cash and cash equivalents   (26,616 )     (53,947 ) \n Cash and cash equivalents at beginning of period   113,952       162,862   \n Cash and cash equivalents at end of period $ 87,336     $ 108,915   \n Supplemental Disclosure       \n Cash paid for income taxes $ 206     $ 621   \n Supplemental Disclosure of Non-Cash Investing and Financing Activities       \n Purchases of property and equipment included in accounts payable and accrued $ 1,988     $ 1,134   \n liabilities \n Capitalized stock-based compensation $ 1,526     $ 2,321   \n\n\nNon-GAAP Financial Measures\n\nThe Company reports its financial results in accordance with generally\naccepted accounting principles in the United States (“GAAP”). However,\nmanagement believes that certain non-GAAP financial measures provide users of\nits financial information with additional useful information in evaluating the\nCompany’s performance. The Company believes that adjusted EBITDA from\ncontinuing operations (“Adjusted EBITDA”) and Adjusted EBITDA margin,\nwhich is defined as Adjusted EBITDA divided by net revenue for the period, are\nfrequently used by investors and securities analysts in their evaluations of\ncompanies, and that this supplemental measure facilitates comparisons between\ncontinuing operations of companies. The Company believes free cash flow from\ncontinuing operations (“Free Cash Flow”) is an important metric because it\nrepresents a measure of how much cash from continuing operations the Company\nhas available for discretionary and non-discretionary items after the\ndeduction of capital expenditures. These non-GAAP financial measures may be\ndifferent than similarly titled measures used by other companies.\n\nThese non-GAAP financial measures should not be considered in isolation from,\nor as substitutes for, financial information prepared in accordance with GAAP.\nThere are several limitations related to the use of these non-GAAP financial\nmeasures as compared to the closest comparable GAAP measures. Some of these\nlimitations include:\n\n\n * Adjusted EBITDA excludes interest income and other (income) expense, net as\nthese items are not components of the core business;\n\n * Adjusted EBITDA does not reflect provision for income taxes, which may\nincrease or decrease cash available;\n\n * Adjusted EBITDA excludes the recurring, non-cash expenses of depreciation and\namortization of property and equipment and, although these are non-cash\nexpenses, the assets being depreciated and amortized may have to be replaced\nin the future;\n\n * Adjusted EBITDA excludes the non-cash expense of stock-based compensation,\nwhich has been, and will continue to be for the foreseeable future, an\nimportant part of how the Company attracts and retains employees and a\nsignificant recurring expense in its business;\n\n * Adjusted EBITDA excludes costs incurred related to discrete restructuring\nplans and other one-time costs attributable to continuing operations that are\nfundamentally different in strategic nature and frequency from ongoing\ninitiatives. The Company believes exclusion of these items facilitates a more\nconsistent comparison of operating performance over time, however these costs\ndo include cash outflows;\n\n * Adjusted EBITDA excludes non-ordinary course legal fees for specific\nproceedings that the Company has determined arise outside of the ordinary\ncourse of business and are nonrecurring, infrequent, or unusual; and\n\n * Free Cash Flow does not represent the total residual cash flow available for\ndiscretionary purposes and does not reflect future contractual commitments.\n\nAdjusted EBITDA\n\nWe define Adjusted EBITDA as net loss from continuing operations excluding\ninterest income, other (income) expense, net, provision for income taxes,\ndepreciation and amortization, stock-based compensation expense, restructuring\nand other one-time costs, and non-ordinary course legal fees related to our\ncontinuing operations. We define Adjusted EBITDA margin as Adjusted EBITDA\ndivided by net revenue for the period. The following table presents a\nreconciliation of net loss from continuing operations, the most comparable\nGAAP financial measure, to Adjusted EBITDA, and net loss margin, the most\ncomparable GAAP financial measure, to Adjusted EBITDA margin, for each of the\nperiods presented:\n     For the Three Months Ended   For the Nine Months Ended \n (in thousands)   May 2, 2026   May 3, 2025   May 2, 2026   May 3, 2025 \n Net loss from continuing operations   $ (1,525 )   $ (7,381 )   $ (10,541 )   $ (20,267 ) \n Add (deduct):                 \n Interest income     (2,123 )     (2,627 )     (6,661 )     (8,222 ) \n Other (income) expense, net     (438 )     59       (323 )     210   \n Provision for income taxes     70       241       194       580   \n Depreciation and amortization     6,116       6,860       18,662       21,360   \n Stock-based compensation expense     11,139       13,727       37,040       43,658   \n Restructuring and other one-time costs ((1))     —       134       —       3,107   \n Non-ordinary course legal fees ((2))     —       —       4,223       —   \n Adjusted EBITDA   $ 13,239     $ 11,013     $ 42,594     $ 40,426   \n                   \n Revenue, net   $ 340,277     $ 325,016     $ 1,023,701     $ 955,944   \n Net loss margin     (0.4 )%     (2.3 )%     (1.0 )%     (2.1 )% \n Adjusted EBITDA margin     3.9 %     3.4 %     4.2 %     4.2 % \n\n ((1)) For the three and nine months ended May 3, 2025, restructuring charges were \n $0.0 million and $1.2 million, respectively, primarily in severance and \n employee-related benefits and other restructuring costs; and other one-time \n costs were $0.1 million and $1.9 million, respectively, in one-time bonuses \n for certain continuing employees. \n ((2)) Non-ordinary course legal fees for the nine months ended May 2, 2026, include \n costs related to a specific class action lawsuit. \n\n\nFree Cash Flow\n\nWe define Free Cash Flow as cash flows provided by operating activities from\ncontinuing operations, reduced by purchases of property and equipment that are\nincluded in cash flows from investing activities from continuing operations.\nThe following table presents a reconciliation of net cash flows used in\noperating activities from continuing operations, the most comparable GAAP\nfinancial measure, to Free Cash Flow for each of the periods presented:\n     For the Three Months Ended   For the Nine Months Ended \n (in thousands)   May 2, 2026   May 3, 2025   May 2, 2026   May 3, 2025 \n Free Cash Flow reconciliation:                 \n Net cash provided by operating activities from continuing operations   $ 11,774     $ 20,516     $ 30,009     $ 18,572   \n Deduct:                 \n Purchases of property and equipment     (5,254 )     (4,518 )     (14,564 )     (12,065 ) \n Free Cash Flow   $ 6,520     $ 15,998     $ 15,445     $ 6,507   \n Net cash used in investing activities from continuing operations   $ (25,591 )   $ (20,715 )   $ (27,068 )   $ (59,689 ) \n Net cash used in financing activities from continuing operations   $ (17,629 )   $ (4,239 )   $ (29,557 )   $ (12,432 ) \n\n\nOperating Metrics\n     May 2, 2026   January 31, 2026   November 1, 2025   August 2, 2025   May 3, 2025 \n Active clients (in thousands)     2,309     2,288     2,307     2,309     2,353 \n Net revenue per active client   $ 578   $ 577   $ 559   $ 549   $ 542 \n\n\nActive Clients\n\nWe believe that the number of active clients is a key indicator of the overall\nhealth of our business. We define an active client as a client who checked out\na Fix or was shipped an item via Freestyle in the preceding 52 weeks, measured\nas of the last day of that period. Clients check out a Fix when they indicate\nwhat items they are keeping through our mobile application or on our website.\nWe consider each Women’s, Men’s, or Kids account as a client, even if they\nshare the same household. A single person could have multiple accounts and\ncount as multiple active clients.\n\nNet Revenue per Active Client\n\nWe believe that net revenue per active client is an indicator of client\nengagement and satisfaction. We calculate net revenue per active client based\non net revenue over the preceding four fiscal quarters divided by the number\nof active clients measured as of the last day of the period.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260610426349/en/\n(https://www.businesswire.com/news/home/20260610426349/en/)\n\nIR Contact: \n\nir@stitchfix.com (mailto:ir@stitchfix.com)\n\nPR Contact: \n\nmedia@stitchfix.com (mailto:media@stitchfix.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw69tKtNa","title":"Stitch Fix Announces Third Quarter of Fiscal 2026 Financial Results","author":"Business Wire","ticker":"SFIX","created":"2026-06-10T20:05:00.466Z","tickers":["SFIX"],"exchange":"NASDAQ","article_body":"Stitch Fix Announces Third Quarter of Fiscal 2026 Financial Results\n\nStitch Fix, Inc. (NASDAQ: SFIX), the leading online personal styling service,\ntoday announced its financial results for the third quarter of fiscal 2026\nended May 2, 2026.\n\n“In Q3, we delivered another strong quarter, reporting our fifth consecutive\nquarter of year-over-year revenue growth on an adjusted basis, with both\nrevenue and adjusted EBITDA exceeding our expectations,” said Matt Baer,\nCEO, Stitch Fix. “We also hit a significant milestone with sequential growth\nin active clients. These results reflect our team’s consistent execution of\nour strategy and underscore that the improvements we’ve made to our client\nexperience and assortment are resonating. We remain confident that our\ndisciplined approach will enable us to continue to strengthen our position as\nour clients’ retailer of choice for apparel, footwear and accessories, as\nwell as navigate today’s dynamic consumer environment.”\n\nThird Quarter Fiscal 2026 Key Metrics and Financial Highlights\n\n\n * Net revenue of $340.3 million, an increase of 4.7% year-over-year.\n\n * Active clients of 2.309 million, an increase of 0.9% quarter-over-quarter and\na decrease of 1.9% year-over-year.\n\n * Net revenue per active client of $578, an increase of 6.6% year-over-year.\n\n * Gross margin of 43.7%, a decrease of 50 basis points year-over-year.\n\n * Net loss of $1.5 million and net loss margin of 0.4%; diluted loss per share\nof $0.01.\n\n * Adjusted EBITDA of $13.2 million and Adjusted EBITDA margin of 3.9%.\n\n * Net cash provided by operating activities of $11.8 million and free cash flow\nof $6.5 million.\n\n * Repurchased 4.5 million shares of Class A common stock for $15.1 million.\n\n * Cash, cash equivalents, and investments of $229.4 million. The Company has no\ndebt.\n\nFinancial Outlook\n\nStitch Fix’s financial outlook for the fourth quarter of fiscal 2026, ending\nAugust 1, 2026, is as follows:\n   Q4 2026 \n Net Revenue $322 million - $327 million 3.5% - 5.1% YoY \n Adjusted EBITDA $7 million - $10 million 2.2% - 3.1% margin \n\n\nThe Company’s fiscal year is a 52-week or 53-week period ending on the\nSaturday closest to July 31. The fiscal years 2025 and 2026 are 52-week years.\n\nStitch Fix’s updated financial outlook for fiscal year 2026 is as follows:\n   Fiscal Year 2026 \n Net Revenue $1.346 billion - $1.351 billion 6.2% - 6.6% YoY \n Adjusted EBITDA $49 million - $52 million 3.7% - 3.9% margin \n\n\nThe Company expects full fiscal year 2026 gross margin to be between 43% and\n44%. It expects full fiscal year 2026 advertising expense as a percentage of\nrevenue to be between 9% and 10%. It also expects to be free cash flow\npositive for the full year.\n\nStitch Fix has not reconciled its Adjusted EBITDA outlook to GAAP net income\n(loss) or free cash flow outlook to net cash flows used in operating\nactivities from continuing operations because it does not provide an outlook\nfor GAAP net income (loss) or net cash flows used in operating activities from\ncontinuing operations due to the uncertainty and potential variability of\nrestructuring and other one-time costs, net other income (expense), provision\nfor income taxes, stock-based compensation expense, or net cash flows used in\noperating activities from continuing operations, which are reconciling items\nbetween the non-GAAP financial measure and the corresponding GAAP measure.\nBecause Stitch Fix cannot reasonably predict such items, a reconciliation of\nthe non-GAAP financial measure outlooks to the corresponding GAAP measures are\nnot available without unreasonable effort. We caution, however, that such\nitems could have a significant impact on the calculation of GAAP net income\n(loss) and free cash flow. For more information regarding the non-GAAP\nfinancial measures discussed in this release, please see “Non-GAAP Financial\nMeasures” below.\n\nDiscontinued Operations\n\nDuring the first quarter of fiscal 2024, Stitch Fix ceased operations of its\nUK business and met the accounting requirements for reporting the UK business\nas a discontinued operation. Accordingly, its unaudited condensed consolidated\nfinancial statements reflect the results of the UK business as a discontinued\noperation for all periods presented. Unless otherwise noted, amounts and\ndisclosures relate to its continuing operations.\n\nConference Call and Webcast Information\n\nMatt Baer, Chief Executive Officer of Stitch Fix, and David Aufderhaar, Chief\nFinancial Officer of Stitch Fix, will host a conference call at 2:00 p.m.\nPacific Time today to discuss the Company’s financial results and outlook. A\nlive webcast of the call will be accessible on the investor relations section\nof the Stitch Fix website at https://investors.stitchfix.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.stitchfix.com&esheet=54551305&newsitemid=20260610426349&lan=en-US&anchor=https%3A%2F%2Finvestors.stitchfix.com&index=1&md5=8c9f7a1c8cf9b0558a19e3b3a4f5c0a1)\n.\n\nTo access the call by phone, please register at the following link:\n\nDial-In Registration:https://events.q4inc.com/analyst/328200081?pwd=d6j5FXNt\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevents.q4inc.com%2Fanalyst%2F328200081%3Fpwd%3Dd6j5FXNt&esheet=54551305&newsitemid=20260610426349&lan=en-US&anchor=https%3A%2F%2Fevents.q4inc.com%2Fanalyst%2F328200081%3Fpwd%3Dd6j5FXNt&index=2&md5=54f8aee13ff4d0f228a49db2a405cd06)\n\nUpon registration, telephone participants will receive the dial-in number\nalong with a unique passcode that can be used to access the call. A replay of\nthe webcast will also be available for a limited time at\nhttps://investors.stitchfix.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.stitchfix.com&esheet=54551305&newsitemid=20260610426349&lan=en-US&anchor=https%3A%2F%2Finvestors.stitchfix.com&index=3&md5=09e618f185d280e1e6488f49e857e98a)\n.\n\nAbout Stitch Fix, Inc.\n\nStitch Fix (NASDAQ: SFIX) is the leading online personal styling service that\nhelps people discover the styles they will love that fit perfectly so they\nalways look - and feel - their best. Few things are more personal than getting\ndressed, but finding clothing that fits and looks great can be a challenge.\nStitch Fix solves that problem. By pairing expert stylists with best-in-class\nAI and recommendation algorithms, the company leverages its assortment of\nexclusive and national brands to meet each client's individual tastes and\nneeds, making it convenient for clients to express their personal style\nwithout having to spend hours in stores or sifting through endless choices\nonline. Stitch Fix, which was founded in 2011, is headquartered in San\nFrancisco. For more information, please visit https://www.stitchfix.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.stitchfix.com&esheet=54551305&newsitemid=20260610426349&lan=en-US&anchor=https%3A%2F%2Fwww.stitchfix.com&index=4&md5=b5fab3fdba00df23784b5bcedd56d36f)\n.\n\nForward-Looking Statements\n\nThis press release and the related conference call and webcast, contain\nforward-looking statements within the meaning of the federal securities laws.\nAll statements other than statements of historical fact could be deemed\nforward looking, including but not limited to statements regarding our\nexpectations for future financial performance, including our revenue growth,\nprofitability and long-term targets; our outlook on financial results and\nmetrics for the fourth quarter and full fiscal year of 2026; our expectations\nregarding our market and wallet share, market opportunity, client growth,\nretention, engagement and other trends, our expectation with respect to the\nimpact of our strategies, priorities, and investments, including our\ntransformation strategy and plans for enhancements to our client experience,\nour financial results and key metrics; our plans and expectations with respect\nto our product offerings, AI initiatives, and plans for category expansion;\nour assessment of the impact of tariffs and the macroeconomic environment on\nour results of operations and future performance; our ability to navigate a\ndynamic consumer environment; and our expectations regarding future costs and\nmetrics, including transportation costs, gross margin, average order value,\ninventory levels, and advertising spend. These statements involve substantial\nrisks and uncertainties, including risks and uncertainties related to the\ncurrent macroeconomic environment; our ability to generate sufficient net\nrevenue to offset our costs; changing consumer behavior; the effect of changes\nin and uncertainty regarding tariffs or trade policies and our ability to\nmitigate tariff-related risks; our ability to acquire, engage, and retain\nclients; our ability to provide offerings and services that achieve market\nacceptance; our data science and technology, Stylists, operations, marketing\ninitiatives, and other key strategic areas, including the implementation of\nour transformation strategy; risks related to our inventory levels and\nmanagement; risks related to our supply chain, sourcing of materials and\nshipping of merchandise; our ability to forecast our future operating results;\nand other risks described in the filings we make with the SEC. Further\ninformation on these and other factors that could cause our financial results,\nperformance, and achievements to differ materially from any results,\nperformance, or achievements anticipated, expressed, or implied by these\nforward-looking statements is included in filings we make with the SEC from\ntime to time, including in the section titled “Risk Factors” in our\nQuarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2026.\nThese documents are available on the SEC Filings section of the investor\nrelations section of our website at: https://investors.stitchfix.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestors.stitchfix.com&esheet=54551305&newsitemid=20260610426349&lan=en-US&anchor=https%3A%2F%2Finvestors.stitchfix.com&index=5&md5=36063eb091dc18cdaa0452c7a84c7bea)\n. We undertake no obligation to update any forward-looking statements made in\nthis press release to reflect events or circumstances after the date of this\npress release or to reflect new information or the occurrence of unanticipated\nevents, except as required by law. The achievement or success of the matters\ncovered by such forward-looking statements involves known and unknown risks,\nuncertainties, and assumptions. If any such risks or uncertainties materialize\nor if any of the assumptions prove incorrect, our results could differ\nmaterially from the results expressed or implied by the forward-looking\nstatements we make. You should not rely upon forward-looking statements as\npredictions of future events. Forward-looking statements represent our\nmanagement’s beliefs and assumptions only as of the date such statements are\nmade.\n STITCH FIX, INC. \n \n \n \nUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS \n   \n (In thousands, except per share amounts) May 2, 2026   August 2, 2025 \n Assets       \n Current assets:       \n Cash and cash equivalents $ 87,336     $ 113,952   \n Short-term investments   99,478       120,901   \n Inventory, net   132,212       118,370   \n Prepaid expenses and other current assets   56,718       20,649   \n Total current assets   375,744       373,872   \n Long-term investments   42,586       7,894   \n Property and equipment, net   41,348       43,199   \n Operating lease right-of-use assets   42,085       51,201   \n Other long-term assets   4,276       4,456   \n Total assets $ 506,039     $ 480,622   \n Liabilities and Stockholders’ Equity       \n Current liabilities:       \n Accounts payable $ 106,964     $ 89,243   \n Operating lease liabilities   21,308       22,752   \n Accrued liabilities   104,836       76,348   \n Gift card liability   6,343       6,238   \n Deferred revenue   8,299       8,616   \n Other current liabilities   2,981       3,030   \n Total current liabilities   250,731       206,227   \n Operating lease liabilities, net of current portion   53,223       70,759   \n Other long-term liabilities   618       658   \n Total liabilities   304,572       277,644   \n Commitments and contingencies       \n Stockholders’ equity:       \n Class A common stock, $0.00002 par value   1       1   \n Class B common stock, $0.00002 par value   1       1   \n Additional paid-in capital   753,758       729,444   \n Accumulated other comprehensive income (loss)   (628 )     (434 ) \n Accumulated deficit   (506,533 )     (495,992 ) \n Treasury stock, at cost   (45,132 )     (30,042 ) \n Total stockholders’ equity   201,467       202,978   \n Total liabilities and stockholders’ equity $ 506,039     $ 480,622   \n\n STITCH FIX, INC. \n \n \n \nUNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE \n LOSS \n   \n     For the Three Months Ended   For the Nine Months Ended \n (In thousands, except share and per share amounts)   May 2, 2026   May 3, 2025   May 2, 2026   May 3, 2025 \n Revenue, net   $ 340,277     $ 325,016     $ 1,023,701     $ 955,944   \n Cost of goods sold     191,439       181,458       576,594       528,720   \n Gross profit     148,838       143,558       447,107       427,224   \n Gross margin     43.7 %     44.2 %     43.7 %     44.7 % \n Selling, general, and administrative expenses     152,854       153,266       464,438       454,923   \n Operating loss     (4,016 )     (9,708 )     (17,331 )     (27,699 ) \n Interest income     2,123       2,627       6,661       8,222   \n Other income (expense), net     438       (59 )     323       (210 ) \n Loss before income taxes     (1,455 )     (7,140 )     (10,347 )     (19,687 ) \n Provision for income taxes     70       241       194       580   \n Net loss from continuing operations     (1,525 )     (7,381 )     (10,541 )     (20,267 ) \n Net income from discontinued operations, net of income taxes     —       3       —       104   \n Net loss     (1,525 )     (7,378 )     (10,541 )     (20,163 ) \n Other comprehensive loss:                 \n Change in unrealized gains and losses on available-for-sale securities, net of     (290 )     (91 )     (194 )     (108 ) \n tax \n Total other comprehensive loss, net of tax     (290 )     (91 )     (194 )     (108 ) \n Comprehensive loss   $ (1,815 )   $ (7,469 )   $ (10,735 )   $ (20,271 ) \n Loss per share from continuing operations attributable to common stockholders:                 \n Basic   $ (0.01 )   $ (0.06 )   $ (0.08 )   $ (0.16 ) \n Diluted   $ (0.01 )   $ (0.06 )   $ (0.08 )   $ (0.16 ) \n Earnings per share from discontinued operations attributable to common                 \n stockholders: \n Basic   $ 0.00     $ 0.00     $ 0.00     $ 0.00   \n Diluted   $ 0.00     $ 0.00     $ 0.00     $ 0.00   \n Loss per share attributable to common stockholders:                 \n Basic   $ (0.01 )   $ (0.06 )   $ (0.08 )   $ (0.16 ) \n Diluted   $ (0.01 )   $ (0.06 )   $ (0.08 )   $ (0.16 ) \n Weighted-average shares used to compute earnings (loss) per share attributable                 \n to common stockholders: \n Basic     135,334,302       129,792,798       134,678,242       127,916,643   \n Diluted     135,334,302       129,792,798       134,678,242       127,916,643   \n\n STITCH FIX, INC. \n \n \n \nUNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW \n   \n   For the Nine Months Ended \n (In thousands) May 2, 2026   May 3, 2025 \n Cash Flows from Operating Activities from Continuing Operations       \n Net loss from continuing operations $ (10,541 )   $ (20,267 ) \n Adjustments to reconcile net loss from continuing operations to net cash       \n provided by operating activities from continuing operations: \n Change in inventory reserves   3,915       2,984   \n Stock-based compensation expense   37,040       43,658   \n Depreciation, amortization, and accretion   17,889       19,956   \n Other   1,688       54   \n Change in operating assets and liabilities:       \n Inventory   (17,757 )     (19,491 ) \n Prepaid expenses and other assets   (5,407 )     (2,520 ) \n Operating lease right-of-use assets and liabilities   (9,864 )     (8,689 ) \n Accounts payable   16,904       1,699   \n Accrued liabilities   (3,557 )     2,181   \n Deferred revenue   (317 )     (195 ) \n Gift card liability   105       (180 ) \n Other liabilities   (89 )     (618 ) \n Net cash provided by operating activities from continuing operations   30,009       18,572   \n Cash Flows from Investing Activities from Continuing Operations       \n Proceeds from sale of property and equipment   17       —   \n Purchases of property and equipment   (14,564 )     (12,065 ) \n Purchases of securities available-for-sale   (104,048 )     (164,101 ) \n Sales of securities available-for-sale   1,500       5,468   \n Maturities of securities available-for-sale   90,027       111,009   \n Net cash used in investing activities from continuing operations   (27,068 )     (59,689 ) \n Cash Flows from Financing Activities from Continuing Operations       \n Proceeds from the exercise of stock options, net   595       7   \n Payments for tax withholdings related to vesting of share-based awards   (14,847 )     (12,346 ) \n Repurchase of common stock   (15,090 )     —   \n Other   (215 )     (93 ) \n Net cash used in financing activities from continuing operations   (29,557 )     (12,432 ) \n Net decrease in cash and cash equivalents from continuing operations   (26,616 )     (53,549 ) \n Cash Flows from Discontinued Operations       \n Net cash used in operating activities from discontinued operations   —       (398 ) \n Net decrease in cash and cash equivalents from discontinued operations   —       (398 ) \n Net decrease in cash and cash equivalents   (26,616 )     (53,947 ) \n Cash and cash equivalents at beginning of period   113,952       162,862   \n Cash and cash equivalents at end of period $ 87,336     $ 108,915   \n Supplemental Disclosure       \n Cash paid for income taxes $ 206     $ 621   \n Supplemental Disclosure of Non-Cash Investing and Financing Activities       \n Purchases of property and equipment included in accounts payable and accrued $ 1,988     $ 1,134   \n liabilities \n Capitalized stock-based compensation $ 1,526     $ 2,321   \n\n\nNon-GAAP Financial Measures\n\nThe Company reports its financial results in accordance with generally\naccepted accounting principles in the United States (“GAAP”). However,\nmanagement believes that certain non-GAAP financial measures provide users of\nits financial information with additional useful information in evaluating the\nCompany’s performance. The Company believes that adjusted EBITDA from\ncontinuing operations (“Adjusted EBITDA”) and Adjusted EBITDA margin,\nwhich is defined as Adjusted EBITDA divided by net revenue for the period, are\nfrequently used by investors and securities analysts in their evaluations of\ncompanies, and that this supplemental measure facilitates comparisons between\ncontinuing operations of companies. The Company believes free cash flow from\ncontinuing operations (“Free Cash Flow”) is an important metric because it\nrepresents a measure of how much cash from continuing operations the Company\nhas available for discretionary and non-discretionary items after the\ndeduction of capital expenditures. These non-GAAP financial measures may be\ndifferent than similarly titled measures used by other companies.\n\nThese non-GAAP financial measures should not be considered in isolation from,\nor as substitutes for, financial information prepared in accordance with GAAP.\nThere are several limitations related to the use of these non-GAAP financial\nmeasures as compared to the closest comparable GAAP measures. Some of these\nlimitations include:\n\n\n * Adjusted EBITDA excludes interest income and other (income) expense, net as\nthese items are not components of the core business;\n\n * Adjusted EBITDA does not reflect provision for income taxes, which may\nincrease or decrease cash available;\n\n * Adjusted EBITDA excludes the recurring, non-cash expenses of depreciation and\namortization of property and equipment and, although these are non-cash\nexpenses, the assets being depreciated and amortized may have to be replaced\nin the future;\n\n * Adjusted EBITDA excludes the non-cash expense of stock-based compensation,\nwhich has been, and will continue to be for the foreseeable future, an\nimportant part of how the Company attracts and retains employees and a\nsignificant recurring expense in its business;\n\n * Adjusted EBITDA excludes costs incurred related to discrete restructuring\nplans and other one-time costs attributable to continuing operations that are\nfundamentally different in strategic nature and frequency from ongoing\ninitiatives. The Company believes exclusion of these items facilitates a more\nconsistent comparison of operating performance over time, however these costs\ndo include cash outflows;\n\n * Adjusted EBITDA excludes non-ordinary course legal fees for specific\nproceedings that the Company has determined arise outside of the ordinary\ncourse of business and are nonrecurring, infrequent, or unusual; and\n\n * Free Cash Flow does not represent the total residual cash flow available for\ndiscretionary purposes and does not reflect future contractual commitments.\n\nAdjusted EBITDA\n\nWe define Adjusted EBITDA as net loss from continuing operations excluding\ninterest income, other (income) expense, net, provision for income taxes,\ndepreciation and amortization, stock-based compensation expense, restructuring\nand other one-time costs, and non-ordinary course legal fees related to our\ncontinuing operations. We define Adjusted EBITDA margin as Adjusted EBITDA\ndivided by net revenue for the period. The following table presents a\nreconciliation of net loss from continuing operations, the most comparable\nGAAP financial measure, to Adjusted EBITDA, and net loss margin, the most\ncomparable GAAP financial measure, to Adjusted EBITDA margin, for each of the\nperiods presented:\n     For the Three Months Ended   For the Nine Months Ended \n (in thousands)   May 2, 2026   May 3, 2025   May 2, 2026   May 3, 2025 \n Net loss from continuing operations   $ (1,525 )   $ (7,381 )   $ (10,541 )   $ (20,267 ) \n Add (deduct):                 \n Interest income     (2,123 )     (2,627 )     (6,661 )     (8,222 ) \n Other (income) expense, net     (438 )     59       (323 )     210   \n Provision for income taxes     70       241       194       580   \n Depreciation and amortization     6,116       6,860       18,662       21,360   \n Stock-based compensation expense     11,139       13,727       37,040       43,658   \n Restructuring and other one-time costs ((1))     —       134       —       3,107   \n Non-ordinary course legal fees ((2))     —       —       4,223       —   \n Adjusted EBITDA   $ 13,239     $ 11,013     $ 42,594     $ 40,426   \n                   \n Revenue, net   $ 340,277     $ 325,016     $ 1,023,701     $ 955,944   \n Net loss margin     (0.4 )%     (2.3 )%     (1.0 )%     (2.1 )% \n Adjusted EBITDA margin     3.9 %     3.4 %     4.2 %     4.2 % \n\n ((1)) For the three and nine months ended May 3, 2025, restructuring charges were \n $0.0 million and $1.2 million, respectively, primarily in severance and \n employee-related benefits and other restructuring costs; and other one-time \n costs were $0.1 million and $1.9 million, respectively, in one-time bonuses \n for certain continuing employees. \n ((2)) Non-ordinary course legal fees for the nine months ended May 2, 2026, include \n costs related to a specific class action lawsuit. \n\n\nFree Cash Flow\n\nWe define Free Cash Flow as cash flows provided by operating activities from\ncontinuing operations, reduced by purchases of property and equipment that are\nincluded in cash flows from investing activities from continuing operations.\nThe following table presents a reconciliation of net cash flows used in\noperating activities from continuing operations, the most comparable GAAP\nfinancial measure, to Free Cash Flow for each of the periods presented:\n     For the Three Months Ended   For the Nine Months Ended \n (in thousands)   May 2, 2026   May 3, 2025   May 2, 2026   May 3, 2025 \n Free Cash Flow reconciliation:                 \n Net cash provided by operating activities from continuing operations   $ 11,774     $ 20,516     $ 30,009     $ 18,572   \n Deduct:                 \n Purchases of property and equipment     (5,254 )     (4,518 )     (14,564 )     (12,065 ) \n Free Cash Flow   $ 6,520     $ 15,998     $ 15,445     $ 6,507   \n Net cash used in investing activities from continuing operations   $ (25,591 )   $ (20,715 )   $ (27,068 )   $ (59,689 ) \n Net cash used in financing activities from continuing operations   $ (17,629 )   $ (4,239 )   $ (29,557 )   $ (12,432 ) \n\n\nOperating Metrics\n     May 2, 2026   January 31, 2026   November 1, 2025   August 2, 2025   May 3, 2025 \n Active clients (in thousands)     2,309     2,288     2,307     2,309     2,353 \n Net revenue per active client   $ 578   $ 577   $ 559   $ 549   $ 542 \n\n\nActive Clients\n\nWe believe that the number of active clients is a key indicator of the overall\nhealth of our business. We define an active client as a client who checked out\na Fix or was shipped an item via Freestyle in the preceding 52 weeks, measured\nas of the last day of that period. Clients check out a Fix when they indicate\nwhat items they are keeping through our mobile application or on our website.\nWe consider each Women’s, Men’s, or Kids account as a client, even if they\nshare the same household. A single person could have multiple accounts and\ncount as multiple active clients.\n\nNet Revenue per Active Client\n\nWe believe that net revenue per active client is an indicator of client\nengagement and satisfaction. We calculate net revenue per active client based\non net revenue over the preceding four fiscal quarters divided by the number\nof active clients measured as of the last day of the period.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260610426349/en/\n(https://www.businesswire.com/news/home/20260610426349/en/)\n\nIR Contact: \n\nir@stitchfix.com (mailto:ir@stitchfix.com)\n\nPR Contact: \n\nmedia@stitchfix.com (mailto:media@stitchfix.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-06-10T20:05:00.55201996Z","server_sent_at_ms":1781121900552},"received_at":"2026-06-10T20:05:00.656Z","source_url":"https://www.businesswire.com/news/home/20260610426349/en/"},"analysis":{"id":"50047","press_release_id":"60615","analysis_json":{"industry":{"label":"Internet & Direct Marketing Retail","sector":"Consumer Discretionary"},"redFlags":["Active clients decreased 1.9% year-over-year despite sequential growth","Gross margin decreased 50 basis points year-over-year to 43.7%","Net loss of $1.5 million"],"eventType":"earnings","narrative":"Stitch Fix reported Q3 net revenue of $340.3 million, up 4.7% year-over-year, marking the fifth consecutive quarter of growth on an adjusted basis. The company achieved a significant milestone with sequential growth in active clients to 2.309 million, while net revenue per active client increased 6.6% year-over-year to $578.\n\nAdjusted EBITDA came in at $13.2 million with a margin of 3.9%, exceeding expectations and driving free cash flow of $6.5 million. The company also repurchased 4.5 million shares for $15.1 million and ended the quarter with $229.4 million in cash and no debt.\n\nFor the full fiscal year 2026, the company updated its outlook to revenue of $1.346 billion to $1.351 billion, representing 6.2% to 6.6% growth, and raised its adjusted EBITDA range to $49 million to $52 million.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Turnaround gains traction with sequential client growth and raised FY26 guidance."},"keyFigures":{"revenue":340300000,"guidance":"Q4 2026 revenue $322M-$327M; FY2026 revenue $1.346B-$1.351B (6.2%-6.6% YoY); FY2026 Adj EBITDA $49M-$52M","revenueYoy":"4.7%","customDimensions":{"buyback_cost":15100000,"active_clients":2309000,"free_cash_flow":6500000,"adjusted_ebitda":13200000,"active_clients_qoq":"0.9%","active_clients_yoy":"-1.9%","shares_repurchased":4500000,"adjusted_ebitda_margin":"3.9%","revenue_per_active_client":578}},"quotedText":"We also hit a significant milestone with sequential growth in active clients.","namedEntities":{"people":[{"name":"Matt Baer","role":"CEO"},{"name":"David Aufderhaar","role":"CFO"}],"products":[],"companies":[{"name":"Stitch Fix, Inc.","ticker":"SFIX"}],"dollarAmounts":[{"amount":"$340.3 million","context":"Q3 net revenue"},{"amount":"$13.2 million","context":"Q3 adjusted EBITDA"},{"amount":"$15.1 million","context":"share repurchase cost"},{"amount":"$229.4 million","context":"cash, cash equivalents, and investments"},{"amount":"$1.346 billion - $1.351 billion","context":"FY2026 net revenue guidance"}]},"materialImpact":{"score":4,"reasoning":"Stitch Fix reported its fifth consecutive quarter of year-over-year revenue growth and, crucially, achieved sequential growth in active clients—a significant milestone for its turnaround. Adjusted EBITDA of $13.2 million exceeded expectations, and the company raised its full-year revenue outlook while maintaining a debt-free balance sheet."},"tickerRelevance":{"others":[],"primary":"SFIX"},"globalImportance":30,"audienceRelevance":45,"eventTypeSecondary":["guidance_update","buyback"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings-beat-and-raise","sectorWeight":"retail","householdBrandBoost":true}},"event_type":"earnings","event_type_secondary":["guidance_update","buyback"],"sentiment":"bullish","material_impact_score":4,"narrative":"Stitch Fix reported Q3 net revenue of $340.3 million, up 4.7% year-over-year, marking the fifth consecutive quarter of growth on an adjusted basis. The company achieved a significant milestone with sequential growth in active clients to 2.309 million, while net revenue per active client increased 6.6% year-over-year to $578.\n\nAdjusted EBITDA came in at $13.2 million with a margin of 3.9%, exceeding expectations and driving free cash flow of $6.5 million. The company also repurchased 4.5 million shares for $15.1 million and ended the quarter with $229.4 million in cash and no debt.\n\nFor the full fiscal year 2026, the company updated its outlook to revenue of $1.346 billion to $1.351 billion, representing 6.2% to 6.6% growth, and raised its adjusted EBITDA range to $49 million to $52 million.","key_figures":{"revenue":340300000,"guidance":"Q4 2026 revenue $322M-$327M; FY2026 revenue $1.346B-$1.351B (6.2%-6.6% YoY); FY2026 Adj EBITDA $49M-$52M","revenueYoy":"4.7%","customDimensions":{"buyback_cost":15100000,"active_clients":2309000,"free_cash_flow":6500000,"adjusted_ebitda":13200000,"active_clients_qoq":"0.9%","active_clients_yoy":"-1.9%","shares_repurchased":4500000,"adjusted_ebitda_margin":"3.9%","revenue_per_active_client":578}},"named_entities":{"people":[{"name":"Matt Baer","role":"CEO"},{"name":"David Aufderhaar","role":"CFO"}],"products":[],"companies":[{"name":"Stitch Fix, Inc.","ticker":"SFIX"}],"dollarAmounts":[{"amount":"$340.3 million","context":"Q3 net revenue"},{"amount":"$13.2 million","context":"Q3 adjusted EBITDA"},{"amount":"$15.1 million","context":"share repurchase cost"},{"amount":"$229.4 million","context":"cash, cash equivalents, and investments"},{"amount":"$1.346 billion - $1.351 billion","context":"FY2026 net revenue guidance"}]},"model_name":"qwen3_6_27b_awq","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-06-10T20:11:04.954Z","global_importance":30,"audience_relevance":45,"importance_components":{"tickerTier":"mid-cap","eventGravity":"earnings-beat-and-raise","sectorWeight":"retail","householdBrandBoost":true}},"durationMs":null,"modelName":"george-droid-qwen-72b"}}