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Nov 01, 2025
Stitch Fix Q1 2026 Earnings Report
Stitch Fix reported a strong start to fiscal year 2026 with accelerated year-over-year revenue growth and significant market share gains.
Key Takeaways
Stitch Fix announced its financial results for the first quarter of fiscal 2026, reporting net revenue of $342.1 million, an increase of 7.3% year-over-year. The company achieved a gross profit of $149.3 million and an adjusted EBITDA of $13.4 million, demonstrating successful execution of its transformation strategy.
Net revenue increased by 7.3% year-over-year to $342.1 million, indicating accelerated growth.
Adjusted EBITDA reached $13.4 million, with an Adjusted EBITDA margin of 3.9%.
The company reported a net loss of $6.4 million, or $0.05 diluted loss per share.
Active clients were 2.307 million, a slight decrease quarter-over-quarter but a 5.2% decrease year-over-year.
Forward Guidance
Stitch Fix provided financial outlook for the second quarter and full fiscal year 2026, expecting continued revenue growth and positive free cash flow.
Positive Outlook
- Q2 2026 Net Revenue is projected to be between $335 million and $340 million, representing 7.3% - 8.9% YoY growth.
- Q2 2026 Adjusted EBITDA is expected to be between $10 million and $13 million, with a margin of 3.0% - 3.8%.
- Full Fiscal Year 2026 Net Revenue is projected to be between $1.32 billion and $1.35 billion, representing 4.2% - 6.5% YoY growth.
- Full Fiscal Year 2026 Adjusted EBITDA is expected to be between $38 million and $48 million, with a margin of 2.9% - 3.6%.
- The company expects to be free cash flow positive for the full fiscal year 2026.
Challenges Ahead
- Gross margin for full fiscal year 2026 is expected to be between 43% and 44%, which is slightly lower than the previous year's Q1 gross margin.
- Advertising expense as a percentage of revenue for full fiscal year 2026 is projected to be between 9% and 10%.
Historical Earnings Impact
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