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Nov 01
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.
Stitch Fix
Stitch Fix
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%.
- The company did not reconcile Adjusted EBITDA outlook to GAAP net income (loss) or free cash flow outlook to net cash flows used in operating activities due to uncertainties and potential variability of certain costs.
- Active clients decreased by 5.2% year-over-year in Q1 2026, and a sequential decrease quarter-over-quarter.
- Net loss is expected to continue, with a diluted loss per share of $0.05 in Q1 2026.