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May 03
Stitch Fix Q3 2025 Earnings Report
Stitch Fix reported a return to year-over-year revenue growth and narrowed its net loss in Q3 2025.
Key Takeaways
Stitch Fix exceeded expectations with $325M in revenue and a reduced net loss, highlighting operational discipline and cost control during its business transformation.
Returned to YoY revenue growth for the first time in several quarters.
Net loss narrowed to $7.4 million, reflecting improved cost management.
Free cash flow was positive at $16 million.
Active clients slightly declined, but net revenue per client increased.
Stitch Fix
Stitch Fix
Forward Guidance
Stitch Fix expects Q4 FY25 revenue between $298M and $303M and Adjusted EBITDA between $3M and $7M, with gross margin toward the lower end of the 44%-45% range.
Positive Outlook
- Adjusted EBITDA expected to remain positive in Q4.
- Full-year free cash flow expected to be positive.
- Revenue guidance adjusted for comparable 13-week quarter.
- Gross margin guidance provided in a specific range.
- Continued focus on cost management and operational efficiency.
Challenges Ahead
- Q4 revenue projected to decline YoY.
- Gross margin expected at the lower end of range.
- Active clients have declined for multiple quarters.
- Ongoing restructuring and variability in one-time costs.
- Challenges in UK market led to discontinued operations.