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Aug 02
Stitch Fix Q4 2025 Earnings Report
Stitch Fix reported its financial results for the fourth quarter and full fiscal year 2025, ending August 2, 2025, with a decrease in net revenue year-over-year but an increase on a 13-week adjusted basis, alongside a net loss and positive adjusted EBITDA.
Key Takeaways
Stitch Fix concluded fiscal year 2025 with its second consecutive quarter of year-over-year revenue growth on an adjusted basis, driven by improvements in client experience and assortment. Despite a reported 2.6% decrease in net revenue to $311.2 million for Q4 2025, adjusted net revenue increased by 4.4%. The company reported a net loss of $8.6 million and diluted loss per share of $0.07, while achieving positive adjusted EBITDA of $8.7 million.
Q4 2025 net revenue was $311.2 million, a 2.6% decrease year-over-year, but increased 4.4% year-over-year on a 13-week adjusted basis.
The company reported a net loss of $8.6 million and diluted loss per share of $0.07 for the fourth quarter.
Adjusted EBITDA for Q4 2025 was $8.7 million, with an Adjusted EBITDA margin of 2.8%, reflecting continued cost management.
Active clients decreased by 7.9% year-over-year to 2.309 million, while net revenue per active client grew 3.0% year-over-year to $549.
Stitch Fix
Stitch Fix
Forward Guidance
Stitch Fix provided financial outlook for Q1 fiscal year 2026 and the full fiscal year 2026, projecting net revenue between $333 million and $338 million for Q1 2026, and between $1.28 billion and $1.33 billion for FY 2026. The company expects to be free cash flow positive for the full fiscal year 2026.
Positive Outlook
- Q1 2026 Net Revenue expected to increase 4.4% - 6.0% YoY.
- Q1 2026 Adjusted EBITDA margin projected between 2.4% - 3.3%.
- Full Fiscal Year 2026 Net Revenue expected to increase 1.0% - 5.0% YoY.
- Full Fiscal Year 2026 Adjusted EBITDA margin projected between 2.3% - 3.4%.
- Company expects to be free cash flow positive for the full fiscal year 2026.
Challenges Ahead
- Full fiscal year 2026 gross margin expected to be between 43% and 44%, which is slightly lower than FY2025's 44.4%.
- Advertising expense as a percentage of revenue expected to be between 9% and 10% for FY 2026, indicating continued marketing spend.
- The company does not reconcile Adjusted EBITDA or free cash flow outlook to GAAP measures due to uncertainty and variability of certain costs.
- Potential significant impact of restructuring and other one-time costs on GAAP net income (loss) and free cash flow.
- Expects to incur approximately $4.2 million in non-ordinary course legal fees in fiscal 2026 related to a specific class action lawsuit.