Stitch Fix Reports Revenue Growth Amid Client Decline
Stitch Fix reported a 7.3% increase in Q1 net revenue to $342.1 million despite a decline in active clients. Net revenue per client rose 5.3% to $559, with gross profit up 3.1% to $149.3 million. The company faced a net loss of $6.4 million but maintained a strong cash position of $244.2 million. Stitch Fix projects up to 6.5% revenue growth for fiscal 2026 and expects to remain free cash flow positive.
Stitch Fix ( (SFIX) ) has released its Q1 earnings. Here is a breakdown of the information Stitch Fix presented to its investors.
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Stitch Fix, Inc. is a leading online personal styling service that combines human expertise with AI technology to provide personalized shopping experiences in the apparel and accessories sector. In its first quarter of fiscal 2026, Stitch Fix reported a 7.3% increase in net revenue year-over-year, reaching $342.1 million, despite a slight decline in active clients. The company achieved a net revenue per active client of $559, marking a 5.3% increase from the previous year, while gross profit rose by 3.1% to $149.3 million. However, the company faced a net loss of $6.4 million, translating to a diluted loss per share of $0.05. Stitch Fix also reported an adjusted EBITDA of $13.4 million and maintained a strong cash position with $244.2 million in cash and investments, and no debt. Looking forward, Stitch Fix anticipates net revenue between $335 million and $340 million for the second quarter of fiscal 2026, with an adjusted EBITDA margin of up to 3.8%. For the full fiscal year 2026, the company projects net revenue growth of up to 6.5% and expects to remain free cash flow positive.
