Stitch Fix (SFIX) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 revenue grew 6.4% to $1.35 billion, marking the first full year of revenue growth since FY21, with Q4 revenue up 4.2% year-over-year to $324.4 million.

• Achieved nine consecutive quarters of improved active client growth rate and six consecutive quarters of positive revenue comps, with client retention improving for the eighth consecutive quarter.

• Outperformed the flat U.S. apparel, footwear, and accessories market, with both women's and men's Fix businesses growing year-over-year; Men's Fix delivered double-digit growth in Q4.

• Transformation focused on larger Fixes, enhanced assortment, and AI-driven personalization, supporting record revenue per active client (RPAC) of $592 in Q4.

• The year ended with improved profitability metrics, positive free cash flow, and no debt.

Financial highlights

• Full-year adjusted EBITDA was $53.4 million (4.0% margin), with Q4 adjusted EBITDA at $10.8 million (3.3% margin).

• Gross margin for the year was 43.7%; Q4 gross margin was 43.6%.

• Net loss for the year was $12.6 million (net loss margin 0.9%), or $0.09 per share; Q4 net loss was $2.1 million (0.6% margin).

• Free cash flow for the year was $19.8 million; cash, cash equivalents, and investments totaled $220.9 million at year-end, with no debt.

• SG&A spend was 45.3% of revenue, down over 220 basis points year-over-year.

Outlook and guidance

• FY 2027 revenue expected between $1.31 billion and $1.36 billion; adjusted EBITDA guidance is $27 million to $42 million.

• Q1 2027 revenue expected between $323 million and $328 million; adjusted EBITDA between $3 million and $6 million.

• Full-year gross margin expected to remain 43%-44%, with positive free cash flow anticipated.

• Guidance reflects higher client acquisition costs, more intentional discretionary spending, and planned investments in advertising and AI technology impacting EBITDA margin.

• Revenue outlook tempered by a challenging consumer environment and a lower active client base, with Q1 impacted by shipment timing and a corrected post-checkout offer flow issue.