Stitch Fix, Inc. CEO Matt Baer shared that the company delivered a strong fiscal second-quarter performance, with 9.4 percent year-over-year revenue growth, despite active clients declining quarter-over-quarter and year-over-year.

“Our client experience enhancements, improvements to the quality and breadth of our assortment, and new AI features are resonating and driving increased client engagement,” Baer noted. “We are gaining market share and strengthening our role as our clients’ retailer of choice for apparel, footwear and accessories as we remain focused on offering the most client-centric and personalized shopping experience in apparel retail.”

  • Net revenue of $341.3 million, an increase of 9.4 percent y/y in the fiscal second quarter (Q2) ended January 2026.
  • Active clients totaled 2.288 million, down 0.8 percent quarter-over-quarter and 3.5 percent year-over-year.
  • Net revenue per active client was $577, up 7.4 percent year-over-year.
  • Gross margin of 43.6 percent of net revenue, a decrease of 90 basis points year-over-year.
  • Net loss of $2.7 million, or a net loss margin of 0.8 percent of net revenue, down significantly from a net loss of $6.5 million, or a net loss margin of 2.1 percent of net revenue, in the prior-year Q2 period.
  • Diluted loss per share of 2 cents in fiscal Q2 2026, compared to 5 cents per diluted share in fiscal Q2 2025.
  • Adjusted EBITDA of $15.9 million in Q2, essentially flat to the prior-year period, and an Adjusted EBITDA margin of 4.7 percent of net revenue, compared to 5.1 percent in the prior-year period. 

Balance Sheet and Cash Flow Summary

  • Cash, cash equivalents, and investments of $240.5 million.
  • The company has no debt.
  • Net cash provided by operating activities of $7.3 million and free cash flow of $3.4 million.

Outlook
The company’s fiscal year is a 52-week or 53-week period ending on the Saturday closest to July 31. The fiscal years 2025 and 2026 are both 52-week years.

For the fiscal 2026 third quarter ending May 2, 2026, Stitch Fix expects:

  • Net Revenue reaching a range of $330 million to $335 million, or year-over-year growth of 1.5 percent to 3.1 percent;
  • Adjusted EBITDA in the range of $7 million to $10 million; and
  • Adjusted EBITDA margin in the range of 2.1 percent to 3.0 percent of net revenue.

For full-year fiscal 2026, Stitch Fix expects:

  • Net Revenue reaching a range of $1,330 million to $1,350 million, or year-over-year growth of 5.0 percent to 6.5 percent;
  • Gross margin between 43 percent and 44 percent of net revenue;
  • Advertising expense, as a percentage of revenue, between 9 percent and 10 percent of net revenue;
  • Adjusted EBITDA in the range of $42 million to $50 million;
  • Adjusted EBITDA margin in the range of 3.2 percent to 3.7 percent of net revenue; and
  • To be free cash flow positive for the full year.

Image courtesy Stitch Fix, Inc.