Fourth Quarter and Full Fiscal Year 2026
Filed Sep 23, 2026Stitch Fix Announces Fourth Quarter and Full Fiscal Year 2026 Financial Results
Fourth-quarter and full-year revenue increased, losses narrowed and free cash flow was positive, but active clients declined and fiscal 2027 revenue guidance calls for a range from a decline to limited growth alongside lower adjusted EBITDA.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 fiscal 2026 net revenueGAAP | $324.4M | – | 4.2% |
| Q4 fiscal 2026 cost of goods soldGAAP | 183,034 | – | – |
| Q4 fiscal 2026 gross profitGAAP | 141,384 | – | – |
| Q4 fiscal 2026 gross marginGAAP | 43.6 % | – | flat year-over-year |
| Q4 fiscal 2026 selling, general, and administrative expensesGAAP | 145,749 | – | – |
| Q4 fiscal 2026 operating lossGAAP | (4,365) | – | – |
| Q4 fiscal 2026 net loss from continuing operationsGAAP | −$2.06M | – | – |
| Q4 fiscal 2026 net lossGAAP | (2,065) | – | – |
| Q4 fiscal 2026 net loss marginGAAP | (0.6) % | – | – |
| Q4 fiscal 2026 diluted loss per share attributable to common stockholdersGAAP | $ (0.02) | – | – |
| Q4 fiscal 2026 Adjusted EBITDAnon-GAAP | $10.79M | – | – |
| Q4 fiscal 2026 Adjusted EBITDA marginnon-GAAP | 3.3 % | – | – |
| Q4 fiscal 2026 net cash provided by operating activities from continuing operationsGAAP | $9.06M | – | – |
| Q4 fiscal 2026 Free Cash Flownon-GAAP | $4.40M | – | – |
| Q4 fiscal 2026 active clientsother | 2,277 | a decrease of 1.4% | a decrease of 1.4% |
| Q4 fiscal 2026 net revenue per active clientother | $ 592 | – | 7.8% |
| Full fiscal 2026 net revenueGAAP | $1.35B | – | 6.4% |
| Full fiscal 2026 cost of goods soldGAAP | 759,628 | – | – |
| Full fiscal 2026 gross profitGAAP | 588,491 | – | 4.5% |
| Full fiscal 2026 gross marginGAAP | 43.7 % | – | a decrease of 70 basis points year-over-year |
| Full fiscal 2026 selling, general, and administrative expensesGAAP | 610,187 | – | – |
| Full fiscal 2026 operating lossGAAP | (21,696) | – | – |
| Full fiscal 2026 net loss from continuing operationsGAAP | −$12.61M | – | – |
| Full fiscal 2026 net lossGAAP | (12,606) | – | – |
| Full fiscal 2026 net loss marginGAAP | (0.9) % | – | – |
| Full fiscal 2026 diluted loss per share attributable to common stockholdersGAAP | $ (0.09) | – | – |
| Full fiscal 2026 Adjusted EBITDAnon-GAAP | $53.39M | – | – |
| Full fiscal 2026 Adjusted EBITDA marginnon-GAAP | 4.0 % | – | – |
| Full fiscal 2026 net cash provided by operating activities from continuing operationsGAAP | $39.07M | – | – |
| Full fiscal 2026 Free Cash Flownon-GAAP | $19.85M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Q1 2027 ending October 31, 2026 and fiscal year 2027 outlook
- RevenueQ1 2027 Net Revenue $323 million - $328 million (5.6)% - (4.1)% YoY
- Gross marginfull fiscal year 2027 gross margin to be between 43% and 44%
- NoteQ1 2027 Adjusted EBITDA $3 million - $6 million 0.9% - 1.8% margin
- NoteFiscal Year 2027 Net Revenue $1.310 billion - $1.360 billion (2.8)% - 0.9% YoY
- NoteFiscal Year 2027 Adjusted EBITDA $27 million - $42 million 2.1% - 3.1% margin
- Notepositive free cash flow for the full year
Capital returns
- Repurchased 2.7 million shares of Class A common stock for $11.3 million.
- Repurchase of common stock $ (26,385) for the fiscal year ended August 1, 2026.
What drove it
- Full-year net revenue grew 6.4% year-over-year.
- Net revenue per active client increased 7.8% year-over-year to $ 592.
- Management cited a reimagined client experience and more compelling assortment.
- Fiscal 2027 adjusted EBITDA outlook reflects strategic investments in advertising and technology, including artificial intelligence, to support long-term growth.
Concerns
- Active clients declined to 2,277, a decrease of 1.4% quarter-over-quarter and a decrease of 1.4% year-over-year.
- Full fiscal 2026 gross margin was 43.7 %, a decrease of 70 basis points year-over-year.
- Fiscal year 2027 net revenue outlook is $1.310 billion - $1.360 billion, or (2.8)% - 0.9% YoY.
- Q1 2027 revenue outlook was affected by shifted Fix volume and an unintended August change to the post-checkout offer flow.
- The company described a more challenging consumer environment and a lower active client starting point.
What to watch
- Active-client trends following correction of the post-checkout offer flow.
- Q1 2027 Fix volume after fourth-quarter shipment timing shifted volume from the first quarter into the fourth quarter.
- Delivery against fiscal 2027 net revenue guidance of $1.310 billion - $1.360 billion.
- Gross margin performance against the full-year expectation of between 43% and 44%.
- The effect of advertising and technology, including artificial intelligence, investments on adjusted EBITDA and positive free cash flow.
Balance sheet and cash flow
- Cash, cash equivalents, and investments of $220.9 million; and no debt.
- Cash and cash equivalents $ 95,301 as of August 1, 2026, compared with $ 113,952 as of August 2, 2025.
- Short-term investments 77,242 and long-term investments 48,380 as of August 1, 2026.
- Inventory, net 122,707 as of August 1, 2026, compared with 118,370 as of August 2, 2025.
- Total assets $ 479,422 as of August 1, 2026, compared with $ 480,622 as of August 2, 2025.
- Total liabilities 283,323 as of August 1, 2026, compared with 277,644 as of August 2, 2025.
- Purchases of property and equipment (19,224) for the fiscal year ended August 1, 2026, compared with (16,293) for the fiscal year ended August 2, 2025.
- Net cash used in financing activities from continuing operations $ (42,325) for the fiscal year ended August 1, 2026, compared with $ (14,967) for the fiscal year ended August 2, 2025.
Analysis
Stitch Fix reported fourth-quarter net revenue of $ 324,418, up 4.2% year-over-year, while full fiscal 2026 net revenue was $ 1,348,119, up 6.4%. The revenue gain occurred despite active clients falling to 2,277, down 1.4% both quarter-over-quarter and year-over-year. Net revenue per active client increased 7.8% year-over-year to $ 592, indicating that revenue growth was supported by spending per active client rather than client-count expansion.
Profitability improved from the prior-year period, although the company remained loss-making on a GAAP basis. Fourth-quarter operating loss was (4,365), compared with (11,206), and net loss from continuing operations was $ (2,065), compared with $ (8,577). For the full year, operating loss was (21,696), compared with (38,905), while net loss from continuing operations was $ (12,606), compared with $ (28,844). Adjusted EBITDA was $ 10,793 in the fourth quarter and $ 53,387 for the full year, with margins of 3.3 % and 4.0 %, respectively.
Margin performance was mixed. Fourth-quarter gross margin was 43.6 %, flat year-over-year. Full-year gross margin was 43.7 %, compared with 44.4 %, a decrease of 70 basis points year-over-year. Selling, general, and administrative expenses were 145,749 in the fourth quarter versus 146,921 a year earlier, while full-year selling, general, and administrative expenses increased to 610,187 from 601,844.
Cash generation improved. Net cash provided by operating activities from continuing operations was $ 9,061 in the fourth quarter and $ 39,070 for the full year, compared with $ 7,003 and $ 25,575, respectively. Free Cash Flow was $ 4,401 in the quarter and $ 19,846 for the year. The company reported cash, cash equivalents, and investments of $220.9 million and no debt, and it repurchased 2.7 million shares of Class A common stock for $11.3 million.
The fiscal 2027 outlook embeds a more difficult growth setup. Q1 2027 net revenue is guided to $323 million - $328 million, or (5.6)% - (4.1)% YoY, and fiscal-year net revenue is guided to $1.310 billion - $1.360 billion, or (2.8)% - 0.9% YoY. Management attributed the first-quarter setup to fourth-quarter shipment timing and an August post-checkout offer-flow change that limited the number of clients eligible to request another Fix. Fiscal-year adjusted EBITDA is guided to $27 million - $42 million as the company increases investment in advertising and technology, including artificial intelligence, and it expects gross margin between 43% and 44% and positive free cash flow for the full year.
Management, verbatim
Fiscal 2026 was a transformative year for Stitch Fix. We closed the year as a significantly healthier business, with a strengthened operating foundation, along with a reimagined client experience and more compelling assortment.
Matt Baer, CEO, Stitch Fix
We remain confident in our transformation strategy and ability to advance our efforts to deliver the most personalized and client-centric shopping experience as we navigate a challenging consumer environment.
Matt Baer, CEO, Stitch Fix
Not in the filing
stated, not guessed- Prior-period guidance was not provided, so no comparison of actual results with prior guidance is available.
- Segment revenue was not reported.
- Q4 fiscal 2026 operating cash flow and Free Cash Flow quarter-over-quarter comparisons were not reported.
- Fiscal 2027 operating-expense guidance was not reported.
- Fiscal 2027 tax-rate guidance was not reported.
- GAAP net income (loss) guidance and GAAP operating-cash-flow guidance were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.