Stitch Fix reported $1.35 billion in revenue for fiscal 2026, an increase of 6.4% year over year, supported by its efforts to improve personalized shopping, expand its merchandise assortment, and strengthen its operating model.
The San Francisco-based online personal styling company also generated $53.4 million in adjusted EBITDA and $19.8 million in free cash flow during the year, although it continued to report a GAAP net loss.
For the fourth quarter ended August 1, 2026, Stitch Fix reported $324.4 million in revenue, an increase of 4.2% from the comparable period of fiscal 2025.
Quarterly gross margin remained unchanged at 43.6%.
The company reported a $2.1 million net loss, equivalent to a diluted loss of $0.02 per share.
Adjusted EBITDA reached $10.8 million, representing an adjusted EBITDA margin of 3.3%.
Stitch Fix also generated $9.1 million in operating cash flow and $4.4 million in free cash flow during the quarter.
The company’s active customer base declined modestly.
Stitch Fix ended the quarter with 2.277 million active clients, representing a decrease of 1.4% both sequentially and year over year.
However, revenue per active client increased 7.8% to $592, indicating higher spending among its remaining active customer base.
For the full fiscal year, Stitch Fix generated $588.5 million in gross profit, an increase of 4.5%.
Its annual gross margin declined by 70 basis points to 43.7%.
The company’s full-year net loss reached $12.6 million, equivalent to a diluted loss of $0.09 per share.
Adjusted EBITDA of $53.4 million represented a margin of 4%.
Operating cash flow totaled $39.1 million, while free cash flow reached $19.8 million.
Stitch Fix also repurchased approximately 2.7 million Class A shares for $11.3 million during the fourth quarter.
The company ended fiscal 2026 with $220.9 million in cash, cash equivalents, and investments and no debt.
Management continues investing in artificial intelligence and recommendation technology as part of its broader transformation strategy.
Stitch Fix combines human stylists with proprietary algorithms to deliver personalized clothing and accessory recommendations.
The company has been working to improve its product assortment, customer engagement, and shopping experience while maintaining financial discipline.
Despite revenue growth during fiscal 2026, management expects a more challenging consumer environment in fiscal 2027.
The company also enters the new fiscal year with a smaller active customer base, which is expected to affect near-term revenue growth.
For the first quarter of fiscal 2027, Stitch Fix expects revenue between $323 million and $328 million, representing a year-over-year decline of approximately 4.1% to 5.6%.
Adjusted EBITDA is expected to range from $3 million to $6 million.
The company attributed part of its first-quarter outlook to changes in shipment timing that shifted some customer orders into the fourth quarter of fiscal 2026.
An unintended August change to its post-checkout process also temporarily reduced the number of customers eligible to request another shipment. Stitch Fix said the issue has been corrected and will not affect results beyond the first quarter.
For the full fiscal year, the company expects revenue between $1.31 billion and $1.36 billion, compared with $1.35 billion in fiscal 2026.
Adjusted EBITDA is projected to range from $27 million to $42 million, reflecting planned investments in advertising and technology, including AI.
Management expects a full-year gross margin of 43%-44% and anticipates generating positive free cash flow.
KEY QUOTE:
“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. Full-year revenue grew 6.4% year-over-year and we continued to gain share in the U.S. apparel, footwear and accessories market. 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 Of Stitch Fix
