Stitch Fix (SFIX) investor relations material

Executive summary

• Achieved fourth consecutive quarter of year-over-year revenue growth, with Q2 FY26 revenue up 9.4% to $341.3 million, exceeding outlook.

• Net loss narrowed to $2.7 million, with diluted loss per share of $0.02; active clients declined 3.5% year-over-year to 2.288 million, but revenue per active client rose 7.4% to $577.

• Adjusted EBITDA was $15.9 million (4.7% margin), with gross margin at 43.6%.

• Transformation strategy, including assortment improvements and AI features, drove increased client engagement and market share gains.

• Ended Q2 with $240.5 million in cash and investments and no debt.

Financial highlights

• Gross margin was 43.6%, down 90 basis points year-over-year but above the midpoint of FY26 guidance.

• Adjusted EBITDA was $15.9 million (4.7% margin); free cash flow for the quarter was $3.4 million.

• SG&A as a percentage of revenue decreased to 45.0% for the quarter.

• Inventory increased 11.4% year-over-year to $122.1 million, reflecting demand and assortment investments.

• Cash, cash equivalents, and investments totaled $240.5 million, with no debt outstanding.

Outlook and guidance

• FY26 net revenue expected between $1.33 billion and $1.35 billion; adjusted EBITDA between $42 million and $50 million; gross margin 43%-44%.

• Q3 FY26 net revenue guidance is $330–$335 million; adjusted EBITDA $7–$10 million.

• Full-year advertising costs expected at 9%-10% of revenue.

• Sequential net active client adds expected to be positive in Q3; goal to return to year-over-year active client growth in FY27.

• Management expects macroeconomic uncertainty to continue impacting consumer discretionary spending.