Stitch Fix (SFIX) Q4 2025 earnings summary

Executive summary

• Achieved two consecutive quarters of year-over-year revenue growth on an adjusted basis, with Q4 revenue of $311.2 million exceeding guidance and gaining share in the U.S. apparel market.

• Transformation strategy advanced to the growth phase, focusing on client-centric experience, operational efficiency, and innovation in personalization using generative AI and stylists.

• Maintained strong cost discipline, removing over $120 million in SG&A expenses in FY25 and achieving the highest contribution margin in a decade.

• Active client growth rates improved for five consecutive quarters, with 90-day new client LTVs at three-year highs.

• Ended FY 2025 with positive free cash flow, no debt, and $242.7 million in cash, cash equivalents, and investments.

Financial highlights

• FY 2025 net revenue was $1.27 billion, down 3.7% year-over-year on an adjusted basis; second half revenue grew 2.5%.

• Q4 net revenue was $311.2 million, up 4.4% year-over-year (adjusted), with gross margin at 43.6% and adjusted EBITDA margin at 2.8%.

• FY 2025 adjusted EBITDA was $49.1 million (3.9% margin), up 170 basis points from FY 2024.

• Q4 net loss was $8.6 million (net loss margin 2.8%); FY 2025 net loss $28.8 million (net loss margin 2.3%).

• Ended FY 2025 with $242.7 million in cash, cash equivalents, and investments, and no debt.

Outlook and guidance

• FY 2026 net revenue expected between $1.28 billion and $1.33 billion, projecting 1–5% year-over-year growth and full-year revenue growth for the first time since FY 2021.

• FY 2026 adjusted EBITDA expected between $30 million and $45 million; free cash flow positive for the year.

• Q1 FY 2026 revenue expected between $333 million and $338 million; adjusted EBITDA between $8 million and $11 million.

• FY 2026 gross margin projected between 43% and 44%; advertising costs to be 9–10% of revenue.

• Expect quarter-over-quarter increase in active clients in Q3 FY 2026.