Stitch Fix shares rise 10.64% intraday as GenAI-driven model reverses revenue declines and boosts RPAC growth.

Stitch Fix surged 10.64% intraday trading following reports that its GenAI-driven stylist model reversed 2024 revenue declines, achieving 7.3% YoY growth in Q1 FY2026. The news highlighted rising net revenue per active client (5.3% YoY) and 44.4% gross margin expansion, signaling improved pricing power and operational efficiency. Additionally, the company’s $244.2M cash reserves and free cash flow positivity in FY2026 bolstered investor confidence in its turnaround durability. These developments aligned with the stock’s sharp intraday rise, as improved financial metrics and strategic AI integration reinforced optimism about its competitive positioning despite ongoing active client contraction.