Stitch Fix 2025 Q4 Earnings Loss Narrows, Revenue Slightly Dips

Stitch Fix reported its fiscal 2025 Q4 earnings on Sep 25th, 2025. While total revenue fell by 2.6%, the company significantly narrowed its net loss and showed positive adjusted growth. The earnings beat expectations as losses improved by 76.5% year-over-year, and the company raised its 2026 guidance, forecasting both revenue growth and positive adjusted EBITDA.

Revenue
Stitch Fix’s total revenue for Q4 2025 declined by 2.6% year-over-year to $311.23 million. However, on a 13-week adjusted basis that removes the impact of the extra week in 2024’s Q4, the company recorded 4.4% year-over-year revenue growth. Net revenue per active client rose by 3.0% year-over-year to $549. Active client count stood at 2.309 million, down 1.9% from the prior quarter and 7.9% year-over-year. The gross margin for Q4 was 43.6%, a 100 basis point decline year-over-year, primarily due to transportation deleverage and lower product margins.

Earnings/Net Income
The company narrowed its net loss significantly. Stitch Fix reported a net loss of $0.06 per share in Q4 2025, a 77.9% improvement from a loss of $0.29 per share in Q4 2024. On a year-over-year basis, the net loss reduced by 76.5% to $-8.58 million from $-36.50 million. The adjusted EBITDA for Q4 2025 was $8.7 million, with an adjusted EBITDA margin of 2.8%. The full-year adjusted EBITDA for FY 2025 reached $49.1 million with a 3.9% margin. The improvement in losses reflects disciplined cost management and a strategic focus on profitability.

Price Action
The stock price of Stitch Fix edged down 1.36% during the latest trading day, plummeted 17.51% during the most recent full trading week, and dropped 7.47% month-to-date. The post-earnings price action reflects mixed sentiment in the market, balancing improved financial metrics with ongoing concerns about client retention and broader market conditions.

Post Earnings Price Action Review
Matt Baer, CEO, emphasized Stitch Fix’s strong Q4 2025 performance, highlighting 4.4% adjusted revenue growth driven by a 12% increase in average order value and expanded Fix offerings. The company’s transformation strategy—centered on personalization, client experience, and retail best practices—showed momentum, with active client growth for five consecutive quarters and record 90-day new client LTVs. Key initiatives include leveraging generative AI for personalization, enhancing client-stylist relationships through innovations like Stylist Connect, and offering greater Fix flexibility with Family Accounts. Baer expressed optimism that the company is well-positioned to outperform the U.S. apparel market and continue gaining share due to its differentiated model.

Guidance
Stitch Fix expects FY 2026 total revenue to range between $1.28 billion and $1.33 billion, with Q1 revenue between $333 million and $338 million. The company anticipates a return to full-year revenue growth, improved active client growth rates, and an increase in net adds by Q3 2026. Full-year adjusted EBITDA is projected to range between $30 million and $45 million, with Q1 adjusted EBITDA between $8 million and $11 million. The company expects a gross margin of 43% to 44% and advertising costs between 9% and 10% of revenue for FY 2026.

Additional News
Stitch Fix announced its financial results for Q4 and FY 2025, reporting net revenue of $311.2 million for Q4, a 2.6% year-over-year decline. On an adjusted basis, however, revenue grew by 4.4%. The company also highlighted a 3.0% increase in net revenue per active client to $549 and a gross margin of 44.4% for the full year, an increase of 10 basis points. During Q4, Stitch Fix ended the quarter with $242.7 million in cash, cash equivalents, and investments with no debt. The company plans to host a conference call on September 25 at 2:00 p.m. Pacific Time to discuss these results and future outlook, with a live webcast available on its investor relations website.