Stitch Fix 2026 Q1 Earnings Beats Revenue Estimates Amid Wider Net Loss

Stitch Fix (SFIX) reported Q1 2026 earnings on December 5, 2025, surpassing revenue estimates with 7.3% year-over-year growth to $342.13 million. The company raised full-year revenue guidance to $1.32–$1.35 billion, reflecting optimism in its turnaround strategy. Despite the revenue beat, Stitch Fix posted a net loss of $6.36 million, a 1.7% increase in the deficit compared to the prior year.

Revenue

Stitch Fix’s total revenue grew to $342.13 million in Q1 2026, driven by a 7.3% year-over-year increase. This performance exceeded Wall Street’s expectations, with net revenue aligning closely at $342.13 million. The company attributed the growth to enhanced client engagement and expanded nonapparel categories, including activewear and footwear.

Earnings/Net Income

The company maintained a GAAP EPS of -$0.05 in Q1 2026, consistent with the prior year. However, the net loss widened to $6.36 million, a 1.7% increase from $6.26 million in 2025 Q1. While revenue growth signals operational progress, the persistent net loss underscores ongoing profitability challenges.

Post-Earnings Price Action Review

The strategy of buying SFIX when revenue misses expectations and holding for 30 days resulted in a significant loss. The strategy returned -68.37%, underperforming the benchmark by 125.48%. With a maximum drawdown of 0% and a Sharpe ratio of -0.58, the strategy also indicated a high level of risk.

CEO Commentary

CEO Matt Baer highlighted Q1’s strong performance, noting 7.3% revenue growth and adjusted EBITDA of $13.4 million. Strategic priorities included leveraging generative AI for personalized experiences and expanding into activewear and accessories. Leadership raised full-year guidance, citing “compounding benefits of disciplined execution” and 9 consecutive quarters of rising new client LTVs.

Guidance

Stitch Fix guided to FY 2026 revenue of $1.32–$1.35 billion and adjusted EBITDA of $38–$48 million. Q2 revenue is expected at $335–$340 million, with adjusted EBITDA of $10–$13 million. The company anticipates free cash flow positivity for FY 2026, despite potential headwinds from inflation and tougher AOV comparisons.

Additional News

Within three weeks of the earnings report, Stitch Fix faced notable non-earnings developments. Shareholder Lake Katrina Rev Trust filed to sell 303,450 shares via Form 144, executed through Charles Schwab. Concurrently, the stock surged 20.5% year-to-date, trading at $5.27, 20.7% below its 52-week high. Zacks Investment Research reaffirmed a “Market Perform” rating, maintaining a $6.00 price target, signaling stability amid volatility.

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