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

Stitch Fix (SFIX) reported fiscal 2026 Q1 earnings on Dec 5, 2025, with revenue rising 7.3% year-over-year to $342.13 million, surpassing expectations by $5.44 million. The company maintained stable GAAP EPS at -$0.05 but saw its net loss widen to -$6.36 million, a 1.7% increase from the prior year. Guidance for Q2 2026 revenue was raised to $337.5 million (midpoint), exceeding analyst forecasts by 9.6%.

Revenue

Stitch Fix’s total revenue climbed to $342.13 million in Q1 2026, reflecting a 7.3% year-over-year increase. The figure aligns with net revenue, indicating no material adjustments for returns or allowances. This growth was driven by higher average order values and expanded client engagement, despite a 5.2% decline in active clients year-over-year to 2.307 million.

Earnings/Net Income

The company reported a GAAP EPS of -$0.05, matching the prior year’s figure but underperforming the $0.01-expected loss. Net income declined to -$6.36 million, a 1.7% year-over-year expansion in losses. While the stable EPS is neutral, the increased net loss highlights ongoing profitability challenges.

Price Action

SFIX shares surged 16.36% in a single trading day, 20.47% for the week, and 23.37% month-to-date, reflecting strong post-earnings momentum.

Post-Earnings Price Action Review

The strategy of buying SFIX when revenues miss and holding for 30 days underperformed with a -3.70% return, lagging the 75.02% benchmark. Despite a 0.00% maximum drawdown, the approach’s Sharpe ratio of -0.02 and 81.77% volatility underscore high risk and moderate returns.

CEO Commentary

CEO Matt Baer emphasized 7.3% revenue growth, 4% adjusted EBITDA margins, and AI-driven personalization. Strategic priorities include expanding into activewear and footwear, leveraging generative AI tools, and boosting gifting via family accounts. Leadership expressed confidence in capturing $1 billion in incremental wallet share.

Guidance

Stitch Fix raised full-year 2026 revenue guidance to $1.32–$1.35 billion (4.2%–6.5% YoY growth) and adjusted EBITDA to $38–$48 million (2.9%–3.6% margin).

Additional News

1. Shareholder Sale: Lake Katrina Rev Trust Katrina Lake Ttee filed to sell 303,450 shares via a 10b5-1 plan, signaling potential insider liquidity.

2. AI Expansion: The CEO highlighted generative AI tools like Vision (style visualization) and AI style assistants as key growth drivers.

3. Stock Surge: Shares jumped 9.9% post-earnings amid optimism over AI integration and raised revenue guidance.