Stitch Fix Q4 2025 Financial Results

By Ahmed Jameison • Thursday, September 25 12:02 • Permanent Link

Stitch Fix, Inc. (NASDAQ: SFIX) has released its financial results for the fourth quarter and full fiscal year 2025, ended August 2, 2025. The company's net revenue for Q4 2025 decreased by 2.6% year-over-year, but increased by 4.4% on a 13-week adjusted basis. The net revenue per active client grew by 3.0% year-over-year to $549.

For the full fiscal year 2025, Stitch Fix reported a gross margin of 44.4%, showing an increase of 10 basis points year-over-year. The company's net revenue for the full fiscal year decreased by 5.3% year-over-year, but adjusting for the impact of the extra week in fiscal 2024, net revenue decreased by 3.7% year-over-year.

The company's adjusted EBITDA for Q4 2025 was $8.7 million with a margin of 2.8%, reflecting continued cost management discipline. For the full fiscal year 2025, the adjusted EBITDA was $49.1 million with a margin of 3.9%.

Stitch Fix ended Q4 2025 with $242.7 million of cash, cash equivalents, and investments, and no debt. The company also provided its financial outlook for the first quarter of fiscal 2026, with a projected net revenue of $333 million * $338 million, reflecting a 4.4% * 6.0% year-over-year increase, and adjusted EBITDA of $8 million * $11 million, representing a 2.4% * 3.3% margin.

Looking ahead to fiscal year 2026, Stitch Fix anticipates a net revenue of $1.28 billion * $1.33 billion, representing a 1.0% * 5.0% year-over-year increase, and adjusted EBITDA of $30 million * $45 million, with a margin of 2.3% * 3.4%.

The company expects its full fiscal year 2026 gross margin to be between 43% and 44% and advertising expenses as a percentage of revenue to be between 9% and 10%. Furthermore, it anticipates being free cash flow positive for the full year.

Stitch Fix has not reconciled its adjusted EBITDA outlook to GAAP net income (loss) or free cash flow outlook to net cash flows used in operating activities from continuing operations due to the uncertainty and potential variability of certain factors.

Today the company's shares have moved 3.3% to a price of $5.64. If you want to know more, read the company's complete 8-K report here.

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