Stitch Fix Reports Decline in Net Revenue

By Philip Seaworth • Thursday, September 25 06:00 • 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 reported a 2.6% year-over-year decrease in net revenue for Q4 2025, which 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, the company reported a 5.3% year-over-year decrease in net revenue, which decreased by 3.7% year-over-year on an adjusted basis. The gross margin for the full fiscal year 2025 expanded to 44.4%, reflecting an increase of 10 basis points year-over-year.

In Q4 2025, Stitch Fix reported a net loss of $8.6 million and a net loss margin of 2.8%, with diluted loss per share of $0.07. The adjusted EBITDA was $8.7 million, with an adjusted EBITDA margin of 2.8%. The company also reported net cash provided by operating activities of $7.0 million and free cash flow of $2.8 million. Stitch Fix ended the quarter with $242.7 million in cash, cash equivalents, and investments, and no debt.

For the full fiscal year 2025, Stitch Fix reported a net loss of $28.8 million and a net loss margin of 2.3%, with diluted loss per share of $0.22. The adjusted EBITDA for the full fiscal year 2025 was $49.1 million, with an adjusted EBITDA margin of 3.9%. The company also reported net cash provided by operating activities of $25.6 million and free cash flow of $9.3 million.

Looking ahead to the first quarter of fiscal 2026, ending November 1, 2025, Stitch Fix has provided a financial outlook with a projected net revenue of $333 million to $338 million, representing a 4.4% to 6.0% year-over-year increase, and adjusted EBITDA of $8 million to $11 million, with a margin of 2.4% to 3.3%.

For the full fiscal year 2026, Stitch Fix anticipates a net revenue of $1.28 billion to $1.33 billion, representing a 1.0% to 5.0% year-over-year increase, and an adjusted EBITDA of $30 million to $45 million, with a margin of 2.3% to 3.4%. The company expects the gross margin for fiscal year 2026 to be between 43% and 44% and advertising expense as a percentage of revenue to be between 9% and 10%. Additionally, Stitch Fix anticipates being free cash flow positive for the full year. Today the company's shares have moved -0.46% to a price of $5.435. If you want to know more, read the company's complete 8-K report here.

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