Stitch Fix has started fiscal 2026 with a return to top‑line growth, reporting higher revenue and client spend while still facing a smaller active client base. For the first quarter ended November 1, 2025, net revenue reached $342.1 million, representing a 7.3% year-over-year increase, as existing clients spent more per order.
Q1 fiscal 2026 headline results
In Q1 fiscal 2026, Stitch Fix generated net revenue of $342.1 million, an increase of 7.3% compared to the prior‑year period. Net revenue per active client increased to $559, up 5.3% year-over-year, indicating stronger engagement and larger average baskets.
Active clients totalled 2.307 million, down 0.1% quarter over quarter and 5.2% year over year. Gross profit reached $149.3 million, up 3.1%, with gross margin at 43.6%, 180 basis points lower than a year earlier due to higher costs and promotions.
Profitability and cash position
For the quarter, Stitch Fix reported a net loss of $6.4 million, with a net loss margin of 1.9% and diluted loss per share of $0.05. Adjusted EBITDA came in at $13.4 million, representing a 3.9% Adjusted EBITDA margin.
Net cash provided by operating activities was $10.9 million, and free cash flow totalled $5.6 million. The company ended the quarter with $244.2 million in cash, cash equivalents, and investments, and no debt on its balance sheet.
Client trends and engagement
While the active client base declined to 2.307 million, net revenue per active client climbed to $559, up 5.3% year over year. This indicates that remaining clients are spending more per Fix, supported by higher average order values and a curated assortment.
Management stated that revenue per active client has now grown year over year for seven consecutive quarters, suggesting progress in positioning Stitch Fix as a higher‑value personalized styling service even as it works to stabilize and grow its client count.
CEO commentary on Q1 performance
Matt Baer, Chief Executive Officer of Stitch Fix, said Q1 was “a strong start to the fiscal year,” highlighting that revenue growth accelerated to 7.3% year over year and that the company captured “considerable market share gains.” He attributed the performance to the continued execution of the transformation strategy.
Baer noted that Stitch Fix is increasingly becoming the retailer of choice for more of its clients’ apparel and accessories needs, referencing the use of GenAI technology alongside human stylists and a mix of exclusive and national brands to deliver a client‑centric, personalized experience.
Updated outlook for Q2 fiscal 2026
For the second quarter of fiscal 2026 ending January 31, 2026, Stitch Fix expects net revenue between $335 million and $340 million, which implies 7.3–8.9% year‑over‑year growth. Adjusted EBITDA is forecast in the range of $10 million to $13 million, corresponding to an expected margin of 3.0–3.8%.
The company also indicated it expects sequential active client growth in the second half of fiscal 2026, supported by new client experience features such as larger Fixes, themed Fixes, and more flexible account options. These changes are intended to help acquire, retain, and reactivate highly engaged clients over time.
Full‑year fiscal 2026 guidance
For full‑year fiscal 2026, Stitch Fix now projects net revenue between $1.32 billion and $1.35 billion, representing expected growth of 4.2–6.5% versus fiscal 2025. Adjusted EBITDA is forecast in the range of $38 million to $48 million, implying a margin of 2.9–3.6%.
The company expects full‑year gross margin between 43% and 44%, and full‑year advertising expense at 9–10% of revenue. Stitch Fix also reiterated its expectation of being free‑cash‑flow positive for the full year, reflecting continued discipline on costs and capital spending.
What does Q1 signal for Stitch Fix
Q1 fiscal 2026 shows Stitch Fix returning to revenue growth with stronger client monetization, even as it works through a shrinking active client base and modestly lower gross margin. The combination of higher revenue per client, positive Adjusted EBITDA, and a $244.2 million cash position gives the company room to keep investing in product, AI‑driven personalization, and new Fix formats.
If Stitch Fix can deliver on its guidance for sequential client growth and full‑year revenue and margin targets, fiscal 2026 could mark a pivot from restructuring toward more sustainable, profitable growth in its styling‑driven e‑commerce model.
