Stitch Fix Q1 revenues increase 7.3 percent

Stitch Fix, Inc., the online personal styling leader, reported a strong start to fiscal 2026 with first-quarter net revenue accelerating 7.3 percent year-over-year to 342.1 million dollars, reflecting successful execution of its transformation strategy.

CEO Matt Baer credited the gains to leveraging GenAI technology, stylist expertise, and a strong brand assortment.

Despite net revenue growth, the company saw a 5.2 percent year-over-year decrease in active clients to 2.307 million, though net revenue per active client increased 5.3 percent to 559 dollars. Profitability showed improvement with adjusted EBITDA reaching 13.4 million dollars (3.9 percent margin), alongside positive free cash flow of 5.6 million dollars.

Looking ahead, Stitch Fix projects Q2 2026 net revenue between 335 million dollars and 340 million dollars and updated its full-year fiscal 2026 outlook, now forecasting net revenue of 1.32 billion dollars to 1.35 billion dollars (up between 4.2 percent - 6.5 percent) and adjusted EBITDA between 38 million dollars and 48 million dollars, while maintaining expectations to be free cash flow positive for the full year.