Stitch Fix Stock Earnings Reports

Stitch Fix reported a strong Q2 FY2026 with revenue of $341.3M, up 9.4% year-over-year and above outlook; revenue per active client (RPAC) reached a company high of $577. The business delivered disciplined margin performance (gross margin ~43.6%, contribution margin >30% for the eighth consecutive quarter) and adjusted EBITDA beat expectations at $15.9M (4.7% of revenue). Key growth drivers were improvements to assortment and brand mix (private brands and newness), expanded Fix formats (larger Fixes, themed Fixes, Freestyle), category expansion into footwear, accessories, activewear/athleisure, and new AI features (AI Style Assistant, Stitch Fix Vision) that increased engagement and Freestyle spend. Active-client trends are improving (2.3M active clients, new clients up YoY for the second consecutive quarter, reengaged clients up, highest retention in nearly four years); company expects sequential net adds in Q3 (slightly under 1% QoQ). Inventory modestly up; cash and investments $240.5M with no debt. Guidance: FY2026 revenue $1.33B–$1.35B, adjusted EBITDA $42M–$50M, free cash flow positive expected; Q3 revenue $330M–$335M, Q3 adjusted EBITDA $7M–$10M. Management stressed that AOV comps will moderate in H2 (expected AOV growth ~4–6% in back half) and signaled conservative, realistic posture given macro volatility, while highlighting durable market-share opportunity (~$1B of incremental wallet share within current clients across footwear, accessories, active/athleisure).