Stitch Fix (SFIX) Q4 FY2026 Earnings Call: Record RPAC, Cautious FY2027 Outlook
Source Tradingkey
Key Takeaways
- Stitch Fix (NASDAQ: SFIX) reported fiscal Q4 2026 revenue of $324.4 million, up 4.2% year over year and marking its sixth consecutive quarter of positive revenue comparisons.
- Full-year revenue increased 6.4% to $1.35 billion. Adjusted EBITDA margin reached 4%, while free cash flow was positive at $19.8 million.
- Revenue per active client, or RPAC, rose 7.8% to a record $592. This offset a 1.4% year-over-year decline in active clients to 2.277 million.
- Management expects fiscal 2027 revenue of $1.31 billion to $1.36 billion and adjusted EBITDA of $27 million to $42 million, reflecting higher customer acquisition costs and weaker discretionary spending.
- Q1 fiscal 2027 Fix volume is being affected by two temporary factors: shipment timing that moved volume into Q4 2026 and an August post-checkout issue that reduced repeat Fix requests. The company said both issues have been resolved.
- Stitch Fix plans to increase advertising spending to 10%-11% of fiscal 2027 revenue and invest further in technology and AI, including Stitch Fix Vision.
Core Financial Data
| Metric | Q4 FY2026 | Change / Commentary |
|---|---|---|
| Revenue | $324.4 million | Up 4.2% year over year |
| Active clients | 2.277 million | Down 1.4% year over year and sequentially |
| Revenue per active client | $592 | Up 7.8%; third consecutive quarterly record |
| Average order value | — | Up 4.9% year over year |
| Gross margin | 43.6% | Flat year over year |
| Advertising expense | 9.9% of revenue | Higher acquisition costs remained a headwind |
| Adjusted EBITDA | $10.8 million | Margin of 3.3%, up 50 basis points year over year |
| Share repurchases | $11.3 million | 2.7 million shares repurchased |
| Metric | FY2026 | Change / Commentary |
|---|---|---|
| Revenue | $1.35 billion | Up 6.4% year over year |
| Gross margin | 43.7% | Within the company’s 43%-44% target range |
| SG&A expense | 45.3% of revenue | Improved by more than 220 basis points |
| Adjusted EBITDA margin | 4.0% | Expanded year over year |
| Net loss | $12.6 million | Loss of $0.09 per share |
| Free cash flow | $19.8 million | Positive for the year |
| Cash, cash equivalents and investments | $220.9 million | No debt at year-end |
| Share repurchases | $26.4 million | 7.2 million shares; $93.6 million remains authorized |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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