Stitch Fix's second-quarter performance exceeded expectations, and the stock price rose by 3%

San Francisco - Stitch Fix Inc. (NASDAQ: SFIX) reported second-quarter earnings that exceeded analyst expectations, with revenue up 9.4% year-over-year to $341.3 million, surpassing the market consensus of $334.74 million.

Following the earnings release, the stock rose 3.5%.

The online personal styling service reported an adjusted loss per share of -$0.02, better than the analyst estimate of -$0.07.

The company’s revenue growth was driven by increased customer engagement, with net revenue per active customer rising 7.4% year-over-year to $577. However, the number of active customers declined 3.5% year-over-year to 2.288 million. Gross margin contracted 90 basis points year-over-year to 43.6%. Stitch Fix’s adjusted EBITDA was $15.9 million, with a profit margin of 4.7%, and free cash flow for the quarter was $3.4 million.

CEO Matt Baer stated, “Our second-quarter performance was strong, with revenue up 9.4% year-over-year. Improvements in customer experience, product quality and breadth, as well as new AI features, resonated with customers and drove increased engagement.”

For the third quarter, Stitch Fix expects revenue between $330 million and $335 million, with a midpoint of $332.5 million, slightly below the market consensus of $335 million. The company projects adjusted EBITDA for the period between $7 million and $10 million.

For fiscal year 2026, Stitch Fix has raised its revenue guidance to between $1.33 billion and $1.35 billion, with a midpoint of $1.34 billion, in line with the market consensus of $1.339 billion. The company expects full-year adjusted EBITDA between $42 million and $50 million, with gross margin between 43% and 44%.

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