Start here if you're new
what it is
Stitch Fix sends you curated clothes, shoes, and accessories, then lets you keep what fits and return the rest.
how it gets paid
Last year Stitch Fix made $1.3B in revenue. Women's apparel was the main engine at $0.45B, or 35% of sales.
why growth slowed
Revenue fell 5.3% last year on the ~$1.3B base. The old $683M “quarter” line was not a clean fit next to that annual math — treat quarterly prints like the ~$341M Q2 FY26 number as the real scale check.
what just happened
Last reported quarter (Q2 FY26): about $341M revenue and −$0.02 EPS — a modest beat vs expectations, not a half‑billion single quarter.
At a glance
B balance sheet — gets the job done, barely
30/100 earnings predictability — expect surprises
-$0.22 fy2025 eps est
$1B fy2025 rev est
−3.1% operating margin — still losing money at the operating line
xvary composite: 47/100 — below average
What they do
Stitch Fix sends you curated clothes, shoes, and accessories, then lets you keep what fits and return the rest.
Stitch Fix has about 2.29M active clients, so the system already knows your size and taste. Data science narrows the choices, and stylists make the final pick, which is why leaving means starting over somewhere else. The whole loop is sticky shopping, not a one-off order.
How they make money
$1.3B
annual revenue · their business grew -5.3% last year
Women's apparel
$0.45B
Men's apparel
$0.23B
Shoes
$0.17B
Accessories
$0.20B
Direct Buy
$0.25B
The products that matter
curated clothing shipments
Stitch Fix Service
$1.1B · core business
average order value rose 9.8% last quarter. that's the number carrying the story while the active client base sits at about 2.29M and keeps shrinking.
higher spend per box
direct purchase marketplace
Freestyle
$195M · roughly 15% mix
this $195M segment gives existing clients a way to buy one item at a time, but flat growth means it is not yet the second engine a turnaround would love to have.
helpful, not decisive
Key numbers
$1.3B
annual revenue
That is the size of the machine. A 1% move is about $13M.
2.29M
active clients (approx.)
That is the customer pool behind every Fix.
−3.1%
operating margin
You are still losing about $3.10 on every $100 of sales before interest and taxes — the KPI had dropped the minus sign.
$64M
long-term debt
That debt is 13% of capital, so the balance sheet is not fragile, but it is not free.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $64M (13% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SFIX right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Q2 FY26: ~$341M revenue and −$0.02 EPS — both ahead of the Street.
Gross margin held near 43.6%. Operating margin stayed negative (~−3.1%), so the beat was discipline, not a sudden flip to profitability. Drop the old $683M / 2× $339M story — it did not reconcile to the ~$1.3B year.
$341.3M
Q2 FY26 revenue
−$0.02
Q2 FY26 eps
43.6%
gross margin (Q2)
the number that mattered
A ~$341M quarter that cleared estimates while the model still runs slightly underwater at the operating line — the tension bulls and bears both point to.
source: company earnings report, 2026
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What could go wrong
The #1 risk is active client attrition in a styling model that still needs scale.
med
Active client erosion
Active clients fell to 2.288M from 2.434M over five quarters. If that line keeps going the wrong way, higher spend per client stops looking like strength and starts looking like compensation.
The model needs a large base to spread styling, marketing, and fulfillment costs. Fewer clients make the turnaround math harder.
med
Freestyle is not offsetting the core business yet
Freestyle is a $195M business and roughly 15% of mix here, but growth was flat. That means the company still leans on the legacy Fix model for most of the story.
If the second engine does not accelerate, you are left with one business doing all the heavy lifting.
med
The beat quality could fade
Q2 FY26 revenue of $341.3M and EPS of -$0.02 beat expectations, but a 30 / 100 earnings predictability score says surprises cut both ways.
Turnaround stocks get punished fast when the first clean quarter is followed by a messy one.
med
Balance sheet time is finite
$240.5M in cash versus $64M in long-term debt gives management room, not immunity. Cash cushions turnarounds. They do not complete them.
If growth stalls again, the balance sheet shifts from strategic asset to countdown clock.
A business doing roughly $1B in annual revenue is still trying to prove it can keep clients, not just extract more from the ones who stayed.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q3 FY26 earnings report
Expected around june 9, 2026. You want the next quarter to show the same revenue discipline without another step down in active clients.
metric
Active client count
~2.29M active clients is the entire story. If that base keeps shrinking, revenue per client has to work harder every quarter.
guidance
FY26 revenue range
Management guided to $1.33B–$1.35B. Hitting that range would extend the recovery narrative. Missing it would damage management credibility fast.
segment risk
Freestyle growth
Freestyle was flat on $195M. If it stays flat, the company remains a one-engine turnaround when it needs two.
Analyst rankings
earnings predictability
30 / 100
Low predictability means the quarter-to-quarter numbers can move around more than you want. In human-speak: analysts do not trust this business to print cleanly every time.
risk rank
3
This sits around the middle of the pack on overall risk. Safer than the wildest names, but still nowhere near a sleep-well holding.
source: institutional data
Institutional activity
institutional ownership data for SFIX is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$5
current price
n/a
target midpoint · n/a from current
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