Stitch Fix(US:SFIX)2025-06-10 20:09Financial Performance - Net revenue for Q3 FY 2025 was $325.0 million, representing a year-over-year increase of 0.7%[7] - The updated financial outlook for Q4 FY 2025 projects net revenue between $298 million and $303 million, a year-over-year decline of 6.7% to 5.2%[5] - For the full fiscal year 2025, net revenue is expected to be between $1.254 billion and $1.259 billion, a year-over-year decline of 6.2% to 5.9%[6] - Revenue for the three months ended May 3, 2025, was $325.016 million, a slight increase from $322.731 million for the same period last year, while revenue for the nine months ended was $955.944 million, down from $1,017.918 million[17] Client Metrics - Active clients decreased to 2,353,000, down by 18,000 or 0.8% quarter-over-quarter, and down by 280,000 or 10.6% year-over-year[7] - Active clients as of May 3, 2025, totaled 2,353,000, a decrease from 2,633,000 in April 2024, reflecting a decline of about 10.6%[24] Revenue per Client - Revenue per active client (RPAC) increased to $542, up 3.2% year-over-year[7] - Net revenue per active client increased to $542 for the three months ended May 3, 2025, compared to $525 for the same period in 2024, marking an increase of approximately 3.2%[24] Profitability and Loss - The company reported a net loss of $7.4 million, with a net loss margin of 2.3% and diluted loss per share of $0.06[7] - The net loss from continuing operations for the three months ended May 3, 2025, was $7.381 million, an improvement from a net loss of $22.017 million for the same period last year[22] - Total comprehensive loss for the three months ended May 3, 2025, was $7.469 million, compared to a comprehensive loss of $21.394 million for the same period last year[17] Margins - Gross margin was 44.2%, a decrease of 130 basis points year-over-year, primarily due to lower product margins[7] - Gross profit for the three months ended May 3, 2025, was $143.558 million, resulting in a gross margin of 44.2%, compared to a gross margin of 45.5% for the same period last year[17] - Adjusted EBITDA for Q3 FY 2025 was $11.0 million, reflecting a margin of 3.4%[7] - Adjusted EBITDA for the three months ended May 3, 2025, was $11.013 million, with an Adjusted EBITDA margin of 3.4%, compared to an Adjusted EBITDA margin of 2.1% for the same period last year[22] Cash Flow and Liquidity - The company ended Q3 FY 2025 with $242.1 million in cash, cash equivalents, and investments, with no debt[7] - Cash and cash equivalents at the end of the period were $108.915 million, down from $196.507 million at the end of the same period last year[19] - The company reported a net cash provided by operating activities from continuing operations of $18.572 million for the nine months ended May 3, 2025, compared to $20.007 million for the same period last year[19] - Net cash provided by operating activities from continuing operations for the nine months ended May 3, 2025, was $18,572,000, down from $20,007,000 for the same period in 2024, a decrease of about 7.2%[23] - Free Cash Flow for the three months ended May 3, 2025, was $15,998,000, a decrease from $18,911,000 for the same period in 2024, representing a decline of approximately 10.0%[23] - Free Cash Flow for the nine months ended May 3, 2025, was $6,507,000, down from $9,748,000 for the same period in 2024, a decrease of about 33.5%[23] Expenses - Selling, general, and administrative expenses for the three months ended May 3, 2025, were $153.266 million, a decrease from $171.818 million for the same period last year[17] - The company incurred stock-based compensation expenses of $43.658 million for the nine months ended May 3, 2025, compared to $59.911 million for the same period last year[19] Investments and Financing Activities - Purchases of property and equipment for the three months ended May 3, 2025, were $4,518,000, an increase from $2,832,000 in the same period in 2024, representing a rise of approximately 59.5%[23] - Net cash used in investing activities from continuing operations for the nine months ended May 3, 2025, was $59,689,000, compared to $39,549,000 for the same period in 2024, indicating an increase of about 50.9%[23] - Net cash used in financing activities from continuing operations for the three months ended May 3, 2025, was $4,239,000, an increase from $3,087,000 in the same period in 2024, reflecting a rise of approximately 37.2%[23] - The company reported a net cash used in financing activities of $12,432,000 for the nine months ended May 3, 2025, compared to $11,817,000 for the same period in 2024, an increase of approximately 5.2%[23] Definition of Active Client - The company defines an active client as one who checked out a Fix or was shipped an item via Freestyle in the preceding 52 weeks[25]