Stitch Fix(US:SFIX)2025-12-04 21:11Financial Performance - Net revenue for Q1 fiscal 2026 was $342.1 million, representing a year-over-year increase of 7.3%[8] - Gross profit was $149.3 million, a 3.1% increase year-over-year, with a gross margin of 43.6%, down 180 basis points year-over-year[8] - The company reported a net loss of $6.4 million, with a diluted loss per share of $0.05[8] - Adjusted EBITDA for Q1 was $13.4 million, with an adjusted EBITDA margin of 3.9%[8] - Net revenue for the three months ended November 1, 2025, was $342,127,000, compared to $318,818,000 for the same period in 2024, reflecting a year-over-year increase of approximately 7.3%[21] - Adjusted EBITDA for the three months ended November 1, 2025, was $13,429,000, with an Adjusted EBITDA margin of 3.9%, compared to $13,494,000 and 4.2% for the same period in 2024[21] Client Metrics - Active clients decreased to 2.307 million, down 0.1% quarter-over-quarter and 5.2% year-over-year[8] - Active clients as of November 1, 2025, totaled 2,307,000, a slight decrease from 2,434,000 in the same period of 2024[23] - Net revenue per active client increased to $559, up 5.3% year-over-year[8] Financial Outlook - The financial outlook for Q2 fiscal 2026 projects net revenue between $335 million and $340 million, reflecting a year-over-year growth of 7.3% to 8.9%[5] - The updated financial outlook for fiscal year 2026 estimates net revenue between $1.32 billion and $1.35 billion, indicating a year-over-year growth of 4.2% to 6.5%[6] - The company expects a full fiscal year 2026 gross margin between 43% and 44%[6] - Stitch Fix anticipates being free cash flow positive for the full fiscal year 2026[6] Cash Flow and Expenses - Free Cash Flow for the three months ended November 1, 2025, was $5,574,000, down from $9,945,000 for the same period in 2024[22] - Net cash provided by operating activities from continuing operations was $10,913,000 for the three months ended November 1, 2025, compared to $14,268,000 for the same period in 2024[18] - Cash and cash equivalents at the end of the period were $114,494,000, down from $137,153,000 at the end of the same period in 2024[18] - The company incurred $11,496,000 in stock-based compensation expense for the three months ended November 1, 2025, compared to $12,650,000 for the same period in 2024[21] - The company reported a net decrease in cash and cash equivalents of $542,000 for the three months ended November 1, 2025, compared to a decrease of $25,709,000 for the same period in 2024[18] - The company experienced a change in inventory reserves of $2,308,000 for the three months ended November 1, 2025, compared to $4,970,000 for the same period in 2024[18]