Stitch Fix Surpasses Q3 FY26 Forecasts, Raises Full‑Year Outlook

American online personal styling platform Stitch Fix reported third‑quarter fiscal 2026 (FY26) net revenue of $340.3 million, a 4.7 % year‑over‑year increase that marks the company’s fifth consecutive quarter of adjusted revenue growth. Both revenue and adjusted EBITDA exceeded internal expectations, with adjusted EBITDA reaching $13.2 million.

Active clients stood at 2.309 million, up 0.9 % sequentially but down 1.9 % from the prior year. Net revenue per active client rose 6.6 % YoY to $578, reflecting stronger customer engagement and spending. “In Q3, we delivered another strong quarter, reporting our fifth consecutive quarter of YoY revenue growth on an adjusted basis, with both revenue and adjusted EBITDA exceeding our expectations,” said Matt Baer, chief executive officer of Stitch Fix.

The gross margin was 43.7 %, down 50 basis points from the prior‑year period. Stitch Fix recorded a net loss of $1.5 million (0.4 % margin) and a diluted loss per share of $0.01, a notable improvement over previous periods. Adjusted EBITDA of $13.2 million represented a 3.9 % margin. The company generated $11.8 million in operating cash flow and $6.5 million in free cash flow during the quarter.

“We also hit a significant milestone with sequential growth in active clients. These results reflect our team’s consistent execution of our strategy and underscore that the improvements we have made to our client experience and assortment are resonating,” added Baer.

Gross margin expected to remain above 43 %

For the fourth quarter of FY26 (ending August 1), Stitch Fix forecasts net revenue of $322 million to $327 million, representing 3.5 %–5.1 % YoY growth, and adjusted EBITDA of $7 million to $10 million (2.2 %–3.1 % margin).

For the full fiscal year, the company raised its guidance to net revenue of $1.346 billion‑$1.351 billion (up 6.2 %–6.6 % YoY) and adjusted EBITDA of $49 million‑$52 million (3.7 %–3.9 % margin). Stitch Fix expects full‑year gross margin between 43 % and 44 %, advertising expense of 9 %–10 % of revenue, and positive free cash flow.

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