Stitch Fix, Inc. announced its financial results for the fourth quarter and full fiscal year 2025, ended August 2, 2025, reporting strong performance that exceeded expectations. For Q4 FY25, net revenue decreased 2.6% year-over-year, but increased 4.4% on a 13-week adjusted basis, while net revenue per active client grew 3.0% year-over-year to $549. The company reported a Q4 net loss of 7 cents per share, beating the consensus estimate of a 10-cent loss, on revenue of $311.22 million, which surpassed the Street estimate of $305.83 million.
For the full fiscal year 2025, total revenue was $1.27 billion, a 5.3% year-over-year decrease, but adjusted revenue grew 2.5% year-over-year in the latter half of the fiscal year. The net loss significantly narrowed to -$28.74 million from -$128.84 million in FY24, and Adjusted EBITDA reached $49.1 million, representing a 3.9% margin and a 170 basis point expansion year-over-year. The company achieved its highest contribution margin in a decade and ended the year with positive free cash flow of $9.3 million, maintaining a debt-free balance sheet with $114 million in cash and $128.80 million in investments.
Looking ahead, Stitch Fix provided optimistic guidance for fiscal year 2026, projecting total revenue between $1.28 billion and $1.33 billion, which would mark a return to full-year revenue growth for the first time since fiscal year 2021. Adjusted EBITDA is expected to range from $30 million to $45 million, and the company anticipates remaining free cash flow positive for the full year. Management expects active client year-over-year growth rates to continue improving through FY26, with a quarter-over-quarter increase in net additions by Q3 FY26, driven by successful execution of its transformation strategy and AI-driven personalization.
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