Stitch Fix Reports Q2 2025 Financial Results

Stitch Fix ( (SFIX) ) has released its Q2 earnings. Here is a breakdown of the information Stitch Fix presented to its investors.

Stitch Fix, Inc. is a leading online personal styling service that combines expert stylists with AI algorithms to provide personalized clothing recommendations, operating primarily in the e-commerce and fashion industry.

In its second quarter of fiscal year 2025, Stitch Fix reported a net revenue of $312.1 million, reflecting a 5.5% decrease year-over-year. Despite the revenue decline, the company noted improvements in its gross margin and revenue per active client, indicating positive responses to its ongoing transformation strategy.

Key financial highlights include a gross margin increase to 44.5%, driven by higher average order values, and a rise in net revenue per active client by 4.3% year-over-year to $537. However, the company faced a net loss of $6.6 million, with a diluted loss per share of $0.05. Active clients decreased by 2.6% quarter-over-quarter, totaling 2,371,000. Stitch Fix maintained a strong cash position with $229.8 million in cash and investments and no debt.

Looking ahead, Stitch Fix anticipates net revenue for the third quarter of fiscal 2025 to range between $311 million and $316 million, with an adjusted EBITDA margin of 2.3% to 3.2%. The company remains focused on its strategy to enhance client experiences and drive long-term growth, aiming to return to revenue growth in fiscal year 2026.