Stitch Fix (SFIX) AI Stock Analysis

• Market Cap: $439.51M
• Dividend Yield: N/A
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.09
• Revenue Growth: -0.08%
• EPS Growth: 73.05%
• Country: US
• Employees: 4,570
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.02
• Shares Outstanding: 118,645,940
• 10 Day Avg. Volume: 2,925,466
• 30 Day Avg. Volume: 2,144,668
• PEG Ratio: 0.25
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 62.30
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 0.66
• Enterprise Value/Ebitda: 93.19
• 1Y Price Target: $4.50
• Price Target Upside: 37.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.2
• Revenue Forecast (FY): $1.34B

• Rating: 54 Neutral
• Price Target: $3.50 ▲(6.71% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by improving fundamentals and strong cash flow, supported by constructive FY2026 guidance and operating momentum from the latest earnings call. Offsetting these positives are still-negative profitability/returns, weak technical trend signals (below key moving averages with negative MACD), and an unfavorable valuation profile due to losses and no dividend support.

Positive Factors

Cash generation

Consistent positive TTM operating and free cash flow indicates the business is generating internal funding to support inventory, marketing, and transformation investments. Durable cash generation reduces refinancing risk and helps fund growth while management works toward sustained profitability.

Sustained contribution & gross margins

Sustained contribution margins above 30% and a mid-40s gross margin reflect structural assortment, pricing, and cost discipline gains. These margin levels provide a durable buffer for variable operating costs and support the path to EBITDA profitability even if top-line growth moderates.

AI and product-driven engagement

High engagement and large lift from AI-driven features and new product formats indicates durable product differentiation and higher wallet share potential. Improved personalization can raise lifetime value and lower acquisition costs as adoption scales across the active client base.

Negative Factors

Negative returns / profitability

Negative ROE and lingering operating losses show the company has not yet converted margin improvements into acceptable capital returns. Until net profitability sustainably turns positive, equity holders face dilution or reinvestment risk and limited return on invested capital.

Active-client base rebuilding

Modest near-term client growth implies revenue expansion will rely heavily on higher spend per client rather than broad customer acquisition. A prolonged rebuild timeline constrains durable revenue scale and makes recovery sensitive to retention, marketing effectiveness, and macro discretionary spend trends.

Inventory buildup risk

An elevated inventory position increases the risk of markdowns and working-capital strain if demand softens. Higher inventory ties up cash generation and could compress gross margins over multiple quarters, making margin and free-cash-flow sustainability more contingent on demand execution.

Stitch Fix Business Overview & Revenue Model

Company Description

Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile application in the United States. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags for men, women, and kids under the Stitch Fix brand. The company was formerly known as rack habit inc. and changed its name to Stitch Fix, Inc. in October 2011. Stitch Fix, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.

How the Company Makes Money

Stitch Fix makes money primarily by selling apparel and accessories directly to clients. Its core revenue stream comes from the Stitch Fix “Fix” experience: a client requests a Fix, receives a shipment of curated items selected using a mix of stylist input and data science, keeps and pays for the items they want, and returns the rest. The company also charges a styling fee for a Fix, which is typically credited toward purchases in that shipment, meaning Stitch Fix earns revenue from both the styling service fee (to the extent not offset by credits/discounting) and, predominantly, the merchandise sold. Additional revenue is generated through its direct-buy shopping functionality (where available), which allows clients to purchase items without requesting a Fix, functioning as a more traditional online retail channel. Key factors influencing earnings include merchandise pricing and mix, client retention and order frequency, inventory buying and management (including markdowns and returns), and shipping/fulfillment efficiency. Stitch Fix sources inventory from third-party brands and also sells private-label apparel, with private-label and exclusive assortments potentially supporting gross margin through differentiated product and pricing control. Significant partnerships are not null, but specific material partner names and their quantitative contribution to revenue are null.

Stitch Fix Financial Statement Overview

Summary

Cash flow is a clear strength with positive TTM operating cash flow (~$45.8M) and free cash flow (~$27.7M) alongside a strong rebound, but overall profitability is still weak (negative net margin and negative ROE). Balance sheet leverage is described as manageable, yet returns remain negative, keeping the financial profile in “improving but not stabilized” territory.

Income Statement

TTM (Trailing-Twelve-Months) results show a modest return to top-line growth (revenue up 2.3%) and a stable gross margin around 44%, but profitability remains negative (net margin about -1.9%, with operating losses still present). The multi-year trend highlights a sharp revenue decline from 2022–2024 and sustained losses, although the loss profile has improved meaningfully versus 2023–2024 levels.

Balance Sheet

Leverage looks manageable with debt-to-equity improving to ~0.39 in TTM (Trailing-Twelve-Months) from higher levels in 2022–2024, and equity remains positive. However, returns on equity are still negative (about -12% TTM), indicating the capital base is not yet earning an acceptable return and profitability needs to stabilize to further strengthen the balance sheet.

Cash Flow

Cash generation is a relative bright spot: TTM (Trailing-Twelve-Months) operating cash flow (~$45.8M) and free cash flow (~$27.7M) are positive, with a very strong year-over-year free cash flow rebound versus the prior annual period. The main weakness is that cash flow conversion remains modest (operating cash flow is low relative to revenue), so sustaining positive free cash flow likely depends on continued operating discipline.

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	1.32B	1.27B	1.34B	1.59B	2.02B	2.10B
Gross Profit	577.54M	562.94M	592.04M	675.61M	886.67M	947.64M
EBITDA	4.11M	-1.90M	-88.94M	-113.16M	-148.76M	-33.43M
Net Income	-24.97M	-28.74M	-128.84M	-171.97M	-207.12M	-8.88M
Balance Sheet
Total Assets	507.81M	480.62M	486.86M	614.48M	764.53M	819.15M
Cash, Cash Equivalents and Short-Term Investments	227.71M	234.85M	246.97M	257.60M	212.98M	231.33M
Total Debt	80.60M	93.51M	117.50M	154.76M	170.35M	147.32M
Total Liabilities	298.48M	277.64M	299.84M	367.17M	441.88M	358.30M
Stockholders Equity	209.34M	202.98M	187.02M	247.31M	322.65M	460.85M
Cash Flow
Free Cash Flow	27.70M	9.28M	14.24M	38.82M	9.04M	-50.93M
Operating Cash Flow	45.75M	25.18M	28.21M	57.83M	55.40M	-15.68M
Investing Cash Flow	-21.62M	-59.12M	-78.74M	64.33M	10.23M	39.09M
Financing Cash Flow	-18.70M	-14.97M	-15.49M	-15.54M	-60.25M	-38.88M

Stitch Fix Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFIX, the sentiment is Negative. The current price of 3.28 is below the 20-day moving average (MA) of 3.33, below the 50-day MA of 4.29, and below the 200-day MA of 4.57, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 36.42 is Neutral, neither overbought nor oversold. The STOCH value of 56.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFIX.

Stitch Fix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JILL	65 Neutral	$231.42M	6.21	28.75%	2.25%	-2.67%	-22.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SFIX	54 Neutral	$439.51M	-60.75	-12.23%	―	-0.08%	73.05%
TLYS	50 Neutral	$81.97M	-2.54	-21.26%	―	-8.31%	36.10%
CURV	45 Neutral	$124.00M	-4.82	―	―	-7.33%	-114.80%
RENT	45 Neutral	$150.26M	0.05	-6.46%	―	2.91%	94.12%
PLCE	44 Neutral	$80.25M	-9.20	289.32%	―	-10.09%	81.44%

Stitch Fix Corporate Events

Stitch Fix Extends Credit Agreement Maturity Date

On December 11, 2025, Stitch Fix, Inc. extended the maturity date of its first lien credit agreement with Citibank, N.A. from December 4, 2026, to December 11, 2028, without materially modifying other terms. Additionally, during its 2025 Annual Meeting of Stockholders, the company elected two Class II directors, approved executive compensation, and ratified Deloitte & Touche LLP as its independent auditor for the fiscal year ending August 1, 2026.

The most recent analyst rating on (SFIX) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Stitch Fix stock, see the SFIX Stock Forecast page.