Stitch Fix (SFIX) AI Stock Analysis

• Market Cap: $683.07M
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.00
• Revenue Growth: -0.08%
• EPS Growth: 73.05%
• Country: US
• Employees: 4,570
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.05
• Shares Outstanding: 118,645,940
• 10 Day Avg. Volume: 1,783,948
• 30 Day Avg. Volume: 2,290,508
• 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: 0.59
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 0.71
• Enterprise Value/Ebitda: -65.24
• 1Y Price Target: $5.00
• Price Target Upside: -1.77% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.2
• Revenue Forecast (FY): $1.34B

• Rating: 54 Neutral
• Price Target: $5.00 ▼(-1.77% Downside)

Stitch Fix's overall stock score reflects significant financial challenges, particularly in profitability and cash flow management. However, the positive momentum in technical analysis and encouraging earnings call results, including revenue growth and strategic AI integration, provide some optimism. Valuation remains a concern due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

The 7.3% YoY revenue growth indicates strong market demand and successful execution of strategic initiatives, enhancing long-term business prospects.

AI and Technology Integration

The integration of AI technologies enhances client engagement and operational efficiency, providing a competitive edge and supporting sustainable growth.

Client Engagement

Increased client engagement and spending per client reflect strong customer loyalty and the effectiveness of personalization strategies, driving future revenue.

Negative Factors

Profitability Challenges

Persistent profitability issues and weak cash generation can hinder investment in growth initiatives and impact long-term financial health.

Gross Margin Decline

Declining gross margins due to increased costs and tariffs may pressure profitability, requiring strategic adjustments to maintain financial stability.

Cash Flow Challenges

Declining free cash flow growth suggests liquidity challenges, limiting the company's ability to invest in growth and manage financial obligations effectively.

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 through its subscription model, where customers pay a styling fee for personalized clothing selections. This fee is credited towards any purchases made from the 'Fix' received. The company generates revenue by selling clothing and accessories, with customers typically purchasing a portion of the items sent in their curated boxes. Additionally, Stitch Fix offers a direct buy option on its website, where customers can shop items outside of the subscription model. Key revenue streams include the styling fees, sales from 'Fixes', and direct purchases. The company also leverages data analytics to optimize its inventory and personalize the shopping experience, which helps drive customer retention and repeat purchases, contributing significantly to its earnings.

Stitch Fix Financial Statement Overview

Summary

Stitch Fix faces significant financial challenges with declining revenues and persistent losses, leading to negative profitability metrics. While there is some improvement in leverage, the overall financial health remains precarious with negative equity returns and weak cash flow generation.

Income Statement

Stitch Fix's income statement reveals significant challenges. The company has experienced a sharp decline in revenue, with a TTM revenue growth rate of -65.3%. Profitability metrics are concerning, with negative net profit and EBIT margins, indicating ongoing losses. The gross profit margin remains relatively stable at around 44%, but overall, the company is struggling to achieve profitability.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.43 in the TTM period, which is an improvement from previous years. However, the return on equity remains negative, reflecting ongoing losses. The equity ratio is relatively low, indicating a higher reliance on debt financing. Overall, the balance sheet suggests financial instability with potential risks due to negative equity returns.

Cash Flow

Cash flow analysis indicates some positive aspects, such as a positive operating cash flow in the TTM period. However, free cash flow has declined, and the free cash flow growth rate is negative. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to net losses. While there are signs of cash flow management, the overall cash flow position remains weak.

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

Stitch Fix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFIX, the sentiment is Neutral. The current price of 5.09 is below the 20-day moving average (MA) of 5.25, above the 50-day MA of 4.71, and above the 200-day MA of 4.41, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 51.52 is Neutral, neither overbought nor oversold. The STOCH value of 51.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SFIX.

Stitch Fix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JILL	61 Neutral	$226.13M	6.83	28.98%	2.25%	-2.67%	-22.93%
RENT	55 Neutral	$286.49M	-7.08	―	―	2.91%	94.12%
SFIX	54 Neutral	$683.07M	-23.05	-14.67%	―	-0.08%	73.05%
TLYS	48 Neutral	$50.59M	―	-34.77%	―	-8.31%	36.10%
CURV	45 Neutral	$114.08M	-51.80	―	―	-7.33%	-114.80%
PLCE	38 Underperform	$112.83M	-1.93	―	―	-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.