Stitch Fix (SFIX)
NASDAQ:SFIX
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Stitch Fix
(NASDAQ:SFIX)
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Rating:56Neutral
Price Target:
$3.50
▼(-9.09% Downside)
Action:Reiterated
Date:06/11/26
SFIX scores in the mid-range primarily because core financial performance is improving (revenue rebound, steadier margins, and positive TTM operating/free cash flow) but profitability remains slightly negative and cash-flow trends are uneven. The earnings call adds support due to raised FY26 guidance and evidence of operational momentum, while technicals are neutral and valuation remains constrained by a negative P/E and no dividend.
Positive Factors
Client monetization (RPAC)
Consistent, multi-quarter RPAC gains indicate the company is extracting more revenue per active client via higher AOV, assortment and private‑label mix. Higher RPAC lifts LTV and reduces reliance on acquisition for growth, supporting sustainable revenue and unit economics over time.
Negative Factors
Ongoing net losses
Despite operational improvements, negative TTM net margins constrain return on equity and the firm’s ability to build retained earnings. Continued net losses limit strategic optionality and mean a sustained path to positive GAAP earnings is required to solidify financial resilience and investor confidence.
Read all positive and negative factors
Positive Factors
Negative Factors
Client monetization (RPAC)
Consistent, multi-quarter RPAC gains indicate the company is extracting more revenue per active client via higher AOV, assortment and private‑label mix. Higher RPAC lifts LTV and reduces reliance on acquisition for growth, supporting sustainable revenue and unit economics over time.
Read all positive factors
Stitch Fix (SFIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$494.21M
Dividend YieldN/A
Average Volume (3M)1.71M
Price to Earnings (P/E)―
Beta (1Y)1.99
Revenue Growth3.65%
EPS Growth66.88%
CountryUS
Employees4,570
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.15
Shares Outstanding121,382,904
10 Day Avg. Volume1,742,094
30 Day Avg. Volume1,706,338
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)2.85
Price to Sales (P/S)0.46
P/FCF Ratio62.30
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit0.77
Enterprise Value/Ebitda-67.29
Forecast
1Y Price Target
$5.13Price Target Upside33.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.18
Revenue Forecast (FY)$1.34B
Stitch Fix Business Overview & Revenue Model
Company Description
Stitch Fix, Inc. functions as an online retailer, providing a diverse selection of clothing, footwear, and accessories throughout the United States. Its product offerings, available via its website and mobile application, encompass items like deni...
How the Company Makes Money
Stitch Fix primarily makes money by selling apparel and accessories directly to clients (product revenue). Customers can receive a “Fix” (a curated shipment selected by stylists and algorithms), buy any items they keep, and return the rest; the co...
Stitch Fix Earnings Call Summary
Earnings Call Date:Jun 10, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 29, 2026
Earnings Call Sentiment Positive
Overall the call conveyed meaningful operational and financial progress: revenue and RPAC set new highs, margins and adjusted EBITDA beat expectations, client metrics (new client growth, LTV, retention) improved, AI initiatives demonstrated strong engagement lifts, and the company strengthened its balance sheet and raised FY26 ranges. The primary near-term risks are seasonal Q4 softness in active clients, a Q4 revenue guide below Q3 levels, elevated inventory due to assortment investments, and industry-wide marketing cost pressure. On balance, positives are numerous and substantive while the challenges appear manageable and largely seasonal or investment-related.Positive Updates
Revenue Growth and Scale
Revenue grew 4.7% year over year to $340.3 million in Q3, marking the fifth consecutive quarter of year-over-year revenue growth and exceeding company outlook.
Negative Updates
Seasonal Active Client Guidance
Management expects Q4 active clients to decline modestly sequentially (~0.5%–1%) due to seasonality, and therefore Q4 is not expected to continue the sequential active-client uptick from Q3.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth and Scale
Revenue grew 4.7% year over year to $340.3 million in Q3, marking the fifth consecutive quarter of year-over-year revenue growth and exceeding company outlook.
Read all positive updates
Company Guidance
Stitch Fix guided Q4 revenue of $322–327 million and Q4 adjusted EBITDA of $7–10 million, expecting Q4 active clients to be modestly down sequentially (~0.5%–1%) while assuming AOV about +6% year‑over‑year; for FY26 it narrowed and raised midpoints to revenue of $1.346–1.351 billion and adjusted EBITDA of $49–52 million, reiterated full‑year gross margin of 43%–44% and advertising at 9%–10% of revenue, expects to be free‑cash‑flow positive for the year, and exited Q3 with $229.4 million of cash and no debt.Stitch Fix Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33B | 1.27B | 1.34B | 1.59B | 2.02B | 2.10B |
| Gross Profit | 582.82M | 562.94M | 592.04M | 675.61M | 886.67M | 947.64M |
| EBITDA | -6.66M | -1.90M | -88.94M | -113.16M | -148.76M | -33.43M |
| Net Income | -19.12M | -28.74M | -128.84M | -171.97M | -207.12M | -8.88M |
Balance Sheet | ||||||
| Total Assets | 506.04M | 480.62M | 486.86M | 614.48M | 764.53M | 819.15M |
| Cash, Cash Equivalents and Short-Term Investments | 186.81M | 234.85M | 246.97M | 257.60M | 212.98M | 231.33M |
| Total Debt | 74.53M | 93.51M | 117.50M | 154.76M | 170.35M | 147.32M |
| Total Liabilities | 304.57M | 277.64M | 299.84M | 367.17M | 441.88M | 358.30M |
| Stockholders Equity | 201.47M | 202.98M | 187.02M | 247.31M | 322.65M | 460.85M |
Cash Flow | ||||||
| Free Cash Flow | 18.22M | 9.28M | 14.24M | 38.82M | 9.04M | -50.93M |
| Operating Cash Flow | 37.01M | 25.18M | 28.21M | 57.83M | 55.40M | -15.68M |
| Investing Cash Flow | -6.16M | -59.12M | -78.74M | 64.33M | 10.23M | 39.09M |
| Financing Cash Flow | -14.46M | -14.97M | -15.49M | -15.54M | -60.25M | -38.88M |
Stitch Fix Technical Analysis
Positive
3.85
Price Trends
3.49
Positive
3.68
Negative
4.26
Negative
Market Momentum
0.04
Negative
53.72
Neutral
53.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFIX, the sentiment is Positive. The current price of 3.85 is above the 20-day moving average (MA) of 3.40, above the 50-day MA of 3.49, and below the 200-day MA of 4.26, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 53.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFIX.
Stitch Fix Risk Analysis
Stitch Fix disclosed 45 risk factors in its most recent earnings report. Stitch Fix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Stitch Fix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $157.93M | ― | -21.26% | ― | 1.69% | 93.35% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $202.43M | 9.68 | 23.05% | 2.25% | -2.59% | -39.23% | |
56 Neutral | $494.21M | ― | -12.23% | ― | 3.65% | 66.88% | |
48 Neutral | $175.12M | -13.93 | 3.50% | ― | -10.09% | -232.12% | |
47 Neutral | $77.30M | -0.87 | 532.94% | ― | -12.80% | 11.78% | |
44 Neutral | $116.54M | 3.89 | -17.71% | ― | 16.39% | ― |
* Consumer Cyclical Sector Average
SFIX
Stitch Fix
3.60
-0.69
-15.99%
PLCE
Children's Place
3.48
-0.58
-14.29%
TLYS
Tilly's
5.18
3.96
324.59%
JILL
JJill
13.58
-0.23
-1.65%
CURV
Torrid Holdings
1.76
-3.08
-63.64%
RENT
Rent the Runway
3.46
-1.92
-35.69%
Stitch Fix Corporate Events
Business Operations and StrategyStock Buyback
Stitch Fix Resumes Share Repurchase Program, Signals Confidence
Positive
Apr 1, 2026
On April 1, 2026, Stitch Fix said it had resumed activity under its previously authorized $150 million share repurchase program for its Class A common stock, first approved by the board in January 2022. The move underscores management’s will...
Business Operations and StrategyExecutive/Board Changes
Stitch Fix Announces Upcoming Product and Technology Leadership Change
Neutral
Mar 17, 2026
On March 12, 2026, Stitch Fix announced that Chief Product and Technology Officer Anthony Bacos has notified the company of his intention to retire, effective August 1, 2026. His planned departure marks a forthcoming leadership transition in Stitc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.