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Stitch Fix
(NASDAQ:SFIX)
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Rating:65Neutral
Price Target:
$4.50
▲(25.70% Upside)
Action:Reiterated
Date:06/12/26
The score is driven by a strong, confidence-boosting earnings call with raised FY26 targets and expected free-cash-flow positivity, plus improving (but still mixed) financial performance with stable margins and positive cash flow. Technicals add support via positive trend/momentum. These positives are tempered by continued GAAP unprofitability (negative P/E/ROE) and near-term risks around Q4 seasonality, inventory, and marketing cost pressure.
Positive Factors
Sustained revenue growth
Five consecutive quarters of year‑over‑year revenue growth indicate durable demand recovery and expanding market traction. Consistent top‑line gains support better fixed‑cost absorption, scalability of the model, and create room to invest in product, AI and client acquisition while pursuing path to sustained profitability.
Negative Factors
Persistent GAAP unprofitability / negative ROE
A negative TTM ROE signals that GAAP profitability has not yet returned, limiting the company’s ability to build shareholder equity organically. If cash generation weakens, the firm may need to rely on capital markets or slow investment, constraining long‑term return potential despite recent operational progress.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth
Five consecutive quarters of year‑over‑year revenue growth indicate durable demand recovery and expanding market traction. Consistent top‑line gains support better fixed‑cost absorption, scalability of the model, and create room to invest in product, AI and client acquisition while pursuing path to sustained profitability.
Read all positive factors
Stitch Fix (SFIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$566.39M
Dividend YieldN/A
Average Volume (3M)1.99M
Price to Earnings (P/E)―
Beta (1Y)1.75
Revenue Growth4.66%
EPS Growth68.21%
CountryUS
Employees4,165
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.14
Shares Outstanding118,286,240
10 Day Avg. Volume1,199,230
30 Day Avg. Volume1,987,104
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)2.85
Price to Sales (P/S)0.46
P/FCF Ratio65.08
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit0.86
Enterprise Value/Ebitda54.12
Forecast
1Y Price Target
$5.13Price Target Upside43.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.15
Revenue Forecast (FY)$1.35B
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 | 9.23M | -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 | 8.88M | 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 | -26.50M | -59.12M | -78.74M | 64.33M | 10.23M | 39.09M |
| Financing Cash Flow | -32.09M | -14.97M | -15.49M | -15.54M | -60.25M | -38.88M |
Stitch Fix Technical Analysis
Positive
3.58
Price Trends
3.78
Positive
3.61
Positive
4.06
Positive
Market Momentum
-0.05
Positive
43.53
Neutral
30.60
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 3.58 is below the 20-day moving average (MA) of 3.80, below the 50-day MA of 3.78, and below the 200-day MA of 4.06, indicating a bullish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 30.60 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $566.39M | -29.33 | -9.35% | ― | 4.66% | 68.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $273.91M | 13.37 | 16.83% | 1.50% | -2.59% | -39.23% | |
54 Neutral | $48.64M | -11.09 | -407.26% | ― | -8.96% | 83.08% | |
53 Neutral | $273.68M | -21.40 | 6.03% | ― | -10.09% | -232.12% | |
50 Neutral | $431.96M | 1,330.00 | 0.05% | 2.38% | 4.95% | -100.25% | |
48 Neutral | $124.27M | 0.54 | -33.43% | ― | 16.39% | ― |
* Consumer Cyclical Sector Average
SFIX
Stitch Fix
4.10
-0.63
-13.32%
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3.55
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Stitch Fix Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Stitch Fix Updates Corporate Bylaws and Governance Rules
Neutral
Jul 28, 2026
On July 22, 2026, Stitch Fix, Inc.’s Board of Directors approved amendments to the company’s Amended and Restated Bylaws, which became effective the same day. The changes update disclosure requirements for board nominees, other propose...
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.