American online personal styling platform Stitch Fix has reported net revenue of $340.3 million in the third quarter (Q3) of fiscal 2026 (FY26) ended May 2, up 4.7 per cent year on year (YoY), marking its fifth consecutive quarter of adjusted revenue growth. Revenue and adjusted EBITDA both exceeded the company’s expectations.
Active clients reached 2.309 million, rising 0.9 per cent sequentially but declining 1.9 per cent from a year earlier. Net revenue per active client increased 6.6 per cent YoY to $578, reflecting stronger customer engagement and spending.
“In Q3, we delivered another strong quarter, reporting our fifth consecutive quarter of YoY revenue growth on an adjusted basis, with both revenue and adjusted EBITDA exceeding our expectations,” said Matt Baer, chief executive officer of Stitch Fix.
The gross margin stood at 43.7 per cent, down 50 basis points from the prior-year period. Stitch Fix reported a net loss of $1.5 million, significantly improved from previous periods, with a net loss margin of 0.4 per cent and diluted loss per share of $0.01.
Adjusted EBITDA rose to $13.2 million, representing a margin of 3.9 per cent. The company generated $11.8 million in operating cash flow and $6.5 million in free cash flow during the quarter.
“We also hit a significant milestone with sequential growth in active clients. These results reflect our team’s consistent execution of our strategy and underscore that the improvements we have made to our client experience and assortment are resonating,” added Baer.
Gross margin expected to remain above 43 per cent
For the fourth quarter (Q4) of FY26 ending August 1, the company expects net revenue between $322 million and $327 million, representing growth of 3.5 per cent to 5.1 per cent YoY. Adjusted EBITDA is projected at $7 million to $10 million, with a margin of 2.2 per cent to 3.1 per cent.
Stitch Fix raised its FY26 outlook and now expects net revenue of $1.346 billion to $1.351 billion, up 6.2 per cent to 6.6 per cent YoY. Adjusted EBITDA is forecast at $49 million to $52 million, with a margin of 3.7 per cent to 3.9 per cent.
The company expects full-year gross margin to be between 43 per cent and 44 per cent, advertising expense at 9 per cent to 10 per cent of revenue, and positive free cash flow for the fiscal year.
