Active customers reached 2,309 million, increasing 0.9 percent sequentially but decreasing 1.9 percent from the previous year. Net revenue per active customer increased 6.6 percent year over year to $578, reflecting higher customer engagement and spending.
Stitch Fix reported Q3FY26 net revenue of $340.3 million, up 4.7 percent year-over-year, while adjusted EBITDA hit $13.2 million. Active customers increased sequentially to 2,309 million. The company posted a net loss of $1.5 million and generated positive free cash flow. Stitch Fix raised its outlook for FY26, projecting revenue of $1.346-$1.351 billion and adjusted EBITDA of $49-$52 million.
“In the third quarter, we delivered another strong quarter, reporting our fifth consecutive quarter of year-over-year revenue growth on an adjusted basis, with revenue and adjusted EBITDA exceeding our expectations,” he said. Matt Baer, CEO of Stitch Fix.
Gross margin stood at 43.7 percent, 50 basis points lower than the same period last year. Stitch Fix reported a net loss of $1.5 million, significantly better than previous periods, with a net loss margin of 0.4 percent and a diluted loss per share of $0.01.
Adjusted EBITDA increased to $13.2 million, representing a margin of 3.9 percent. The company generated $11.8 million in operating cash flow and $6.5 million in free cash flow during the quarter.
“We also reached an important milestone with sequential growth in active customers. These results reflect our team's consistent execution of our strategy and underscore that the improvements we have made to our customers' experience and assortment are resonating,” Baer added.
Gross margin expected to remain above 43 percent
For the fourth quarter (Q4) of FY26 ending August 1, the company expects net revenue between $322 million and $327 million, representing year-over-year growth of 3.5 to 5.1 percent. Adjusted EBITDA is projected between $7 million and $10 million, with a margin of 2.2 percent to 3.1 percent.
Stitch Fix raised its outlook for FY26 and now expects net revenue of $1.346 billion to $1.351 billion, up 6.2 percent to 6.6 percent year over year. Adjusted EBITDA is forecast between $49 million and $52 million, with a margin of 3.7 percent to 3.9 percent.
The company expects full-year gross margin to be between 43 and 44 percent, advertising expenses between 9 and 10 percent of revenue and positive free cash flow for the fiscal year.
Fiber2Fashion News Desk (SG)
