Profitability Improvement

Stitch Fix reported fiscal Q3 2026 revenue of $340.28 million, up 4.7 % YoY and 2.17 % above the $333 million consensus, while an adjusted loss of $0.01 per share beat the Zacks estimate of –$0.06. The loss narrowed from the prior‑year quarter’s –$0.06 and is 83.33 % better than consensus. Gross profit rose 3.7 % YoY to $148.8 million, with a gross margin of 43.7 %, down 50 basis points from the year‑ago level. SG&A expenses fell 0.3 % YoY to $152.9 million. Adjusted EBITDA reached $13.2 million, up from $11 million YoY, while cash and cash equivalents stood at $87.3 million, short‑term investments $99.5 million and long‑term investments $42.6 million. For the full fiscal year, the company now projects revenues of $1.346–$1.351 billion, 6.2–6.6 % YoY growth, and adjusted EBITDA of $49–$52 million, implying a margin of 3.7–3.9 %. It maintains an expected gross margin of 43–44 %, advertising expenses of 9–10 % of revenue and positive free cash flow for the year.