Stitch Fix Narrows Q2 Loss to $2.7M as Revenue Climbs 9.4% to $341.3M

Stitch Fix, Inc., an online personal styling service, reported a net loss of $2.7 million for the three months ending January 31, 2026, narrowing sharply from a $6.5 million loss in the same quarter a year earlier. The company posted revenue of $341.3 million, up 9.4% from $312.1 million in the prior-year period. Read more earnings reports.

For the six months ending January 31, 2026, Stitch Fix recorded a net loss of $9.0 million, a 29% improvement from the $12.8 million loss reported for the first half of fiscal 2025. Six-month revenue reached $683.4 million, an 8.3% increase from $630.9 million in the year-ago period.

Operating Performance

The company's operating loss for the second quarter narrowed to $4.7 million from $9.0 million a year earlier. Gross profit for the quarter rose to $148.9 million from $138.9 million, reflecting a gross margin of 43.6% compared to 44.5% in the prior year.

Selling, general, and administrative expenses climbed to $153.7 million in the quarter from $147.9 million, even as the company cut its year-over-year loss by more than half. Cost of goods sold increased to $192.4 million from $173.2 million.

For the six-month period, the operating loss totaled $13.3 million versus $18.0 million in the first half of fiscal 2025. Gross profit reached $298.3 million, up from $283.7 million, while SG&A expenses rose to $311.6 million from $301.7 million.

Balance Sheet and Cash Position

Stitch Fix held cash and cash equivalents of $118.8 million as of January 31, 2026, up from $114.0 million at the start of the fiscal year on August 2, 2025. Short-term investments totaled $108.9 million, down from $120.9 million six months prior.

Total assets increased to $507.8 million from $480.6 million at the beginning of the fiscal year. Inventory stood at $122.1 million as of the quarter end, compared to $118.4 million on August 2, 2025.

Total liabilities climbed to $298.5 million from $277.6 million, with current liabilities rising to $238.8 million from $206.2 million. The company carried $33.1 million in long-term debt as of January 31, 2026. Stockholders' equity increased to $209.3 million from $203.0 million at the prior fiscal year start.

Per-Share Metrics

Diluted loss per share for the second quarter was $0.02, improving from a $0.05 loss per share a year earlier. For the six-month period, diluted loss per share was $0.07 compared to $0.10 in the prior year.

The company reported 15.1 million common shares outstanding as of January 31, 2026, down from 15.9 million shares outstanding on August 2, 2025. Weighted average diluted shares outstanding for the quarter totaled 135.4 million versus 128.0 million in the prior-year quarter.