Summary of SFIX Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: $341.3 million, up 9.4% year-over-year, exceeding expectations.

Revenue per Active Client (RPAC): $577, marking the highest RPAC since going public and a 7.4% year-over-year increase.

Contribution Margin: Maintained above 30% for the eighth consecutive quarter.

Adjusted EBITDA: $15.9 million, or 4.7% of revenue, also exceeding expectations.

Active Clients: 2.3 million, consistent with expectations; new clients grew year-over-year for the second consecutive quarter.

Gross Margin: 43.6%, slightly above the midpoint of the FY 2026 range (43%-44%).

Cash and Investments: $240.5 million with no debt; inventory increased by 11.4% year-over-year to $122.1 million.

2Strategic Updates and Business Highlights

Successful execution of transformation strategy focusing on client experience and assortment quality.

Strong performance in the Fix channel, with double-digit growth in both women's and men's businesses.

Enhanced offerings such as larger Fixes (up to eight items), themed Fixes, and improved AI features have driven client engagement.

Significant growth in specific categories: outerwear (up 26%), denim (up 17%), activewear and athleisure (up 37%), and footwear (up 33%).

Continued investment in private brands, with notable revenue growth from Market & Spruce, Montgomery Post, 41 Hawthorn, and WeWander (each up over 35% year-over-year).

Positive trends in client retention and engagement, with the highest retention rate in nearly four years.

3Forward Guidance and Outlook

Q3 Revenue Guidance: Expected between $330 million and $335 million.

Full-Year FY 2026 Revenue Guidance: Revised to between $1.33 billion and $1.35 billion, reflecting increased confidence in underlying momentum.

Adjusted EBITDA Guidance for FY 2026: Expected between $42 million and $50 million.

Anticipation of continued sequential net active client additions in Q3, with a focus on sustainable, profitable growth.

4Bad News, Challenges, or Points of Concern

Potential deceleration in revenue growth as the company laps strong prior-year comparisons, particularly in AOV growth (expected to moderate to 4%-6%).

External pressures from rising gas prices and consumer sentiment may impact discretionary spending.

The company is cautious about the macroeconomic environment, which could present headwinds in the coming quarters.

5Notable Q&A Insights

Management noted strong performance across all income cohorts, indicating broad-based demand.

The increase in AUR is attributed to improved assortment quality and strategic brand additions.

Active client growth is expected to be slightly less than 1% quarter-over-quarter in Q3, with a focus on building a healthier client base.

The company is leveraging AI and technology to enhance client engagement and improve the shopping experience.

Management expressed confidence in their ability to adapt to changing consumer needs, particularly with clients undergoing body transformations due to GLP-1 medication usage. Overall, Stitch Fix demonstrated strong financial performance and strategic execution in Q2 2026, while also acknowledging potential challenges ahead in the macroeconomic landscape.