SFIX Q2 2026 Earnings Call Summary

Revenue: $341.3 million, up 9.4% year-over-year, exceeding expectations.
Revenue per Active Client (RPAC): $577, a record high for the company, reflecting a 7.4% increase year-over-year.
Active Clients: 2.3 million, consistent with expectations; new clients grew year-over-year for the second consecutive quarter.
Adjusted EBITDA: $15.9 million, or 4.7% of revenue, outperforming expectations.
Gross Margin: 43.6%, slightly above the midpoint of the FY 2026 range (43%-44%).
Contribution Margin: Maintained above 30% for the eighth consecutive quarter.
Cash and Investments: $240.5 million with no debt.

Continued execution of a transformation strategy focusing on enhancing client experience and assortment quality.
Successful adoption of larger Fixes (up to eight items) and themed Fixes, leading to nearly double the average order value compared to traditional five-item Fixes.
Strong performance in specific categories: outerwear (up 26%), denim (up 17%), activewear and athleisure (up 37%), and footwear (up 33%).
Introduction of Family Accounts to manage multiple accounts within a household, aimed at increasing client engagement and wallet share.
Notable improvements in client retention and engagement, with the highest retention rate in nearly four years and a significant increase in clients using the Stylist Connect platform.

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 confidence in underlying momentum.
Adjusted EBITDA for FY 2026: Expected between $42 million and $50 million.
Anticipated continued sequential net active client growth in Q3, with a focus on sustainable and profitable client growth.

Anticipated deceleration in revenue growth rates as the company laps strong prior-year comparisons, particularly in average order value (AOV).
External pressures from rising gas prices and overall consumer sentiment may impact discretionary spending.
The company is cautious about potential headwinds in spending, which could affect future performance.
Competitive pressures in the apparel market, despite outperforming the broader market.

Management noted strong performance across all income cohorts, indicating broad-based demand.
The company is strategically enhancing its assortment with both private and national brands, resulting in a 50% year-over-year increase in sales from new styles.
Active client growth is expected to be modest at less than 1% quarter-over-quarter in Q3, but overall trends in new acquisition and retention are positive.
Management expressed confidence in their ability to adapt to changing consumer needs, particularly with clients undergoing body transformations due to GLP-1 medication usage.
The Q&A highlighted a cautious but optimistic outlook, with management emphasizing the importance of maintaining a healthy client base and leveraging technology for sustained growth.

SFIX — Stitch Fix, Inc.