Stitch Fix Inc (0L9X.L) Q4 2025 Earnings Report

Stitch Fix LLC reported Q4 2025 results with a revenue of $311.2 million, a gross profit of $135.7 million and a gross margin of 43.6%. The company posted a net loss of $8.6 million and an earnings per share (diluted) of -$0.07, marking a substantial year-over-year improvement in profitability metrics versus Q4 2024, when the company faced a much larger operating loss. The quarterly operating income was near break-even at -$1.1 million, and EBITDA was -$8.6 million, underscoring ongoing profitability challenges, albeit with meaningful improvements from the prior-year period. Cash generation remained positive, with operating cash flow of $7.0 million and free cash flow of $2.8 million, supported by a robust cash position and a net debt position that remains favorable (net debt of approximately -$20.4 million). The balance sheet shows ample liquidity (cash and short-term investments totaling about $234.9 million) and a moderate liability burden, together with a working capital cushion (current ratio ≈ 1.81x). Management commentary is expected to emphasize cost discipline, merchandising optimization, and near-term path to sustainable profitability in a competitive direct-to-consumer model. Overall, the trajectory suggests a transition toward improved cash generation and tighter control of expenses, albeit with continued sensitivity to discretionary consumer demand and competitive pressures in the apparel retail space.