Stitch Fix (SFIX) Financials

Stitch Fix’s latest quarter shows a business that is still losing money, but the losses have narrowed sharply and the balance sheet remains liquid. In Q3 fiscal 2026, revenue was essentially flat year over year at $340.3 million, while operating loss improved to just $4.0 million from a much larger loss in prior periods. The company also generated positive operating cash flow, which is an encouraging sign for a retailer that has been under pressure for several years.

Here are the key takeaways from the last several years:

• Q3 2026 operating loss was only $4.0 million, a major improvement from a $9.7 million operating loss in Q3 2025 and a $24.8 million operating loss in Q3 2024.
• Operating cash flow was positive at $11.8 million in Q3 2026, showing the business is still able to convert some earnings power into cash.
• The company held $186.8 million in cash and short-term investments at the end of Q3 2026, providing a solid liquidity cushion.
• Total assets were $506.0 million versus total liabilities of $304.6 million, leaving equity of $201.5 million.
• Gross margin has improved meaningfully over time: Q3 2026 gross profit was $148.8 million on $340.3 million of revenue, a much healthier setup than earlier years.
• SG&A as a percentage of revenue appears to be moving lower versus prior years, helping narrow losses.
• Revenue has been relatively stable in the last four quarters, staying in the low-$300 million range rather than collapsing further.
• Inventory remains elevated at $132.2 million in Q3 2026, which is manageable for now but still worth watching in a consumer business.
• Net income remained negative in every quarter shown, including a $1.8 million loss attributable to common shareholders in Q3 2026.
• The company’s share count has generally drifted lower from about 129.8 million in Q3 2025 to 135.3 million in Q3 2026, but dilution has still been a recurring issue over the longer history shown.

Longer-term trend: Stitch Fix looks much healthier than it did in 2022 and 2023, when quarterly losses were far larger and operating cash flow was often negative. Back then, revenue was also higher, but costs were much less controlled, leading to severe losses. Since then, management has clearly prioritized efficiency over top-line growth.

What investors should watch next: whether Stitch Fix can keep operating expenses under control while stabilizing revenue. If revenue continues to hold near current levels and margins remain improved, the company could move closer to sustained profitability. If not, the business may remain stuck in a low-growth, low-margin turnaround phase.