Stitch Fix (SFIX) Narrows Q1 2026 Losses, Testing Bearish Profitability Narratives

Stitch Fix (SFIX) has kicked off Q1 2026 with revenue of $342 million and a basic EPS of about -$0.05, while net income excluding extraordinary items came in at roughly -$6.4 million, keeping the business in loss making territory as it enters the new fiscal year. The company has seen quarterly revenue move from $319 million in Q4 2024 to $319 million in Q1 2025 and then to $342 million in Q1 2026, alongside EPS running between about -$0.29 and -$0.05 over that stretch. This sets a clear backdrop of modest top line progress against persistent negative margins for investors watching the latest release.

See our full analysis for Stitch Fix.

With the headline numbers on the table, the next step is to see how this mix of stabilizing revenue and ongoing losses lines up with the dominant Stitch Fix narratives that investors have been trading on.

See what the community is saying about Stitch Fix

Losses Narrow On A Trailing Basis

• Over the last 12 months, Stitch Fix reported about $1.3 billion in revenue and a net loss of roughly $28.9 million, compared with a loss of about $118.9 million on $1.3 billion of revenue two years ago.
• Analysts’ consensus view sees potential in this gradual loss reduction, but
  • they still expect the company to stay unprofitable over the next three years despite the five year trend of losses shrinking by about 1.1 percent per year, and
  • they highlight that revenue is only projected to grow around 3.5 percent per year, noticeably slower than the broader US market at about 10.6 percent per year.

Stitch Fix’s slower top line outlook and ongoing losses keep the pressure on management to prove that recent margin progress can eventually translate into durable profitability. 📊 Read the full Stitch Fix Consensus Narrative.

Valuation Hints At Upside

• Based on the latest inputs, DCF fair value is calculated at about $6.65 per share, versus a current share price of $5.12, suggesting the stock trades roughly 23 percent below that modelled value.
• Supporters of the bullish view argue this discount could be attractive, yet
  • the stock’s price to sales ratio of about 0.5 times is already in line with the US Specialty Retail industry and slightly above peers at 0.4 times, and
  • the trailing 12 month loss of roughly $28.9 million means any upside case still relies on the company turning those improving but negative earnings into real profits over time.

Profitability Still The Main Risk

• Despite quarterly net income improving from roughly negative $35.7 million in Q4 2024 to about negative $6.4 million in Q1 2026, forecasts still call for Stitch Fix to remain loss making for at least the next three years.
• Critics with a more bearish stance focus on this gap to profitability, pointing out that
  • the company’s revenue is expected to grow only modestly at around 3.5 percent per year while it must still close the roughly $28.9 million trailing loss, and
  • any stumble in client trends or macro conditions could matter more when there is not yet a positive earnings base to absorb shocks.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Stitch Fix on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? Use your own lens, dig into the details, and in just a few minutes turn that view into a complete story: Do it your way.

A great starting point for your Stitch Fix research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Explore Alternatives

Stitch Fix’s modest revenue growth, ongoing losses, and uncertain path to profitability may not suit investors seeking steadier, more predictable performance.

If that instability feels uncomfortable, focus on companies demonstrating consistent revenue and earnings expansion by using our CTA_SCREENER_STABLE_GROWTH to quickly narrow in on businesses built for dependable compounding.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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