Stitch Fix reported QQ3 2025 revenue of $325.0 million, up 1.71% year over year and 4.14% quarter over quarter, driven by ongoing mix improvements and steady demand in its direct-to-consumer platform. Despite top-line growth, the company remains unprofitable on a GAAP basis, posting a net loss of $7.38 million and an operating loss of $9.71 million. Positive cash generation persisted, with operating cash flow of $20.66 million and free cash flow of $15.99 million, supporting a solid liquidity position as of quarter end. The balance sheet exhibits a cautious but favorable liquidity profile, including cash and short-term investments totaling $234.22 million and a net debt position of approximately negative $9.65 million, indicating excess liquidity over gross debt.
From a margin perspective, Stitch Fix delivered a gross profit of $143.56 million on $325.02 million of revenue, a gross margin of about 44.17%, which is consistent with peers in the apparel space and demonstrates product mix resilience. However, operating expenses remained elevated, with selling, general, and administrative costs totaling $153.27 million and contributing to an operating margin of -2.99%. The EBITDA loss narrowed to approximately $3.23 million, signaling early signs of operating leverage, but a clear path to profitability has not yet been established. Given the current environment and the company’s growth-centric investments, the near-term priority remains translating gross-margin strength into operating margin expansion, while preserving balance-sheet flexibility and cash-generating capability.