Stitch Fix (NASDAQ:SFIX) Surges on Strong Q1 2026 Guidance Despite Q4 Revenue Miss

Stitch Fix Inc-Class A (NASDAQ:SFIX) reported financial results for its fiscal fourth quarter of 2025, delivering a performance that has elicited a notably positive response from investors in after-hours trading.

Earnings and Revenue Versus Expectations

The company's results presented a mixed picture when held against analyst forecasts. While the top-line revenue figure fell short of expectations, the bottom-line loss was not as severe as projected, and forward guidance provided a significant boost to market sentiment.

• Q4 2025 Revenue: $311.2 million, compared to the analyst estimate of $315.5 million. This represents a 2.6% decline compared to the same quarter last year.
• Q4 2025 Non-GAAP EPS: A loss of $0.07 per share, which was notably better than the anticipated loss of $0.11 per share.
• Q1 2026 Revenue Guidance: The company provided a midpoint revenue guidance of $335.5 million for the next quarter, which substantially surpasses the current analyst consensus estimate of $287.1 million.

The market's reaction appears to be primarily driven by the combination of a smaller-than-expected loss and, more importantly, the surprisingly strong outlook for the upcoming quarter. The guidance suggests management anticipates a reversal of recent revenue trends and a potential return to growth.

Key Takeaways from the Quarterly Release

Beyond the headline earnings and sales figures, the company's press release highlighted several operational metrics that provide context for its current trajectory. A critical positive was the growth in net revenue per active client, which increased by 3.0% year-over-year to $549. This indicates that the company is successfully generating more value from its existing customer base. Furthermore, for the full fiscal year 2025, the company expanded its gross margin to 44.4%, a sign of improved operational efficiency and pricing power.

The company also provided an adjustment for the number of weeks in the comparative quarter. On a 13-week adjusted basis, it stated that net revenue actually increased by 4.4% year-over-year, offering an alternative perspective on its top-line performance.

Market Reaction and Analyst Outlook

The immediate market response has been decisively positive, with the stock rising over 10% in after-market trading following the earnings announcement. This sharp move indicates that investors are choosing to focus on the promising future guidance and improved profitability metrics rather than the slight revenue miss for the past quarter.

Looking further ahead, the full-year analyst estimates for fiscal 2026 project a continued reduction in losses, with an estimated EPS of -$0.32, and sales growth to $1.26 billion. The company's own strong guidance for Q1 2026 will likely lead analysts to revisit their full-year models, potentially resulting in upward revisions.

For a detailed look at historical earnings and current analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research and consider their individual financial circumstances before making any investment decisions.