Sep 23, 2026 earnings call — Transformation, revenue mix and outlook
Full year revenue grew 6.4% to $1.35 billion, and Q4 revenue was $324.4 million.
Revenue $0.3B (est $0.3B) · EPS $-0.01 (est $-0.06) · Next-quarter revenue outlook $0.3B–$0.3B
Key quotes
"We advanced our strategy and closed the year as a stronger, healthier business with a more resilient operating foundation and a reimagined client experience."
"Revenue per active client, or RPAC, set another record for the third consecutive quarter, reaching $592 in Q4."
"Lastly, our adjusted EBITDA outlook for fiscal 2027 reflects planned investments in advertising and technology, including AI to support long-term growth."
Analyst Q&A 6
advertising cost and client growth
Q (Dylan Carden · William Blair): Analyst asked if higher CAC and incremental advertising are separate issues and whether higher CAC is mainly a margin drag. He also asked how to think about the shape of the year between those two drivers.
A: Management said CAC headwinds began in Q4 and continued into Q1, but they feel comfortable leaning into incremental advertising while staying within their advertising guardrails and getting the right ROI. They said two discrete Q1 drags were shipment timing that shifted fixes into Q4 '26 and an unintended change during feature testing that reduced immediate post-checkout fix offers in August; demand rebounded and they expect October comps to better align with the year's implied guide. They also cited broader macro pressure on consumer discretionary spend and said they are investing in technology, merchandising, and marketing to address growth headwinds.
"With regard to incremental advertising spend, even within that CAC LTVs with CACs going up, we still feel very comfortable that we're within sort of our guardrails from an advertising perspective." — David Aufderhaar (CFO)
drivers of revenue per client and Vision use
Q (Owen Rickert · Northland): Analyst asked how much RPAC growth is driven by accessories and footwear versus larger fixes, whether there is a ceiling on RPAC, and how broadly Stitch Fix Vision has been adopted and influenced Freestyle revenue.
A: Management said expanding into underpenetrated categories like athletic wear, athleisure, footwear, and accessories drove meaningful RPAC gains; athletic wear and athleisure were up 21% and footwear was up 14% in the quarter. They said the opportunity remains large — implied wallet share could increase up to 3 to 4x — and Vision adoption has exceeded expectations, with new features like See It On Me helping expand usage and influence on Freestyle spend. They reported sharing over 22 million Vision images with clients since launch.
"As we shared in our prepared remarks, athletic wear and athleisure were up 21% for us in the quarter." — Matt Baer (CEO)
category mix and ad spending
Q (Dana Telsey · Telsey Advisory Group): Analyst asked whether the consumer shift and mix changes were category or regional, and how CAC cadence should be thought about through the fiscal year.
A: Management said the two specific Q1 issues are time-bound and behind them, and they are refocusing on revenue growth after the transformation that drove record RPAC at nearly $600. On CAC, they will be methodical but more willing to invest because of high LTVs; marketing spend for FY '27 is expected in the 10% to 11% range versus the 9% to 10% range in FY '26, with Q1 and Q3 typically stronger acquisition quarters and opportunistic pullbacks if headwinds appear.
"Just from a size perspective, if we're thinking about FY '27, we're probably going to be spending a little bit more in the 10% to 11% range versus the 9% to 10% range that we had in FY '26." — David Aufderhaar (CFO)
Q1 revenue impact and EBITDA reasons
Q (Jay Sole · UBS): Analyst asked to quantify the revenue impact of the two Q1 items (shipment timing and the post-checkout issue) and to clarify how much of the FY '27 EBITDA step-down is deliberate investment versus cost pressure.
A: Management said adjusting for those two items, Q4 '26 revenue comps would have been roughly in the 2% to 3% range and the Q1 '27 revenue guide would have been more in line with the implied guide for the rest of the year. On EBITDA, they said the step-down is a conscious decision to reinvest, mainly via higher advertising (midpoint of the 10% to 11% range is almost 100 basis points more than this year) and incremental AI investments; excluding those, the EBITDA margin guide would have been consistent with last year's at the 4% range.
"If you exclude those additional investments, the EBITDA margin guide would have been much more consistent with last year's margin at the 4% range." — David Aufderhaar (CFO)
returning to active client growth
Q (Chenyi Tian · AB Bernstein): Analyst asked if confidence has changed regarding returning to year-over-year active client growth in fiscal 2027 given higher acquisition costs and a lower starting point, and what would need to happen to achieve it. They also asked how demand progressed through the quarter and whether Q1-to-date revenues track the guide.
A: Management said they remain equally convicted they will return to active client growth and that macro consumer headwinds over the past 6 months slowed new client acquisition; absent those headwinds they believe they would already have returned to growth. They said they will focus on cost-effective acquisition and continue investing given strong LTVs and retention, and they expect October revenue comps to be more closely aligned with the implied comps for Q2 to Q4 since the two Q1 factors are time-bound and behind them.
"So we remain equally convicted in terms of our ability to return to active client growth." — Matt Baer (CEO)
consumer weakness and AI strategy
Q (David Bellinger · Mizuho): Analyst asked when the consumer spending turn began and for details on engagement from active clients and signs of rebound. He also asked how Stitch Fix is positioned versus new AI shopping tools like Meta's Muse.
A: Management said they began seeing consumer headwinds in Q4 and those continued into Q1, affecting new client acquisition and demand in more macro-sensitive areas like Freestyle and manual fix requests; these impacts are included in the FY '27 outlook. They added Stitch Fix is well positioned versus emerging AI tools because of deep client data, proprietary AI experiences like Vision, and the human Stylists that build lasting client relationships — arguing human connection becomes a scarce resource as AI interactions grow.
"As more and more interactions for all consumers generally are taking place by AI, it is actually human connection becomes the scarce resource." — Matt Baer (CEO)