Wed, Jun 11, 8:15 PM (33 days ago)
**Stitch Fix, Inc. (SFIX) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $325.0 million (Q1 2025) vs. $322.7 million (Q1 2024), a 0.7% increase. - **Gross Margin:** 44.2% (Q1 2025) vs. 45.5% (Q1 2024), a 130 basis points decrease. - **Operating Loss:** ($9.7) million (Q1 2025) vs. ($24.8) million (Q1 2024), a 60.9% improvement. - **Net Loss:** ($7.4) million (Q1 2025) vs. ($22.0) million (Q1 2024), a 66.5% improvement. - **Adjusted EBITDA:** $11.0 million (Q1 2025) vs. $6.7 million (Q1 2024), a 64.2% increase. - **Free Cash Flow:** $6.5 million (Q1 2025) vs. $9.7 million (Q1 2024), a 32.9% decrease. **Key Metrics:** - **Active Clients:** 2.35 million (Q1 2025) vs. 2.63 million (Q1 2024), a 10.6% decrease. - **Net Revenue per Active Client:** $542 (Q1 2025) vs. $525 (Q1 2024), a 3.2% increase. **Trends & Uncertainties:** - **Revenue Growth:** Q1 2025 saw a slight increase in revenue, but a decrease in active clients. - **Gross Margin:** Decreased due to lower product margins. - **Operating Loss:** Improved significantly due to lower SG&A expenses. - **Cash Flow:** Free cash flow decreased due to higher investments in securities and property. **Future Operations Impact:** - **Client Acquisition & Retention:** Challenges in acquiring and retaining active clients continue to negatively impact revenue. - **Inventory Management:** Effective inventory management is crucial to maintain gross margins. - **Macroeconomic Environment:** Inflation, recessionary concerns, and general uncertainty may pressure consumer discretionary spending. - **Restructuring:** Ongoing restructuring efforts aim to reduce operating costs and improve profitability. **Conclusion:** Stitch Fix's Q1 2025 results show a mixed performance with improved profitability but challenges in client acquisition and retention. The company continues to focus on cost reduction and effective inventory management to navigate the current economic uncertainties.