F

Stitch Fix, Inc. — Earnings Quality Grade F

SFIX · Consumer Cyclical

Major red flags

Revenue
$1.3B
2025
Net Income
-$29M
2025
Gross Margin
44.4%
Free Cash Flow
$9M
01

Screening Summary

11
Passed
2
Watch
1
Failed
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

Insufficient data

A2AR vs Revenue Growth

Insufficient data

A3Revenue vs CFFO

Revenue -5.3%, CFFO -9.3%. Cash follows revenue

02

Expense Quality

!
B1Inventory vs COGS

Inventory growth 20.9% exceeds COGS -5.5%

B2CapEx vs Revenue

CapEx growth 16.7% vs revenue -5.3%. Normal

!
B3SG&A Ratio

SG&A/Gross Profit = 106.9%, exceeds 70%

B4Gross Margin

Gross margin 44.4%, change +0.2pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO < Net Income for 3 consecutive years

Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.

C2Free Cash Flow

FCF $0.0B, FCF/NI = -0.32

C3Accruals Ratio

Accruals ratio = -11.3%. Low accruals

C4Cash vs Debt

Cash $0.2B covers debt $0.1B

04

Balance Sheet Health

D1Goodwill + Intangibles

No goodwill. Clean balance sheet

D2Leverage

Debt/EBITDA = -7.3x. Healthy

D3Soft Asset Growth

Other assets -8.3% vs revenue -5.3%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

No goodwill

06

Manipulation Score

F1Beneish M-Score

Insufficient data

Portfolio monitoring

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05

Altman Z-Score

-0.85
Distress Zone
0 Distress1.102.605.0+ Safe
0.3488
Liquidity
-1.032
Cumulative profit
-0.0809
Operating efficiency
0.7311
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25