# EDGAR Filing Document

**Accession Number:** 0001576942
**File Stem:** 0001628280-26-017247
**Filing Date:** 2026-3
**Character Count:** 320848
**Document Hash:** 2fbe4de4434cd2bd732a3179a8aba9a9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-017247.hdr.sgml**: 20260312

**ACCESSION NUMBER**: 0001628280-26-017247

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 65

**CONFORMED PERIOD OF REPORT**: 20260131

**FILED AS OF DATE**: 20260312

**DATE AS OF CHANGE**: 20260312

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Stitch Fix, Inc.
- **CENTRAL INDEX KEY:** 0001576942
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-CATALOG & MAIL-ORDER HOUSES [5961]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 275026540
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0802

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38291
- **FILM NUMBER:** 26747873

**BUSINESS ADDRESS:**
- **STREET 1:** 1 MONTGOMERY STREET
- **STREET 2:** SUITE 1500
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94104
- **BUSINESS PHONE:** 415-882-7765

**MAIL ADDRESS:**
- **STREET 1:** 1 MONTGOMERY STREET
- **STREET 2:** SUITE 1500
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94104

?xml version='1.0' encoding='ASCII'? sfix-20260131

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM 10-Q** 

(Mark One)

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended January 31, 2026**

OR

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Commission file number: 001-38291**![StitchFix_Icon_social.jpg](sfix-20260131_g1.jpg)

**STITCH FIX, INC.**

**(Exact name of registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **27-5026540** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

**1 Montgomery Street, Suite 1500**

**San Francisco, California 94104**

(Address of principal executive offices and zip code)

**(415) 882-7765** 

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol** | **Name of Each Exchange on Which Registered** |
| Class A common stock, <br>par value $0.00002 per share | SFIX | Nasdaq Global Select Market |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Yes | ☒ | No | ☐ |
| Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Yes | ☒ | No | ☐ |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. |
| Large accelerated filer | ☐ | Accelerated filer | ☒ | Non-accelerated filer | ☐ | | | | |
| Smaller reporting company | ☐ | Emerging growth company | ☐ | | | | | | |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | | ☐ |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  | Yes | ☐ | No | ☒ |
| As of March 6, 2026, the number of outstanding shares of the registrant's Class A common stock, par value $0.00002 per share, was 121,382,902, and the number of outstanding shares of the registrant's Class B common stock, par value $0.00002 per share, was 15,139,618. | As of March 6, 2026, the number of outstanding shares of the registrant's Class A common stock, par value $0.00002 per share, was 121,382,902, and the number of outstanding shares of the registrant's Class B common stock, par value $0.00002 per share, was 15,139,618. | As of March 6, 2026, the number of outstanding shares of the registrant's Class A common stock, par value $0.00002 per share, was 121,382,902, and the number of outstanding shares of the registrant's Class B common stock, par value $0.00002 per share, was 15,139,618. | As of March 6, 2026, the number of outstanding shares of the registrant's Class A common stock, par value $0.00002 per share, was 121,382,902, and the number of outstanding shares of the registrant's Class B common stock, par value $0.00002 per share, was 15,139,618. | As of March 6, 2026, the number of outstanding shares of the registrant's Class A common stock, par value $0.00002 per share, was 121,382,902, and the number of outstanding shares of the registrant's Class B common stock, par value $0.00002 per share, was 15,139,618. | As of March 6, 2026, the number of outstanding shares of the registrant's Class A common stock, par value $0.00002 per share, was 121,382,902, and the number of outstanding shares of the registrant's Class B common stock, par value $0.00002 per share, was 15,139,618. | As of March 6, 2026, the number of outstanding shares of the registrant's Class A common stock, par value $0.00002 per share, was 121,382,902, and the number of outstanding shares of the registrant's Class B common stock, par value $0.00002 per share, was 15,139,618. | As of March 6, 2026, the number of outstanding shares of the registrant's Class A common stock, par value $0.00002 per share, was 121,382,902, and the number of outstanding shares of the registrant's Class B common stock, par value $0.00002 per share, was 15,139,618. | As of March 6, 2026, the number of outstanding shares of the registrant's Class A common stock, par value $0.00002 per share, was 121,382,902, and the number of outstanding shares of the registrant's Class B common stock, par value $0.00002 per share, was 15,139,618. | As of March 6, 2026, the number of outstanding shares of the registrant's Class A common stock, par value $0.00002 per share, was 121,382,902, and the number of outstanding shares of the registrant's Class B common stock, par value $0.00002 per share, was 15,139,618. |

---

------

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page <br>Number** |
| **[Special Note Regarding Forward-Looking Statements](#i7c055e988a3b45fb8acf0da0290f6490_10)** | **[Special Note Regarding Forward-Looking Statements](#i7c055e988a3b45fb8acf0da0290f6490_10)** | <u>[1](#i7c055e988a3b45fb8acf0da0290f6490_10)</u> |
| **PART I. FINANCIAL INFORMATION** | **PART I. FINANCIAL INFORMATION** |  |
| [Item](#i7c055e988a3b45fb8acf0da0290f6490_31)1[.](#i7c055e988a3b45fb8acf0da0290f6490_31) | [Financial Statements](#i7c055e988a3b45fb8acf0da0290f6490_31)  | <u>[2](#i7c055e988a3b45fb8acf0da0290f6490_31)</u> |
|  | Unaudited Condensed Consolidated Balance Sheets | <u>[3](#i7c055e988a3b45fb8acf0da0290f6490_40)</u> |
|  | Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss | <u>[4](#i7c055e988a3b45fb8acf0da0290f6490_43)</u> |
|  | Unaudited Condensed Consolidated Statements of Stockholders' Equity | <u>[5](#i7c055e988a3b45fb8acf0da0290f6490_46)</u> |
|  | Unaudited Condensed Consolidated Statements of Cash Flows | <u>[7](#i7c055e988a3b45fb8acf0da0290f6490_55)</u> |
|  | Notes to the Unaudited Condensed Consolidated Financial Statements | <u>[8](#i7c055e988a3b45fb8acf0da0290f6490_58)</u> |
| [Item](#i7c055e988a3b45fb8acf0da0290f6490_268)2[.](#i7c055e988a3b45fb8acf0da0290f6490_268)  | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#i7c055e988a3b45fb8acf0da0290f6490_268) | <u>[20](#i7c055e988a3b45fb8acf0da0290f6490_268)</u> |
| [Item](#i7c055e988a3b45fb8acf0da0290f6490_334)3[.](#i7c055e988a3b45fb8acf0da0290f6490_334)  | [Quantitative and Qualitative Disclosures About Market Risk](#i7c055e988a3b45fb8acf0da0290f6490_334) | <u>[28](#i7c055e988a3b45fb8acf0da0290f6490_334)</u> |
| [Item](#i7c055e988a3b45fb8acf0da0290f6490_346)4[.](#i7c055e988a3b45fb8acf0da0290f6490_346)  | [Controls and Procedures](#i7c055e988a3b45fb8acf0da0290f6490_346) | <u>[28](#i7c055e988a3b45fb8acf0da0290f6490_346)</u> |
| **PART II. OTHER INFORMATION** | **PART II. OTHER INFORMATION** |  |
| [Item](#i7c055e988a3b45fb8acf0da0290f6490_379)1[.](#i7c055e988a3b45fb8acf0da0290f6490_379)  | [Legal Proceedings](#i7c055e988a3b45fb8acf0da0290f6490_379) | <u>[30](#i7c055e988a3b45fb8acf0da0290f6490_379)</u> |
| [Item](#i7c055e988a3b45fb8acf0da0290f6490_382)1A[.](#i7c055e988a3b45fb8acf0da0290f6490_382)  | [Risk Factors](#i7c055e988a3b45fb8acf0da0290f6490_382) | <u>[31](#i7c055e988a3b45fb8acf0da0290f6490_382)</u> |
| [Item](#i7c055e988a3b45fb8acf0da0290f6490_385)2[.](#i7c055e988a3b45fb8acf0da0290f6490_385) | Unregistered Sales of Equity Securities and Use of Proceeds | <u>[55](#i7c055e988a3b45fb8acf0da0290f6490_385)</u> |
| [Item](#i7c055e988a3b45fb8acf0da0290f6490_385)3[.](#i7c055e988a3b45fb8acf0da0290f6490_385) | Defaults Upon Senior Securities | <u>[55](#i7c055e988a3b45fb8acf0da0290f6490_394)</u> |
| [Item](#i7c055e988a3b45fb8acf0da0290f6490_397)4[.](#i7c055e988a3b45fb8acf0da0290f6490_397) | [Mine Safety Disclosures](#i7c055e988a3b45fb8acf0da0290f6490_397) | <u>[55](#i7c055e988a3b45fb8acf0da0290f6490_397)</u> |
| [Item](#i7c055e988a3b45fb8acf0da0290f6490_400)5[.](#i7c055e988a3b45fb8acf0da0290f6490_400) | [Other Information](#i7c055e988a3b45fb8acf0da0290f6490_400) | <u>[55](#i7c055e988a3b45fb8acf0da0290f6490_400)</u> |
| [Item](#i7c055e988a3b45fb8acf0da0290f6490_415)6[.](#i7c055e988a3b45fb8acf0da0290f6490_415)  | [Exhibits and Financial Statement Schedules](#i7c055e988a3b45fb8acf0da0290f6490_415) | <u>[57](#i7c055e988a3b45fb8acf0da0290f6490_415)</u> |
| **[SIGNATURES](#i7c055e988a3b45fb8acf0da0290f6490_430)** | **[SIGNATURES](#i7c055e988a3b45fb8acf0da0290f6490_430)** | <u>[58](#i7c055e988a3b45fb8acf0da0290f6490_430)</u> |

---

------

<u>[**Table of Contents**](#i7c055e988a3b45fb8acf0da0290f6490_7)</u><br>

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q ("Quarterly Report") contains forward-looking statements that involve risks, uncertainties, and assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The statements contained in this Quarterly Report that are not purely historical, including without limitation statements regarding our projected financial position and results, key financial and operating metrics, customer acquisition and retention, the competitive landscape, our market opportunity, and the business strategy, plans, and objectives of our management for future operations, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are often identified by the use of words such as, but not limited to, "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "project," "seek," "should," "target," "will," "would," and similar expressions or variations intended to identify forward-looking statements. These statements are based on the beliefs and assumptions of our management, which are in turn based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties, and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the section titled "Risk Factors" included under Part II, Item 1A below. Furthermore, such forward-looking statements speak only as of the date of this Quarterly Report. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 1**

------

<u>[**Table of Contents**](#i7c055e988a3b45fb8acf0da0290f6490_7)</u><br>

**PART I. FINANCIAL INFORMATION**

---

| | |
|:---|:---|
| **ITEM 1.** | **FINANCIAL STATEMENTS** |

---

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| |
|:---|
| **STITCH FIX, INC.** |
| **INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** |

---

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| | | |
|:---|:---|:---|
| **Financial Statements:** | **Financial Statements:** | **Page <br>Number** |
| Unaudited Condensed Consolidated[Balance Sheets](#i7c055e988a3b45fb8acf0da0290f6490_40) | Unaudited Condensed Consolidated[Balance Sheets](#i7c055e988a3b45fb8acf0da0290f6490_40) | <u>[3](#i7c055e988a3b45fb8acf0da0290f6490_40)</u> |
| Unaudited Condensed Consolidated[Statements of Operations and Comprehensive Loss](#i7c055e988a3b45fb8acf0da0290f6490_43) | Unaudited Condensed Consolidated[Statements of Operations and Comprehensive Loss](#i7c055e988a3b45fb8acf0da0290f6490_43) | <u>[4](#i7c055e988a3b45fb8acf0da0290f6490_43)</u> |
| Unaudited Condensed Consolidated[Statements of Stockholders' Equity](#i7c055e988a3b45fb8acf0da0290f6490_46) | Unaudited Condensed Consolidated[Statements of Stockholders' Equity](#i7c055e988a3b45fb8acf0da0290f6490_46) | <u>[5](#i7c055e988a3b45fb8acf0da0290f6490_46)</u> |
| Unaudited Condensed Consolidated[Statements of Cash Flow](#i7c055e988a3b45fb8acf0da0290f6490_55) | Unaudited Condensed Consolidated[Statements of Cash Flow](#i7c055e988a3b45fb8acf0da0290f6490_55) | <u>[7](#i7c055e988a3b45fb8acf0da0290f6490_55)</u> |
| **[Notes to the Consolidated Financial Statements](#i7c055e988a3b45fb8acf0da0290f6490_58):** | **[Notes to the Consolidated Financial Statements](#i7c055e988a3b45fb8acf0da0290f6490_58):** |  |
| [Note](#i7c055e988a3b45fb8acf0da0290f6490_61)1 | [Description of Business](#i7c055e988a3b45fb8acf0da0290f6490_61) | <u>[8](#i7c055e988a3b45fb8acf0da0290f6490_61)</u> |
| [Note](#i7c055e988a3b45fb8acf0da0290f6490_64)2 | [Significant Accounting Policies](#i7c055e988a3b45fb8acf0da0290f6490_64) | <u>[8](#i7c055e988a3b45fb8acf0da0290f6490_64)</u> |
| [Note](#i7c055e988a3b45fb8acf0da0290f6490_154)3 | [Fair Value Measurements](#i7c055e988a3b45fb8acf0da0290f6490_154) | <u>[10](#i7c055e988a3b45fb8acf0da0290f6490_154)</u> |
| [Note](#i7c055e988a3b45fb8acf0da0290f6490_166)4 | [Accrued Liabilities](#i7c055e988a3b45fb8acf0da0290f6490_166) | <u>[12](#i7c055e988a3b45fb8acf0da0290f6490_166)</u> |
| [Note](#i7c055e988a3b45fb8acf0da0290f6490_169)5 | [Credit Facility](#i7c055e988a3b45fb8acf0da0290f6490_169) | <u>[12](#i7c055e988a3b45fb8acf0da0290f6490_169)</u> |
| [Note](#i7c055e988a3b45fb8acf0da0290f6490_178)6 | [Commitments and Contingencies](#i7c055e988a3b45fb8acf0da0290f6490_178) | <u>[12](#i7c055e988a3b45fb8acf0da0290f6490_178)</u> |
| [Note](#i7c055e988a3b45fb8acf0da0290f6490_184)7 | [Accumulated Other Comprehensive Income (Loss)](#i7c055e988a3b45fb8acf0da0290f6490_184) | <u>[14](#i7c055e988a3b45fb8acf0da0290f6490_184)</u> |
| [Note](#i7c055e988a3b45fb8acf0da0290f6490_187)8 | [Stock-Based Compensation](#i7c055e988a3b45fb8acf0da0290f6490_187) | <u>[14](#i7c055e988a3b45fb8acf0da0290f6490_187)</u> |
| [Note](#i7c055e988a3b45fb8acf0da0290f6490_229)9 | [Income Taxes](#i7c055e988a3b45fb8acf0da0290f6490_229) | <u>[16](#i7c055e988a3b45fb8acf0da0290f6490_229)</u> |
| [Note](#i7c055e988a3b45fb8acf0da0290f6490_238)10 | [Net Loss Per Share From Continuing Operations Attributable to Common Stockholders and Common Stock](#i7c055e988a3b45fb8acf0da0290f6490_238) | <u>[17](#i7c055e988a3b45fb8acf0da0290f6490_238)</u> |
| [Note](#i7c055e988a3b45fb8acf0da0290f6490_244)11 | [Segment Reporting](#i7c055e988a3b45fb8acf0da0290f6490_244) | <u>[18](#i7c055e988a3b45fb8acf0da0290f6490_244)</u> |
| [Note](#i7c055e988a3b45fb8acf0da0290f6490_256)12 | [Discontinued Operations](#i7c055e988a3b45fb8acf0da0290f6490_256) | <u>[19](#i7c055e988a3b45fb8acf0da0290f6490_256)</u> |

---

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<u>[**Table of Contents**](#i7c055e988a3b45fb8acf0da0290f6490_7)</u><br>

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| |
|:---|
| **STITCH FIX, INC.** |
| **UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS** |

---

---

| | | |
|:---|:---|:---|
| *(In thousands, except share and per share amounts)* | **January 31, 2026** | **August 2, 2025** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $118782 | $113952 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 108925 | 120901 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory, net | 122132 | 118370 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 54295 | 20649 |
| Total current assets | 404134 | 373872 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term investments | 12812 | 7894 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 41488 | 43199 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 45000 | 51201 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other long-term assets | 4381 | 4456 |
| Total assets | $507815 | $480622 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $92194 | $89243 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 21737 | 22752 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 107266 | 76348 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gift card liability | 7167 | 6238 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 7728 | 8616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 2731 | 3030 |
| Total current liabilities | 238823 | 206227 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, net of current portion | 58865 | 70759 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities | 787 | 658 |
| Total liabilities | 298475 | 277644 |
| Commitments and contingencies (Note 6) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class A common stock, $0.00002 par value – 2,000,000,000 shares authorized at January 31, 2026, and August 2, 2025; 123,676,208 and 118,921,860 shares issued at January 31, 2026, and August 2, 2025; and 121,374,067 and 116,619,719 shares outstanding at January 31, 2026, and August 2, 2025, respectively | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Class B common stock, $0.00002 par value – 100,000,000 shares authorized at January 31, 2026, and August 2, 2025; 15,148,453 and 15,856,558 shares issued and outstanding at January 31, 2026, and August 2, 2025, respectively | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 744726 | 729444 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | (338) | (434) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (505008) | (495992) |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost – 2,302,141 and 2,302,141 shares as of January 31, 2026, and August 2, 2025, respectively | (30042) | (30042) |
| Total stockholders' equity | 209340 | 202978 |
| Total liabilities and stockholders' equity | $507815 | $480622 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 3**

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<u>[**Table of Contents**](#i7c055e988a3b45fb8acf0da0290f6490_7)</u><br>

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| |
|:---|
| **STITCH FIX, INC.** |
| **UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended** | **For the Three Months Ended** | **For the Six Months Ended** | **For the Six Months Ended** |
| *(In thousands, except share and per share amounts)* | **January 31, 2026** | **February 1, 2025** | **January 31, 2026** | **February 1, 2025** |
| Revenue, net | $341297 | $312110 | $683424 | $630928 |
| Cost of goods sold | 192352 | 173249 | 385155 | 347262 |
| Gross profit | 148945 | 138861 | 298269 | 283666 |
| Selling, general, and administrative expenses | 153685 | 147886 | 311584 | 301657 |
| Operating loss | (4740) | (9025) | (13315) | (17991) |
| Interest income | 2182 | 2663 | 4538 | 5595 |
| Other expense, net | (30) | (79) | (115) | (151) |
| Loss before income taxes | (2588) | (6441) | (8892) | (12547) |
| Provision for income taxes | 66 | 182 | 124 | 339 |
| Net loss from continuing operations | (2654) | (6623) | (9016) | (12886) |
| Net income from discontinued operations, net of income taxes |  | 94 |  | 101 |
| Net loss | (2654) | (6529) | (9016) | (12785) |
| **Other comprehensive income (loss):** |  |  |  |  |
| Change in unrealized gains and losses on available-for-sale securities, net of tax | (13) | (57) | 96 | (17) |
| Total other comprehensive income (loss), net of tax | (13) | (57) | 96 | (17) |
| Comprehensive loss | $(2667) | $(6586) | $(8920) | $(12802) |
| **Loss per share from continuing operations attributable to common stockholders:** |  |  |  |  |
| Basic | $(0.02) | $(0.05) | $(0.07) | $(0.10) |
| Diluted | $(0.02) | $(0.05) | $(0.07) | $(0.10) |
| **Earnings per share from discontinued operations attributable to common stockholders:** |  |  |  |  |
| Basic | $0.00 | $0.00 | $0.00 | $0.00 |
| Diluted | $0.00 | $0.00 | $0.00 | $0.00 |
| **Loss per share attributable to common stockholders:** |  |  |  |  |
| Basic | $(0.02) | $(0.05) | $(0.07) | $(0.10) |
| Diluted | $(0.02) | $(0.05) | $(0.07) | $(0.10) |
| **Weighted-average shares used to compute earnings (loss) per share attributable to common stockholders:** |  |  |  |  |
| Basic | 135354835 | 127984475 | 134350213 | 126978567 |
| Diluted | 135354835 | 127984475 | 134350213 | 126978567 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 4**

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<u>[**Table of Contents**](#i7c055e988a3b45fb8acf0da0290f6490_7)</u><br>

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| |
|:---|
| **STITCH FIX, INC.** |
| **UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY** |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended January 31, 2026** | **For the Three Months Ended January 31, 2026** | **For the Three Months Ended January 31, 2026** | **For the Three Months Ended January 31, 2026** | **For the Three Months Ended January 31, 2026** | **For the Three Months Ended January 31, 2026** | **For the Three Months Ended January 31, 2026** | **For the Three Months Ended January 31, 2026** |
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-In<br>Capital** | **Accumulated Other Comprehensive Loss** | **Accumulated Deficit** | **Treasury Stock** | **Treasury Stock** | **Total<br>Stockholders'<br>Equity** |
| *(In thousands, except share amounts)* | **Shares** | **Amount** | **Additional<br>Paid-In<br>Capital** | **Accumulated Other Comprehensive Loss** | **Accumulated Deficit** | **Shares** | **Amount** | **Total<br>Stockholders'<br>Equity** |
| Balance as of November 1, 2025 | 136501135 | $2 | $736800 | $(325) | $(502354) | (2302141) | $(30042) | $204081 |
| Issuance of common stock upon exercise of stock options | 90864 |  | 347 |  |  |  |  | 347 |
| Issuance of common stock upon settlement of restricted stock units, net of tax withholdings | 2232662 |  | (7438) |  |  |  |  | (7438) |
| Stock-based compensation |  |  | 15017 |  |  |  |  | 15017 |
| Net loss |  |  |  |  | (2654) |  |  | (2654) |
| Other comprehensive income, net of tax |  |  |  | (13) |  |  |  | (13) |
| Balance as of January 31, 2026 | 138824661 | $2 | $744726 | $(338) | $(505008) | (2302141) | $(30042) | $209340 |
|  | **For the Three Months Ended February 1, 2025** | **For the Three Months Ended February 1, 2025** | **For the Three Months Ended February 1, 2025** | **For the Three Months Ended February 1, 2025** | **For the Three Months Ended February 1, 2025** | **For the Three Months Ended February 1, 2025** | **For the Three Months Ended February 1, 2025** | **For the Three Months Ended February 1, 2025** |
|  | **Common Stock** | **Common Stock** | **Additional<br>Paid-In<br>Capital** | **Accumulated Other Comprehensive Loss** | **Accumulated Deficit** | **Treasury Stock** | **Treasury Stock** | **Total<br>Stockholders'<br>Equity** |
| *(In thousands, except share amounts)* | **Shares** | **Amount** | **Additional<br>Paid-In<br>Capital** | **Accumulated Other Comprehensive Loss** | **Accumulated Deficit** | **Shares** | **Amount** | **Total<br>Stockholders'<br>Equity** |
| Balance as of November 2, 2024 | 129145474 | $2 | $694339 | $(295) | $(473509) | (2302141) | $(30042) | $190495 |
| Issuance of common stock upon exercise of stock options | 2665 |  | 6 |  |  |  |  | 6 |
| Issuance of common stock upon settlement of restricted stock units, net of tax withholdings | 1960070 |  | (4321) |  |  |  |  | (4321) |
| Stock-based compensation |  |  | 18163 |  |  |  |  | 18163 |
| Net loss |  |  |  |  | (6529) |  |  | (6529) |
| Other comprehensive loss, net of tax |  |  |  | (57) |  |  |  | (57) |
| Balance as of February 1, 2025 | 131108209 | $2 | $708187 | $(352) | $(480038) | (2302141) | $(30042) | $197757 |

---

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 5**

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<u>[**Table of Contents**](#i7c055e988a3b45fb8acf0da0290f6490_7)</u><br>

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Six Months Ended January 31, 2026** | **For the Six Months Ended January 31, 2026** | **For the Six Months Ended January 31, 2026** | **For the Six Months Ended January 31, 2026** | **For the Six Months Ended January 31, 2026** | **For the Six Months Ended January 31, 2026** | **For the Six Months Ended January 31, 2026** | **For the Six Months Ended January 31, 2026** |
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-In<br>Capital** | **Accumulated Other Comprehensive Loss** | **Accumulated Deficit** | **Treasury Stock** | **Treasury Stock** | **Total<br>Stockholders'<br>Equity** |
| *(In thousands, except share amounts)* | **Shares** | **Amount** | **Additional<br>Paid-In<br>Capital** | **Accumulated Other Comprehensive Loss** | **Accumulated Deficit** | **Shares** | **Amount** | **Total<br>Stockholders'<br>Equity** |
| Balance as of August 2, 2025 | 134778418 | $2 | $729444 | $(434) | $(495992) | (2302141) | $(30042) | $202978 |
| Issuance of common stock upon exercise of stock options | 153908 |  | 595 |  |  |  |  | 595 |
| Issuance of common stock upon settlement of restricted stock units, net of tax withholdings | 3892335 |  | (12308) |  |  |  |  | (12308) |
| Stock-based compensation |  |  | 26995 |  |  |  |  | 26995 |
| Net loss |  |  |  |  | (9016) |  |  | (9016) |
| Other comprehensive income, net of tax |  |  |  | 96 |  |  |  | 96 |
| Balance as of January 31, 2026 | 138824661 | $2 | $744726 | $(338) | $(505008) | (2302141) | $(30042) | $209340 |
|  | **For the Six Months Ended February 1, 2025** | **For the Six Months Ended February 1, 2025** | **For the Six Months Ended February 1, 2025** | **For the Six Months Ended February 1, 2025** | **For the Six Months Ended February 1, 2025** | **For the Six Months Ended February 1, 2025** | **For the Six Months Ended February 1, 2025** | **For the Six Months Ended February 1, 2025** |
|  | **Common Stock** | **Common Stock** | **Additional<br>Paid-In<br>Capital** | **Accumulated Other Comprehensive Loss** | **Accumulated Deficit** | **Treasury Stock** | **Treasury Stock** | **Total<br>Stockholders'<br>Equity** |
| *(In thousands, except share amounts)* | **Shares** | **Amount** | **Additional<br>Paid-In<br>Capital** | **Accumulated Other Comprehensive Loss** | **Accumulated Deficit** | **Shares** | **Amount** | **Total<br>Stockholders'<br>Equity** |
| Balance as of August 3, 2024 | 127060436 | $2 | $684650 | $(335) | $(467253) | (2302141) | $(30042) | $187022 |
| Issuance of common stock upon exercise of stock options | 2665 |  | 6 |  |  |  |  | 6 |
| Issuance of common stock upon settlement of restricted stock units, net of tax withholdings | 4045108 |  | (8106) |  |  |  |  | (8106) |
| Stock-based compensation |  |  | 31637 |  |  |  |  | 31637 |
| Net loss |  |  |  |  | (12785) |  |  | (12785) |
| Other comprehensive income, net of tax |  |  |  | (17) |  |  |  | (17) |
| Balance as of February 1, 2025 | 131108209 | $2 | $708187 | $(352) | $(480038) | (2302141) | $(30042) | $197757 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 6**

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<u>[**Table of Contents**](#i7c055e988a3b45fb8acf0da0290f6490_7)</u><br>

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| |
|:---|
| **STITCH FIX, INC.** |
| **UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW** |

---

---

| | | |
|:---|:---|:---|
| | **For the Six Months Ended** | **For the Six Months Ended** |
| *(In thousands)* | **January 31, 2026** | **February 1, 2025** |
| **Cash Flows from Operating Activities from Continuing Operations:** |  |  |
| Net loss from continuing operations | $(9016) | $(12886) |
| Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities from continuing operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in inventory reserves | 6383 | 2047 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 25901 | 29931 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation, amortization, and accretion | 11988 | 13481 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1790 | 54 |
| Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory | (10145) | (13735) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (3227) | (2128) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets and liabilities | (6708) | (5803) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 2545 | (14945) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | (1147) | 762 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (888) | (179) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gift card liability | 929 | 851 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (170) | 606 |
| Net cash provided by (used in) operating activities from continuing operations | 18235 | (1944) |
| **Cash Flows from Investing Activities from Continuing Operations:** |  |  |
| Purchases of property and equipment | (9310) | (7547) |
| Purchases of securities available-for-sale | (33544) | (96554) |
| Sales of securities available-for-sale | 1500 | 2468 |
| Maturities of securities available-for-sale | 39877 | 62659 |
| Net cash used in investing activities from continuing operations | (1477) | (38974) |
| **Cash Flows from Financing Activities from Continuing Operations:** |  |  |
| Proceeds from the exercise of stock options, net | 595 | 6 |
| Payments for tax withholdings related to vesting of share-based awards | (12308) | (8106) |
| Other | (215) | (93) |
| Net cash used in financing activities from continuing operations | (11928) | (8193) |
| Net increase (decrease) in cash and cash equivalents from continuing operations | 4830 | (49111) |
| **Cash Flows from Discontinued Operations:** |  |  |
| Net cash used in operating activities from discontinued operations |  | (546) |
| Net decrease in cash and cash equivalents from discontinued operations |  | (546) |
| Net increase (decrease) in cash and cash equivalents | 4830 | (49657) |
| Cash and cash equivalents at beginning of period | 113952 | 162862 |
| Cash and cash equivalents at end of period | $118782 | $113205 |
| **Supplemental Disclosure** |  |  |
| Cash paid for income taxes | $206 | $621 |
| **Supplemental Disclosure of Non-Cash Investing and Financing Activities:** |  |  |
| Purchases of property and equipment included in accounts payable and accrued liabilities | $1499 | $1389 |
| Capitalized stock-based compensation | $1094 | $1706 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 7**

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<u>[**Table of Contents**](#i7c055e988a3b45fb8acf0da0290f6490_7)</u><br>

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| |
|:---|
| **STITCH FIX, INC.** |
| **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS** |

---

**1.** **DESCRIPTION OF BUSINESS**

Stitch Fix, Inc. ("we," "our," "us," or "the Company") is an online personal styling service that helps people discover the styles they will love that fit perfectly so they always look - and feel - their best. Clients primarily engage with us by (1) receiving a curated shipment of items informed by our algorithms and chosen by a Stitch Fix Stylist (a "Fix"); or (2) purchasing directly from our website or mobile app based on an individualized assortment of outfit and item recommendations ("Freestyle"). Clients choose to schedule regular shipments or order a Fix on demand. Then, after receiving a Fix, they can purchase the items they want to keep and return the other items, if any. We are incorporated in Delaware and have operations in the United States.

Previously, we also had operations in the United Kingdom ("UK"). During the first quarter of fiscal year ended August 3, 2024 ("fiscal 2024"), we ceased operations of our UK business and met the requirements to report the UK business as a discontinued operation for all periods presented.

**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**BASIS OF PRESENTATION**

The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). The unaudited condensed consolidated financial statements include the accounts of Stitch Fix, Inc. and our wholly-owned subsidiaries.

All intercompany balances and transactions have been eliminated in consolidation.

The Company's fiscal year is a 52-week or 53-week period ending on the Saturday closest to July 31. The fiscal years ending August 1, 2026 ("fiscal 2026") and August 2, 2025 ("fiscal 2025") each consists of 52 weeks.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended August 2, 2025 (the "2025 Annual Report").

**DISCONTINUED OPERATIONS**

During the first quarter of fiscal 2024, we ceased operations of our UK business and met the requirements to report the UK business as a discontinued operation. Accordingly, the unaudited condensed consolidated financial statements for all periods presented reflect the results of the UK business as a discontinued operation. Unless otherwise noted, amounts and disclosures throughout these Notes to Consolidated Financial Statements relate to the Company's continuing operations. Refer to Note 12, "Discontinued Operations" for further details.

**USE OF ESTIMATES**

The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the unaudited condensed consolidated financial statements and the accompanying footnotes.

Significant estimates and assumptions are used for inventory, net, stock-based compensation expense, and revenue recognition. Actual results could differ from those estimates, and such differences may be material to the unaudited condensed consolidated financial statements.

**SIGNIFICANT ACCOUNTING POLICIES**

Unless noted below, there have been no changes to the Company's significant accounting policies, as described in our 2025 Annual Report, that had a material impact on these unaudited condensed consolidated financial statements and related notes.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 8**

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<u>[**Table of Contents**](#i7c055e988a3b45fb8acf0da0290f6490_7)</u><br>

**REVENUE RECOGNITION**

We generate revenue primarily from the sale of merchandise to clients in a Fix and when clients purchase merchandise directly from Freestyle. Clients create an online account on our website or mobile app, complete a style profile, and order a Fix or merchandise to be delivered on a specified date.

Each Fix represents an offer made by us to the client to purchase merchandise. The client is charged a nonrefundable upfront styling fee before the Fix is shipped. As an alternative to the styling fee, select clients have the option to purchase a Style Pass. Style Pass clients pay a nonrefundable annual fee for unlimited Fixes that is credited towards merchandise purchases. If the offer to purchase merchandise is accepted, we charge the client the order amount for the accepted merchandise, net of the upfront styling fee or Style Pass annual fee. For each Fix, acceptance occurs when the client checks out the merchandise on our website or mobile app. We offer a discount to clients who purchase all of the items in the Fix.

We have five types of contractual liabilities: (i) cash collections of upfront styling fees, which are included in deferred revenue and are recognized as revenue upon the earlier of application to a merchandise purchase or expiry of the offer, (ii) cash collections of Style Pass annual fees, which are included in deferred revenue and are recognized upon the earlier of application to a merchandise purchase or expiry of the Style Pass annual period, (iii) unredeemed gift cards, which are included in gift card liability and recognized as revenue upon usage or inclusion in gift card breakage estimates, (iv) referral credits, which are included in other current liabilities and are recognized as revenue when used, and (v) cash collections of Freestyle purchases, which are included in deferred revenue and are recognized as revenue upon shipment.

We expect deferred revenue for upfront styling fees, Freestyle orders, and Style Pass annual fees to be recognized within one year. On average, our gift card liability and other current liabilities are also recognized within one year.

The following table summarizes the balances of contractual liabilities included in deferred revenue, gift card liability, and other current liabilities as of the dates indicated:

---

| | | |
|:---|:---|:---|
| *(in thousands)* | **January 31, 2026** | **August 2, 2025** |
| Deferred revenue: |  |  |
| &nbsp;&nbsp;Upfront styling fees | $4789 | $4939 |
| &nbsp;&nbsp;Style Pass annual fees | 2201 | 2638 |
| &nbsp;&nbsp;Freestyle orders | 738 | 1039 |
| Total deferred revenue | $7728 | $8616 |
| Gift card liability | $7167 | $6238 |
| Other current liabilities: |  |  |
| &nbsp;&nbsp;Referral credits | $150 | $442 |

---

The following table summarizes *Revenue, net* recognized during six months ended January 31, 2026, that was previously included in deferred revenue, gift card liability, and other current liabilities at August 2, 2025:

---

| | |
|:---|:---|
| *(in thousands)* | **Revenue Recognized from Amounts Previously Included in Deferred Balances at August 2, 2025** |
| Upfront styling fees | $4889 |
| Style Pass annual fees | 1633 |
| Freestyle orders | 668 |
| Gift card liability | 1366 |
| Referral credits | 96 |

---

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 9**

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<u>[**Table of Contents**](#i7c055e988a3b45fb8acf0da0290f6490_7)</u><br>

**CONCENTRATION OF CREDIT RISK**

We are subject to concentrations of credit risk, principally from cash and cash equivalents and investment securities. The majority of our cash is held by one financial institution within the United States. Our cash balance held by this institution exceeds federally insured limits. The associated risk of concentration for cash is mitigated by banking with credit-worthy institutions. The associated risk of concentration for cash equivalents and investments is mitigated by maintaining a diversified portfolio of highly rated instruments.

No client accounted for greater than 10% of total revenue, net for the three and six months ended January 31, 2026, and February 1, 2025.

**RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS** 

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). This update enhances the transparency and decision usefulness of income tax disclosures by improving the income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The update also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance is effective for annual periods beginning after December 15, 2024 and should be applied on a prospective basis, with early adoption permitted. We do not anticipate this standard to have a material impact on our consolidated financial statements or related disclosures.

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses* ("ASU 2024-03"). This update is to improve the disclosures of components of certain income statement expense items. In January 2025, the FASB additionally issued ASU No. 2025-01, which clarified the effective date of ASU 2024-03 for entities that do not have a calendar year-end. This guidance is effective for annual reporting periods beginning after December 15, 2027 and should be applied on either a retrospective or prospective basis, with early adoption permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statements or related disclosures.

In September 2025. the FASB issued ASU No. 2025-06, *Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software* ("ASU 2025-06"). This update amends recognition and disclosure guidance for internal-use software costs, removing the previous software development stage model with a more principles-based, probable-to-complete recognition threshold. This guidance is effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual reporting periods. The guidance should be applied on either a retrospective, prospective or modified transition approach. Early adoption is permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statements or related disclosures.

In December 2025, the FASB issued ASU No. 2025-11, *Interim Reporting (Topic 270): Narrow-Scope Improvements*. This update clarifies the applicability of Topic 270, the types of interim reporting, and the form and content of interim financial statements in accordance with GAAP. In addition, this update includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The guidance is effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual reporting periods, with early adoption permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statements or related disclosures.

In December 2025, the FASB issued ASU No. 2025-12, *Codification Improvements*. This update includes changes to the Accounting Standards Codification that clarify, correct errors, or make minor improvements to GAAP. This guidance is effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods. Early adoption is permitted. We do not anticipate this standard to have a material impact on our consolidated financial statements or related disclosures.

**3.** **FAIR VALUE MEASUREMENTS**

Our financial instruments consist of cash, cash equivalents, investments, accounts receivable, accounts payable, and accrued liabilities. At January 31, 2026, and August 2, 2025, the carrying values of cash, accounts receivable, accounts payable, and accrued liabilities approximated fair value due to their short-term nature. We measure our cash equivalents and investments at fair value within Level 1 or Level 2 of the fair value hierarchy because we value

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these investments using unadjusted, quoted market prices; or alternative pricing sources and models utilizing market observable inputs, respectively.

Further, the Company measures the fair value of certain lease right of use assets and other long-lived assets subject to long-lived asset impairment using Level 3 unobservable inputs.

Our cash equivalents and investments, which were accounted for as available-for-sale securities and were measured at fair value on a recurring basis as of January 31, 2026, and August 2, 2025, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **January 31, 2026** | **January 31, 2026** | **January 31, 2026** | **January 31, 2026** | **August 2, 2025** | **August 2, 2025** | **August 2, 2025** | **August 2, 2025** |
| *(in thousands)* | **Level 1** | **Level 2** | **Level 3** | **Total** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Cash equivalents:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Money market funds | $70695 | $— | $— | $70695 | $59945 | $— | $— | $59945 |
| **Investments:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury securities <sup>(1)</sup> | 26823 |  |  | 26823 | 16541 |  |  | 16541 |
| &nbsp;&nbsp;Corporate bonds <sup>(1)</sup> |  | 89687 |  | 89687 |  | 105110 |  | 105110 |
| &nbsp;&nbsp;Asset backed securities <sup>(1)</sup> |  | 3239 |  | 3239 |  | 1499 |  | 1499 |
| &nbsp;&nbsp;Yankee bonds |  | 1988 |  | 1988 |  | 5645 |  | 5645 |
| Total | $97518 | $94914 | $— | $192432 | $76486 | $112254 | $— | $188740 |

---

<sup>(1)</sup> For January 31, 2026, Corporate bonds, U.S. Treasury securities, and Asset backed securities includes both short-term investments with remaining maturities of less than one year, and long-term investments with remaining maturities over one year and less than five years. For August 2, 2025, U.S. Treasury securities and corporate bonds includes both short-term investments with remaining maturities of less than one year, and long-term investments with remaining maturities over one year and less than five years.

The following table sets forth the amortized cost, gross unrealized gains and losses, and fair values of our investments, which are accounted for as available-for-sale securities, as of January 31, 2026, and August 2, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **January 31, 2026** | **January 31, 2026** | **January 31, 2026** | **January 31, 2026** | **August 2, 2025** | **August 2, 2025** | **August 2, 2025** | **August 2, 2025** |
| *(in thousands)* | **Amortized Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Fair Value** | **Amortized Cost** | **Gross Unrealized Gains** | **Gross Unrealized Losses** | **Fair Value** |
| **Investments:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury securities | $26805 | $19 | $(1) | $26823 | $16542 | $— | $(1) | $16541 |
| &nbsp;&nbsp;Corporate bonds | 89616 | 73 | (2) | 89687 | 105115 | 28 | (33) | 105110 |
| &nbsp;&nbsp;Asset backed securities | 3238 | 1 |  | 3239 | 1499 |  |  | 1499 |
| &nbsp;&nbsp;Yankee bonds | 1986 | 2 |  | 1988 | 5644 | 1 |  | 5645 |
| Total | $121645 | $95 | $(3) | $121737 | $128800 | $29 | $(34) | $128795 |

---

No significant available-for-sale securities held as of the periods presented have been in a continuous unrealized loss position for more than 12 months as of January 31, 2026, and August 2, 2025.

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**4.** **ACCRUED LIABILITIES**

Accrued liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
| *(in thousands)* | **January 31, 2026** | **August 2, 2025** |
| &nbsp;&nbsp;Compensation and related benefits | $22096 | $21425 |
| &nbsp;&nbsp;Advertising | 10700 | 10712 |
| &nbsp;&nbsp;Sales taxes | 7040 | 5785 |
| &nbsp;&nbsp;Shipping and freight | 9258 | 10546 |
| &nbsp;&nbsp;Accrued accounts payable | 4385 | 4189 |
| &nbsp;&nbsp;Inventory purchases | 11967 | 13007 |
| &nbsp;&nbsp;Sales refund reserve | 8240 | 7419 |
| &nbsp;&nbsp;Settlement accrual<sup>(1)</sup> | 32000 |  |
| &nbsp;&nbsp;Other | 1580 | 3265 |
| Total accrued liabilities | $107266 | $76348 |

---

<sup>(1)</sup> The settlement accrual is related to a specific class action lawsuit and is within the limits of the Company's insurance policies. Refer to Note 6 "Commitments and Contingencies" for more information.

**5.** **CREDIT FACILITY**

On December 4, 2023, we entered into a first lien credit agreement (the "Credit Agreement") with Citibank, N.A., as agent and lender, which provides for a $50.0 million revolving credit facility (the "Credit Facility"), with a maturity date of December 4, 2026. The Credit Facility includes a sub-facility that provides for the issuance of letters of credit in an amount of up to $30.0 million. Availability of the Credit Facility is based upon a borrowing base formula and periodic borrowing base certifications valuing certain of our accounts receivable, credit card receivables, and inventory as reduced by certain reserves, if any. On December 11, 2025, we entered into a First Amendment (the "Amendment") to the Credit Agreement, which extended the maturity date to December 11, 2028. Except as otherwise noted herein, the terms of the Credit Agreement were not materially modified by the Amendment.

Our borrowing availability based on balances as of January 31, 2026, was $50.0 million, and our excess availability was $33.1 million as a result of outstanding letters of credit, and no outstanding borrowing.

The Credit Facility is subject to customary fees for loan facilities of this type, including a commitment fee equal to 0.30% based on the average daily undrawn portion of the Credit Facility, payable quarterly.

The interest rate applicable to the Credit Facility will be, at our option, either (a) the Adjusted Term SOFR rate for the applicable interest period (subject to a 0.00% floor), plus a margin of 2.00% or (b) the Base Rate plus a margin of 2.00%. The Base Rate is the highest of (a) the federal funds rate plus 0.50%, (b) the Wall Street Journal prime rate, or (c) the Adjusted Term SOFR rate for a one-month interest period plus 1.00%.

Debt under the Credit Agreement is guaranteed by substantially all of our material domestic subsidiaries and is secured by substantially all of our and such subsidiaries' assets. The Credit Agreement contains affirmative and negative covenants, indemnification provisions, and events of default. The Credit Agreement also contains financial covenants that require us to maintain a minimum liquidity level and, if applicable, a minimum total consolidated fixed charge coverage ratio during the periods set forth in the Credit Agreement. As of January 31, 2026, we were in compliance with all financial covenants.

**6.** **COMMITMENTS AND CONTINGENCIES**

**CONTINGENCIES**

We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. If a loss is at least reasonably possible, we disclose the nature of the contingency and, if reasonably estimable, the possible loss or range of loss. If a loss is at least reasonably possible and the amount or range of loss cannot be reasonably estimated, no accrual is recorded and we disclose that an estimate cannot be

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made. Accordingly, unless otherwise indicated below, we are unable to estimate the possible loss or range of loss for contingencies where a loss is at least reasonably possible.

Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. Although we cannot predict with assurance the outcome of any litigation or tax matters, we do not believe there are currently any such actions that, if resolved unfavorably, would have a material adverse impact on our operating results, financial position, and cash flows.

On August 26, 2022, a class action lawsuit alleging violations of federal securities laws was filed by certain of our stockholders in the U.S. District Court for the Northern District of California, naming as defendants us and certain of our officers and directors (the "Securities Class Action"). The lawsuit alleges violations of the Securities Exchange Act of 1934, as amended, by us and our officers for allegedly making materially false and misleading statements regarding our Freestyle offering between June 2020 and June 2022. The plaintiffs seek unspecified monetary damages and other relief. On February 6, 2026, the parties signed a stipulation and agreement of settlement (the "Stipulation"), wherein we agree to pay, or cause our insurance carriers to pay, $32.0 million, in exchange for the release and dismissal with prejudice of all claims in the Securities Class Action. On February 10, 2026, the plaintiffs filed a motion for preliminary approval of the settlement, which is pending court approval. The Company, and each defendant, expressly denies all allegations of fault, liability, wrongdoing, or damages, and the settlement is not an admission of violation of any law. The Stipulation and settlement, the amount of which is within the limits of the Company's insurance policies, is subject to court approval and other conditions. The settlement accrual and insurance recovery receivable are recorded in Accrued liabilities and Prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets, respectively, as of January 31, 2026. Settlement expense, net of expected insurance recoveries, is recorded in Selling, general, and administrative expenses in the unaudited condensed consolidated statement of operations and comprehensive loss.

On March 17, 2023, a derivative action was filed by certain of our stockholders against certain of our current and former directors and officers in the Delaware Court of Chancery, based on similar allegations underlying the Securities Class Action. It seeks, among other remedies, damages and restitution to be paid to the Company by the individual defendants, governance changes, and attorney's fees and costs. The case is currently stayed.

On June 6, 2023, a shareholder action was filed by certain of our stockholders against certain of our current and former directors and officers in the Superior Court of the State of California for the County of Los Angeles that alleged claims based on similar allegations underlying the Securities Class Action. The shareholder action was voluntarily dismissed on January 25, 2024. On May 14, 2024, another derivative action was filed by the same stockholder against certain of our current and former directors and officers, among others, in the Delaware Court of Chancery that alleged claims based on similar allegations underlying the Securities Class Action. The derivative action was voluntarily dismissed on August 4, 2025. On July 22, 2025, another derivative action was filed by the same stockholder against certain of our current and former directors and officers, among others, in the U.S. District Court for the Northern District of California. It alleges claims based on similar factual allegations underlying the Securities Class Action and seeks, inter alia, the disgorgement and redistribution of alleged insider trading profits by the insider trading defendants to stockholders, damages and restitution to be paid to the Company by the individual defendants, governance changes, and attorney's fees and costs. The action in the Northern District of California is currently stayed.

On November 12, 2025, a derivative action was filed by certain of our stockholders against certain of our current and former directors and officers in the U.S. District Court for the Northern District of California, based on similar factual allegations underlying the Securities Class Action. It seeks, inter alia, damages, restitution, and disgorgement to be paid to the Company by the individual defendants, governance changes, and attorney's fees and costs. The action is currently stayed.

There have been no other material changes to our commitments and contingencies disclosed in our 2025 Annual Report.

**INDEMNIFICATIONS**

In the ordinary course of business, we may provide indemnifications of varying scope and terms to vendors, directors, officers, and other parties with respect to certain matters. We have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in the unaudited condensed consolidated financial statements.

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**7.** **ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)**

The tables below present the changes in accumulated other comprehensive income (loss) ("AOCI") by component and, if applicable, the reclassifications out of AOCI for the periods presented:

---

| | | | |
|:---|:---|:---|:---|
| | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** |
| | **January 31, 2026** | **February 1, 2025** | **February 1, 2025** |
| *(in thousands)* | **Total** | **Available-for-sale Securities** | **Total** |
| Beginning balance | $(325) | $(295) | $(295) |
| &nbsp;&nbsp;Other comprehensive income (loss) before reclassifications <sup>(1)</sup> | (5) | (57) | (57) |
| &nbsp;&nbsp;Amounts reclassified from AOCI | (8) |  |  |
| &nbsp;&nbsp;Net change in AOCI | (13) | (57) | (57) |
| Ending balance | $(338) | $(352) | $(352) |
|  | **For the Six Months Ended** | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **January 31, 2026** | **February 1, 2025** | **February 1, 2025** |
| *(in thousands)* | **Total** | **Available-for-sale Securities** | **Total** |
| Beginning balance | $(434) | $(335) | $(335) |
| &nbsp;&nbsp;Other comprehensive income (loss) before reclassifications <sup>(1)</sup> | 104 | (17) | (17) |
| &nbsp;&nbsp;Amounts reclassified from AOCI | (8) |  |  |
| &nbsp;&nbsp;Net change in AOCI | 96 | (17) | (17) |
| Ending balance | $(338) | $(352) | $(352) |

---

<sup>(1)</sup> There was no associated income tax effect for losses on available-for-sale securities for the three and six months ended January 31, 2026 or February 1, 2025, as we have recorded a valuation allowance against these deferred tax balances.

**8.** **STOCK-BASED COMPENSATION**

**STOCK PLANS**

*2011 Equity Incentive Plan*

In 2011, we adopted the 2011 Equity Incentive Plan (the "2011 Plan"). The 2011 Plan provided for the grant of stock-based awards to employees, directors, and non-employees under terms and provisions established by the Board of Directors.

The 2011 Plan allowed for the grant of incentive stock options or nonqualified stock options, as well as restricted stock unit ("RSU") awards, restricted stock awards ("RSAs"), and stock appreciation rights. Only incentive and nonqualified stock options were granted under the 2011 Plan. Employee stock option awards generally vested 25% on the first anniversary of the grant date with the remaining shares subject to the option vesting ratably over the next three years subject to the employee's continued service with the Company. Options generally expire after 10 years. Effective upon our initial public offering in 2017, the 2011 Plan was replaced by the 2017 Incentive Plan.

*2017 Incentive Plan*

In November 2017, our Board of Directors and stockholders adopted our 2017 Incentive Plan (the "2017 Plan"). The remaining shares available for issuance under our 2011 Plan became reserved for issuance under the 2017 Plan. Our 2017 Plan provides for the grant of Class A incentive stock options to employees and for the grant of nonqualified stock options, stock appreciation rights, RSAs, RSU awards, performance restricted stock unit ("PSU") awards, performance cash awards, and other forms of stock awards to employees, directors, and consultants. Employee stock option awards generally begin to vest six months after the grant date with the remaining shares

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subject to the option vesting ratably over the next 30 months. Options generally expire after 10 years. RSU awards made to employees generally vest ratably on a quarterly basis subject to the employee's continued service with the Company. PSU awards made to employees generally vest on a quarterly basis following the end of the performance period, subject to the employee's continued service with the Company. As of January 31, 2026, the number of shares authorized for issuance under the 2017 Plan was 56,900,610 shares of Class A common stock, and the number of shares available for grant was 3,205,937.

*2019 Inducement Plan*

In October 2019, our Board of Directors adopted our 2019 Inducement Plan (the "2019 Plan"). Our 2019 Plan provides for the grant of Class A nonqualified stock options and RSU awards to individuals who satisfy the standards for inducement grants under the relevant Nasdaq Stock Market rules. As of January 31, 2026, the number of shares authorized for issuance under the 2019 Plan was 10,750,000 shares of Class A common stock and the number of shares available for grant was 2,211,945.

**STOCK OPTIONS**

Stock option activity under the 2011 Plan, 2017 Plan, and 2019 Plan was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Options Outstanding** | **Options Outstanding** | **Options Outstanding** | **Options Outstanding** |
| | **Number of <br>Options** | **Weighted-<br>Average <br>Exercise <br>Price** | **Weighted-<br>Average <br>Remaining <br>Contractual <br>Life (in years)** | **Aggregate<br>Intrinsic<br>Value<br>(in thousands)** |
| Balance at August 2, 2025 | 9316495 | $5.43 | 7.41 | $6774 |
| &nbsp;&nbsp;Exercised | (153908) | 3.87 |  |  |
| &nbsp;&nbsp;Cancelled | (11609) | 16.38 |  |  |
| Balance at January 31, 2026 | 9150978 | $5.44 | 6.91 | $8657 |

---

**RESTRICTED STOCK UNIT AWARDS**

RSU award activity under the 2017 Plan and 2019 Plan was as follows:

---

| | | |
|:---|:---|:---|
| | **Unvested RSU Awards** | **Unvested RSU Awards** |
| | **Class A Common Stock** | **Weighted-<br>Average <br>Grant Date <br>Fair Value** |
| Unvested at August 2, 2025 | 6591285 | $4.18 |
| &nbsp;&nbsp;Granted | 5944529 | 4.52 |
| &nbsp;&nbsp;Vested | (3181813) | 4.34 |
| &nbsp;&nbsp;Forfeited <sup>(1)</sup> | (1868361) | 4.31 |
| Unvested at January 31, 2026 | 7485640 | $4.35 |

---

<sup>(1)</sup> This amount includes shares withheld for taxes upon vesting, which are returned to the respective equity incentive plan and become available for future grant.

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**PERFORMANCE RESTRICTED STOCK UNIT AWARDS**

In the first quarter of fiscal 2026, the Compensation Committee approved certain PSU awards, which become eligible to vest in multiple tranches over a three-year period. Each PSU award represents a contingent right to receive one share of Class A common stock. The awards have both service-based and performance-based vesting conditions. The actual number of shares earned on vesting ranges from 0% to 150% of the target number granted, depending on the attainment of specified performance-based metrics during the performance period, which is fiscal 2026.

PSU award activity under the 2017 Plan was as follows:

---

| | | |
|:---|:---|:---|
| | **Unvested PSU Awards** | **Unvested PSU Awards** |
| | **Class A Common Stock** | **Weighted-<br>Average <br>Grant Date <br>Fair Value** |
| Unvested at August 2, 2025 | 2638991 | $3.48 |
| &nbsp;&nbsp;Granted | 1611800 | 4.49 |
| &nbsp;&nbsp;Performance adjustment <sup>(1)</sup>  | 753624 | 3.51 |
| &nbsp;&nbsp;Vested | (710522) | 3.49 |
| &nbsp;&nbsp;Forfeited <sup>(2)</sup>  | (626266) | 3.46 |
| Unvested at January 31, 2026 | 3667627 | $3.93 |

---

<sup>(1)</sup> This amount reflects incremental PSUs earned as a result of the attainment of the original award's specified performance-based metrics.

<sup>(2)</sup> This amount includes shares withheld for taxes upon vesting, which are returned to the 2017 Plan and become available for future grant.

**STOCK-BASED COMPENSATION EXPENSE**

Stock-based compensation expense for options, RSU awards, and PSU awards granted to employees for the three and six months ended January 31, 2026, was $14.4 million and $25.9 million, respectively, and for the three and six months ended February 1, 2025, was $17.2 million and $29.9 million, respectively. Stock-based compensation expense is included in selling, general, and administrative expenses in the unaudited condensed consolidated statements of operations and comprehensive loss.

As of January 31, 2026, the total unrecognized compensation expense related to unvested options, RSU awards, and PSU awards, net of estimated forfeitures, was $40.6 million, which we expect to recognize over an estimated weighted average period of 1.13 years.

**9.** **INCOME TAXES**

The following table summarizes our effective tax rate from loss from continuing operations for the periods presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended** | **For the Three Months Ended** | **For the Six Months Ended** | **For the Six Months Ended** |
| *(in thousands, except percentages)* | **January 31, 2026** | **February 1, 2025** | **January 31, 2026** | **February 1, 2025** |
| Loss from continuing operations before income taxes | $(2588) | $(6441) | $(8892) | $(12547) |
| Provision for income taxes | 66 | 182 | 124 | 339 |
| Effective tax rate | (2.6)% | (2.8)% | (1.4)% | (2.7)% |

---

Our continuing operations are subject to income taxes in the United States. Our effective tax rate for the three and six months ended January 31, 2026, differs from the federal statutory income tax rate primarily due to the full valuation allowance recorded on our net federal and state deferred tax assets. The tax provision for the three and six months ended January 31, 2026, is primarily comprised of state taxes.

Our effective tax rate for the three and six months ended February 1, 2025, differs from the federal statutory income tax rate primarily due to the full valuation allowance recorded on our net federal and state deferred tax assets. The tax provision for the three and six months ended February 1, 2025, is primarily comprised of state taxes.

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**10.** **NET LOSS PER SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON STOCKHOLDERS AND COMMON STOCK**

Basic and diluted loss per share from continuing operations attributable to common stockholders is presented in conformity with the two-class method required for participating securities: Class A and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock.

Basic net loss per share from continuing operations attributable to common stockholders is computed by dividing the net loss from continuing operations attributable to common stockholders by the weighted-average number of common shares outstanding during the period.

For the calculation of diluted loss per share from continuing operations, net loss from continuing operations attributable to common stockholders for basic loss per share is adjusted by the effect of dilutive securities. Diluted net loss per share from continuing operations attributable to common stockholders is computed by dividing the net loss from continuing operations attributable to common stockholders by the weighted-average number of common shares outstanding, including all potentially dilutive common shares. In periods of loss, there are no potentially dilutive common shares to add to the weighted-average number of common shares outstanding. The undistributed losses are allocated based on the contractual participation rights of the Class A and Class B common shares as if the losses for the year have been distributed. As the liquidation and dividend rights are identical, the undistributed loss is allocated on a proportionate basis.

The table below presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted loss per share from continuing operations attributable to Class A and Class B common stockholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended** | **For the Three Months Ended** | **For the Six Months Ended** | **For the Six Months Ended** |
| *(in thousands, except share and per share amounts)* | **January 31, 2026** | **February 1, 2025** | **January 31, 2026** | **February 1, 2025** |
| Numerator: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss from continuing operations attributable to Class A and Class B common stockholders | $(2654) | $(6623) | $(9016) | $(12886) |
| Denominator: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted-average shares of common stock - basic | 135354835 | 127984475 | 134350213 | 126978567 |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted-average shares of common stock - diluted | 135354835 | 127984475 | 134350213 | 126978567 |
| Loss per share from continuing operations attributable to Class A and Class B common stockholders: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.02) | $(0.05) | $(0.07) | $(0.10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.02) | $(0.05) | $(0.07) | $(0.10) |

---

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As the Company has reported net loss from continuing operations for each of the periods presented, all potentially dilutive securities were considered antidilutive. The following common stock equivalents were excluded from the computation of diluted loss per share from continuing operations because their effect would have been antidilutive for the periods presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended** | **For the Three Months Ended** | **For the Six Months Ended** | **For the Six Months Ended** |
| | **January 31, 2026** | **February 1, 2025** | **January 31, 2026** | **February 1, 2025** |
| &nbsp;&nbsp;Performance restricted stock units that settle into Class A common stock | 3667627 | 2159375 | 3667627 | 2159375 |
| &nbsp;&nbsp;Restricted stock units that settle into Class A common stock | 7485640 | 11565008 | 7485640 | 11565008 |
| &nbsp;&nbsp;Stock options to purchase Class A common stock | 8472487 | 8916154 | 8472487 | 8916154 |
| &nbsp;&nbsp;Stock options to purchase Class B common stock | 678491 | 697942 | 678491 | 697942 |
| Total | 20304245 | 23338479 | 20304245 | 23338479 |

---

**11.** **SEGMENT REPORTING**

The following table presents selected financial information with respect to the Company's single reportable segment, including significant segment expenses that are regularly provided to the Chief Operating Decision Maker, the Company's Chief Executive Officer:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended** | **For the Three Months Ended** | **For the Six Months Ended** | **For the Six Months Ended** |
| *(in thousands)* | **January 31, 2026** | **February 1, 2025** | **January 31, 2026** | **February 1, 2025** |
| Revenue, net | $341297 | $312110 | $683424 | $630928 |
| **Less:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of goods sold | 192352 | 173249 | 385155 | 347262 |
| &nbsp;&nbsp;&nbsp;&nbsp;Advertising expense | 28901 | 24400 | 62790 | 54438 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 14405 | 17281 | 25900 | 29931 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 6260 | 7115 | 12546 | 14500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (2182) | (2663) | (4538) | (5595) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | 30 | 79 | 115 | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 66 | 182 | 124 | 339 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other segment expenses <sup>(1)</sup> | 104119 | 99090 | 210348 | 202788 |
| Net loss from continuing operations | $(2654) | $(6623) | $(9016) | $(12886) |

---

<sup>(1)</sup> Other segment expenses is primarily comprised of payroll and benefits expenses, technology fees, facilities expense, and other general and administrative expenses.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 18**

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**12.** **DISCONTINUED OPERATIONS**

During the first quarter of fiscal 2024, we ceased operations of our UK business and the accounting requirements for reporting the UK business as a discontinued operation were met. As a result, the UK business is presented in the accompanying unaudited condensed consolidated financial statements as a discontinued operation for all periods presented.

As of January 31, 2026, and August 2, 2025, there were no assets or liabilities of discontinued operations in the unaudited condensed consolidated balance sheets.

The following table presents the key components of income from discontinued operations:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended** | **For the Three Months Ended** | **For the Six Months Ended** | **For the Six Months Ended** |
| *(in thousands)* | **January 31, 2026** | **February 1, 2025** | **January 31, 2026** | **February 1, 2025** |
| Selling, general, and administrative expenses |  | 47 |  | 47 |
| Operating loss |  | (47) |  | (47) |
| Other expense, net |  | (16) |  | (9) |
| Loss before income taxes |  | (63) |  | (56) |
| Benefit for income taxes |  | (157) |  | (157) |
| Income from discontinued operations, net of income taxes | $— | $94 | $— | $101 |

---

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 19**

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| | |
|:---|:---|
| **ITEM 2.** | **MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** |

---

You should read the following discussion and analysis of our financial condition and results of operations together with "Special Note Regarding Forward-Looking Statements", "Risk Factors" included under Part II, Item 1A, and our unaudited condensed consolidated financial statements and related notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q, as well as our audited consolidated financial statements and related notes included in Part II, Item 8 of our Annual Report on Form 10-K (the "2025 Annual Report") for the fiscal year ended August 2, 2025, filed with the Securities and Exchange Commission on September 25, 2025.

We use a 52- or 53-week fiscal year, with our fiscal year ending on the Saturday that is closest to July 31 of that year. The fiscal year ending August 1, 2026 ("fiscal 2026") and August 2, 2025 ("fiscal 2025") consist of 52 weeks. Throughout this Quarterly Report, all references to quarters and years are to our fiscal quarters and fiscal years unless otherwise noted.

**BUSINESS OVERVIEW**<br>

In 2011, Stitch Fix introduced an innovative approach to shopping for clothing and accessories. We were inspired by the opportunity to create a client-first styling experience, offering an alternative to impersonal, time-consuming and inconvenient traditional shopping. We do this through our unique business model that pairs expert Stylists with best-in-class artificial intelligence ("AI") and recommendation algorithms. It is this combination that enables us to help people discover the styles they will love without having to spend hours browsing stores or sifting through endless choices online.

Clients primarily engage with us by (1) receiving a curated shipment of items informed by our algorithms and chosen by a Stitch Fix Stylist (a "Fix"); or (2) purchasing directly from our website or mobile app based on an individualized assortment of outfit and item recommendations ("Freestyle"). For the Fix experience, clients choose to schedule regular shipments or order a Fix on demand. Then, after receiving a Fix, they can purchase the items they want to keep and return the other items, if any.

We offer a wide selection of apparel, shoes, and accessories for Women's, Men's, Kids, Petite, Maternity, and Plus categories. To ensure every client can find items they love, we curate merchandise across multiple price points and styles from established brand partners as well as our Owned Private Label Brands, which are created to serve unmet client needs. Our algorithms filter through this broad assortment to recommend a relevant subset of items to our Stylists or clients, who leverage these insights to select or purchase merchandise.

**DISCONTINUED OPERATIONS**

During the first quarter of fiscal 2024, we ceased operations of our UK business and the accounting requirements for reporting the UK business as a discontinued operation were met. Accordingly, any discussion of historical information in Management's Discussion and Analysis below reflects the results of the UK business as a discontinued operation, and amounts and disclosures below relate to the Company's continuing operations for all periods presented, unless otherwise noted. Refer to Note 12, "Discontinued Operations" within the Notes to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report for further details.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 20**

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**FINANCIAL OVERVIEW**

For the three months and six months ended January 31, 2026, we reported revenue, net of $341.3 million and $683.4 million, respectively, representing a year-over-year increase of 9.4% and 8.3%, respectively, compared to the same period in the prior year. As of January 31, 2026, and February 1, 2025, we had approximately 2,288,000 and 2,371,000 active clients, respectively, representing a year-over-year decrease of 3.5%.

During the six months ended January 31, 2026, we experienced an increase in net revenue year-over-year primarily due to an increase in net revenue per active client, driven by higher average order values and number of items kept per Fix, partially offset by a decline in active clients due to our challenges in acquiring and retaining active clients. Throughout the remainder of fiscal 2026, we expect broader macroeconomic uncertainty and market conditions to negatively impact consumer discretionary spending. However, we project that positive trends in average order values and the number of items kept per Fix will offset any negative impact of lower active client counts on net revenue in the remainder of fiscal 2026. We remain focused on retaining current clients, attracting new clients, improving the conversion of new visitors to our site and app, and enhancing our overall client experience for new and existing clients. Refer to the section titled "Key Financial and Operating Metrics" for information on how we define and calculate active clients.

Net loss from continuing operations for three months and six months ended January 31, 2026, was $2.7 million and $9.0 million, respectively, compared to a net loss from continuing operations of $6.6 million and $12.9 million for the same period in the prior year.

For more information on the components of net loss from continuing operations for three months and six months ended, refer to the section titled "Results of Operations" below.

**KEY FINANCIAL AND OPERATING METRICS**<br>

**NON-GAAP FINANCIAL MEASURES**

We report our financial results in accordance with generally accepted accounting principles in the United States ("GAAP"). However, management believes that certain non-GAAP financial measures provide users of our financial information with additional useful information in evaluating our performance. We believe that adjusted EBITDA from continuing operations ("Adjusted EBITDA") is frequently used by investors and securities analysts in their evaluations of companies, and that this supplemental measure facilitates comparisons between continuing operations of companies. We believe free cash flow from continuing operations ("Free Cash Flow") is an important metric because it represents a measure of how much cash from continuing operations we have available for discretionary and non-discretionary items after the deduction of capital expenditures. These non-GAAP financial measures may be different than similarly titled measures used by other companies.

Our non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with GAAP. There are several limitations related to the use of our non-GAAP financial measures as compared to the closest comparable GAAP measures. Some of these limitations include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA excludes interest income and other (income) expense, net as these items are not components of the core business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA does not reflect provision for income taxes, which may increase or decrease cash available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA excludes the recurring, non-cash expenses of depreciation and amortization of property and equipment and, although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA excludes the non-cash expense of stock-based compensation, which has been, and will continue to be for the foreseeable future, an important part of how the Company attracts and retains employees and a significant recurring expense in its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA excludes costs incurred related to discrete restructuring plans and other one-time costs attributable to continuing operations that are fundamentally different in strategic nature and frequency from ongoing initiatives. The Company believes exclusion of these items facilitates a more consistent comparison of operating performance over time, however these costs do include cash outflows;

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 21**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA excludes non-ordinary course legal fees for specific proceedings that the Company has determined arise outside of the ordinary course of business and are nonrecurring, infrequent, or unusual; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Free Cash Flow does not represent the total residual cash flow available for discretionary purposes and does not reflect future contractual commitments.

*Adjusted EBITDA* 

We define Adjusted EBITDA as net loss from continuing operations excluding interest income, other (income) expense, net, provision for income taxes, depreciation and amortization, stock-based compensation expense, restructuring and other one-time costs, and non-ordinary course legal fees related to our continuing operations. The following table presents a reconciliation of net loss from continuing operations, the most comparable GAAP financial measure, to Adjusted EBITDA for each of the periods presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended** | **For the Three Months Ended** | **For the Six Months Ended** | **For the Six Months Ended** |
| *(in thousands)* | **January 31, 2026** | **February 1, 2025** | **January 31, 2026** | **February 1, 2025** |
| Net loss from continuing operations | $(2654) | $(6623) | $(9016) | $(12886) |
| Add (deduct): |  |  |  |  |
| &nbsp;&nbsp;Interest income | (2182) | (2663) | (4538) | (5595) |
| &nbsp;&nbsp;Other expense, net | 30 | 79 | 115 | 151 |
| &nbsp;&nbsp;Provision for income taxes | 66 | 182 | 124 | 339 |
| &nbsp;&nbsp;Depreciation and amortization | 6260 | 7115 | 12546 | 14500 |
| &nbsp;&nbsp;Stock-based compensation expense | 14405 | 17281 | 25900 | 29931 |
| &nbsp;&nbsp;Restructuring and other one-time costs <sup>(1)</sup> |  | 548 |  | 2974 |
| &nbsp;&nbsp;Non-ordinary course legal fees <sup>(2)</sup> |  |  | 4223 |  |
| Adjusted EBITDA | $15925 | $15919 | $29354 | $29414 |

---

<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;For the three months and six months ended February 1, 2025, restructuring charges were $0.2 million and $1.2 million, respectively, primarily in severance and employee-related benefits and other restructuring costs; and other one-time costs were $0.4 million and $1.8 million, respectively, in one-time bonuses for certain continuing employees.

<sup>(2)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Non-ordinary course legal fees for the six months ended January 31, 2026, include costs related to a specific class action lawsuit.

*Free Cash Flow*

We define Free Cash Flow as cash flows provided by operating activities from continuing operations, reduced by purchases of property and equipment that are included in cash flows from investing activities from continuing operations. The following table presents a reconciliation of net cash flows used in operating activities from continuing operations, the most comparable GAAP financial measure, to Free Cash Flow for each of the periods presented:

---

| | | |
|:---|:---|:---|
| | **For the Six Months Ended** | **For the Six Months Ended** |
| *(in thousands)* | **January 31, 2026** | **February 1, 2025** |
| **Free Cash Flow reconciliation:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities from continuing operations | $18235 | $(1944) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deduct: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (9310) | (7547) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Free Cash Flow** | $8925 | $(9491) |
| Net cash used in investing activities from continuing operations | $(1477) | $(38974) |
| Net cash used in financing activities from continuing operations | $(11928) | $(8193) |

---

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 22**

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**OPERATING METRICS**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **January 31, 2026** | **November 1, 2025** | **August 2, 2025** | **May 3, 2025** | **February 1, 2025** |
| Active clients *(in thousands)* | 2288 | 2307 | 2309 | 2353 | 2371 |
| Net revenue per active client | $577 | $559 | $549 | $542 | $537 |

---

*Active Clients*

We believe that the number of active clients is a key indicator of the overall health of our business. We define an active client as a client who checked out a Fix or was shipped an item via Freestyle in the preceding 52 weeks, measured as of the last day of that period. Clients check out a Fix when they indicate what items they are keeping through our mobile application or on our website. We consider each Women's, Men's, or Kids account as a client, even if they share the same household. A single person could have multiple accounts and count as multiple active clients. We had approximately 2,288,000 and 2,371,000 active clients as of January 31, 2026, and February 1, 2025, respectively, representing a year-over-year decrease of 3.5%. The decrease in active clients is due to dormant clients outpacing client additions during the year, which we largely attribute to client conversion and retention challenges.

*Net Revenue per Active Client*

We believe that net revenue per active client is an indicator of client engagement and satisfaction. We calculate net revenue per active client based on net revenue over the preceding four fiscal quarters divided by the number of active clients measured as of the last day of the period. Net revenue per active client was $577 and $537 as of January 31, 2026, and February 1, 2025, respectively, or a year-over-year increase of 7.4%, respectively.

**FACTORS AFFECTING OUR PERFORMANCE**<br>

**MACROECONOMIC ENVIRONMENT**

Our business and operating results are subject to national and global economic conditions and their impact on consumer discretionary spending. As the macroeconomic environment is experiencing inflation, recessionary concerns, and general uncertainty regarding trade policies, including tariffs and other restrictions, and the overall future political and economic environment, we cannot predict whether or when such circumstances may improve or worsen. While these conditions have not materially impacted our net revenues or client behavior to date in fiscal 2026, we anticipate that continued macroeconomic uncertainty may place pressure on consumer discretionary spending in the remainder of fiscal 2026, which may negatively impact our business.

**INVENTORY MANAGEMENT**

We leverage our data science to buy and manage our inventory, including merchandise assortment and fulfillment center optimization. Because our merchandise assortment directly correlates to client success, we may at times optimize our inventory to prioritize long-term client success over short-term gross margin impact. To ensure sufficient availability of merchandise, we generally enter into purchase orders well in advance and frequently before apparel trends are confirmed by client purchases. As a result, we are vulnerable to demand and pricing shifts, including due to tariffs, and availability of merchandise at the time of purchase. We incur inventory write-offs and changes in inventory reserves that impact our gross margins. Moreover, our inventory investments will fluctuate with the needs of our business.

**CLIENT ACQUISITION AND ENGAGEMENT**

To grow our business, we must continue to acquire clients and successfully engage and retain them. Our marketing strategy aims to preserve liquidity and achieve profitability, while simultaneously attracting long-term clients to fuel a return to growth. We utilize both digital and offline channels to attract new visitors to our website or mobile app and subsequently convert them into clients. Our marketing costs are largely composed of advertising, client referrals, and public relations expenses. At any given time, our advertising efforts may include social media marketing, keyword search campaigns, affiliate programs, partnerships, campaigns with celebrities and influencers, display advertising, television, radio, video, content, direct mail, email, mobile "push" communications, SMS, and search engine optimization. Our marketing expenses have varied from period to period and we expect this trend to continue.

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Marketing expense is recorded in selling, general, and administrative expenses in the unaudited condensed consolidated statements of operations and comprehensive loss. The largest component of our marketing expense is advertising, which for the three and six months ended January 31, 2026, was $28.9 million and $62.8 million, respectively, and for the three and six months ended February 1, 2025, was $24.4 million and $54.4 million, respectively. We will continue to be methodical about our approach when we are making advertising decisions, and may adjust our spending up or down based on performance.

**OPERATIONS AND INFRASTRUCTURE**

We intend to leverage our data science and deep understanding of our clients' needs to make targeted investments in technology and product, including continued integration of AI into internal business processes and client facing experiences.

**MERCHANDISE MIX**

We offer apparel, shoes, and accessories across categories, brands, product types, and price points. We currently serve our clients in the following categories: Women's, Petite, Maternity, Men's, Plus, and Kids. We carry a mix of third-party branded merchandise, including premium brands, and our own Owned Private Label Brands. We also offer a wide variety of product types, including denim, dresses, blouses, skirts, shoes, jewelry, and handbags. We sell merchandise across a broad range of price points and may further broaden our price point offerings in the future.

Historically, changes in our merchandise mix have not caused significant fluctuations in our gross margin; however, categories, brands, product types, and price points do have a range of margin profiles. For example, our Owned Private Label Brands have generally contributed higher margins than our third-party brands, which have generally contributed lower margins. We continue to evolve our merchandise mix to improve the client experience and attract new active clients. Shifts in merchandise mix will result in fluctuations in our gross margin from period to period.

**COMPONENTS OF RESULTS OF OPERATIONS**<br>

**REVENUE**

We generate revenue from the sale of merchandise through our Fix and Freestyle offerings. With our Fix offering, we charge a nonrefundable upfront fee, referred to as a "styling fee," that is credited towards any merchandise purchased. We offer Style Pass to provide select U.S. clients with an alternative to paying a styling fee per Fix. Style Pass clients pay a nonrefundable annual fee for unlimited styling that is credited towards merchandise purchases. We deduct discounts, sales tax, and estimated refunds to arrive at net revenue, which we refer to as revenue throughout this Quarterly Report. We also recognize revenue resulting from estimated breakage income on gift cards.

**COST OF GOODS SOLD**

Cost of goods sold consists of the costs of merchandise, expenses for inbound freight and shipping to and from clients, inventory write-offs and changes in our inventory reserve, payment processing fees, and packaging materials costs, offset by the recoverable cost of merchandise estimated to be returned. To date, tariffs have not materially impacted our cost of goods sold. However, we expect our cost of goods sold to increase in fiscal 2026 driven primarily by investments in our inventory assortment and rising transportation costs. We also expect fluctuations in our cost of goods sold as a percentage of revenue primarily due to how we manage our inventory and merchandise mix. Our classification of cost of goods sold may vary from other companies in our industry and may not be comparable.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 24**

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**SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES**

Selling, general, and administrative expenses ("SG&A") consist primarily of compensation and benefits costs, including stock-based compensation expense, for our employees including our Stylists, fulfillment center operations, data analytics, merchandising, engineering, marketing, client experience, and corporate personnel. SG&A also includes marketing and advertising costs, third-party logistics costs, facility costs for our fulfillment centers and office, professional service fees, information technology costs, and depreciation and amortization expense. As a result of our restructuring and cost reduction actions from fiscal year ended July 30, 2022 ("fiscal 2022") through fiscal 2025, we expect SG&A as a percentage of revenue in fiscal 2026 to continue to decrease as compared to fiscal 2025. Our classification of certain components within SG&A may vary from other companies in our industry and may not be comparable.

**INTEREST INCOME**

Interest income is generated from our cash, cash equivalents, and investments in available-for-sale securities.

**PROVISION FOR INCOME TAXES**

Our provision for income taxes from continuing operations consists of an estimate of federal and state income taxes based on enacted federal and state tax rates, as adjusted for allowable credits, deductions, uncertain tax positions, and changes in the valuation of our net federal and state deferred tax assets.

**RESULTS OF OPERATIONS**<br>

The following table summarizes our financial results from continuing operations:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Three Months Ended** | **For the Three Months Ended** | **%** | **For the Six Months Ended** | **For the Six Months Ended** | **%** |
| *(in thousands)* | **January 31, 2026** | **February 1, 2025** | **Change** | **January 31, 2026** | **February 1, 2025** | **Change** |
| Revenue, net | $341297 | $312110 | 9.4% | $683424 | $630928 | 8.3% |
| Cost of goods sold | 192352 | 173249 | 11.0% | 385155 | 347262 | 10.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 148945 | 138861 | 7.3% | 298269 | 283666 | 5.1% |
| Selling, general, and administrative expenses | 153685 | 147886 | 3.9% | 311584 | 301657 | 3.3% |
| Operating loss | (4740) | (9025) | (47.5)% | (13315) | (17991) | (26.0)% |
| Interest income | 2182 | 2663 | (18.1)% | 4538 | 5595 | (18.9)% |
| Other expense, net | (30) | (79) | (62.0)% | (115) | (151) | (23.8)% |
| Loss before income taxes | (2588) | (6441) | (59.8)% | (8892) | (12547) | (29.1)% |
| Provision for income taxes | 66 | 182 | (63.7)% | 124 | 339 | (63.4)% |
| Net loss from continuing operations | $(2654) | $(6623) | (59.9)% | $(9016) | $(12886) | (30.0)% |

---

The components of our results from continuing operations as a percentage of revenue were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended** | **For the Three Months Ended** | **For the Fiscal Year Ended** | **For the Fiscal Year Ended** |
| | **January 31, 2026** | **February 1, 2025** | **January 31, 2026** | **February 1, 2025** |
| Revenue, net | 100.0% | 100.0% | 100.0% | 100.0% |
| Cost of goods sold | 56.4% | 55.5% | 56.4% | 55.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross margin | 43.6% | 44.5% | 43.6% | 45.0% |
| Selling, general, and administrative expenses | 45.0% | 47.4% | 45.6% | 47.8% |
| Operating loss | (1.4)% | (2.9)% | (1.9)% | (2.9)% |
| Interest income | 0.6% | 0.9% | 0.7% | 0.9% |
| Other expense, net | —% | —% | —% | —% |
| Loss before income taxes | (0.8)% | (2.1)% | (1.3)% | (2.0)% |
| Provision for income taxes | —% | 0.1% | —% | 0.1% |
| Net loss from continuing operations | (0.8)% | (2.1)% | (1.3)% | (2.0)% |

---

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 25**

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Note: Due to rounding, percentages in this table may not sum to totals.

**REVENUE AND GROSS MARGIN**

Revenue increased by $29.2 million and $52.5 million, or 9.4% and 8.3%, respectively, during the three months and six months ended January 31, 2026. The increase in revenue was primarily attributable to an improvement in net revenue per active client of 7.4% year over year, which was primarily driven by higher average order values with the number of items kept by our clients per Fix increasing, and higher average unit retail prices. Partially offsetting the net revenue per active client increase was 3.5% decrease in active clients from February 1, 2025, to January 31, 2026.

Gross margin for the three and six months ended January 31, 2026, decreased by 90 and 140 basis points, respectively, compared to the same periods in the prior year. The decrease for the three month period was primarily driven by higher transportation costs and higher costs related to inventory health management, partially offset by improved product margins. The decrease for the six month period was primarily driven by higher transportation costs and lower product margins.

**SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES**

SG&A in the three months ended January 31, 2026, increased by $5.8 million compared to the same period. The increase was primarily driven by higher advertising spend and higher compensation and benefits expense, partially offset by lower stock-based compensation expense. SG&A in the six months ended January 31, 2026, increased $9.9 million compared to the same period in the prior year. The increase was primarily driven by higher advertising spend and professional fees, including $4.2 million in non-ordinary course legal fees.

SG&A as a percentage of revenue for three months ended January 31, 2026, decreased to 45.0% compared to 47.4% for the same period in the prior year. The decrease was primarily driven by lower compensation and benefits expense, including lower stock-based compensation expense, partially offset by higher advertising spend as a percentage of revenue. SG&A as a percentage of revenue for six months ended January 31, 2026, decreased to 45.6% compared to 47.8% for the same period in the prior year. The decrease was primarily driven by lower compensation and benefits expense, including lower stock-based compensation expense, partially offset by higher advertising spend and professional fees as a percentage of revenue.

**PROVISION FOR INCOME TAXES** 

The following table summarizes our effective tax rate from loss from continuing operations for the periods presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended** | **For the Three Months Ended** | **For the Six Months Ended** | **For the Six Months Ended** |
| *(in thousands, except percentages)* | **January 31, 2026** | **February 1, 2025** | **January 31, 2026** | **February 1, 2025** |
| Loss from continuing operations before income taxes | $(2588) | $(6441) | $(8892) | $(12547) |
| Provision for income taxes | 66 | 182 | 124 | 339 |
| Effective tax rate | (2.6)% | (2.8)% | (1.4)% | (2.7)% |

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Our continuing operations are subject to income taxes in the United States. Our effective tax rate for the three and six months ended January 31, 2026, differs from the federal statutory income tax rate primarily due to the full valuation allowance recorded on our net federal and state deferred tax assets. The tax provision for the three and six months ended January 31, 2026, is primarily comprised of state taxes.

Our effective tax rate for the three and six months ended February 1, 2025, differs from the federal statutory income tax rate primarily due to the full valuation allowance recorded on our net federal and state deferred tax assets. The tax provision for the three and six months ended February 1, 2025, is primarily comprised of state taxes.

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**LIQUIDITY AND CAPITAL RESOURCES**<br>

**SOURCES OF LIQUIDITY**

Our principal sources of liquidity are our cash, cash equivalents, investments, cash flows from continuing operations, and borrowing capacity under our credit facility. As of January 31, 2026, we had $118.8 million of cash and cash equivalents attributable to continuing operations, and $121.7 million of investments.

*Credit Facility*

As of January 31, 2026, we have a revolving credit facility with borrowing availability of $50.0 million, and excess availability of $33.1 million as a result of outstanding letters of credit, and no outstanding borrowing.

For information on the terms of the Credit Facility, refer to Note 5, "Credit Facility" within the Notes to unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report.

**USES OF CASH**

Our primary uses of cash include operating costs such as merchandise purchases, lease obligations, compensation and benefits, marketing, and other expenditures necessary to support our business.

We believe our existing cash, cash equivalents, investment balances, and the borrowing available under our Credit Facility, if needed, will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months and beyond.

**SHARE REPURCHASES**

In January 2022, our Board of Directors authorized a share repurchase program to repurchase up to $150.0 million of our outstanding Class A common stock, with no expiration date (the "2022 Repurchase Program"). We may repurchase shares from time to time through open market repurchases, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The actual timing, number and value of shares repurchased in the future will be determined by the Company in its discretion and will depend on a number of factors, including price, trading volume, market conditions, and other general business conditions. Repurchases will be funded from the Company's existing cash and cash equivalents or future cash flow. The repurchase program may be modified, suspended, or terminated at any time. During the three and six months ended January 31, 2026, and February 1, 2025, the Company made no repurchases of Class A common stock. As of January 31, 2026, the Company had repurchased an aggregate 2,302,141 shares of Class A common stock for $30.0 million, and $120.0 million remained available under the 2022 Repurchase Program authorization.

**CASH FLOWS**<br>

The following table summarizes our cash flows for the periods indicated below:

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|:---|:---|:---|
| | **For the Six Months Ended** | **For the Six Months Ended** |
| *(in thousands)* | **January 31, 2026** | **February 1, 2025** |
| Net cash provided by (used in) operating activities from continuing operations | $18235 | $(1944) |
| Net cash used in investing activities from continuing operations | (1477) | (38974) |
| Net cash used in financing activities from continuing operations | (11928) | (8193) |
| Net increase (decrease) in cash and cash equivalents | $4830 | $(49111) |

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**CASH PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS**

During the six months ended January 31, 2026, cash provided by operating activities from continuing operations was $18.2 million, which consisted of a net loss from continuing operations of $9.0 million, adjusted by non-cash charges of $46.0 million and change in net operating assets and liabilities of $18.8 million. The non-cash charges were primarily driven by $25.9 million of stock-based compensation expense and $12.0 million of depreciation, amortization, and accretion. The change in net operating assets and liabilities was primarily due to a $10.1 million increase in gross inventory balances as we increased purchases for the fall and winter season and to invest in greater assortment.

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During the six months ended February 1, 2025, cash used in operating activities from continuing operations was $1.9 million, which consisted of a net loss from continuing operations of $12.9 million, adjusted by non-cash charges of $45.5 million and a $34.6 million change in net operating assets and liabilities. The non-cash charges were primarily driven by $29.9 million of stock-based compensation expense, $13.5 million of depreciation, amortization, and accretion, and a $2.0 million change in inventory reserves. The change in net operating assets and liabilities was primarily due to a $14.2 million net decrease in accounts payable and accrued liabilities driven by the timing of payments, and a $13.7 million in gross inventory balances due to higher inventory receipts.

**CASH USED IN INVESTING ACTIVITIES FROM CONTINUING OPERATIONS**

During the six months ended January 31, 2026, cash used in investing activities from continuing operations was $1.5 million. This was due to purchases of securities available-for-sale of $33.5 million and purchases of property and equipment of $9.3 million, partially offset by sales and maturities of available-for-sale securities of $41.4 million.

During the six months ended February 1, 2025, cash used in investing activities from continuing operations was $39.0 million. This was primarily due to purchases of securities available-for-sale of $96.6 million, partially offset by the sales and maturities of available-for-sale securities of $65.1 million.

**CASH USED IN FINANCING ACTIVITIES FROM CONTINUING OPERATIONS**

During the six months ended January 31, 2026, cash used in financing activities from continuing operations was $11.9 million primarily due to payments for tax withholding related to vesting of share-based awards of $12.3 million.

During the six months ended February 1, 2025, cash used in financing activities from continuing operations was $8.2 million due to payments for tax withholding related to vesting of share-based awards.

**CONTRACTUAL OBLIGATIONS AND OTHER COMMITMENTS**<br>

During the six months ended January 31, 2026, there were no material changes to our contractual obligations and other commitments from those disclosed in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2025 Annual Report on Form 10-K.

**CRITICAL ACCOUNTING ESTIMATES**<br>

Our unaudited condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosures. We base our estimates on historical experience and on other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

There have been no significant changes to our critical accounting policies and estimates disclosed in our 2025 Annual Report on Form 10-K.

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|:---|:---|
| **ITEM 3.** | **QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK** |

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There were no material changes in market risk from the information presented in Part II, Item 7A. "Quantitative and Qualitative Disclosures About Market Risk" in our 2025 Annual Report on Form 10-K.

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| **ITEM 4.** | **CONTROLS AND PROCEDURES.** |

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**EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES**

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")), as of the end of the period covered by this Quarterly Report on Form 10-Q (the "Evaluation Date").

Based on the evaluation of our disclosure controls and procedures, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the Evaluation Date.

**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

During the three months ended January 31, 2026, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**INHERENT LIMITATIONS ON EFFECTIVENESS OF CONTROLS** 

An effective internal control system, no matter how well designed, has inherent limitations, including the possibility of human error or overriding of controls, and therefore can provide only reasonable assurance with respect to reliable financial reporting. Because of its inherent limitations, our internal control over financial reporting may not prevent or detect all misstatements, including the possibility of human error, the circumvention or overriding of controls, or fraud. Effective internal controls can provide only reasonable assurance with respect to the preparation and fair presentation of financial statements.

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**PART II. OTHER INFORMATION**

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|:---|:---|
| **ITEM 1.** | **LEGAL PROCEEDINGS.** |

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The information contained in Note 6, "Commitments and Contingencies" under the heading "Contingencies" within the notes to the unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q is incorporated herein by reference.

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| **ITEM 1A.** | **RISK FACTORS** |

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**RISK FACTOR SUMMARY**

*Our business is subject to numerous risks. The following summary highlights some of the risks you should consider with respect to our business and prospects. This summary is not complete and the risks summarized below are not the only risks we face. You should review and consider carefully the risks and uncertainties described in more detail in "Risk Factors" below, which includes a more complete discussion of the risks summarized here.*

**RISKS RELATING TO OUR BUSINESS**

• We have in the past been and may in the future be unable to retain clients or maintain a high level of engagement with our clients and maintain or increase their spending with us, which has and could continue to harm our business, financial condition, or operating results.

• Our growth depends on attracting new clients.

• Risks associated with the sourcing and pricing of merchandise and raw materials, including those related to tariffs and shifting trade policies, could adversely affect our business.

• We rely on paid marketing to help grow our business, but these efforts may not be successful or cost effective, and such expenses and the success of our efforts may vary from period to period.

• If we are unable to manage our inventory effectively, our operating results could be adversely affected.

• Operational constraints at our fulfillment centers or our failure to adequately and effectively staff our fulfillment centers could adversely affect our client experience and operating results.

• Shipping is a critical part of our business and any changes in our shipping arrangements or any interruptions in shipping could adversely affect our operating results.

• We may not be able to return to or maintain revenue growth and we may not be profitable in the future.

• If we fail to effectively manage our transformation or other business strategies, our financial condition and operating results could be harmed.

• If we fail to attract and retain key personnel, effectively manage succession, or hire, develop, and motivate our employees, our business, financial condition, and operating results could be adversely affected.

• Our business depends on a strong brand and we may not be able to maintain our brand and reputation.

• If we fail to effectively manage our Stylists, our business, financial condition, and operating results could be adversely affected.

• If we are unable to acquire new or retain existing merchandise vendors, our operating results may be harmed.

• Our client metrics are subject to inherent challenges in measurement, and real or perceived inaccuracies in such metrics may reduce the perceived usefulness and reliability of the metric and harm our stock price.

• We may incur significant losses from fraud.

• Our real estate leases subject us to various financial risks.

**RISKS RELATING TO OUR INDUSTRY, THE MARKET, AND THE ECONOMY**

• We rely on consumer discretionary spending and may be adversely affected by economic downturns and other macroeconomic conditions or trends.

• Our industry is highly competitive and if we do not compete effectively, our operating results could be adversely affected.

• Our operating results have been, and could be in the future, adversely affected by natural disasters, public health crises, political crises, or other catastrophic events.

**CYBERSECURITY, LEGAL, AND REGULATORY RISKS**

• System interruptions that impair client access to our website or other performance failures in our technology infrastructure could damage our business.

• Compromises of our data security or that of our third-party service providers could cause us to incur unexpected expenses and liability, and may materially harm our reputation and operating results.

• Some of our software and systems contain open source software, which may pose particular risks to our proprietary applications.

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• Adverse litigation judgments or settlements resulting from legal proceedings in which we are or may be involved have in the past and could in the future expose us to monetary damages or limit our ability to operate our business.

• Any failure by us or our vendors to comply with product safety, labor, or other laws, or our standard vendor terms and conditions, or to provide safe factory conditions for our or their workers, may damage our reputation and brand, and harm our business.

• Our use of personal information, personal data, and sensitive information subjects us to numerous and evolving privacy and security laws and other obligations (such as cybersecurity and data protection in contracts), and our compliance with or failure to comply with such obligations could harm our business.

• Unfavorable changes or failure by us to comply with evolving internet and eCommerce regulations could substantially harm our business and operating results.

• If the use of "cookie" tracking technologies is further restricted, regulated, or blocked, or if changes in technology cause cookies to become less reliable or acceptable as a means of tracking consumer behavior, the amount or accuracy of internet user information we collect would decrease, which could harm our business and operating results.

• If we cannot successfully protect our intellectual property, our business would suffer.

**RISKS RELATING TO TAXES**

• Changes in U.S. tax or tariff policy regarding goods produced in other countries could adversely affect our business.

• We could be required to collect additional sales taxes or be subject to other tax liabilities that may increase the costs our clients would have to pay for our offering and adversely affect our operating results.

• Federal income tax reform could have unforeseen effects on our financial condition and results of operations.

• We may be subject to additional tax liabilities, which could adversely affect our operating results.

• Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.

**RISKS RELATING TO OWNERSHIP OF OUR CLASS A COMMON STOCK**

• The market price of our Class A common stock may continue to be volatile or may decline steeply or suddenly regardless of our operating performance and we may not be able to meet investor or analyst expectations.

• Future sales of shares by existing stockholders could cause our stock price to decline.

• The dual class structure of our common stock concentrates voting control with certain significant shareholders, including our current and former directors, executive officers, and their affiliates, and may depress the trading price of our Class A common stock.

• We do not currently intend to pay dividends on our Class A common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation of the value of our Class A common stock.

• Delaware law and provisions in our amended and restated certificate of incorporation and amended and restated bylaws could make a merger, tender offer, or proxy contest difficult, thereby depressing the trading price of our Class A common stock.

• Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware and the federal district courts of the United States are the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.

**GENERAL RISK FACTORS**

• Future securities sales and issuances could result in significant dilution to our stockholders and impair the market price of our Class A common stock.

• If we are unable to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy of our reported financial information and this may lead to a decline in our stock price.

• We may not be able to generate sufficient capital to support and grow our business, and outside capital might not be available or may be available only by diluting existing stockholders.

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**RISK FACTORS**

*Investing in our Class A common stock involves a high degree of risk. You should consider and read carefully all of the risks and uncertainties described below, as well as other information included in this Quarterly Report and in our other public filings. The risks described below are not the only ones facing us. The occurrence of any of the following risks or additional risks and uncertainties not presently known to us or that we currently believe to be immaterial could materially and adversely affect our business, financial condition, or results of operations. In such case, the trading price of our Class A common stock could decline, and you may lose all or part of your investment. This Quarterly Report also contains forward-looking statements and estimates that involve risks and uncertainties. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of specific factors, including the risks and uncertainties described below.*

**RISKS RELATING TO OUR BUSINESS**

*We have in the past been and may in the future be unable to retain clients or maintain a high level of engagement with our clients and maintain or increase their spending with us, which has and could continue to harm our business, financial condition, or operating results.*

If our existing clients no longer find our service and merchandise appealing or appropriately priced, they may make fewer purchases or may stop using Stitch Fix altogether. Even if our existing clients continue to find our service and merchandise appealing, they may decide to receive fewer Fixes or purchase fewer items from their Fixes or through Freestyle as their demand for new apparel declines, due to macroeconomic conditions, or for other reasons. A high proportion of our revenue comes from repeat purchases by existing clients, especially those existing clients who are highly engaged and purchase a significant amount of merchandise from us. If clients who receive Fixes most frequently or purchase a significant amount of merchandise from us make fewer or lower priced purchases or stop using our service altogether, our financial results will be negatively affected. For instance, as of the end of fiscal year ended July 29, 2023 ("fiscal 2023") and each reporting period thereafter, our number of active clients decreased compared to the prior year period due to our inability to attract new clients and retain existing clients. This negatively affected our revenue for these periods and is expected to continue to negatively affect our revenue.

We seek to attract high-quality clients who will remain clients for the long term, but our efforts may not be successful or produce the results we anticipate. For example, if we are not able to engage new clients effectively so they continue receiving Fixes after their first few tries, our number of active clients will continue to suffer. Our inability to attract and keep high-quality clients engaged, a continued decrease in our number of active clients, or a decrease in client spending has in the past negatively affected and could continue to negatively affect our operating results.

*Our growth depends on attracting new clients.*

Our success depends on our ability to attract new clients in a cost-effective manner. To expand our client base, we must appeal to and acquire clients who have historically used other means to purchase apparel, shoes, and accessories, such as traditional brick-and-mortar retailers or other online retailers. We currently utilize both digital and offline channels to attract new visitors to our website or mobile app and convert them into clients. At any given time, our marketing and advertising efforts may include client referrals, social media marketing, keyword search campaigns, affiliate programs, partnerships, campaigns with celebrities and influencers, display advertising, television, radio, video, content, direct mail, email, mobile "push" communications, SMS, and search engine optimization. Our marketing expenses have varied from period to period, and we expect this trend to continue as we evolve our marketing strategies and employ a disciplined approach to marketing spend. We cannot be certain that increases in marketing spend will yield more clients, achieve meaningful payback on our investments, or be cost effective. We may also adjust our marketing strategy or decrease spend within a period if we are not achieving the intended results or if we believe the return-on-investment is not favorable, which may result in faster or slower rates of active client growth in any given period.

In addition, we seek to attract and retain clients by offering new products, services, and ways to engage with our platform. If such new products or services are not timely or successfully launched or are not successful in attracting new clients, our sales may fall short of expectations, our brand and reputation could be adversely affected, and our results of operations may suffer. Developing new offerings requires significant investments of resources and time, and if a new offering is not successful, or is delayed or not executed well, our operating results could be negatively impacted. Expansion of our offerings may also strain our management and operational resources, which could damage our reputation, limit our growth, and have an adverse effect on our operating results.

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*Risks associated with the sourcing and pricing of merchandise and raw materials, including those related to tariffs and shifting trade policies, could adversely impact our business.*

We currently source nearly all of our merchandise from third-party vendors, many of whom use manufacturers in the same geographic region, with the majority of manufacturing in China. As a result, we are subject to price increases or fluctuations, inflationary pressures, tariffs, demand disruptions, increased shipping or freight costs, or shipping delays in connection with our merchandise. Increased shipping or freight costs or shipping and freight delays could be caused or exacerbated by labor disputes, shortages, or strikes, inclement weather, fire, flood, power loss, earthquakes, public health crises such as a pandemic, acts of war or terrorism, and periods of high e-commerce volume. Our operating results have been negatively impacted by increases in the cost of our merchandise, and costs may rise further.

Recent trade policies and uncertainty related thereto, including with respect to tariffs and other restrictions, particularly with respect to China in addition to other countries from which we source our merchandise and raw materials, have created a dynamic and unpredictable trade landscape, which has and may continue to adversely impact our business and operations. For example, the U.S. government has imposed significant incremental tariffs on a broad range of goods imported from China, including the apparel we source. Certain of these tariffs have been subject to successful legal challenge, but it remains unclear whether and to whom those tariffs may be refunded, and the U.S. government has announced its intention to impose new or similar tariffs under alternative statutory mechanisms. This could further change the tariff rate, including with respect to China. Tariffs and international trade arrangements will continue to change, potentially without warning and to an extent or duration that is difficult to predict. Changing tariff rates and shifting trade policies have created significant uncertainty for vendors, consumers, and us. If tariffs from countries from which we source products are sustained at heightened levels, it will further increase our merchandise costs, may result in increased prices for our clients, and may negatively impact our margins and consumer demand for our products and services, any of which could harm our competitive position or otherwise negatively impact our operating results. Moreover, tariff and other trade-related cost pressures and supply chain disruptions may lead to reputational harm if we are unable to deliver our products or services on expected timelines. We may not be able to forecast such impacts accurately. Further, our efforts to mitigate the impacts of tariffs, which include diversifying the countries of origin for our inventory, are time-consuming and costly, and may not be effective.

Additionally, the fabrics used by our vendors are made of raw materials including, but not limited to, petroleum-based products, linen, and cotton. Significant price increases or fluctuations, trade policies, including tariffs and trade restrictions, currency volatility or fluctuation, shortages, increases in shipping or freight costs, or shipping delays of petroleum, cotton, linen, or other raw materials could significantly increase our cost of goods sold or affect our operating results. We have also experienced increased costs of goods due to increases in the price of raw materials, inflationary pressures, rising fuel and other energy costs, and currency volatility. Any additional price increases will affect our operating results.

Other factors such as natural disasters have in the past increased raw material costs, impacted pricing with certain of our vendors, and caused shipping delays for certain of our merchandise. Also, the U.S. government's ban on cotton imported from the Xinjiang region of China, the source of a large portion of the world's cotton supply, has and may further impact prices and the availability of cotton for our merchandise. Additionally, our products and materials (including potentially non-cotton materials) could be held for inspection by the United States Customs Border Protection, which would cause delays and unexpectedly affect our inventory levels. In addition, the labor costs to produce our products have and may continue to fluctuate. In the event of a significant disruption in the supply of fabrics or raw materials used in the manufacture of the merchandise we offer, our vendors might not be able to locate alternative suppliers of materials of comparable quality at an acceptable price. Any delays, interruption, damage to, or increased costs in raw materials or the manufacture of the merchandise we offer could result in higher prices to acquire the merchandise, or non-delivery of merchandise altogether, and could adversely affect our operating results.

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In addition, we cannot guarantee that merchandise we receive from vendors will be of sufficient quality or free from damage, or that such merchandise will not be damaged during shipping, while stored in one of our fulfillment centers, or when returned by clients. While we take measures to ensure merchandise quality and avoid damage, we cannot control merchandise while it is out of our possession. We may incur additional expenses and our reputation could be harmed if clients and potential clients believe that our merchandise is not of high quality or may be damaged.

*We rely on paid marketing to help grow our business, but these efforts may not be successful or cost effective, and such expenses and the success of our efforts may vary from period to period.*

Promoting awareness of our service is important to our ability to grow our business, drive client engagement, and attract new clients. At any given time, our marketing and advertising efforts may include, client referrals, social media marketing, keyword search campaigns, affiliate programs, partnerships, campaigns with celebrities and influencers, display advertising, television, radio, video, content, direct mail, email, mobile "push" communications, SMS, and search engine optimization. External factors beyond our control, including general economic conditions and decreased discretionary consumer spending, have impacted and may in the future impact the success of our marketing initiatives or how much we decide to spend on marketing in a given period. We adjust our marketing activity from period to period or within a period as we launch new initiatives or offerings, run tests, or make decisions on marketing investments in response to anticipated rates of return, such as when we identify favorable cost per acquisition trends. We have seen increased costs in certain digital marketing channels and our marketing initiatives may become increasingly expensive; generating a meaningful return on those initiatives may be difficult. Even if we successfully increase revenue as a result of our paid marketing efforts, it may not offset the additional marketing expenses we incur.

We currently obtain a significant number of visits to our websites via organic search engine results. Search engines frequently change the algorithms that determine the ranking and display of results of a user's search, which could reduce the number of organic visits to our websites, in turn reducing new client acquisition and adversely affecting our operating results. Social networks are important as a source of new clients and as a means by which to connect with current clients, and their importance may be increasing. We may be unable to effectively maintain a presence within these networks, which could lead to lower than anticipated brand affinity and awareness, and in turn could adversely affect our operating results.

Further, mobile operating system and web browser providers, such as Apple and Google, limit the ability of advertisers to collect and use data to target and measure advertising. For example, Apple requires apps to get a user's opt-in permission before tracking a user or sharing the user's data across apps or websites owned by companies other than the app's owner. Google has also taken actions to give users the option to accept cookies or not. These changes have reduced and will continue to reduce our ability to efficiently target and measure advertising, in particular through online social networks, making our advertising less cost effective and successful. We expect to continue to be impacted by these changes.

With respect to our email marketing efforts, if we are unable to successfully deliver emails to our clients or if clients do not engage with our emails, whether out of choice, because those emails are marked as low priority or spam, or for other reasons, our business could be adversely affected.

*If we are unable to manage our inventory effectively, our operating results could be adversely affected.*

To ensure timely delivery of merchandise, we generally enter into purchase contracts well in advance of a particular season and often before apparel trends are confirmed by client purchases. As a result, we are vulnerable to demand and pricing shifts and to suboptimal selection and timing of merchandise purchases. We also adjust our inventory levels as needed to support initiatives or enhancements to our Fix experience, including sending more items per Fix and increasing newness in our assortment. We rely on our merchandising team to order styles and products that our clients will purchase and we rely on our data science to recommend which styles to re-buy and the depth of those re-buy purchases. We have not always predicted demand and clients' preferences with accuracy, which has negatively impacted revenue or resulted in significant write-offs when we have sub-optimal inventory assortment. For instance, in the fourth quarter of fiscal 2022, weaker consumer demand caused us to have higher inventory levels and increased inventory reserves that affected our financial results. Similar impacts may occur in future periods if our inventory investments exceed consumer demand.

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In fiscal 2024, we closed two fulfillment centers, as we believe our inventory is better optimized across a smaller network of warehouses and allows us to deliver a better client experience with access to a greater breadth inventory for a given Fix, while at the same time operating with lower, more cash efficient, inventory levels. This smaller inventory base and our focus on inventory efficiency creates increased risk related to inventory assortment. If we experience sub-optimal inventory assortment to meet demand, it may affect revenue in current and future quarters. If we do not predict client demand accurately, do not reorder or write off the right products in a timely manner, or otherwise do not effectively manage our inventory, we may experience significant inventory write-offs or insufficient inventory to meet demand, which would adversely affect our operating results.

Additionally, many of our inventory vendors utilize third parties to provide financing and credit protection that enables them to produce and ship our items. While we do not manage the relationships with our vendors and their financial intermediaries, the tightening of credit markets, as well as our recent operating results, have put pressure on some of our vendors' ability to secure that financing and credit protection, and may continue to do so in the future. This may impact our ability to receive inventory and manage our assortment.

Our inventory levels also may be affected by product launch delays, consumer demand fluctuations due to macroeconomic factors, uncertainty or otherwise, disruptions in our systems due to upgrades, launches or otherwise, freight delays, vendor relationships, capacity constraints, and our inability to predict demand with respect to categories or products. For example, freight delays caused by lockdowns due to COVID-19, port closures, port congestion, and shipping container and ship shortages have caused us to experience delays in receiving inventory in the past. Freight delays caused by these issues or new issues, including labor disruptions or shortages, or surges in cargo shipments in response to changing trade policy, may affect us in future quarters. Also, in the past we have experienced challenges managing our inventory within the fulfillment centers given storage capacity constraints and challenges hiring fulfillment center employees. Any future such challenges could affect the amount and types of inventory we have available to offer to clients, and therefore negatively affect our operating results.

*Operational constraints at our fulfillment centers or our failure to adequately and effectively staff our fulfillment centers could adversely affect our client experience and operating results.*

We currently receive and distribute merchandise at three fulfillment centers. Prior to the closures of our Dallas, Texas and Bethlehem, Pennsylvania fulfillment centers in fiscal 2024, we operated five fulfillment centers in the United States. While we believe three fulfillment centers is the appropriate number to provide the greatest breadth and depth of inventory to our clients and Stylists and will allow us to service the same number of existing clients with lower inventory levels, this decreased fulfillment system could cause operational constraints or decreased capacity that could affect our client experience or revenue. Additionally, we may experience operational issues as we continue to transition to our new fulfillment center model which could affect our client experience and financial results.

Severe weather events, including earthquakes, hurricanes, tornadoes, floods, fires, storms, extreme winter weather, and other adverse weather events and climate conditions could also cause operational constraints or temporarily reduce our ability to ship merchandise to clients. For instance, the severe winter weather and temperatures experienced in Texas and other parts of the country in February 2021 caused us to temporarily close two of our fulfillment centers and affected the shipping of merchandise in and out of our fulfillment centers. Future weather events, which we expect to become more frequent and more severe with the increasing effects of climate change, could have a significant impact on our operations and results of operations. Additionally, the impact of such weather events affecting one or more fulfillment centers may be exacerbated due to the fact that we have fewer fulfillment centers to continue operations during such a closure and therefore each individual fulfillment center represents a larger portion of our overall business. Moreover, following our move to three fulfillment centers, each of our Men's and Kids lines are shipped out of one fulfillment center only. If a fulfillment center that houses the entirety of one of those lines is forced to close or is damaged, it would affect shipments to all of those clients and negatively affect our client experience and operating results. Further, in response to the COVID-19 pandemic, we temporarily closed three of our fulfillment centers and implemented changes that resulted in operational constraints, which in turn temporarily reduced our ability to ship merchandise to clients and earn revenue. Any future pandemics may negatively affect capacity at our fulfillment centers.

We have experienced difficulty hiring and retaining employees in our fulfillment centers, which in the past we attributed to COVID-19 concerns and to increased competition and rising wages for eCommerce fulfillment center workers. To address this, we increased wages in our fulfillment centers and implemented other policies in order to

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be more competitive in hiring and retaining employees. These wage increases impacted our operating results. Hiring and retention of employees in our warehouses is a continuing challenge as demand for eCommerce fulfillment center workers remains high. We may have to increase wages for our fulfillment center employees or spend money on additional employee recruiting or retention programs, which would impact our operating results. In the past, these hiring difficulties caused capacity constraints in our fulfillment centers and could in the future cause capacity constraints. Capacity constraints in our fulfillment centers could affect the amount and types of inventory we have available to offer to clients, which will affect our results of operations. Any capacity constraints due to hiring difficulties may be exacerbated due to the fact that we have fewer fulfillment centers than we once did. If we are unable to adequately staff our fulfillment centers to meet demand, or if the cost of such staffing is higher than projected due to competition, mandated wage increases, regulatory changes, or other factors, our operating results will be further harmed.

In addition, operating fulfillment centers comes with potential risks, such as workplace safety issues and employment claims for the failure or alleged failure to comply with labor laws or laws respecting union organizing activities. Furthermore, if we fail to comply or allegedly fail to comply with wage and hour laws for our nonexempt employees, many of whom work in our fulfillment centers, we could be subject to legal risk, including claims for back wages, unpaid overtime pay, and missed meal and rest periods, which could be on a class or representative basis. Any such issues may result in delays in shipping times, reduced packing quality, or costly litigation, and our reputation and operating results may be harmed.

*Shipping is a critical part of our business and any changes in our shipping arrangements or any interruptions in shipping could adversely affect our operating results.*

If we are not able to negotiate acceptable pricing and other terms with our client-facing shipping vendors or our freight vendors, or our shipping or freight vendors experience performance problems or other difficulties, it could negatively impact our operating results and our clients' experience. In addition, our ability to receive inbound inventory efficiently, ship merchandise to clients, and receive returned merchandise from clients may be negatively affected by inclement weather, fire, flood, power loss, earthquakes, public health crises, labor disputes, shortages, or strikes, acts of war or terrorism, periods of high eCommerce volume, such as holiday seasons, port congestion, and similar factors. Due to our business model and the fact that we recognize revenue from Fixes when a client checks out items, rather than when Fixes are shipped, we may be impacted by shipping delays to a greater extent than our competitors. Additionally, delays in shipping may cause an auto-ship client's subsequent Fixes to be scheduled for a later date, as their next Fix is not scheduled until their checkout is complete. In the second quarter of fiscal year ended July 31, 2021, we experienced carrier and client shipping delays due to the COVID-19 pandemic and the increased strain on our shipping partners during the holiday season. These delays affected our ability to recognize revenue within the quarter, and we may in the future experience these delays and the resulting impact to our financial results, including potentially during future holiday seasons. In the past, strikes at major international shipping ports have impacted our supply of inventory from our vendors and severe weather events have resulted in long delivery delays and Fix cancellations. Additionally, some of our merchandise may be damaged or lost during transit with our shipping vendors. If a greater portion of our merchandise is not delivered in a timely fashion or is damaged or lost during transit, it could adversely affect our operating results or could cause our clients to become dissatisfied and cease using our services, which would adversely affect our business.

*We may not be able to return to or maintain revenue growth and we may not be profitable in the future.*

Our past revenue growth and profitability should not be considered indicative of our future performance. Our revenue decreased by 5.3% in fiscal 2025 compared to fiscal 2024, decreased by 16.0% in fiscal 2024 compared to fiscal 2023, and decreased by 21.1% in fiscal 2023 compared to fiscal 2022. Although our net revenue increased 9.4% year-over-year in Q2 of fiscal 2026, there is no guarantee that we will return to full-year revenue growth or maintain such growth. Our revenue may decline in future periods due to a number of factors, which may include our inability to attract and retain clients, general economic conditions, including a recession or decreased discretionary consumer spending, decreases in marketing spend, a decreased demand for our merchandise and service, increased competition, decreases in the growth rate of our overall market, or our failure to capitalize on growth opportunities.

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We announced a restructuring plan in June 2022, which we expanded throughout fiscal 2023, fiscal 2024, and fiscal 2025, intended to reduce our future fixed and variable operating costs. While we have realized cost savings from the restructuring plan, our efforts may not adequately reduce future expenses or impact our results as we anticipate. Moreover, our expenses may increase, particularly as we develop and introduce new merchandise offerings, including the re-imagination of our client experience, need to hire and retain personnel, or increase investment in our marketing initiatives. We may not always pursue short-term profits but are often focused on long-term growth, which may impact our short-term financial results. If our revenue does not increase to offset increases in our operating expenses, we may not be profitable in future periods.

*If we fail to effectively manage our transformation or other business strategies, our financial condition and operating results could be harmed.*

We must continue to implement our operational plans and strategies, and improve our infrastructure of people and technology. Additionally, we expect to continue to introduce new offerings, business strategies and initiatives, and improve on existing offerings. We are in the midst of a transformation to strengthen the foundation of our business and to reimagine the client experience. This includes embedding retail best practices across the enterprise, identifying operational efficiencies, and ensuring we have the right organizational structure in place to enable our future success. We are also taking a holistic approach to rethink how our clients engage with Stitch Fix, which includes introducing more flexibility into our service through new features. This transformation requires investments of time and resources and has included and will continue to include changes in our website, branding, mobile apps, information technology systems, and processes. We cannot guarantee that we will successfully implement all aspects of our transformation plan in the expected timeframe or at all, or that we will achieve or sustain the expected financial and operational results of our transformation plan. Additionally, if our reimagined client experience, new offerings, or rebranding does not resonate with current or future clients, it could cause us to lose clients and may negatively impact our financial results. If we do not realize the expected benefits of these transformation initiatives or experience additional unexpected costs in connection with the transformation, our business, financial condition, results of operations, and cash flow could be negatively impacted.

Additionally, as we continue to implement these changes and introduce future business strategies and initiatives, our operations, vendor base, fulfillment centers, information technology systems, or internal controls and procedures may not be adequate to support our changing operations. Any change or upgrade to our systems to support the increasing complexity of our business involves risk and we may experience problems or delays as we make upgrades or changes to our systems. For example, in the first quarter of fiscal 2022, we experienced technical issues following a systems upgrade to our procure-to-pay processes which affected the transmission, receipt, and reconciliation of purchase orders and payments with many of our apparel and accessory vendors. Additionally, if the impact of these initiatives is more or less successful than we expected, it could affect our inventory management, resulting in inventory shortages or excess inventory in the case of significant underperformance. If we are unable to manage the transformation and potential growth of our organization effectively or if our strategies do not produce the anticipated results, or cause unanticipated issues, our business, financial condition, and operating results may be adversely affected.

*If we fail to attract and retain key personnel, effectively manage succession, or hire, develop, and motivate our employees, our business, financial condition, and operating results could be adversely affected.*

Our success depends in part on our ability to attract and retain key personnel on our management team and in our merchandising, algorithms, engineering, marketing, styling, and other organizations. We do not currently maintain key-person life insurance policies on any member of our senior management team or other key employees.

We do not have long-term employment or non-competition agreements with any of our personnel. We have had senior employees leave Stitch Fix, including the departure of our Chief Merchandising Officer and Chief Accounting Officer in 2024, and cannot necessarily anticipate when this will happen in the future and whether we will be able to promptly replace such employees. Additionally, in January 2023, the Company and Elizabeth Spaulding, the Company's then-current Chief Executive Officer, agreed that she would step down from her employment with the Company. The Board of Directors appointed Katrina Lake, the Company's Founder and Executive Chairperson of the Board of Directors, as interim Chief Executive Officer. Ms. Lake served in that position until Matt Baer joined as Chief Executive Officer in June 2023. Additional changes in our management team and senior leadership could cause retention and morale concerns among current employees, as well as operational risks. Such risks could impact the Company's ability to effectively implement the Company's strategic plans, including our transformation

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strategy, it could disrupt our business, affect our Company culture, cause employee retention issues, and affect our financial condition and operating results. Additionally, the loss of one or more of our key personnel or the inability to promptly identify a suitable successor to a key role could have an adverse effect on our business.

We have experienced and may in the future experience increased employee turnover as a result of the general market conditions and a competitive talent market within the U.S., as well as Company-specific factors, such as share price decline, business performance, and leadership changes. We announced a restructuring plan in June 2022 that reduced our workforce and announced a further reduction in force in January 2023. In June 2023, we announced the closure of two fulfillment centers and in August 2023, we made the decision to exit our UK business and wind down its operations. In January 2024, we implemented an organization realignment that resulted in the further elimination of styling leadership and corporate positions, as well as moved all of our Stylists into part-time positions. In October 2024, we implemented an additional organizational realignment which further eliminated certain corporate positions. These reductions in workforce and changes in our operations may cause additional attrition and affect employee morale, including in our Stylist organization. Additionally, as we are operating our business with fewer employees, we face additional risk that we might not be able to execute on our strategic plans and product roadmap, which may have an adverse effect on our business, financial condition, and operating results.

We also face significant competition for personnel, particularly in our technology and product organizations. To attract top talent, we have had to offer, and believe we will need to continue to offer, competitive compensation and benefits packages before we can validate the productivity of those employees.

We cannot be sure that we will be able to attract, retain, and motivate a sufficient number of qualified personnel in the future, or that the compensation costs of doing so will not adversely affect our operating results. Additionally, we may not be able to hire and train new employees quickly enough to meet our needs. If we fail to retain employees and effectively manage our hiring needs, our efficiency, ability to meet forecasts, employee morale, productivity, and the success of our strategic plans, transformation strategy, and product roadmap could suffer, which may have an adverse effect on our business, financial condition, and operating results.

*Our business depends on a strong brand and we may not be able to maintain our brand and reputation.*

We believe that maintaining the Stitch Fix brand and reputation is critical to driving client engagement and attracting clients and merchandise vendors. Building our brand will depend largely on our ability to continue to provide our clients with an engaging and personalized client experience, including valued personal styling services, high-quality and appealing merchandise, and appropriate price points, which we may not do successfully. Client complaints or negative publicity about our styling services, merchandise, delivery times, or client support, especially on social media platforms, could harm our reputation and diminish client use of our services, the trust that our clients place in Stitch Fix, and vendor confidence in us.

Our brand depends in part on effective client support, which requires significant personnel expense. Failure to manage or train our client support representatives properly or inability to handle client complaints effectively could negatively affect our brand, reputation, and operating results.

If we fail to cost-effectively promote and maintain the Stitch Fix brand, our business, financial condition, and operating results may be adversely affected.

*If we fail to effectively manage our Stylists, our business, financial condition, and operating results could be adversely affected.*

As of January 31, 2026, approximately 1,800 of our employees were Stylists. In January 2024, we moved to a part-time only Stylist model, and all of our Stylists now work on a part-time basis and are paid hourly. The Stylists track and report the time they spend working for us. These employees are classified as nonexempt under federal and state law. If we fail to effectively manage our Stylists, including by ensuring accurate tracking and reporting of their hours worked and proper processing of their hourly wages, then we may face claims alleging violations of wage and hour employment laws, including, without limitation, claims of back wages, unpaid overtime pay, and missed meal and rest periods. Any such employee litigation could be attempted on a class or representative basis, or other form of multi-plaintiff litigation. For example, in August 2020, a representative action under California's Private Attorneys General Act was filed against us alleging various violations of California's wage and hour laws relating to our current and former non-exempt Stylist employees. While we were able to settle this matter, and we no longer employ Stylists in California, future litigation concerning our styling employees could be expensive and time-consuming

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regardless of whether the claims against us are valid or whether we are ultimately determined to be liable, and could divert management's attention from our business. We could also be adversely affected by negative publicity, litigation costs resulting from the defense of these claims, and the diversion of time and resources from our operations.

*If we are unable to acquire new merchandise vendors or retain existing merchandise vendors, our operating results may be harmed.*

We offer merchandise from both established and emerging brands. In order to continue to attract and retain quality merchandise brands, we must be a promising retailer of their products. If we do not continue to acquire new merchandise vendors or retain our existing merchandise vendors on acceptable commercial terms, we may not be able to maintain a broad selection of products for our clients, and our operating results may suffer.

In addition, our Owned Private Label Brands are sourced from third-party vendors and contract manufacturers. The loss of one of our Owned Private Label Brand vendors for any reason, or our inability to source any additional vendors needed for our Owned Private Label Brands, could require us to source Owned Private Label Brands merchandise from another vendor or manufacturer, which could cause inventory delays, impact our clients' experiences, and otherwise harm our operating results.

*Our client metrics are subject to inherent challenges in measurement, and real or perceived inaccuracies in such metrics may reduce the perceived usefulness and reliability of the metric and harm our stock price.* 

We track key operating metrics, including active clients and net revenue per active client, to evaluate our business and for our investors to evaluate our performance. While our key operating metrics are based on what we believe to be reasonable calculations, there are inherent challenges in measuring such metrics across our large client base and changing product offerings.

Our active client metric is calculated at the account level and may not accurately reflect the number of unique individuals using our service. For example, there may be individuals who create multiple accounts to access our service. In addition, our family accounts feature allows a client to create accounts for other household members. A single individual who accesses our service or on whose behalf our service is accessed through multiple accounts and checks out a Fix or is shipped a Freestyle item from multiple accounts during the relevant period would be counted as multiple active clients.

This potential duplication may affect the comparability of our active client metric over time and may also impact our net revenue per active client metric, which is based on the number of active clients. If investors do not perceive our metrics to be accurate representations of our client base, or if we discover material inaccuracies in our metrics, our stock price could decline.

*We may incur significant losses from fraud.*

We have in the past incurred and may in the future incur losses from various types of fraud, including theft of merchandise, stolen credit card numbers, claims that a client did not authorize a purchase, merchant fraud, and clients who have closed bank accounts or have insufficient funds in open bank accounts to satisfy payments. Our clients may re-use their login information (i.e., username and password combination) across multiple websites and, therefore, when a third-party website experiences a data breach, that information could be exposed to bad actors and be used to fraudulently access our clients' accounts. In addition to the direct costs of such losses, if the fraud is related to credit card transactions and becomes excessive, it could result in us paying higher fees or losing the right to accept credit cards for payment. In addition, under current credit card practices, we are typically liable for fraudulent credit card transactions. Our failure to adequately prevent fraudulent transactions could damage our reputation, result in litigation or regulatory action, and lead to expenses that could substantially impact our operating results.

*Our real estate leases subject us to various financial risks.*

We lease our Company headquarters in San Francisco and four fulfillment centers. The original terms of our leases are between 6 and 12.5 years. We currently sub-lease a fulfillment center in Salt Lake City, Utah, and portions of our San Francisco headquarters space, to multiple sub-tenants. We may decide to sub-lease additional portions of our San Francisco headquarters and other fulfillment centers. If we are unable to sub-lease additional space in our Company headquarters or other leased space on favorable terms, or at all, it will affect our cash flow and may affect our results of operations. Additionally, if our sub-tenants fail to make lease payments or otherwise default on their

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obligations to us, we could incur unanticipated payment obligations which could affect our Free Cash Flow and other results of operations.

*We are subject to payment-related risks.*

We accept payments online via credit and debit cards and online payment systems such as PayPal, and certain "Buy Now Pay Later" services, such as Affirm, Klarna, and Afterpay, which subject us to certain regulations and fraud. We may in the future offer new payment options to clients that would be subject to additional regulations and risks. We pay interchange and other fees in connection with credit card payments, which may increase over time and adversely affect our operating results. While we use a third party to process payments, we are subject to payment card association operating rules and certification requirements, including the Payment Card Industry Data Security Standard and rules governing electronic funds transfers. If we fail to comply with applicable rules and regulations, we may be subject to fines or higher transaction fees and may lose our ability to accept online payments or other payment card transactions. If any of these events were to occur, our business, financial condition, and operating results could be adversely affected.

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**RISKS RELATING TO OUR INDUSTRY, THE MARKET, AND THE ECONOMY**

*We rely on consumer discretionary spending and may be adversely affected by economic downturns, inflation, economic uncertainty, and other macroeconomic conditions or trends.*

Our business and operating results are subject to national and global economic conditions and their impact on consumer discretionary spending. Some of the factors that may negatively influence consumer spending include high levels of unemployment; higher consumer debt levels; reductions in net worth and declines in asset values; macroeconomic uncertainty; increased inflationary pressures; recessionary concerns; home foreclosures and reductions in home values; fluctuating interest rates, and credit availability; rising fuel and other energy costs; rising commodity prices; and general uncertainty regarding the overall future political and economic environment. We have experienced many of these factors, including current inflationary pressures, which may be increasing due to tariffs on imports into the U.S., and have experienced negative impacts on client demand and discretionary spending as a result. Consumer purchases of discretionary items, including the merchandise that we offer, generally decline during recessionary periods or periods of economic uncertainty, when disposable income is reduced or when there is a reduction in consumer confidence. Furthermore, economic conditions in certain regions may also be affected by natural disasters, such as hurricanes, tropical storms, earthquakes, and wildfires; public health crises; and other major unforeseen events.

Adverse economic changes could reduce consumer confidence, and could thereby negatively affect our operating results. In challenging and uncertain economic environments, we cannot predict whether or when such circumstances may improve or worsen, or what impact such circumstances could have on our business. Additionally, a volatile and uncertain macroeconomic environment has reduced, and may continue to reduce, our ability to forecast our future operating results.

Trade disputes, trade restrictions, tariffs and other political tensions between the U.S. and other countries may also exacerbate unfavorable macroeconomic conditions including inflationary pressures, foreign exchange volatility, financial market instability, and economic recessions or downturns, which may negatively impact customer demand for our products or services, delay purchases, limit expansion opportunities with customers, limit our access to capital, or otherwise negatively impact our business and operations. Ongoing tariff, trade restrictions and macroeconomic uncertainty has and may continue to contribute to volatility in our stock price.

*Our industry is highly competitive and if we do not compete effectively our operating results could be adversely affected.*

The retail apparel industry is highly competitive. We compete with eCommerce companies that market the same or similar merchandise and services that we offer; local, national, and global retail stores; specialty retailers; discount chains; the online offerings of traditional retail competitors; and less traditional online retailers. Additionally, we experience competition for consumer discretionary spending from other product and experiential categories. We believe our ability to compete depends on many factors within and beyond our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• effectively differentiating our service and value proposition from those of our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• attracting new clients and engaging with and retaining existing clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our direct relationships with our clients and their willingness to share personal information with us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• further developing our data science and artificial intelligence ("AI") capabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintaining favorable brand recognition and effectively marketing our services to clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delivering merchandise that each client perceives as personalized to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount, diversity, and quality of brands and merchandise that we or our competitors offer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain and expand appealing Owned Private Label Brands and exclusive-to-Stitch Fix merchandise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the price at which we are able to offer our merchandise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the speed and cost at which we can deliver merchandise to our clients and the ease with which they can use our services to return merchandise; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• anticipating and quickly responding to changing apparel trends and consumer shopping preferences.

Many of our current competitors have, and potential competitors may have, longer operating histories; larger fulfillment infrastructures; greater technical capabilities; faster shipping times; lower-cost shipping; larger databases; more purchasing power; higher profiles; greater financial, marketing, institutional, and other resources; and larger customer bases than we do. Mergers and acquisitions by these companies may lead to even larger competitors with more resources. These factors may allow our competitors to derive greater revenue and profits from their existing customer bases; acquire customers at lower costs; or respond more quickly than we can to new or emerging technologies such as AI, changes in apparel trends and consumer shopping behavior, and changes in supply conditions. These competitors may engage in more extensive research and development efforts, enter or expand their presence in the personalized retail market, undertake more far-reaching marketing campaigns, and adopt more aggressive pricing policies, which may allow them to build larger customer bases or generate revenue from their existing customer bases more effectively than we do. If we fail to execute on any of the above better than our competitors, our operating results may be adversely affected.

*Our operating results have been, and could be in the future, adversely affected by natural disasters, public health crises, political crises, or other catastrophic events.*

Natural disasters, such as earthquakes, hurricanes, tornadoes, floods, fires, severe winter weather, and other adverse weather events and climate conditions, which we expect to become more frequent and more severe with the increasing effects of climate change; unforeseen public health crises, such as the COVID-19 pandemic or other pandemics and epidemics; political crises, such as terrorist attacks, war, and other political instability, including the ongoing international conflicts; or other catastrophic events, whether occurring in the United States or internationally, could disrupt our operations or cause us to close one or more of our offices and fulfillment centers or could disrupt, delay, or otherwise negatively impact the operations of one or more of our third-party providers or vendors. For instance, the severe winter weather and temperatures experienced in Texas and other parts of the country in February 2021 caused us to temporarily close two of our fulfillment centers and affected the shipping of merchandise in and out of fulfillment centers. These types of events could impact our merchandise supply chain, including our ability to ship merchandise to or receive returned merchandise from clients in the impacted region, and could impact our ability or the ability of third parties to operate our sites and ship merchandise. In addition, these types of events could negatively impact consumer spending in the impacted regions.

In fact, the COVID-19 pandemic disrupted our operations in and caused us to temporarily close our offices and require that most of our employees work from home; disrupted our operations in and caused us to close fulfillment centers; required us to implement various operational changes to ensure the health and safety of our employees; had a range of negative effects on the operations of our third-party providers and vendors, including our merchandise supply chain and shipping partners; and negatively impacted consumer spending and the economy generally due to measures taken to contain the spread of COVID-19, such as government-mandated business closures, office closures, and travel and transportation restrictions. We experienced reduced capacity in the third quarter of the fiscal year ended August 1, 2020 ("fiscal 2020") as we temporarily closed three of our fulfillment centers and we implemented additional safety protocols. These efforts resulted in significantly less capacity in our fulfillment centers during the third quarter of fiscal 2020, which resulted in delayed Fix shipments, a significant Fix backlog, delayed inventory and return processing, extended wait times for clients, and inventory management challenges. The COVID-19 pandemic and resulting economic disruption also led to significant volatility in the capital markets. Since the COVID-19 pandemic, most non-fulfillment center employees continue to work in a remote capacity with some in a hybrid of in-person and remote work. Remote working environments present additional risks, uncertainties and costs that could affect our performance, including increased operational risk, uncertainty regarding office space needs, heightened vulnerability to cyber attacks, potential reduced productivity, changes to our Company culture, potential strains to our business continuity plans, and increased costs to ensure our offices are safe and functional as hybrid offices that enable effective collaboration of both remote and in-person colleagues. The COVID-19 pandemic caused many risks as described above and throughout these risk factors to materialize and adversely affected our business and operating results. Any future natural disasters, pandemics, or crises could disrupt our operations or negatively impact consumer spending, adversely affecting our business and results of operations.

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**CYBERSECURITY, LEGAL AND REGULATORY RISKS**

*System interruptions that impair client access to our website or other performance failures in our technology infrastructure could damage our business.*

The satisfactory performance, reliability, integrity and availability of our website, mobile application, internal applications, and technology infrastructure (and those of our third-party vendors and service providers) are critical to our business. We rely on our website and mobile application to engage with our clients and sell them merchandise. We also rely on a host of internal custom-built applications to run critical business functions, such as styling, merchandise purchasing, warehouse operations, and order fulfillment. In addition, we rely on a variety of third-party, cloud-based solution vendors for key elements of our technology infrastructure. These systems are vulnerable to damage or interruption and we have experienced interruptions in the past. Additionally, the launch of new client experiences or offerings requires investments in and the development of new technology, which may be more susceptible to performance issues or interruptions. Interruptions caused by a variety of events, including human error, our failure to update or improve our proprietary systems, cyber attacks, fire, flood, earthquake, power loss, or telecommunications failures would disrupt our systems. Any failure or interruption of our website, mobile application, internal business applications, or our technology infrastructure (including any such issues with our third-party vendors and service providers) would harm our ability to serve our clients, which would adversely affect our business and operating results.

*Compromises of our data security or that of our third-party service providers could cause us to incur unexpected expenses and liability, and may materially harm our reputation and operating results.*

In the ordinary course of our business, we and our vendors and service providers collect, process, and store certain personal information and other data relating to individuals, such as our clients and employees, which may include proprietary, confidential, and sensitive data, including personally identifiable information, such as but not limited to, name, address, social security numbers, client payment card information, client physical attributes, photos, and client style preferences. We rely substantially on commercially available systems, software, tools, and monitoring to provide security for our processing, transmission, and storage of personal information and other confidential information. There can be no assurance that we or our vendors will not suffer a data compromise, that malicious actors will not gain access to personal information or other sensitive data, including payment card data or confidential business information, or that any such data compromise or unauthorized access will be discovered in a timely fashion. The techniques used to obtain unauthorized access or to sabotage systems are constantly evolving and can include, but are not limited to, social-engineering attacks (including through deep-fakes, phishing, vishing (voice phishing), and smishing (SMS phishing)), malicious code (such as viruses and worms), denial-of-service attacks, credential stuffing attacks, credential harvesting, personnel misconduct or error, ransomware attacks, supply-chain attacks, software bugs, server malfunctions, software or hardware failures, attacks enhanced or facilitated by AI, and other similar threats. These threats change frequently and generally are not identified until they are launched against a target, and we and our vendors may be unable to anticipate these techniques or to implement adequate preventative measures. We and many of our vendors and other business partners have moved to a more remote and hybrid work force, and as a result, we and our partners may be more vulnerable to cyber attacks. In addition, security measures may be circumvented accidentally or intentionally by our employees, contractors, vendors, or other third parties with whom we do business. Such parties may seek to misappropriate such personal information, confidential information, or other data, or may inadvertently release or compromise such data.

It may be difficult and/or costly to detect, investigate, mitigate, contain, and remediate a security incident. Our efforts to do so may not be successful. Actions taken by us or the third parties with whom we work to detect, investigate, mitigate, contain, and remediate a security incident could result in outages, data losses, and disruptions of our business. Threat actors may also gain access to other networks and systems after a compromise of our networks and systems.

Compromise of our data security or the data security of third parties with whom we do business, failure to prevent or mitigate the loss of personal or business information, and delays in detecting or providing prompt notice of any such compromise or loss would likely disrupt our operations, damage our reputation, and subject us to litigation, government action, or other additional costs and liabilities that could adversely affect our business, financial condition, and operating results.

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*Some of our software and systems contain open source software, which may pose particular risks to our proprietary applications.*

We use open source software in the applications we have developed to operate our business and will use open source software in the future. Some open source licenses contain express requirements or impose conditions, which may be triggered under certain circumstances, with respect to the exploitation of proprietary source code or other intellectual property by users of open source software. While we employ practices designed to monitor our compliance with the licenses of third-party open source software and to avoid using the open source software in a manner that would put our valuable proprietary source code at risk, there is a risk that we could have used, or may in the future use, open source software in a manner which could require us to release our proprietary source code to users of our software or to the public, require us to license our proprietary software for purposes of making modifications or derivative works, or prohibit us from charging fees for the use of our proprietary software. This could result in loss of revenue, and allow our competitors to create similar offerings with lower development costs, and ultimately could result in a loss of our competitive advantages. Furthermore, there is an increasing number of open source software license types, almost none of which have been tested in a court of law, resulting in guidance regarding the proper legal interpretation of such licenses and there is a risk that these licenses could be construed in a way that could impose unanticipated conditions or restrictions on our ability to provide or distribute our products. If we were to receive a claim of non-compliance with the terms of any of our open source licenses, we may be required to publicly release certain portions of our proprietary source code or expend substantial time and resources to re-engineer some or all of our software, which may divert resources away from our product development efforts and, as a result, adversely affect our business. In addition, we could be required to seek licenses from third parties to continue offering our products for certain uses, or cease offering the products associated with such software, which may be costly.

Further, our use of open source software may present greater risks than use of other third-party commercial software, as open source licensors generally do not provide support, warranties, indemnification or other contractual protections regarding infringement claims or the quality of the code. To the extent that our e-commerce capabilities and other business operations depend on the successful and secure operation of open source software, any undetected or unremediated vulnerabilities, errors or defects in open source software that we use could prevent the deployment or impair the functionality of our systems and injure our reputation. In addition, the public availability of such software may make it easier for others to compromise our systems. Any of these risks could be difficult to eliminate or manage and, if not addressed, could have an adverse effect on our business and operating results.

*Adverse litigation judgments or settlements resulting from legal proceedings in which we are or may be involved have in the past and could in the future expose us to monetary damages or limit our ability to operate our business.*

Currently, we are involved in various legal proceedings. For example, on August 26, 2022, a class action lawsuit alleging violations of federal securities laws was filed by certain of our stockholders naming as defendants us and certain of our officers and directors for allegedly making materially false and misleading statements regarding our Freestyle offering (the "Securities Class Action"). On March 17, 2023, June 6, 2023, May 14, 2024, July 22, 2025, and November 12, 2025, derivative actions were filed by certain of our stockholders against certain of our current and former directors and officers based on similar factual allegations underlying the Securities Class Action. In connection with the Securities Class Action, the parties entered into a stipulation and agreement of settlement (the "Stipulation") on February 6, 2026 wherein we agree to pay, or cause our insurance carriers to pay, $32.0 million, in exchange for the release and dismissal with prejudice of all claims in the Securities Class Action. The Stipulation and settlement remain subject to approval by the court. We have in the past and may in the future become involved in other private actions, collective actions, investigations, and various other legal proceedings by clients, employees, suppliers, competitors, government agencies, stockholders, or others. The results of any such litigation, investigations, and other legal proceedings are inherently unpredictable and expensive. Any claims against us, whether meritorious or not, could be time consuming, result in costly litigation, damage our reputation, require significant amounts of management time, and divert significant resources. If any of these legal proceedings were to be determined adversely to us, or we were to enter into a settlement arrangement, we could be exposed to monetary damages or limits on our ability to operate our business, which could have an adverse effect on our business, financial condition, and operating results.

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*Any failure by us or our vendors to comply with product safety, labor, or other laws, or our standard vendor terms and conditions, or to provide safe factory conditions for our or their workers, may damage our reputation and brand, and harm our business.*

The merchandise we sell to our clients is subject to regulation by the Federal Consumer Product Safety Commission, the Federal Trade Commission, and similar state and international regulatory authorities. As a result, such merchandise could in the future be subject to recalls and other remedial actions. Product safety, labeling, and licensing concerns may result in us voluntarily removing selected merchandise from our inventory. Such recalls or voluntary removal of merchandise can result in, among other things, lost sales, diverted resources, potential harm to our reputation, and increased client service costs and legal expenses, which could have a material adverse effect on our operating results.

Some of the merchandise we sell, including our children's merchandise, may expose us to product liability claims and litigation or regulatory action relating to personal injury or environmental or property damage. Although we maintain liability insurance, we cannot be certain that our coverage will be adequate for liabilities actually incurred or that insurance will continue to be available to us on economically reasonable terms or at all. In addition, some of our agreements with our vendors may not indemnify us from product liability for a particular vendor's merchandise or our vendors may not have sufficient resources or insurance to satisfy their indemnity and defense obligations.

We purchase our merchandise from numerous domestic and international vendors. Our standard vendor terms and conditions require vendors to comply with applicable laws. We have hired independent firms that conduct audits of the working conditions at the factories producing our Owned Private Label Brands products. If an audit reveals potential problems, we require that the vendor institute corrective action plans to bring the factory into compliance with our standards, or we may discontinue our relationship with the vendor. The loss of an Owned Private Label Brands vendor due to failure to comply with our standards could cause inventory delays, impact our clients' experiences, and otherwise harm our operating results. In addition, failure of our vendors to comply with applicable laws and regulations and contractual requirements could lead to litigation against us, resulting in increased legal expenses and costs. Furthermore, the failure of any such vendors to provide safe and humane factory conditions and oversight at their facilities could damage our reputation with clients or result in legal claims against us.

Furthermore, U.S. import regulations prohibit the entry of certain goods produced by entities on government-created lists or from sanctioned areas, including China's Xinjiang Uyghur Autonomous Region (the "XUAR"). Although we do not intentionally source any products or materials from the XUAR (either directly or indirectly through our suppliers) and strive to ensure that our vendors comply with applicable laws, we do not have the ability to completely map our product supply chain, and we could be subject to penalties, fines or sanctions if any of the vendors from which we purchase goods is found to have dealings, directly or indirectly, with sanctioned entities. Even if we were not subject to penalties, fines or sanctions, if products we source are linked in any way to sanctioned regions or entities, our reputation could be damaged.

*Our use of personal information, other personal data, and sensitive information subjects us to numerous and evolving privacy and security laws and other obligations (such as cybersecurity and data protection in contracts), and our compliance with or failure to comply with such obligations could harm our business.*

We collect and maintain significant amounts of personal information and other data relating to our clients and employees. Numerous laws, rules, and regulations in the United States, including the California Consumer Privacy Act (the "CCPA") and California Privacy Rights Acts of 2020 ("CPRA"), govern privacy and the collection, use, and protection of personal information. These laws, rules, and regulations evolve frequently and may be inconsistent from one jurisdiction to another or may be interpreted to conflict with our practices. Any significant failure or perceived failure by us or any third parties with which we do business to comply with these laws, rules, and regulations, or with other obligations to which we may be or become subject, would likely result in actions against us by governmental entities, private claims and litigation, fines, penalties, or other liabilities. Any such action would be expensive to defend, damage our reputation, and adversely affect our business and operating results.

The CCPA, as amended by the CPRA, applies to personal information of consumers, business representatives, and employees who are California residents, and requires businesses to provide specific disclosures in privacy notices and honor requests of such individuals to exercise certain privacy rights. A number of other states have also passed comprehensive privacy laws, and similar laws are being considered in several other states, as well as at the federal and local levels. These developments further complicate compliance efforts, and increase legal risk and compliance

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costs for us and the third parties upon whom we rely. Additionally, the Federal Trade Commission and many state attorneys general are interpreting federal and state consumer protection laws as imposing standards for the online collection, use, dissemination, and security of data and the FTC has indicated that use of biometric technologies (including facial recognition technologies) may be subject to additional scrutiny. Further, the SEC has adopted new rules that require us to provide greater disclosures around proactive security protections that we employ and regarding security incidents. The failure to comply with such requirements would lead to adverse consequences in some circumstances.

The costs of compliance with and other burdens imposed by privacy and data security laws and regulations can reduce the efficiency of our marketing, lead to negative publicity, make it more difficult or more costly to meet expectations of or commitments to clients, or lead to significant fines, penalties or liabilities for noncompliance, any of which could harm our business. These laws could also impact our ability to offer our products in certain locations.

Additionally, under various privacy laws and other obligations, we may be required to obtain certain consents to process personal data. For example, some of our data processing practices have been and may in the future be subject to challenges or lawsuits under data privacy and communications laws, including wiretapping laws, if we share consumer information with third parties through various methods such as chatbots, session replay providers, or third-party marketing pixels. These practices may be subject to increased challenges by class action plaintiffs. Our inability or failure to obtain consent for these practices could result in adverse consequences, including class action litigation and mass arbitration demands.

*Unfavorable changes or failure by us to comply with evolving internet and eCommerce regulations could substantially harm our business and operating results.*

We are subject to general business regulations and laws as well as regulations and laws specifically governing the internet and eCommerce. These regulations and laws may involve taxes, privacy and data security, consumer protection, AI, the ability to collect or share necessary information that allows us to conduct business on the internet, marketing communications and advertising, content protection, electronic contracts, or gift cards. Furthermore, the regulatory landscape impacting internet and eCommerce businesses is constantly evolving. For example, California's Automatic Renewal Law requires companies to adhere to enhanced disclosure requirements when entering into automatically renewing contracts with consumers. As a result, a wave of consumer class action lawsuits was brought against companies that offer online products and services on a subscription or recurring basis. Any failure, or perceived failure, by us to comply with any of these laws or regulations could result in damage to our reputation, lost business, and proceedings or actions against us by governmental entities or others, which could impact our operating results. Furthermore, any additional regulations that govern our business, including additional automatic renewal laws, may be costly to comply with or cause us to have to alter the way we run our business.

*If the use of "cookie" tracking technologies is further restricted, regulated, or blocked, or if changes in technology cause cookies to become less reliable or acceptable as a means of tracking consumer behavior, the amount or accuracy of internet user information we collect would decrease, which could harm our business and operating results.*

Cookies are small data files that are sent by websites and stored locally on an internet user's computer or mobile device. We, and third parties who work on our behalf, collect data via cookies that are used to track the behavior of visitors to our sites, to provide a more personal and interactive experience, and to increase the effectiveness of our marketing. However, internet users can easily disable, delete, and block cookies directly through browser settings or through other software, browser extensions, or hardware platforms that physically block cookies from being created and stored.

Privacy regulations restrict how we deploy our cookies and this has in the past, and could in the future, potentially (a) increase the number of internet users that choose to proactively disable cookies on their systems or (b) cause our business partners, service providers, or vendors to no longer maintain their cookie processes. We may have to develop alternative systems to determine our clients' behavior, customize their online experience, or efficiently market to them if clients block cookies or regulations introduce additional barriers to collecting cookie data.

*If we cannot successfully protect our intellectual property, our business would suffer.*

We rely on trademark, copyright, trade secrets, patents, confidentiality agreements, and other practices to protect our brands, proprietary information, technologies, and processes. Our principal trademark assets include the registered trademarks "Stitch Fix" and "Fix," multiple private label clothing and accessory brand names, and our

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logos and taglines. Our trademarks are valuable assets that support our brand and consumers' perception of our services and merchandise. We also hold the rights to the "stitchfix.com" internet domain name and various other related domain names, which are subject to internet regulatory bodies and trademark and other related laws of each applicable jurisdiction. If we are unable to protect our trademarks or domain names in the United States or in other jurisdictions in which we may ultimately operate, our brand recognition and reputation would suffer, we would incur significant expense establishing new brands and our operating results would be adversely impacted.

The patents we own in the United States and those that may be issued in the future may not provide us with any competitive advantages or may be challenged by third parties, and our patent applications may never be granted. Even if issued, there can be no assurance that these patents will adequately protect our intellectual property or survive a legal challenge, as the legal standards relating to the validity, enforceability, and scope of protection of patent and other intellectual property rights are uncertain. Our limited patent protection may restrict our ability to protect our technologies and processes from competition. We primarily rely on trade secret laws to protect our technologies and processes, including the algorithms we use throughout our business. Others may independently develop the same or similar technologies and processes, or may improperly acquire and use information about our technologies and processes, which may allow them to provide a service similar to ours, which could harm our competitive position.

*We may be accused of infringing intellectual property rights of third parties.*

We are also at risk of claims by others that we have infringed their copyrights, trademarks, or patents, or improperly used or disclosed their trade secrets. The costs of supporting any litigation or disputes related to these claims can be considerable, and we cannot assure that we will achieve a favorable outcome of any such claim. If any such claims are valid, we may be compelled to cease our use of such intellectual property and pay damages, which could adversely affect our business. Even if such claims are not valid, defending them could be expensive and distracting, adversely affecting our operating results.

**RISKS RELATING TO TAXES**

*Changes in U.S. tax or tariff policy regarding goods produced in other countries could adversely affect our business.*

A predominant portion of the goods we sell is originally manufactured in countries other than the United States, with the majority coming from China. Tariffs and other protectionist trade measures could adversely affect our business, including disruption and cost increases in our established patterns for sourcing our merchandise and increased uncertainties in planning our sourcing strategies and forecasting our margins. Recent trade policies and uncertainty related thereto, including with respect to tariffs and other restrictions, particularly with respect to China in addition to other countries from which we source our merchandise and raw materials, have created a dynamic and unpredictable trade landscape, which has and may continue to adversely impact our business and operations. For example, the U.S. government has imposed significant incremental tariffs on a broad range of goods imported from China, including the apparel we source. Certain of these tariffs have been subject to successful legal challenge, but it remains unclear whether and to whom those tariffs may be refunded, and the U.S. government has announced its intention to impose new or similar tariffs under alternative statutory mechanisms. This could further change the tariff rate, including with respect to China. Tariffs and international trade arrangements will continue to change, potentially without warning and to an extent or duration that is difficult to predict. Changing tariff rates and shifting trade policies have created significant uncertainty for vendors, consumers, and us. If tariffs from countries from which we source products are sustained at heightened levels, it will further increase our merchandise costs, may result in increased prices for our clients, and may negatively impact our margins and consumer demand for our products and services, any of which could harm our competitive position or otherwise negatively impact our operating results. Moreover, tariff and other trade-related cost pressures and supply chain disruptions may lead to reputational harm if we are unable to deliver our products or services on expected timelines. We may not be able to forecast such impacts accurately. Although we continue to work with our vendors to mitigate our exposure to current or potential tariffs, there can be no assurance that we will be able to offset any increased costs. Other changes in U.S. tariffs, quotas, trade relationships, or tax provisions could also reduce the supply of goods available to us or increase our cost of goods. Although such changes would have implications across the entire industry, we may fail to effectively adapt to and manage the adjustments in strategy that would be necessary in response to those changes. In addition to the general uncertainty and overall risk from potential changes in U.S. laws and policies, as we make business decisions in the face of such uncertainty, we may incorrectly anticipate the outcomes, miss out on business

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opportunities, or fail to effectively adapt our business strategies and manage the adjustments that are necessary in response to those changes. These risks could adversely affect our revenues, reduce our profitability, and negatively impact our business.

*We could be required to collect additional sales taxes or be subject to other tax liabilities that may increase the costs our clients would have to pay for our offering and adversely affect our operating results.*

While we collect, remit, and report sales tax in all states that impose a sales tax, it is possible that one or more jurisdictions may assert that we are required to collect more taxes, and if such an assertion or assertions were successful it could result in substantial tax liabilities, including for past sales taxes and penalties and interest, which could materially adversely affect our business, financial condition, and operating results.

*Federal income tax reform could have unforeseen effects on our financial condition and results of operations.*

New income or other tax laws or regulations could be enacted at any time, which could adversely affect our business operations and financial performance. Further, existing tax laws and regulations could be interpreted, modified, or applied adversely to us. For example, the Tax Cuts and Jobs Act, the Inflation Reduction Act, and One Big Beautiful Bill Act enacted many significant changes to the U.S. tax laws. Future guidance from the IRS and other tax authorities with respect to these laws may affect us, and certain aspects of these laws could be repealed or modified in the future. Further regulatory or legislative developments may also arise. We are currently unable to predict whether such changes will occur and, if so, the ultimate impact on our business. To the extent that such changes have a negative impact on us, our suppliers or our clients, including as a result of related uncertainty, these changes may materially and adversely impact our business, financial condition, results of operations and cash flows.

*We may be subject to additional tax liabilities, which could adversely affect our operating results.*

We are subject to income- and non-income-based taxes in the United States under federal, state, and local jurisdictions. The governing tax laws and applicable tax rates vary by jurisdiction and are subject to interpretation. Various tax authorities may disagree with tax positions we take and if any such tax authorities were to successfully challenge one or more of our tax positions, the results could have a material effect on our operating results. Further, the ultimate amount of tax payable in a given financial statement period may be materially impacted by sudden or unforeseen changes in tax laws, changes in the mix and level of earnings by taxing jurisdictions, or changes to existing accounting rules or regulations. The determination of our overall provision for income and other taxes is inherently uncertain as it requires significant judgment around complex transactions and calculations. As a result, fluctuations in our ultimate tax obligations may differ materially from amounts recorded in our financial statements and could adversely affect our business, financial condition, and operating results in the periods for which such determination is made.

*Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.*

As of August 2, 2025, we had federal and state net operating loss carryforwards of $161.1 million and $311.7 million, respectively. The federal net operating loss carryforwards may be carried forward indefinitely, but the deductibility of such carryforwards in a taxable year is limited to 80% of such taxable year's taxable income without regard to such carryforwards. Of the state net operating loss carryforwards, approximately $237.6 million will expire, if not utilized, in various years through 2045. The remaining state net operating loss carryforwards have no expiration. There may be periods during which the use of such carryforwards is suspended or otherwise limited, which could accelerate or permanently increase state taxes owed. The ability to use our net operating loss carryforwards depends on the availability of future taxable income. In addition, as of August 2, 2025, we had federal and California research and development tax credit carryforwards of $57.3 million and $24.2 million, respectively. The federal research and development credits will begin to expire in 2038, if not utilized; California research and development credits do not have an expiration date.

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A portion of our tax attributes may be subject to Sections 382 and 383 of the Internal Revenue Code of 1986, as amended and similar state provisions, which set limitations on a corporation's ability to use its net operating loss carryforwards and other tax attributes to offset its taxable income or taxes. These limitations arise if the corporation undergoes an ownership change, which is generally defined as one or more stockholders or groups of stockholders that own at least 5% of the corporation's stock increasing their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. It is possible that we may experience ownership changes as a result of shifts in our stock ownership, some of which may be outside of our control. Any potential limitations on our ability to offset future income with our net operating loss carryforwards or other tax attributes could result in increased future tax liability to us.

**RISKS RELATING TO OWNERSHIP OF OUR CLASS A COMMON STOCK**

*The market price of our Class A common stock may continue to be volatile or may decline steeply or suddenly regardless of our operating performance and we may not be able to meet investor or analyst expectations. You may lose all or part of your investment.*

The market price of our Class A common stock may fluctuate or decline significantly in response to numerous factors, many of which are beyond our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated decreases in our client base, the level of client engagement, client acquisition and retention, and revenue and other operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• variations between our actual operating results and the expectations of securities analysts, investors, and the financial community;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any forward-looking financial or operating information we may provide, including in connection with new offerings or business initiatives where such information is based on early or limited data, any changes in this information, or our failure to meet expectations based on this information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions of securities analysts who initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our Company, or our failure to meet these estimates or the expectations of investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• repurchases of our Class A common stock pursuant to our share repurchase program, which could also cause our stock price to be higher that it would be in the absence of such a program and could potentially reduce the market liquidity for our stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• whether investors or securities analysts view our stock structure unfavorably, particularly our dual-class structure and the significant voting control of our directors, executive officers, and their affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additional shares of our Class A common stock being sold into the market by us or our existing stockholders, or the anticipation of such sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements by us or our competitors of significant products or features, technical innovations, acquisitions, strategic partnerships, joint ventures, or capital commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in operating performance and stock market valuations of companies in our industry, including our vendors and competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• price and volume fluctuations in the overall stock market, including as a result of trends in the economy as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• targeted efforts of social media or other groups to transact in and affect the price of Stitch Fix stock, such as the activity in early 2021 targeting GameStop Corp and others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lawsuits threatened or filed against us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developments in new legislation and pending lawsuits or regulatory actions, including interim or final rulings by judicial or regulatory bodies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other events or factors, including those resulting from war or incidents of terrorism, public health crises such as the COVID-19 pandemic, adverse weather events and climate conditions, or responses to these events.

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In addition, extreme price and volume fluctuations in the stock markets have affected and continue to affect many eCommerce and other technology companies' stock prices, including ours. Often, our stock price and that of many eCommerce and technology companies have fluctuated in ways unrelated or disproportionate to the companies' operating performance. In the past, stockholders have filed securities class action litigation following periods of market volatility, such as the Securities Class Action described elsewhere herein. We may be the target of additional litigation of this type in the future as well. Such securities litigation has in the past and could in the future subject us to substantial costs, divert resources and the attention of management from our business, and could seriously harm our business.

Moreover, because of these price fluctuations, comparing our operating results on a period-to-period basis may not be meaningful. You should not rely on our past results as an indication of our future performance. This variability and unpredictability could also result in our failing to meet the expectations of industry or financial analysts or investors for any period. If our revenue or operating results fall below the expectations of analysts or investors or below any forecasts we may provide to the market, or if the forecasts we provide to the market are below the expectations of analysts or investors, the price of our Class A common stock could decline substantially. Such a stock price decline could occur even when we have met any previously publicly stated revenue or earnings forecasts that we may provide.

*We cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term stockholder value. Share repurchases could also increase the volatility of the trading price of our stock and could diminish our cash reserves.*

In January 2022, our Board of Directors authorized a share repurchase program to repurchase up to $150.0 million of our outstanding Class A common stock, with no expiration date. During fiscal 2024 and fiscal 2025, we did not repurchase any shares of our common stock, and we had $120.0 million remaining in share repurchase capacity as of January 31, 2026. Although our Board of Directors has authorized this repurchase program, the program does not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares. The actual timing and amount of repurchases remain subject to a variety of factors, including stock price, trading volume, market conditions and other general business considerations. In addition, the terms of our first lien credit agreement with Citibank, N.A., as agent and lender ("the Credit Facility"), impose limitations on our ability to repurchase shares. The share repurchase program may be modified, suspended, or terminated at any time, and we cannot guarantee that the program will be fully consummated or that it will enhance long-term stockholder value. The program could affect the trading price of our stock and increase volatility, and any announcement of a termination of this program may result in a decrease in the trading price of our stock. In addition, this program could diminish our cash and cash equivalents and marketable securities.

*Future sales of shares by existing stockholders could cause our stock price to decline.*

If our existing stockholders sell, or indicate an intention to sell, substantial amounts of our Class A common stock in the public market, then the trading price of our Class A common stock could decline. In addition, shares underlying any outstanding options and restricted stock units will become eligible for sale if exercised or settled, as applicable, and to the extent permitted by the provisions of various vesting agreements and Rule 144 of the Securities Act. All the shares of Class A and Class B common stock subject to stock options and restricted stock units outstanding and reserved for issuance under our 2011 Equity Incentive Plan, our 2017 Incentive Plan, and our 2019 Inducement Plan (collectively, our "Incentive Plans") have been registered on Form S-8 under the Securities Act and such shares are eligible for sale in the public markets, subject to Rule 144 limitations applicable to affiliates. If these additional shares are sold, or if it is perceived that they will be sold in the public market, the trading price of our Class A common stock could decline.

*The dual class structure of our common stock concentrates voting control with certain significant shareholders, including our current and former directors, executive officers, and their affiliates, and may depress the trading price of our Class A common stock.*

Our Class B common stock has ten votes per share and our Class A common stock has one vote per share. As a result, the holders of our Class B common stock, including certain of our current and former directors, executive officers, and their affiliates, are able to exercise considerable influence over matters requiring stockholder approval, including the election of directors and approval of significant corporate transactions, such as a merger or other sale of our company or our assets, even if their stock holdings represent less than 50% of the outstanding shares of our

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capital stock. As of March 6, 2026, 16,616,234 of our 136,522,520 shares outstanding were held by our directors, executive officers, and their affiliates, and 10,784,374 of such shares held by our directors, executive officers, and their affiliates were shares of Class B common stock. This concentration of ownership will limit the ability of other stockholders to influence corporate matters and may cause us to make strategic decisions that could involve risks to you or that may not be aligned with your interests. This control may adversely affect the market price of our Class A common stock and some stock indices may not allow public companies utilizing dual or multi-class capital structures to be included in their indices.

*We do not currently intend to pay dividends on our Class A common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation of the value of our Class A common stock.*

We have never declared or paid cash dividends on our capital stock. We currently intend to retain any future earnings to finance the operation and expansion of our business, and we do not expect to pay any cash dividends on our Class A common stock in the foreseeable future. As a result, any investment return on our Class A common stock will depend upon increases in the value for our Class A common stock, which is not certain.

*Delaware law and provisions in our amended and restated certificate of incorporation and amended and restated bylaws could make a merger, tender offer, or proxy contest difficult, thereby depressing the trading price of our Class A common stock.*

Our amended and restated certificate of incorporation and amended and restated bylaws contain provisions that could depress the trading price of our Class A common stock by acting to discourage, delay, or prevent a change of control of our Company or changes in our management that the stockholders of our Company may deem advantageous. These provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish a classified Board of Directors so that not all members of our Board of Directors are elected at one time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• permit the Board of Directors to establish the number of directors and fill any vacancies and newly created directorships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide that directors may only be removed for cause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• require super-majority voting to amend some provisions of our certificate of incorporation and bylaws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• authorize the issuance of "blank check" preferred stock that our Board of Directors could use to implement a stockholder rights plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• eliminate the ability of our stockholders to call special meetings of stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prohibit stockholder action by written consent, which requires all stockholder actions to be taken at a meeting of our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide that the Board of Directors is expressly authorized to make, alter, or repeal our bylaws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restrict the forum for certain litigation against us to Delaware;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reflect the dual class structure of our common stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish advance notice requirements for nominations for election to our Board of Directors or for proposing matters that can be acted upon by stockholders at annual stockholder meetings.

Any provision of our amended and restated certificate of incorporation or amended and restated bylaws that has the effect of delaying or deterring a change in control could limit the opportunity for our stockholders to receive a premium for their shares of our common stock, and could also affect the price that some investors are willing to pay for our Class A common stock.

*Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware and the federal district courts of the United States are the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.*

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 52**

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Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware is the exclusive forum for the following types of actions or proceedings under Delaware statutory or common law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any derivative action or proceeding brought on our behalf;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a breach of fiduciary duty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim against us arising under the Delaware General Corporation Law, our amended and restated certificate of incorporation, or our amended and restated bylaws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any action asserting a claim against us that is governed by the internal-affairs doctrine.

These exclusive forum provisions may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers, or other employees, which may discourage lawsuits against us and our directors, officers and other employees. If a court were to find either exclusive-forum provision in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving the dispute in other jurisdictions, which could seriously harm our business.

**GENERAL RISK FACTORS**

*Future securities sales and issuances could result in significant dilution to our stockholders and impair the market price of our Class A common stock.*

We may issue additional equity securities in the future. We also issue awards for Class A common stock to our existing and new employees and others under our Incentive Plans. The number of shares subject to such awards is typically based on target dollar values, and therefore the number of shares increases as our stock price decreases. Future issuances of shares of our Class A common stock or the conversion of a substantial number of shares of our Class B common stock, or the perception that these sales or conversions may occur, could depress the market price of our Class A common stock and result in dilution to existing holders of our Class A common stock. Also, to the extent outstanding options to purchase shares of our Class A common stock or Class B common stock are exercised or options or other stock-based awards are issued or become vested, there will be further dilution. The amount of dilution could be substantial depending upon the size of the issuances or exercises and our stock price. Furthermore, we may issue additional equity securities that could have rights senior to those of our Class A common stock. As a result, holders of our Class A common stock bear the risk that future issuances of debt or equity securities may reduce the value of our Class A common stock and further dilute their ownership interest.

*If we are unable to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy of our reported financial information and this may lead to a decline in our stock price.*

We are required to comply with Section 404 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"). Specifically, the Sarbanes-Oxley Act requires management to assess the effectiveness of our internal controls over financial reporting and to report any material weaknesses in such internal control. We have experienced material weaknesses and significant deficiencies in our internal controls previously. Management has concluded that our internal control over financial reporting was effective as of January 31, 2026. However, our testing, or the subsequent testing by our independent public accounting firm, may reveal deficiencies in our internal control over financial reporting that are deemed to be material weaknesses. If we or our accounting firm identify deficiencies in

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 53**

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our internal control over financial reporting that are deemed to be material weaknesses, it could harm our operating results, adversely affect our reputation, or result in inaccurate financial reporting. Furthermore, should any such deficiencies arise we could be subject to lawsuits, sanctions or investigations by regulatory authorities, including SEC enforcement actions and we could be required to restate our financial results, any of which would require additional financial and management resources.

Even if we do not detect deficiencies, our internal control over financial reporting will not prevent or detect all errors and fraud, and individuals, including employees and contractors, could circumvent such controls. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected.

In addition, we may encounter difficulties in the timely and accurate reporting of our financial results, which would impact our ability to provide our investors with information in a timely manner. Should we encounter such difficulties, our investors could lose confidence in the reliability of our reported financial information and trading price of our Class A common stock could be negatively impacted.

*We may not be able to generate sufficient capital to support and grow our business, and outside capital might not be available or may be available only by diluting existing stockholders.*

We require sufficient cash and liquidity to run our business, finance our operations, and pay for capital expenditures. We may not be able to generate sufficient cash to fund our working capital and capital expenditures needs. We also may require additional funds to support growth or respond to business challenges. We are party to a credit agreement with Citibank, N.A. but a deterioration in our capital structure or the quality of our earnings could result in noncompliance with our debt covenants, which would limit our ability to utilize our credit facility.

We also may want or need to engage in equity or debt financings to secure additional funds. The capital market environment, including market disruptions, limited liquidity, or interest rate fluctuations, may increase the cost of financing or restrict access to a potential source of liquidity. Additionally, if we raise additional funds through further issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity securities we issue could have rights, preferences, and privileges superior to those of holders of our Class A common stock.

Our Credit Facility also contains covenants limiting our ability to, among other things, dispose of assets, undergo a change in control, merge or consolidate, make acquisitions, incur debt, incur liens, pay dividends, repurchase stock, and make investments, in each case subject to certain exceptions, and contains financial covenants requiring us to maintain a minimum liquidity level and a minimum total consolidated fixed charge coverage Ratio above specified levels, measured in each case at the end of each fiscal quarter. The restrictive covenants of this or any future debt financing secured may make it more difficult for us to obtain capital and to pursue business opportunities. Any debt financing secured by us in the future could involve restrictive covenants relating to our capital-raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities. In addition, we may not be able to obtain additional financing on terms favorable to us, if at all. If we are unable to generate sufficient capital or obtain adequate financing or financing on terms satisfactory to us, when we require it, our ability to continue to support our business and to respond to business challenges could be significantly limited, and our business and prospects could fail or be adversely affected.

*If securities or industry analysts either do not publish research about us or publish inaccurate or unfavorable research about us, our business, or our market, or if they change their recommendations regarding our Class A common stock adversely, the trading price or trading volume of our Class A common stock could decline.*

The trading market for our Class A common stock is influenced in part by the research and reports that securities or industry analysts may publish about us, our business, our market, or our competitors. If one or more of the analysts initiate research with an unfavorable rating or downgrade our Class A common stock, provide a more favorable recommendation about our competitors, or publish inaccurate or unfavorable research about our business, our Class A common stock price would likely decline. If any analyst who may cover us were to cease coverage of us or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause the trading price or trading volume of our Class A common stock to decline.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 54**

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| | |
|:---|:---|
| **ITEM 2.** | **UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.**  |

---

None.

---

| | |
|:---|:---|
| **ITEM 3.** | **DEFAULTS UPON SENIOR SECURITIES.** |

---

None.

---

| | |
|:---|:---|
| **ITEM 4.** | **MINE SAFETY DISCLOSURES.** |

---

Not applicable.

---

| | |
|:---|:---|
| **ITEM 5.** | **OTHER INFORMATION.** |

---

**EXECUTIVE SEVERANCE PLAN**

On March 6, 2026, Anthony Bacos, Chief Product and Technology Officer; on March 7, 2026, Matt Baer, Chief Executive Officer; on March 8, 2026, David Aufderhaar, Chief Financial Officer; and on March 10, 2026, Casey O'Connor, Chief Legal Officer, each entered into a participation agreement to the Stitch Fix, Inc. Severance Plan previously adopted by the Compensation Committee of the Board of Directors of the Company (the "Severance Plan"). The Severance Plan provides certain severance payments and benefits to certain senior executives of the Company, including the Company's named executive officers, whose employment is involuntarily terminated by the Company other than for Cause or who resign for Good Reason, including in connection with a Change in Control, in each case subject to the terms and conditions of the Severance Plan. The Severance Plan is intended to provide a standardized framework for the Company's executive severance arrangements, to align with market practice and to support the retention of key executives. Capitalized terms used but not otherwise defined in this Item 5 have the meanings set forth in the Severance Plan.

Benefits under the Severance Plan generally consist of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Cash severance: one times base salary upon an Involuntary Termination, or one times base salary plus one times target annual bonus upon an Involuntary Termination during the period beginning one month prior to and ending twelve months following the effective date of a Change in Control (the "Change in Control Determination Period"); or, in the case of the Chief Executive Officer, two times base salary upon an Involuntary Termination, or two times base salary plus two times target annual bonus upon an Involuntary Termination during the Change in Control Determination Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Health benefits continuation: Company-paid COBRA premiums for twelve months following termination, or eighteen months following termination in the case of the Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Equity treatment: six months' accelerated vesting for the Chief Executive Officer upon an Involuntary Termination (with performance-based awards remaining outstanding and eligible for vesting for six months), and, in the case of an Involuntary Termination during the Change in Control Determination Period, full vesting of equity awards for all participants (with performance-based awards vesting at the greater of target or actual performance).

The Severance Plan supersedes severance provisions in existing employment agreements upon such participation.

The Severance Plan is filed as Exhibit 10.2 hereto and this description thereof is not intended to be complete and is qualified by reference thereto in its entirety. The Form of Participation Agreement under the Severance Plan is filed as Exhibit 10.3 hereto and this description thereof is not intended to be complete and is qualified by reference thereto in its entirety.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 55**

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**RULE 10B5-1 TRADING ARRANGEMENTS**

During the fiscal quarter ended January 31, 2026, our directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated certain contracts, instructions, or written plans for the purchase or sale of the Company's securities set forth in the table below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Type of Trading Arrangement** | **Type of Trading Arrangement** | | | |
| **Name and Title** |<br>**Action** |<br>**Adoption/Termination Date** | **Rule 10b5-1** <sup>(1)</sup> | **Non-Rule 10b5-1** <sup>(2)</sup> |<br>**Total Shares of Class A Common Stock** <sup>(3)</sup> |<br>**Total Shares of Class B Common Stock** <sup>(3)</sup> |<br>**Expiration Date** <sup>(4)</sup> |
| Matt Baer, <br>Chief Executive Officer and Director | Adopted | 12/08/2025 | X |  | 1799558 | 0 | 12/15/2026 |
| Katrina Lake, <br>Director  | Adopted | 12/16/2025 | X |  | 0 | 2250000 | 03/31/2027 |
| David Aufderhaar,<br>Chief Financial Officer | Adopted | 01/06/2026 | X |  | 600000 | 0 | 02/12/2027 |
| Casey O'Connor,<br>Chief Legal Officer | Adopted | 01/09/2026 | X |  | 752000 | 0 | 02/08/2027 |

---

<sup>(1)</sup> Contract, instruction, or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.

<sup>(2)</sup> "Non-Rule 10b5-1 trading arrangement" as defined in Item 408(a) of Regulation S-K under the Exchange Act.

<sup>(3)</sup> The number of shares of common stock reflects the maximum aggregate number of shares that could be sold, or, in the case of a terminated arrangement, could have been sold, under the trading arrangement. For the adopted plans, the actual number of shares to be sold is based on a formula set forth in the plan and is not currently determinable.

<sup>(4)</sup> The plan expires on the date shown, or upon the earlier completion of all authorized transactions under the plans.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 56**

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| | |
|:---|:---|
| **ITEM 6.** | **EXHIBITS.** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Incorporation by Reference** | **Incorporation by Reference** | **Incorporation by Reference** | **Incorporation by Reference** | |
| **Exhibit<br>Number** | **Description** | **Form** | **File No.** | **Exhibit** | **Filing Date** | **Filed or Furnished Herewith** |
| 3.1\* | <u>[Amended and Restated Certificate of Incorporation of Stitch Fix, Inc.](https://www.sec.gov/Archives/edgar/data/1576942/000119312517349294/d481863dex31.htm)</u> | 8-K | 001-38291 | 3.1 | 11/21/2017 |  |
| 3.2\* | <u>[Amended and Restated Bylaws of Stitch Fix, Inc.](https://www.sec.gov/Archives/edgar/data/1576942/000157694223000080/ex31.htm)</u> | 8-K | 001-38291 | 3.1 | 6/27/2023 |  |
| 31.1 | <u>[Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](q226-ex311.htm)</u> |  |  |  |  | X |
| 31.2 | <u>[Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](q226-ex312.htm)</u> |  |  |  |  | X |
| 32.1† | <u>[Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](q226-ex321.htm)</u> |  |  |  |  | X |
| 10.1\* | <u>[First Amendment to Credit Agreement, by and between Stitch Fix, Inc. and Citibank, dated as of December 11, 2025.](https://www.sec.gov/Archives/edgar/data/1576942/000162828025057328/exhibit101-firstamendmentt.htm)</u> | 8-K | 001-38291 | 10.1 | 12/16/2025 |  |
| 10.2+ | <u>[Stitch Fix Inc](ex102sfixseveranceplan.htm)[.](ex102sfixseveranceplan.htm)[Severance Plan](ex102sfixseveranceplan.htm)[.](ex102sfixseveranceplan.htm)</u> |  |  |  |  | X |
| 10.3+ | <u>[Form of P](ex103stitchfix-severancepl.htm)[arti](ex103stitchfix-severancepl.htm)[cipa](ex103stitchfix-severancepl.htm)[nt Agreement](ex103stitchfix-severancepl.htm)[under the Stitch Fix, Inc. Severance Plan.](ex103stitchfix-severancepl.htm)</u>  |  |  |  |  | X |
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |  |  |  |  | X |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |  |  |  |  | X |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |  |  |  |  | X |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |  |  |  |  | X |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |  |  |  |  | X |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |  |  |  |  | X |
| 104 | Cover Page Interactive Data File (the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |  |  |  |  |  |

---

+ Indicates management contract or compensatory plan.

\* Document has been previously filed with the Securities and Exchange Commission and is incorporated herein by reference herein.

† The certification attached as Exhibit 32.1 accompanying this Quarterly Report on Form 10-Q is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Stitch Fix, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 57**

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | **Stitch Fix, Inc.** | **Stitch Fix, Inc.** |
| Date: | March 12, 2026 | By: | /s/ David Aufderhaar |
|  |  |  | David Aufderhaar |
|  |  |  | Chief Financial Officer |
|  |  |  | (Principal Financial Officer and Principal Accounting Officer) |

---

**STITCH FIX, INC. \| Q2 2026 FORM 10-Q \| 58**

## Exhibit 10.2

**Exhibit 10.2**

**STITCH FIX, INC.**

**SEVERANCE PLAN**

**AND SUMMARY PLAN DESCRIPTION**

**(Adopted by the Compensation Committee of the Board of Directors and effective** 

**on January 27, 2026)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. &nbsp;&nbsp;&nbsp;&nbsp;<u>Introduction</u>. The purpose of this Stitch Fix, Inc. Severance Plan (the "<u>Plan</u>") is to provide specified severance benefits to eligible employees of the Company whose employment is involuntarily terminated other than for Cause or who resign for Good Reason under the circumstances described in the Plan. The Plan is an "employee welfare benefit plan," as defined in Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended. This document constitutes both the written instrument under which the Plan is maintained and the required summary plan description for the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. &nbsp;&nbsp;&nbsp;&nbsp;<u>Defined Terms</u>. The following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;"<u>Administrator</u>" means the Compensation Committee of the Board or another duly constituted committee of members of the Board, or officers of the Company as delegated by the Board, or any person to whom the Administrator or Board has delegated any authority or responsibility pursuant to terms of the Plan, but only to the extent of such delegation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;"<u>Affiliate</u>" means, at the time of determination, any "parent" or "subsidiary" of the Company as such terms are defined in Rule 405 promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 &nbsp;&nbsp;&nbsp;&nbsp;"<u>Board</u>" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;"<u>Cause</u>" for termination means the Covered Employee's: (i) conviction (including a guilty plea or plea of nolo contendere) of any felony; (ii) commission or attempted commission of or participation in a fraud or act of dishonesty or misrepresentation against the Company; (iii) willful and continued failure to follow the lawful directions of the Board or, if relevant, the officers of the Company to whom the Covered Employee reports; (iv) deliberate harm or injury, or attempt to deliberately harm or injure, the Company; (v) willful misconduct that materially discredits or harms the Company or its reputation; (vi) material violation or breach of any written and fully executed contract or agreement between the Covered Employee and the Company, including without limitation, material breach of a confidentiality agreement with the Company, or of any Company policy, or of any statutory duty the Covered Employee owes to the Company; (vii) gross negligence or willful misconduct; (viii) failure to cooperate with any investigation as requested by the Board or, if relevant, the officers of the Company to whom the Covered Employee reports; or (ix) unauthorized use of confidential information that causes material harm to the Company. For purposes of this Plan, "Cause" will not exist under condition (iii), (vi) and (viii) unless the Company gives the Covered Employee written notice of such condition and, if such condition is remediable, the Covered Employee fails to remedy such condition within 30 days after receiving such written notice. The determination that a termination is for Cause shall be made by the Board in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 &nbsp;&nbsp;&nbsp;&nbsp;"<u>Change in Control</u>" means a "Corporate Transaction," as defined in the Stitch Fix, Inc. 2017 Incentive Plan or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 &nbsp;&nbsp;&nbsp;&nbsp;"<u>Change in Control Determination Period</u>" shall mean the period beginning one (1) month prior to and ending twelve (12) months following the effective date of a Change in Control.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 &nbsp;&nbsp;&nbsp;&nbsp;"<u>COBRA Payment Period</u>" means the applicable period of time during which the Company will pay a Covered Employee's COBRA premiums on behalf of the Covered Employee, as set forth in the applicable subsection of Section 4 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 &nbsp;&nbsp;&nbsp;&nbsp;"<u>Code</u>" means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 &nbsp;&nbsp;&nbsp;&nbsp;"<u>Company</u>" means Stitch Fix, Inc., a Delaware corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 &nbsp;&nbsp;&nbsp;&nbsp;"<u>Covered Employee</u>" means the CEO and each Tier 1 Covered Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 &nbsp;&nbsp;&nbsp;&nbsp;"<u>Disability</u>" shall have the meaning set forth in the Stitch Fix, Inc. 2017 Incentive Plan or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 &nbsp;&nbsp;&nbsp;&nbsp;"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 &nbsp;&nbsp;&nbsp;&nbsp;"<u>CEO</u>" refers to the Chief Executive Officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14&nbsp;&nbsp;&nbsp;&nbsp;"<u>Good Reason</u>" means the occurrence of any of the following events or conditions, without the Covered Employee's express written consent: (i) a material reduction in the Covered Employee's base salary or target bonus opportunity (unless pursuant to a reduction program applicable generally to the Company's similarly situated employees); (ii) a material reduction in the Covered Employee's duties (including responsibilities and/or authorities) or in the case of the CEO, any change in job position, title or reporting line; provided, however, that a change in job position (including a change in position, title or reporting line) resulting from a Change in Control shall not be deemed a "material reduction" in and of itself unless the Covered Employee's new duties are materially reduced from the prior duties; (iii) relocation of the Covered Employee's principal place of employment to a place that increases the Covered Employee's one-way commute by more than 35 miles as compared to the Covered Employee's then-current principal place of employment immediately prior to such relocation or a change in Company policy adversely impacting the Covered Employee's ability to work remotely to the extent such remote work arrangement was set forth in a written agreement between the Covered Employee and the Company; or (iv) the Company's material breach of any material obligation to the Covered Employee under any material written agreement between the Covered Employee and the Company. In order to resign for Good Reason, the Covered Employee must provide written notice to the Company's Chief Legal Officer within 90 days after the first occurrence of the event giving rise to Good Reason setting forth the basis for the Covered Employee's resignation, allow the Company at least 30 days from receipt of such written notice to cure such event, and if such event is not reasonably cured within such period, the Covered Employee must resign from all positions the Covered Employee then holds with the Company not later than 30 days after the expiration of the cure period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15&nbsp;&nbsp;&nbsp;&nbsp;"<u>Involuntary Termination</u>" means a termination of employment of a Covered Employee under the circumstances described in Section 4.1 or 4.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16&nbsp;&nbsp;&nbsp;&nbsp;"<u>Participation Agreement</u>" means an agreement entered into between the Covered Employee and the Company, as set forth in Section 5.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17&nbsp;&nbsp;&nbsp;&nbsp;"<u>Performance Satisfied Awards</u>" means Company equity awards granted subject to performance-based vesting for which the applicable performance measurement period(s) thereunder have been completed, and performance has been measured and certified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18&nbsp;&nbsp;&nbsp;&nbsp;"<u>Performance Subject Awards</u>" means Company equity awards then-subject to on-going performance-based metrics and achievement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 &nbsp;&nbsp;&nbsp;&nbsp;"<u>Severance Benefits</u>" means the compensation and other benefits the Covered Employee is eligible to receive pursuant to Section 4, subject to the terms and conditions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 &nbsp;&nbsp;&nbsp;&nbsp;"<u>Tier 1 Covered Employee</u>" means an employee of the Company who is designated as a "Tier 1 Covered Employee" by the Board. Such designation may be by name or corporate level.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21&nbsp;&nbsp;&nbsp;&nbsp;"<u>Time-Vesting Awards</u>" means Company equity awards granted subject solely to time-based vesting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. &nbsp;&nbsp;&nbsp;&nbsp;<u>Eligibility for Severance Benefits</u>. An individual is eligible for Severance Benefits under the Plan, in the amount set forth in Section 4, only if they are a Covered Employee on the date they experience an Involuntary Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. &nbsp;&nbsp;&nbsp;&nbsp;<u>Severance Benefits</u>. Upon the termination of a Covered Employee's employment for any reason, the Covered Employee shall be entitled to receive (a) any earned but unpaid base salary, and (b) any vested employee benefits in accordance with the terms of the applicable employee benefit plan or program. In addition, the Covered Employee may be eligible to receive additional payments and benefits, as set forth in more detail below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 &nbsp;&nbsp;&nbsp;&nbsp;<u>Involuntary Termination in Connection with a Change in Control</u>. If, at any time within the Change in Control Determination Period, the Company or any Affiliate terminates such Covered Employee's employment other than for Cause (and, for the sake of clarity, other than due to death or Disability), or such Covered Employee resigns for Good Reason, then, subject to the Covered Employee's compliance with Section 5, the Covered Employee shall receive the following Severance Benefits from the Company at the time set forth in Section 6 below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1 &nbsp;&nbsp;&nbsp;&nbsp;<u>Cash Severance Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Covered Employee shall receive a cash lump sum payment equal to the product of (i) such Covered Employee's annual base salary rate as in effect on the date of the Involuntary Termination (disregarding for this purpose any decrease in annual base salary constituting Good Reason) and (ii) the relevant factor below:

CEO: 2.0x

Tier 1: 1.0x

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;With respect to any annual bonus plan applicable to the Covered Employee pursuant to which such Covered Employee is eligible for a target annual bonus during such Covered Employee's employment termination year, the Covered Employee shall receive an additional cash lump sum payment equal to the product of (i) such Covered Employee's target annual bonus for the year of termination and (ii) the relevant factor below:

CEO: 2.0x

Tier 1: 1.0x

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2 &nbsp;&nbsp;&nbsp;&nbsp;<u>Payment in Respect of Benefits</u>. If the Covered Employee timely elects continued group health plan continuation coverage under the Consolidated Omnibus Budget Reconciliation Act ("<u>COBRA</u>"), the Company shall pay the Covered Employee's premiums on behalf of the Covered Employee for the Covered Employee's continued coverage under the Company's group health plans, including coverage for the Covered Employee's eligible dependents, for (a) in the case of the CEO, eighteen (18) months; and (b) in the case of a Tier 1 Covered Employee, twelve (12) months or, in any such case, until such earlier date on which the Covered Employee becomes eligible for health

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coverage from another employer or ceases to be eligible for COBRA coverage for any reason. Upon the conclusion of such period of insurance premium payments made by the Company, the Covered Employee will be responsible for the entire payment of premiums (or payment for the cost of coverage) required under COBRA for the duration of the Covered Employee's eligible COBRA coverage period. Notwithstanding the foregoing, if the Covered Employee timely elects continued group health plan continuation coverage under COBRA and at any time thereafter the Company determines, in its sole discretion, that providing the COBRA premium benefits to a Covered Employee would violate the nondiscrimination requirements under Code section 105(h) or Section 2716 of the Public Health Service Act, or it cannot provide the COBRA premium benefits without potentially incurring financial costs or penalties under applicable law, then in lieu of paying the COBRA premiums on the Covered Employee's behalf, the Company will instead pay the Covered Employee on the last day of each remaining month of the applicable COBRA Payment Period a fully taxable cash payment equal to the COBRA premium for that month, subject to applicable tax withholding, which such payments shall end upon expiration of the applicable COBRA Payment Period; provided that the Company may, in its discretion, pay the Covered Employee a single, fully taxable cash payment in lieu of the monthly COBRA premium benefit, which amount shall equal the remaining COBRA premiums the Company would have paid during the COBRA Payment Period, subject to applicable tax withholding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.3 &nbsp;&nbsp;&nbsp;&nbsp;<u>Equity Vesting</u>. Each of the Covered Employee's then-outstanding, unvested Time-Vesting Awards and Performance Satisfied Awards shall accelerate and become vested and exercisable or settled with respect to one hundred percent (100%) of the unvested shares subject thereto. Performance Subject Awards shall accelerate and become vested and exercisable or settled (if at all) as set forth in the terms of the applicable award agreement; provided, however, that if any Performance Subject Awards whose measurement periods have not been completed, and performance has not been measured, as of the Change in Control, do not specify the calculation of performance upon a Change in Control, the performance will be deemed achieved at the higher of (a) the target level of performance described in the applicable award agreement or (b) the actual level of performance achieved under the terms of the applicable award agreement, if such performance is determinable as of immediately prior to the Change in Control, and the resulting number of achieved Performance Subject Awards will accelerate and become vested in full. To permit the foregoing acceleration in the event an Involuntary Termination occurs within the one-month period prior to a Change in Control, any then-unvested Company equity awards held by the Covered Employee will not terminate and will remain outstanding (provided that in no event will any Company equity award remain outstanding beyond the expiration of its maximum term) and eligible for acceleration and settlement, as applicable, with respect to the proposed Change in Control. In the event that a Change in Control is not completed during such one-month period, any unvested Company equity awards held by the Covered Employee (after giving effect to any other applicable accelerated vesting) shall automatically be forfeited effective one month following the Involuntary Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 &nbsp;&nbsp;&nbsp;&nbsp;<u>Involuntary Termination Not in Connection with a Change in Control</u>. If, other than during the Change in Control Determination Period, the Company or any Affiliate terminates such Covered Employee's employment other than for Cause (and, for the sake of clarity, other than due to death or Disability), or such Covered Employee resigns for Good Reason, then, subject to the Covered Employee's compliance with Section 5, the Covered Employee shall receive the following Severance Benefits from the Company at the time set forth in Section 6 below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.1 &nbsp;&nbsp;&nbsp;&nbsp;<u>Cash Severance Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Covered Employee shall receive a cash lump sum payment equal to the product of (i) such Covered Employee's annual base salary rate as in effect on the date of the

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Involuntary Termination (disregarding for this purpose any decrease in annual base salary constituting Good Reason) and (ii) the relevant factor below:

CEO: 2.0x

Tier 1: 1.0x

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment in Respect of Benefits</u>. If the Covered Employee timely elects continued group health plan continuation coverage under COBRA, the Company shall pay the Covered Employee's premiums on behalf of the Covered Employee for the Covered Employee's continued coverage under the Company's group health plans, including coverage for the Covered Employee's eligible dependents, for (a) in the case of the CEO, eighteen (18) months; and (b) in the case of a Tier 1 Covered Employee, twelve (12) months or, in any such case, until such earlier date on which the Covered Employee becomes eligible for health coverage from another employer or ceases to be eligible for COBRA coverage for any reason. Upon the conclusion of such period of insurance premium payments made by the Company, the Covered Employee will be responsible for the entire payment of premiums (or payment for the cost of coverage) required under COBRA for the duration of the Covered Employee's eligible COBRA coverage period. Notwithstanding the foregoing, if the Covered Employee timely elects continued group health plan continuation coverage under COBRA and at any time thereafter the Company determines, in its sole discretion, that providing the COBRA premium benefits to a Covered Employee would violate the nondiscrimination requirements under Code section 105(h) or Section 2716 of the Public Health Service Act, or it cannot provide the COBRA premium benefits without potentially incurring financial costs or penalties under applicable law, then in lieu of paying the employer portion of the COBRA premiums on the Covered Employee's behalf, the Company will instead pay the Covered Employee on the last day of each remaining month of the applicable COBRA Payment Period a fully taxable cash payment equal to the COBRA premium for that month, subject to applicable tax withholding, which such payments shall end upon expiration of the applicable COBRA Payment Period; provided that the Company may, in its discretion, pay the Covered Employee a single, fully taxable cash payment in lieu of the monthly COBRA premium benefit, which amount shall equal the remaining COBRA premiums the Company would have paid during the COBRA Payment Period, subject to applicable tax withholding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.3 &nbsp;&nbsp;&nbsp;&nbsp;<u>Equity Vesting</u>. In the case of the CEO, each of the then-outstanding, unvested Time-Vesting Awards and Performance Satisfied Awards held by the Covered Employee shall accelerate and become vested and exercisable or settled with respect to the number of unvested shares subject thereto that would have vested had the Covered Employee continued in employment with the Company following the Covered Employee's Involuntary Termination for six (6) months. In the case of the CEO, any Performance Subject Awards held by the Covered Employee shall accelerate and become vested and exercisable or settled (if at all) as set forth in the terms of the applicable award agreement; provided, however, that unless contrary treatment is explicitly set forth in the award agreement, any such Performance Subject Awards with respect to which performance has not been satisfied (and, if applicable, certified) as of the Involuntary Termination shall remain outstanding for six (6) months following such Involuntary Termination (provided that in no event will any Company equity award remain outstanding beyond the expiration of its maximum term), and if performance thereunder is satisfied (and, if applicable, certified) within that time period, then such Performance Subject Awards shall accelerate and become vested and exercisable or settled (if at all) based on the actual level of performance achieved under the terms of the applicable award agreement, and the remainder shall be forfeited. In the case of a Tier 1 Covered Employee, any unvested Time-Vesting Awards, Performance Satisfied Awards and Performance Subject Awards shall be forfeited as of the date of the Involuntary Termination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. &nbsp;&nbsp;&nbsp;&nbsp;<u>Conditions to Receipt of Severance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 &nbsp;&nbsp;&nbsp;&nbsp;<u>Release Agreement and Participation Agreement</u>. As a condition to receiving Severance Benefits under the Plan, each Covered Employee will be required to sign a Participation Agreement and to sign (and allow to become effective, as applicable) a customary and standard waiver and release of all claims arising out of his or her Involuntary Termination and employment with the Company and its Affiliates (the "<u>Release</u>") in such form as may be provided by the Company. The Release will include specific information regarding the amount of time the Covered Employee will have to consider the terms of the Release and return the signed agreement to the Company, which period of time, in all cases, will comply with the requirements of the jurisdiction in which such Covered Employee resides. In no event will the period to return the Release be longer than 55 days, inclusive of any revocation period set forth in the Release, following the Covered Employee's Involuntary Termination (the "<u>Release Period</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Plan Benefits Supersede Prior Benefits</u>. For each Covered Employee, this Plan shall supersede any other change in control or severance benefit plan, policy or practice previously maintained by the Company with respect to a Covered Employee and any change in control or severance benefits in any individually negotiated employment contract or other agreement between the Company and a Covered Employee, including but not limited to any individual equity award vesting acceleration benefit letter agreement between the Company and such Covered Employee. Notwithstanding the foregoing, the Covered Employee's outstanding equity awards covering Company common stock shall remain subject to the terms of the applicable equity plan under which such awards were granted that may apply upon a Change in Control and/or termination of such employee's service, and no provision of this Plan shall be construed as to limit the actions that may be taken, or to violate the terms, thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 &nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Reductions</u>. The Administrator will reduce a Covered Employee's benefits under the Plan by any other statutory severance obligations or contractual severance benefits, obligations for pay in lieu of notice, and any other similar benefits payable to the Covered Employee by the Company (or any successor thereto) that are due in connection with the Covered Employee's termination and that are in the same form as the benefits provided under the Plan (e.g., equity award vesting credit). Without limitation, this reduction includes a reduction for any benefits required pursuant to (a) any applicable legal requirement, including, without limitation, the Worker Adjustment and Retraining Notification Act of 1988 and any similar state or local laws (collectively, the "<u>WARN Act</u>"), (b) a written employment, severance or equity award agreement with the Company, (c) any Company policy or practice providing for the Covered Employee to remain on the payroll for a limited period of time after being given notice of the termination of the Covered Employee's employment, and (d) any required salary continuation, notice pay, statutory severance payment, or other payments either required by local law, or owed pursuant to a collective labor agreement, as a result of the termination of the Covered Employee's employment. The benefits provided under the Plan are intended to satisfy, to the greatest extent possible, and not to provide benefits duplicative of, any and all statutory, contractual and collective agreement obligations of the Company in respect of the form of benefits provided under the Plan that may arise out of a termination, and the Administrator will so construe and implement the terms of the Plan. Reductions may be applied on a retroactive basis, with benefits previously provided being recharacterized as benefits pursuant to the Company's statutory or other contractual obligations. The payments pursuant to the Plan are in addition to, and not in lieu of, any unpaid salary, bonuses or employee welfare benefits to which a Covered Employee may be entitled for the period ending with the Covered Employee's termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 &nbsp;&nbsp;&nbsp;&nbsp;<u>Other Requirements</u>. A Covered Employee's receipt of severance payments pursuant to Sections 4.1 or 4.2 will be subject to the Covered Employee continuing to comply with the provisions of this Section 5 and the terms of any confidential information agreement, proprietary

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information and inventions agreement, any covenants agreement, any other similar agreement to the foregoing and such other appropriate agreement between the Covered Employee and the Company. Benefits under the Plan shall terminate immediately for a Covered Employee if such Covered Employee, at any time, materially breaches any such agreement or the provisions of this Section 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 280G</u>. Any provision of the Plan to the contrary notwithstanding, if any payment or benefit a Covered Employee would receive from the Company and its Affiliates or an acquiror pursuant to the Plan or otherwise (a "<u>Payment</u>") would (a) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (b) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "<u>Excise Tax</u>"), then such Payment will be equal to the Higher Amount (defined below). The "<u>Higher Amount</u>" will be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Covered Employee's receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting "parachute payments" is necessary so that the Payment equals the Higher Amount, reduction will occur in the manner that results in the greatest economic benefit for a Covered Employee. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata. In no event will the Company, any Affiliate or any stockholder be liable to any Covered Employee for any amounts not paid as a result of the operation of this Section 5.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. &nbsp;&nbsp;&nbsp;&nbsp;<u>Timing of Benefits</u>. Subject to any delay required by Section 7 below, cash Severance Benefits will be paid within thirty (30) days of the Release becoming effective and irrevocable; provided, however, that if the Release revocation period crosses two (2) calendar years, the Severance Benefits will be paid in the second of the two (2) years if necessary to avoid taxation under Section 409A (as defined in Section 7). &nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;<u>Section 409A</u>. Notwithstanding anything to the contrary in the Plan, no severance payments or benefits will become payable until the Covered Employee has a "separation from service" within the meaning of Section 409A of the Code and the final regulations and any guidance promulgated thereunder ("<u>Section 409A</u>") if such payments or benefits would constitute deferred compensation for purposes of Section 409A ("<u>Deferred Compensation Severance Benefits</u>"). Further, if the Covered Employee is subject to Section 409A and is a "specified employee" within the meaning of Section 409A at the time of the Covered Employee's separation from service (other than due to death), then any Deferred Compensation Separation Benefits otherwise due to the Covered Employee on or within the six-month period following his or her separation from service will accrue during such six-month period and will become payable in a lump sum payment (less applicable withholding taxes) on the date six (6) months and one (1) day following the date of the Covered Employee's separation from service if necessary to avoid adverse taxation under Section 409A. All subsequent payments of Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if the Covered Employee dies following his or her separation from service but prior to the six-month anniversary of his or her date of separation, then any payments delayed in accordance with this paragraph will be payable in a lump sum (less applicable withholding taxes) to the Covered Employee's estate as soon as administratively practicable after the date of his or her death and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit. Each payment and benefit payable under the Plan is intended to constitute a separate payment

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for purposes of Section 409A. It is the intent of the Plan to be exempt from (or if not exempt from, to comply with) the requirements of Section 409A, so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. &nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding</u>. The Company will withhold from any Severance Benefits all federal, state, local and other taxes required to be withheld therefrom and any other required payroll deductions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. &nbsp;&nbsp;&nbsp;&nbsp;<u>Administration</u>. The Plan will be administered and interpreted by the Administrator (in their, his or her sole discretion). The Administrator is the "named fiduciary" of the Plan for purposes of ERISA and will be subject to the fiduciary standards of ERISA when acting in such capacity. Any decision made or other action taken by the Administrator prior to a Change in Control with respect to the Plan, and any interpretation by the Administrator prior to a Change in Control of any term or condition of the Plan, or any related document, will be conclusive and binding on all persons and be given the maximum possible deference allowed by law. Following a Change in Control, any decision made or other action taken by the Administrator with respect to the Plan, and any interpretation by the Administrator of any term or condition of the Plan, or any related document that (a) does not affect the benefits payable under the Plan shall not be subject to review unless found to be arbitrary and capricious, or (b) does affect the benefits payable under the Plan shall not be subject to review unless found to be unreasonable or not to have been made in good faith. In accordance with Section 2.1, the Administrator may, in its sole discretion and on such terms and conditions as it may provide, delegate in writing to one or more officers of the Company all or any portion of its authority or responsibility with respect to the Plan; provided, however, that any Plan amendment or termination or any other action that could reasonably be expected to increase significantly the cost of the Plan must be approved by the Board or the Compensation Committee of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. &nbsp;&nbsp;&nbsp;&nbsp;<u>Eligibility to Participate</u>. To the extent that the Administrator has delegated administrative authority or responsibility to one or more officers of the Company in accordance with Section 2.1 and Section 9, each such officer will not be excluded from participating in the Plan if otherwise eligible, but he or she is not entitled to act or pass upon any matters pertaining specifically to his or her own benefit or eligibility under the Plan. The Administrator will act upon any matters pertaining specifically to the benefit or eligibility of each such officer under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. &nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment or Termination</u>. The Company, by action of the Administrator, reserves the right to amend or terminate the Plan at any time, without advance notice to any Covered Employee, but no such action shall adversely affect the rights of any Covered Employee in any material respect without the Covered Employee's written consent. Any amendment or termination of the Plan will be in writing. Any action of the Company in amending or terminating the Plan will be taken in a non-fiduciary capacity. For the avoidance of doubt, in the event a Change in Control occurs during the term of the Plan, the Plan shall not terminate until the Change in Control Determination Period has expired and any benefits payable have been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. &nbsp;&nbsp;&nbsp;&nbsp;<u>Claims Procedure</u>. Claims for benefits under the Plan shall be administered in accordance with Section 503 of ERISA and the Department of Labor Regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Any employee or other person who believes he or she is entitled to any payment under the Plan (a "<u>claimant</u>") may submit a claim in writing to the Administrator within 90 days of the earlier of (a) the date the claimant learned the amount of their Severance Benefits under the Plan, or (b) the date the claimant learned that he or she will not be entitled to any benefits under the Plan. In determining claims

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for benefits, the Administrator or its delegate has the authority to interpret the Plan, to resolve ambiguities, to make factual determinations, and to resolve questions relating to eligibility for and amount of benefits. If the claim is denied (in full or in part), the claimant will be provided a written notice explaining the specific reasons for the denial and referring to the provisions of the Plan on which the denial is based. The notice will also describe any additional information or material that the Administrator needs to complete the review and an explanation of why such information or material is necessary and the Plan's procedures for appealing the denial (including a statement of the applicant's right to bring a civil action under Section 502(a) of ERISA following a denial on review of the claim, as described below). The denial notice will be provided within ninety (90) days after the claim is received. If special circumstances require an extension of time (up to ninety (90) days), written notice of the extension will be given to the claimant (or representative) within the initial 90-day period. This notice of extension will indicate the special circumstances requiring the extension of time and the date by which the Administrator expects to render its decision on the claim. If the extension is provided due to a claimant's failure to provide sufficient information, the time frame for rendering the decision is tolled from the date the notification is sent to the claimant about the failure to the date on which the claimant responds to the request for additional information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;If the claimant's claim is denied, the claimant (or his or her authorized representative) may apply in writing to an appeals official appointed by the Administrator (which may be a person, committee or other entity) for a review of the decision denying the claim. Review must be requested within sixty (60) days following the date the claimant received the written notice of their claim denial or else the claimant loses the right to review. A request for review must set forth all of the grounds on which it is based, all facts in support of the request, and any other matters that the claimant feels are pertinent. In connection with the request for review, the claimant (or representative) has the right to review and obtain copies of all documents and other information relevant to the claim, upon request and at no charge, and to submit written comments, documents, records and other information relating to his or her claim. The review shall take into account all comments, documents, records and other information submitted by the claimant (or representative) relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The appeals official will provide written notice of its decision on review within sixty (60) days after it receives a review request. If special circumstances require an extension of time (up to sixty (60) days), written notice of the extension will be given to the claimant (or representative) within the initial 60-day period. This notice of extension will indicate the special circumstances requiring the extension of time and the date by which the appeals official expects to render its decision. If the extension is provided due to a claimant's failure to provide sufficient information, the time frame for rendering the decision on review is tolled from the date the notification is sent to the claimant about the failure to the date on which the claimant responds to the request for additional information. If the claim is denied (in full or in part) upon review, the claimant will be provided a written notice explaining the specific reasons for the denial and referring to the provisions of the Plan on which the denial is based. The notice shall also include a statement that the claimant will be provided, upon request and free of charge, reasonable access to, and copies of, all documents and other information relevant to the claim and a statement regarding the claimant's right to bring an action under Section 502(a) of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Administrator will establish rules and procedures, consistent with the Plan and ERISA, as necessary and appropriate, in carrying out its responsibilities in reviewing benefit claims. The Administrator may delegate its claims and appeals review authority to one or more officers or employees of the Company. The Administrator may require a claimant who wishes to submit additional information in connection with an appeal to do so at the claimant's own expense.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;<u>Judicial Proceedings</u>. No judicial proceeding shall be brought to recover benefits under the Plan until the claims procedures described in Section 12 has been exhausted and the Plan benefits requested have been denied in whole or in part. If any judicial proceeding is undertaken to further appeal the denial of a claim or bring any other action under ERISA (other than a breach of fiduciary duty claim), the evidence presented shall be strictly limited to the evidence timely presented to the Administrator or its delegate. In addition, any such judicial proceeding must be filed within one (1) year after the claimant's receipt of notification that his or her appeal was denied and in the U.S. District Court for the Northern District of California.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;<u>Source of Payments</u>. All Severance Benefits will be paid in cash from the general funds of the Company; no separate fund will be established under the Plan, and the Plan will have no assets. No right of any person to receive any payment under the Plan will be any greater than the right of any other general unsecured creditor of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. &nbsp;&nbsp;&nbsp;&nbsp;<u>Inalienability</u>. In no event may any current or former employee of the Company or any of its Affiliates sell, transfer, anticipate, assign or otherwise dispose of any right or interest under the Plan. At no time will any such right or interest be subject to the claims of creditors nor liable to attachment, execution or other legal process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. &nbsp;&nbsp;&nbsp;&nbsp;<u>No Enlargement of Employment Rights</u>. Neither the establishment nor maintenance of the Plan, any amendment of the Plan, nor the making of any benefit payment hereunder, will be construed to confer upon any individual any right to be continued as an employee of the Company. The Company expressly reserves the right to discharge any of its employees at any time, with or without cause. However, as described in the Plan, a Covered Employee may be entitled to benefits under the Plan depending upon the circumstances of his or her termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. &nbsp;&nbsp;&nbsp;&nbsp;<u>Successors</u>. Any successor to the Company of all or substantially all of the Company's business and/or assets (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) will assume the obligations under the Plan and agree expressly to perform the obligations under the Plan in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under the Plan, the term "Company" will include any successor to the Company's business and/or assets which become bound by the terms of the Plan by operation of law, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. &nbsp;&nbsp;&nbsp;&nbsp;<u>Applicable Law</u>. The provisions of the Plan will be construed, administered and enforced in accordance with ERISA. To the extent ERISA is not applicable, the provisions of the Plan will be governed by the internal substantive laws of the State of Delaware, and construed accordingly, without giving effect to principles of conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. &nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability will not affect any other provision of the Plan, and the Plan will be construed and enforced as if such provision had not been included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. &nbsp;&nbsp;&nbsp;&nbsp;<u>Headings</u>. Headings in the Plan document are for purposes of reference only and will not limit or otherwise affect the meaning hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. &nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification</u>. The Company hereby agrees to indemnify and hold harmless the officers and employees of the Company, and the members of its boards of directors, from all losses, claims, costs or other liabilities arising from their acts or omissions in connection with the administration,

------

amendment or termination of the Plan, to the maximum extent permitted by applicable law. This indemnity will cover all such liabilities, including judgments, settlements and costs of defense. The Company will provide this indemnity from its own funds to the extent that insurance does not cover such liabilities. This indemnity is in addition to and not in lieu of any other indemnity provided to such person by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Information</u>.

---

| | |
|:---|:---|
| Plan Name: | Stitch Fix, Inc. Severance Plan |
| Plan Sponsor: | Stitch Fix, Inc.<br>One Montgomery Street, Suite 1500<br>San Francisco, California 94104 |
|  | (415) 882-7765 |
| Identification Numbers: | EIN: 27-5026540 |
|  | PLAN NUMBER: 502 |
| Plan Year: | Company's Fiscal Year ending on the Saturday that is closest to July 31 of that year |
| Plan Administrator: | Stitch Fix, Inc. |
|  | One Montgomery Street, Suite 1500<br>San Francisco, California 94104<br>(415) 882-7765 |
| Agent for Service of |  |
| Legal Process: | Stitch Fix, Inc.<br>Chief Legal Officer<br>One Montgomery Street, Suite 1500<br>San Francisco, California 94104<br>(415) 882-7765 |
|  | Service of process may also be made upon the Administrator. |
| Type of Plan: | Severance Plan/Employee Welfare Benefit Plan |
| Plan Costs: | The cost of the Plan is paid by the Employer. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. &nbsp;&nbsp;&nbsp;&nbsp;<u>Statement of Covered Employee ERISA Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;As a Covered Employee under the Plan, you have certain rights and protections under ERISA:

&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;You may examine (without charge) all Plan documents, including any amendments and copies of all documents filed with the U.S. Department of Labor.

&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;You may obtain copies of all Plan documents and other Plan information upon written request to the Administrator at no charge.

&nbsp;&nbsp;&nbsp;&nbsp;In addition to creating rights for Covered Employees, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who operate the Plan (called "<u>fiduciaries</u>") have a duty to do so prudently and in the interests of you and the other Covered Employees. No one, including the Company or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit under the Plan or exercising your rights under ERISA. If your claim for a severance benefit is denied, in whole or in part, you have a right to know why this was

------

done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. (The claim review procedure is explained in Section 13 and Section 14 above.)

&nbsp;&nbsp;&nbsp;&nbsp;Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents and do not receive them within thirty days, you may file suit in a federal court. In such a case, the court may require the Administrator to provide the materials and to pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Administrator. If you have a claim which is denied or ignored, in whole or in part, you may file suit in a federal court. If it should happen that you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

&nbsp;&nbsp;&nbsp;&nbsp; If you have any questions regarding the Plan, please contact the Administrator or the Company's Chief Legal Officer. If you have any questions about this statement or about your rights under ERISA, you may contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory, or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W. Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration at 1-866-444-3272.

## Exhibit 10.3

**Exhibit 10.3**

**STITCH FIX, INC.**

**SEVERANCE PLAN**

**PARTICIPATION NOTICE**

Name of Covered Employee: <u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

On behalf of Stitch Fix, Inc. I am pleased to inform you that you have been designated as a Covered Employee in the Stitch Fix, Inc. Severance Plan (the "<u>Plan</u>"), a copy of which is attached as <u>Exhibit A</u> to this Participation Notice (this "<u>Notice</u>"). Capitalized terms used but not defined in this Notice have the meanings provided in the Plan.

***Eligibility and Benefits***. In accordance with the Plan, you **[**have been designated a "**Tier ___ Covered Employee**."**] [**are participating in the Plan at the level of "**CEO**."**]** The schedule of benefits you may become entitled to receive on an Involuntary Termination is found in Section 4 of the Plan.

If your employment with the Company is terminated for any reason other than an Involuntary Termination, you will not be eligible for severance benefits under the Plan.

***Acknowledgements***. By signing this Notice, you hereby acknowledge each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)**Your eligibility for and receipt of any severance benefits to which you may become entitled pursuant to the Plan is expressly contingent upon your compliance with the requirements contained in Section 5 of the Plan, including your execution of a Release and your continuing obligations under the terms of any applicable confidential information agreement, proprietary information and inventions agreement, any covenants agreement or similar obligation you owe to the Company. Severance benefits under the Plan will immediately cease in the event of your violation of the provisions of the Release or your continuing obligations under the afore-mentioned agreements or obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)**The Plan supersedes any other change in control or severance benefit plan, policy or practice previously maintained by the Company that may have been applicable to you and any change in control or severance benefits in any individually negotiated employment contract or other agreement between you and the Company.

***Entire Agreement; Other Terms***. The Plan and this Notice form the complete and exclusive statement of your agreement with the Company regarding your rights to any severance payments or benefits, and they supersede and replace all other or prior agreements, whether oral or written, on that subject, as noted above. The terms and conditions of this Notice inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties hereto.

This Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;1

------

To participate in the Plan, please countersign and date this Notice in the space provided below and return it to the Company no later than ______________.

Sincerely,

**Stitch Fix, Inc.**

<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br>[Name]

[Title]

<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u>

Covered Employee's Signature&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date

&nbsp;&nbsp;&nbsp;&nbsp;2

------

**Exhibit A**

**STITCH FIX, INC.**

**SEVERANCE PLAN**

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

I, Matt Baer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Stitch Fix, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | March 12, 2026 | /s/ Matt Baer |
| | | Matt Baer |
| | | Chief Executive Officer and Director |
| | | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

I, David Aufderhaar, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Stitch Fix, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | March 12, 2026 | /s/ David Aufderhaar |
| | | David Aufderhaar |
| | | Chief Financial Officer |
| | | (Principal Financial and Accounting Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION**

In connection with the Quarterly Report of Stitch Fix, Inc. (the "Company") on Form 10-Q for the period ended January 31, 2026, as filed with the Securities and Exchange Commission (the "Periodic Report"), we, Matt Baer, Chief Executive Officer of the Company, and David Aufderhaar, Chief Financial Officer of the Company, each certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of our knowledge:

1.&nbsp;&nbsp;&nbsp;&nbsp;The Periodic Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and

2.&nbsp;&nbsp;&nbsp;&nbsp;The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 12, 2026

---

| |
|:---|
| /s/ Matt Baer |
| Matt Baer |
| Chief Executive Officer and Director |
| (Principal Executive Officer) |
| /s/ David Aufderhaar |
| David Aufderhaar |
| Chief Financial Officer |
| (Principal Financial and Accounting Officer) |

---

<br>