Stitch Fix Inc. (SFIX) shares surged 5.01% in after-hours trading on Tuesday following the release of its third-quarter fiscal year 2025 financial results, which exceeded analyst expectations and prompted the company to raise its full-year revenue guidance.

The online personal styling service reported a narrower-than-expected loss of $0.06 per share, beating the analyst consensus estimate of a $0.11 per share loss. Quarterly revenue came in at $325.02 million, surpassing the $314.44 million consensus estimate and marking a return to year-over-year growth. The company's adjusted EBITDA of $11 million also outperformed the expected $9.03 million.

Stitch Fix's strong performance led to an upward revision of its fiscal 2025 revenue outlook. The company now expects full-year revenue between $1.25 billion and $1.26 billion, up from its previous forecast of $1.23 billion to $1.24 billion. This optimistic outlook, coupled with the better-than-anticipated Q3 results, likely fueled investor enthusiasm and drove the stock's after-hours rally.