Barnes & Noble Education (BNED) investor relations material

Executive summary

• Revenue for the quarter ended August 1, 2026 increased 0.8% year-over-year to $290.6 million, driven by growth in BNC First Day® programs and general merchandise sales, partially offset by store closures.

• Net loss improved by 29.3% to $(12.9) million from $(18.3) million in the prior-year period, reflecting higher gross profit and lower operating expenses.

• Adjusted EBITDA loss improved 18.9% to $(9.3) million from $(11.5) million, indicating progress in cost control and operational efficiency.

• First Day® Complete program expanded to 263 campuses for Fall 2026, reaching over 1.43 million students, up 26% from Fall 2025.

• The business remains highly seasonal, with most sales and profit expected in Q2 and Q3.

Financial highlights

• Product sales and other: $276.9 million, up 1.0% year-over-year; rental income: $13.7 million, down 1.8%.

• Gross profit rose to $57.0 million (19.6% of sales) from $55.4 million (19.2% of sales) year-over-year.

• BNC First Day® revenue rose 9.0% to $124.7 million.

• Operating loss narrowed to $(17.3) million from $(23.2) million.

• Net loss per share improved to $(0.37) from $(0.54).

Outlook and guidance

• Fiscal 2027 outlook reiterated, expecting continued revenue growth and operating leverage.

• Targeting Adjusted EBITDA of $85–92 million and further net income improvement.

• Management anticipates further cost savings from ongoing operational streamlining and store portfolio optimization.

• The company expects to maintain adequate liquidity for the next twelve months and beyond, with $113.4 million available under its revolving credit facility.

• Anticipates $20 million in capital expenditures and normal cash taxpayer status for fiscal 2027.