Barnes & Noble Education (BNED) investor relations material

Executive summary

• Achieved full-year revenue of $1.715 billion for fiscal 2026, up 6.5% year-over-year despite one less week compared to fiscal 2025.

• Returned to net income profitability with $16.9 million, compared to a net loss of $65.8 million in the prior year.

• Adjusted EBITDA rose 28.8% to $76.5 million, driven by growth in BNC First Day® programs and improved store performance.

• Total net debt decreased 33% year-over-year to $62.6 million, reflecting strong cash generation and disciplined expense management.

• Introduced a quarterly dividend of $0.08 per share, reflecting confidence in ongoing business strength.

Financial highlights

• Comparable store sales increased 4.4% year-over-year, contributing $71.3 million in additional revenue.

• Gross margin dollars increased by $28.4 million (8.4%), with gross margin percentage rising to 21.4%.

• BNC First Day® program revenue surged 28% to $760.1 million, with institutional adoption and student enrollment both rising sharply.

• Adjusted EBITDA reconciliation highlights significant non-cash and non-recurring items, including prior year debt extinguishment charges.

Outlook and guidance

• Fiscal 2027 Adjusted EBITDA guidance reiterated at $85 million to $92 million, with expectations for continued revenue growth and improved net income.

• Fall 2026 First Day Complete enrollment projected to reach 1.4 million students, up 23% from fall 2025.

• Capital expenditures anticipated at approximately $20 million for fiscal 2027.

• Focus remains on operating leverage, expense discipline, and further debt reduction.