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Bed Bath & Beyond (BBBY) investor relations material
Bed Bath & Beyond Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved eight consecutive quarters of EBITDA improvement and margin expansion, with disciplined cost management and a material reduction in break-even level.
Q4 2025 revenue was $273.4M, down 9.8% year-over-year; excluding Canada, down 6.4%.
Full year 2025 net revenue was $1.0446B, a 25.1% decrease year-over-year; excluding Canada, revenue declined 21.6%.
Margin integrity prioritized over headline revenue, resulting in significant gross margin improvement despite tariff and sourcing headwinds.
Integration of acquisitions and ecosystem synergies are central to the growth strategy.
Financial highlights
Q4 gross margin reached 24.6%, up 160 bps year-over-year; full-year gross margin improved 390 bps to 24.7%.
Q4 adjusted EBITDA loss was $4.4M, an improvement of $23.4M year-over-year; full-year adjusted EBITDA loss was $30.7M, a $113.3M improvement.
Q4 adjusted diluted EPS was -$0.16, up $0.75 year-over-year; full-year adjusted diluted EPS was -$0.96, up $2.88 year-over-year.
G&A and tech expense for Q4 2025 was $33M, down $15M year-over-year; $143.8M for FY 2025, down 23.9%.
Ended Q4 with $207M in cash, equivalents, restricted cash, and inventory; cash used in operations improved by $118M year-over-year.
Outlook and guidance
2026 targets low to mid-single-digit year-over-year revenue growth, with Q1 expected to deliver at least 30% EBITDA improvement and 3%-5% revenue growth.
Margin target for 2026 is 25%, the midpoint of the 24%-26% framework.
Q2 is an integration quarter post-Kirkland's acquisition, with full synergy benefits expected in Q3 and Q4.
Stretch goal for breakeven in Q3 and profitability in Q4 2026, assuming integration milestones are met.
Guidance excludes impact from pending large acquisitions.
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