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Bed Bath & Beyond (BBBY) investor relations material
Bed Bath & Beyond Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net loss narrowed to $4.5 million, a 93% year-over-year improvement, with adjusted EBITDA loss improving 85% to $4.9 million, marking the seventh consecutive quarter of progress toward profitability.
Revenue for Q3 2025 was $257.2 million, down 17% year-over-year, mainly due to discontinued Canada operations, but partially offset by a 3% increase in average order value.
Gross margin improved by 420 basis points to 25.3% year-over-year, driven by lower fulfillment and returns costs and optimized logistics.
Technology and G&A expenses decreased by $13 million year-over-year, reflecting operational efficiencies and disciplined execution.
Liquidity remained strong with over $200 million in cash, equivalents, restricted cash, and inventory, plus $36 million in transit from ATM settlements post quarter-end.
Financial highlights
Net revenue for Q3 2025 was $257.2 million, down 17% year-over-year, or 13% excluding Canada exit.
Gross profit: $65.2 million (25.3% of revenue), up 420 bps year-over-year.
Net loss: $4.5 million, a $57 million improvement year-over-year; adjusted EBITDA loss narrowed to $4.9 million.
Sales and marketing expense improved by 260 basis points to 14% of revenue.
Cash and cash equivalents: $167.4 million as of September 30, 2025.
Outlook and guidance
Management expects year-over-year revenue trends to turn positive in 2026, with continued margin consistency and an additional $20 million in operating expense efficiencies.
Targeting a 12% sales and marketing expense ratio in 2026, with improved conversion and retention as key drivers.
Liquidity is expected to be sufficient for at least the next 12 months, with ongoing cost controls and capital management.
No formal revenue or bottom-line guidance provided, but confidence expressed in achieving year-over-year growth.
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