Bob's Discount Furniture (BOBS) investor relations material

Executive summary

• Q3 revenue rose 10.3% to $680.4M; comparable sales grew 3.8%, and 11 openings brought the store base to 229 across 28 states.

• Adjusted EBITDA rose 17.6% to $75.5M, with margin expanding to 11.1% from 10.4%; SG&A leverage helped offset gross-margin pressure.

• GAAP net income increased 28.8% to $41.7M; Q3 results included $4.9M of IEEPA tariff refunds, while adjusted gross margin excluding refunds was 45.7%.

Financial highlights

• Q3 net revenue was $680.4M, up 10.3%; gross profit rose 11.3% to $316.0M, and reported gross margin was 46.4% versus 46.0%.

• Adjusted EBITDA was $75.5M, up 17.6%, and adjusted net income was $38.8M, up 18.5%; adjusted diluted EPS was $0.28.

• Q3 GAAP net income increased 28.8% to $41.7M; operating income rose 32.2% to $59.1M.

• SG&A increased 7.6% to $250.1M, while its share of revenue improved to 36.7% from 37.7%.

• 9M revenue rose 9.2% to $1.878B; GAAP net income increased 26.4% to $102.0M, while adjusted net income was $77.6M versus $79.0M.

Outlook and guidance

• FY26 revenue guidance is $2.600B–$2.625B, comparable-sales growth 1.5%–2.5%, adjusted net income $121M–$129M, and adjusted EBITDA $255M–$265M.

• FY26 gross margin is expected to decline 20–30 bps YoY, versus prior guidance of approximately flat; elevated fuel costs are expected to pressure margins into the new year.

• FY26 net capex is expected at $110M–$115M; pre-opening expenses are forecast at ~$23M, and approximately 20 new stores are expected.

• FY26 has 53 weeks; the extra week is expected to contribute $46.0M revenue, $4.4M net income and $6.2M adjusted EBITDA.

• Long-term targets include 10% unit growth and 10%–12% adjusted EBITDA growth; the expansion ambition is more than 500 stores by 2035. Tariff guidance assumes current rates, including a scheduled increase on certain upholstered furniture to 30% on Jan. 1, 2027.