Build-A-Bear Workshop (BBW) investor relations material

Executive summary

• Achieved record second quarter and first half results in fiscal 2025, with double-digit revenue and profit growth year-over-year, driven by global expansion, digital transformation, and brand leverage initiatives.

• Raised annual guidance for revenue, pre-tax income, and net new unit growth, citing strong store and commercial segment performance.

• Expanded retail footprint with 14 net new experience locations in Q2 and 29 net new locations in H1, with a focus on international and non-traditional markets.

• Continued investment in omnichannel and digital strategies, including social media campaigns and product launches, fueling growth in both retail and e-commerce.

• EBITDA for Q2 was $18.8 million (+25.3%), and for the first half $41.9 million (+26.0%).

Financial highlights

• Q2 revenue grew 11.1% year-over-year to $124.2M; pre-tax income up 32.7% to $15.3M; EPS rose 46.9% to $0.94.

• First half revenue up 11.5% to $252.6M; pre-tax income up 31.5% to $34.9M; EPS up 44.5% to $2.11.

• Consolidated gross profit rose to $71.5M, with a gross margin of 57.6%, up from 54.3% in the prior year.

• Cash and equivalents at quarter end were $39.1M, up 55.4% year-over-year; no borrowings under credit facility.

• Cash provided by operating activities for the first half was $32.0M, up from $12.4M year-over-year.

Outlook and guidance

• Fiscal 2025 revenue expected to grow mid- to high-single digits; pre-tax income forecasted at $62–$70M, assuming current tariff rates.

• Net new unit growth guidance raised to at least 60 new experience locations for the year.

• Capital expenditures projected at $20–$25M; income tax rate expected at 22–24%.

• Guidance reflects ongoing inflation, tariffs, labor, medical, and freight risks; excludes further material changes in tariffs or macroeconomic/geopolitical environment.

• Anticipates record results for the fifth consecutive year if tariffs and economic conditions remain stable.