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

Executive summary

• Achieved record annual revenue of $529.8 million in fiscal 2025, up 6.7% year-over-year, marking the fifth consecutive year of record revenue and pre-tax income.

• Pre-tax income reached $67.2 million, despite $11 million in tariff-related costs and $5 million in higher medical and labor expenses.

• CEO Sharon John announced retirement, with COO Chris Hurt to succeed her in June 2026 as part of a planned succession.

• Net new unit growth of 64 global experience locations for the year, surpassing 650 total locations worldwide.

• Returned $39 million to shareholders in fiscal 2025 through share repurchases and dividends.

Financial highlights

• Q4 total revenues were $154.5 million, up 2.7% year-over-year; full-year revenue reached $529.8 million, up 6.7%.

• Q4 pre-tax income was $21.5 million (13.9% margin), down from $27.5 million (18.3% margin) last year; full-year pre-tax income was $67.2 million (12.7% margin), nearly flat year-over-year.

• Full-year diluted EPS was a record $3.99, up from $3.80; Q4 EPS was $1.26, down from $1.62.

• EBITDA for the year was $81.4 million, representing 15.0% of total revenues.

• Cash and equivalents at year-end were $26.8 million; inventory rose to $82.2 million, reflecting tariffs and growth investments.

Outlook and guidance

• Fiscal 2026 revenue expected to grow mid-single digits, driven by at least 50 net new experience locations, mostly international partner-operated.

• Commercial segment revenue projected to grow at least 20%, with growth weighted to the back half of the year.

• Pre-tax income guidance ranges from a mid-single digit decline to low single digit growth, reflecting $16 million in estimated tariff costs and $3 million in long-term investments.

• Capital expenditures projected at $22–$25 million; tax rate expected to approximate 24%, excluding discrete items.

• Guidance does not account for further material changes in tariffs, macroeconomic conditions, or foreign exchange rates.