Barnes & Noble Education (BNED) Q1 2026 earnings summary

Executive summary

• Revenue for the first half of fiscal 2026 rose 7.7% year-over-year to $932.6 million, with gross comparable store sales up 6.0%.

• Net income improved to $6.7 million from a net loss of $60.8 million in the prior year.

• BNC First Day®/First Day program revenue surged 29.0% year-over-year, with enrollment up 22.2%.

• The company is now current with SEC reporting and expects to file its Q3 report by March 12, 2026.

• Revenue for the quarter ended August 2, 2025, increased 9.4% year-over-year to $288.2 million, driven by strong growth in BNC First Day® programs, partially offset by store closures.

Financial highlights

• Adjusted EBITDA for the first half was $38.3 million, up from $33.9 million year-over-year.

• Adjusted net income for the period was $10.6 million, compared to an adjusted net loss of $56.9 million last year.

• Adjusted free cash flow improved to $(15.4) million from $(110.9) million year-over-year.

• Net working capital increased to $217.8 million from $165.8 million last year.

• Gross profit increased 23.1% to $55.4 million, with gross margin improving to 19.2% from 17.1% year-over-year.

Outlook and guidance

• Fiscal 2026 Adjusted EBITDA is expected in the range of $65–$75 million.

• Anticipates top-line growth despite one fewer operating week and market uncertainties.

• Expects a material reduction in interest costs and to be a normal cash taxpayer.

• Management expects continued growth in BNC First Day® programs and further expansion across partner schools.

• The company believes current liquidity and access to credit facilities are sufficient for the next twelve months and beyond.