Bed Bath & Beyond (BBBY) Q1 2026 earnings summary

Executive summary

• Revenue grew 7% year-over-year to $248 million, marking the first year-over-year growth in 19 quarters, driven by higher average order value and increased orders delivered.

• The company is executing a multi-pillar strategy focused on omni-channel retail, financial services, and home services, integrating recent and pending acquisitions including Kirkland's, The Container Store, F9 Brands, and The Brand House Collective.

• Structural changes have simplified the organization, reduced costs, and improved operational efficiency, leveraging technology and data to drive customer lifetime value.

• Active customers stabilized at 3.95–4.0 million, with order frequency at 1.31 and increased average order value.

• Enhanced customer engagement and conversion reflect positive response to investments in digital and omnichannel capabilities.

Financial highlights

• Adjusted EBITDA loss improved by $5 million year-over-year to a loss of $8 million, a 41% improvement.

• Net loss improved to $16.4 million from $39.9 million year-over-year.

• Gross margin was 23.9%, down 120 basis points year-over-year but within the operating range.

• Adjusted diluted EPS was a loss of $0.25 per share, a $0.17 improvement year-over-year.

• Cash and equivalents stood at $163 million at quarter end.

Outlook and guidance

• Expectation to remove an additional $60 million in costs over the next nine months as acquisitions are integrated.

• Guidance for low- to mid-single-digit revenue growth for the year, with 6%-7% revenue growth targeted for 2027-2029.

• Q2 and Q3 will include one-time operating expenses related to integration and restructuring, estimated at $13 million per quarter.

• Targeting 6%-7% EBITDA margin and positive free cash flow as cost reductions and synergies materialize.

• Management expects continued benefits from cost reductions, strategic investments, and capital returns from partnerships and IP monetization.