Bed Bath & Beyond (BBBY) Q2 2026 earnings summary

Executive summary

• Revenue grew 28% year-over-year to $361.2M in Q2 2026, marking the second consecutive quarter of growth after nineteen quarters of decline, driven by acquisitions such as The Brand House Collective and improved omni-channel performance.

• Active customers increased 47% year-over-year to 6.4 million, with order frequency up 36% and orders delivered doubling to 2.8 million.

• Announced rebranding to Neighborhood Intelligence, effective August 17, 2026, with a new Nasdaq ticker NXH and headquarters relocation to Nashville, reflecting a shift to a holistic homeownership platform.

• Multiple acquisitions completed or announced, including The Brand House Collective, SFV Services, The Container Store, Elfa, Closet Works, Fathom Holdings, and F9 Brands.

• Integration of acquired businesses is progressing, with early signs of operational and margin improvement and a focus on building a unified platform for the homeownership journey.

Financial highlights

• Q2 2026 revenue was $361.2M, up 28% year-over-year, with gross margin improving by 310 basis points to 26.8%.

• Adjusted EBITDA loss was $12.2M, a $4.1M decline year-over-year; adjusted diluted EPS loss was $0.53.

• Gross profit for Q2 was $97M, and net loss widened to $39M, including $21M in special items related to acquisitions and restructuring.

• Sales and marketing expense improved to 11.9% of revenue, down 160 basis points year-over-year.

• Cash, cash equivalents, and restricted cash at quarter end totaled $126M to $164M, with minor sequential increases or decreases depending on acquisition and operating activity.

Outlook and guidance

• Q3 revenue expected in the $505–$525 million range, with gross margin projected to approach 30%.

• Management targets $50 million in annualized cost reductions over the next year by consolidating operations onto one platform.

• Expects to achieve cash generation in 2027, with a target of mid to high single-digit EBITDA margin in a normalized housing market and a long-term gross margin goal of 35%.

• Anticipates $30–$40 million in cash deployment for acquisitions, integrations, and contract terminations by year-end.

• Management expects continued revenue and active customer growth as recent acquisitions are integrated.