Build-A-Bear Workshop (BBW) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter revenue of $128.4 million, up 11.9% year-over-year, with record pre-tax income of $19.6 million, up 30.6%, and diluted EPS of $1.17, up 42.7%.

• Net income rose 33.8% to $15.3 million, with EBITDA up 26.7% to $23.1 million, reflecting higher gross profit and improved margins.

• Growth driven by global expansion, new product categories, digital transformation, and increased wholesale and franchise activity.

• Net new unit growth of 15 global experience locations, totaling over 600 locations globally, with 30% outside the U.S.

• Returned $7.1 million to shareholders via repurchases and dividends; ended quarter with $44.3 million in cash.

Financial highlights

• Revenue increased 11.9% year-over-year to $128.4 million, with net retail sales up 10.9% to $119.6 million.

• Commercial and international franchise revenues grew 28.3% to $8.8 million.

• Gross margin improved by 260 basis points to 56.8%; retail gross margin up 270 basis points.

• SG&A expenses were $53.7 million, or 41.7% of revenue, up 20 basis points year-over-year, mainly due to wage and inflationary pressures.

• Cash and equivalents at quarter end were $44.3 million, up 16% year-over-year, with no outstanding borrowings.

Outlook and guidance

• 2025 revenue guidance reiterated for record revenue and double-digit pretax margins, with updated pre-tax income guidance of $61–$67 million.

• At least 50 net new experience locations expected in 2025, mostly internationally operated.

• Capital expenditures expected at $20–$25 million for the year.

• Guidance reflects less than $10 million net tariff impact and $5 million in additional medical and labor costs.

• Tax rate anticipated at 22%–24%, excluding discrete items.