Build-A-Bear Workshop (BBW) Q2 2026 earnings summary

Executive summary

• Achieved record second quarter and first half results in fiscal 2025, with double-digit revenue and profit growth year-over-year, driven by global expansion, digital transformation, and brand leverage.

• Raised annual guidance for revenue, pre-tax income, and net new unit growth, citing strong store and commercial segment performance.

• Expanded retail footprint through capital-light, partner-operated models, opening a net 29 new locations in the first half and introducing new product concepts.

• Continued investment in omnichannel and digital initiatives, including social media campaigns and influencer engagement, fueling brand awareness and sales.

• EBITDA for Q2 was $18.8 million, up 25.3% year-over-year, supported by higher gross profit and disciplined expense management.

Financial highlights

• Q2 revenue grew 11.1% to $124.2 million; pre-tax income up 32.7% to $15.3 million; EPS up 46.9% to $0.94.

• First half revenue rose 11.5% to $252.6 million; pre-tax income up 31.5% to $34.9 million; EPS up 44.5% to $2.11.

• EBITDA margin for the first half nearly 17%, more than tripling 2019 levels.

• Cash and equivalents at quarter end: $39.1 million, up 55.4% year-over-year.

• Cash provided by operating activities for the first half was $32.0 million, up from $12.4 million year-over-year.

Outlook and guidance

• Fiscal 2025 revenue expected to grow mid- to high-single digits; pre-tax income forecasted at $62–$70 million.

• Net new unit growth guidance raised to at least 60 new experience locations, focusing on non-traditional and international markets.

• Capital expenditures projected at $20–$25 million; income tax rate expected at 22–24%.

• Guidance considers tariffs, labor, medical, freight, and inflation; excludes further material changes in tariffs or macroeconomic/geopolitical environment.

• Anticipates record results for the fifth consecutive year, with a robust product pipeline for the remainder of 2025.