Build-A-Bear Workshop (BBW) Q3 2025 earnings summary

Executive summary

• Achieved record third quarter results with revenue up 11% to $119.4 million and pre-tax income up 26.4% to $13.1 million year-over-year.

• Diluted EPS increased 37.7% to $0.73, driven by higher pretax income, reduced share count, and lower tax rate.

• Opened 17 net new locations in Q3, expanded into six new countries, and raised guidance to at least 65 net new locations for fiscal 2024.

• Returned $31.3 million to shareholders through share repurchases and dividends in the first nine months.

• Continued investment in digital transformation, brand expansion, and returning capital to shareholders.

Financial highlights

• Total revenues reached $119.4 million in Q3, up 11% year-over-year; net retail sales rose 9.1% to $109.5 million.

• Gross margin expanded by 140 basis points to 54.1% year-over-year.

• SG&A expenses were $51.6 million, or 43.2% of revenue, a 10 basis point improvement year-over-year.

• EBITDA for Q3 was $16.7 million, up 25.3% year-over-year.

• Cash and equivalents at quarter end were $29.0 million, up 16.8% year-over-year, with no outstanding borrowings.

Outlook and guidance

• Fiscal 2024 revenue guidance narrowed to $489–$495 million, representing low single-digit growth.

• Pre-tax income expected at $65–$67 million, in line with prior year at midpoint.

• Store opening guidance raised to at least 65 net new locations, with most being partner-operated and international.

• Capital expenditures projected at $18–$20 million for the year.

• Guidance reflects continued web demand softness, inflationary and wage pressures, and increased freight costs.