Barnes & Noble Education (BNED) on Tuesday said full-year preliminary revenue in fiscal 2025 is expected to be $1.6 billion, an increase of $40.8 million, or 2.6%, over the prior year.
Gross comparable store sales are expected to increase by $116.9 million, or 7.5%, year-over-year.
Revenues from BNC First Day programs are expected to increase by $119.9 million, or 25.3%, year-over-year.
Full-year fiscal 2025 net loss is expected to be in the $(68.0) to $(62.0) million range compared to an expected net loss in the $(78.0) to $(72.0) million range (as restated) in the prior year. The fiscal 2025 net loss includes a $55.2 million non-cash loss related to the extinguishment of debt.
Adjusted EBITDA for fiscal 2025 is expected to range from $55.0 to $63.0 million, an increase of $15.0 to $29.0 million, from the $34.0 to $40.0 million range in the prior fiscal year.
It expects to report total debt at year-end of $103.1 million, compared to $196.3 million on April 27, 2024. After subtracting $9.1 million of cash on hand, total net debt is expected to be $94.0 million, representing a $91.8 million year-over-year decrease.
The company’s net working capital position is also expected to substantially improve to positive $188.9 million from $46.1 million last year, while outstanding short-term payables, accrued liabilities, and current operating lease liabilities are expected to decrease by $194.0 million from last year.
The company’s preliminary, unaudited revenue for the first six months of fiscal 2026 is expected to be approximately $933 million, an increase of about 7.8% year-over-year.
The company’s preliminary, unaudited net income for the first half of fiscal 2026 is expected to range from $3.0 to $8.0 million, an anticipated improvement of $62.0 to $73.0 million over net loss of $(65.0) to $(59.0) for the first six months of fiscal 2025 (preliminary, unaudited, as restated), driven by comparable store top-line growth and continued cost management.
The company’s preliminary, unaudited adjusted EBITDA is expected to be in the range of $32 to $42 million as compared to $30 to $36 million of adjusted EBITDA in the first six months of fiscal 2025.
Total net debt is expected to be $110.8 million at the end of 2Q Fiscal 2026, a $55.2 million decrease compared to the end of the second fiscal quarter in fiscal 2025.
“Barnes & Noble Education expects continued top line growth in fiscal 2026 despite one fewer operating week and broader market uncertainties in the higher education and retail sectors,” it said, adding that supported by anticipated gross profit dollar increases and continued expense discipline, the company currently expects adjusted EBITDA in the range of $65 to $75 million.
BNED anticipates a material reduction in interest costs versus last fiscal year, approximately $22 million in capital expenditures, and expects to be a normal cash taxpayer.
Looking ahead to fiscal 2027, the company sees meaningful opportunities to improve gross margins and is seeking to grow adjusted EBITDA in the range of 15% to 20% or more.
