Bed Bath & Beyond (NYSE: BBBY) reports Q1 growth and smaller loss
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Bed Bath & Beyond, Inc. reported first quarter 2026 results showing a return to top-line growth and improved profitability, though the business remains unprofitable. Net revenue was $247.8 million, up 6.9% year-over-year, and excluding the prior exit from Canada, revenue rose 9.4%. This was described as the first quarter of significant revenue growth in 19 quarters.
Gross profit reached $59.2 million, or 23.9% of net revenue. The company reduced technology and general and administrative expenses to $36.1 million from $41.0 million. Net loss narrowed to $16.4 million from $39.9 million, or $0.24 per share versus $0.74. Adjusted EBITDA improved to a loss of $7.9 million from a loss of $13.2 million.
Free cash flow was negative $12.8 million, a substantial improvement from negative $52.1 million a year earlier, and cash, cash equivalents, and restricted cash totaled $162.5 million at quarter end. Management highlighted stronger customer engagement, higher average order value, and referenced a planned acquisition of The Container Store, Elfa and Closet Works as part of its “Everything Home” ecosystem strategy.
Positive
- None.
Negative
- None.
Insights
BBBY returns to revenue growth with sharply smaller losses but still burns cash.
Bed Bath & Beyond delivered $247.8M in Q1 2026 net revenue, up 6.9% year-over-year, its first significant growth in 19 quarters. Excluding the Canadian exit, revenue rose 9.4%, suggesting its brands and customer experience investments are gaining traction.
Profitability metrics improved meaningfully: net loss narrowed from $39.9M to $16.4M, and adjusted EBITDA loss improved from $13.2M to $7.9M. Operating expenses declined, notably technology and general and administrative combined falling by about $5M. However, the company remains loss-making.
Cash, cash equivalents, and restricted cash ended at $162.5M, with free cash flow at a negative $12.8M versus negative $52.1M a year earlier, indicating reduced but ongoing cash burn. The reference to a planned acquisition of The Container Store, Elfa and Closet Works, tied to an “Everything Home” ecosystem, adds strategic scale, though integration success and future capital needs will be clearer in subsequent filings.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net revenue: $247.8M
Net loss: $16.4M
Adjusted EBITDA: -$7.9M
+5 more
8 metrics
Net revenue
$247.8M
Three months ended March 31, 2026; up 6.9% year-over-year
Net loss
$16.4M
Three months ended March 31, 2026; improved from $39.9M
Adjusted EBITDA
-$7.9M
Three months ended March 31, 2026; improved from -$13.2M
Free cash flow
-$12.8M
Three months ended March 31, 2026; versus -$52.1M in 2025
Cash, cash equivalents and restricted cash
$162.5M
Balance at March 31, 2026
Gross profit
$59.2M
Q1 2026; 23.9% of net revenue
Active customers
3.951M
Three months ended March 31, 2026
Average order value
$205
Three months ended March 31, 2026; up from $194
Key Terms
Adjusted EBITDA, free cash flow, equity method securities, non-GAAP financial measures, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA (non-GAAP) was ($8) million, a $5 million improvement year-over-year."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow is a non-GAAP financial measure that is calculated as net cash provided by or used in operating activities reduced by expenditures for property and equipment."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
equity method securities financial
"the income or loss from equity method securities relates to our blockchain asset portfolio, which includes passive investments in early-stage blockchain technology companies."
An ownership stake in another company large enough to give significant influence but not full control, accounted for by recording the investor’s share of the other company’s profits or losses on its own financial statements. Think of it like a business partnership where you report your slice of the partner’s results as part of your own performance; this matters to investors because those shared results can materially change reported earnings, assets and the perceived health of the investor company.
non-GAAP financial measures financial
"We are providing certain non-GAAP financial measures in this release and related earnings conference call, including adjusted diluted net loss per share, adjusted EBITDA, Net revenue excluding the impact from our exit from Canada, and free cash flow."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
active customers financial
"Active customers represent the total number of unique customers who have made at least one purchase during the prior twelve-month period."
Earnings Snapshot
Net revenue: $247.8M
Q1 2026
Net revenue
$247.8M
+6.9% YoY
Net loss
$16.4M
$24M improvement YoY
Diluted EPS
-$0.24
from -$0.74 prior year
Adjusted EBITDA
-$7.9M
$5.4M improvement YoY
Free cash flow
-$12.8M
$39.3M improvement YoY
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of Registrant as specified in its charter)
| (State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer | ||||||||||||
| incorporation) | Identification Number) | |||||||||||||
(Address of principal executive offices)(Zip Code)
(801 ) 947-3100
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On April 27, 2026 , Bed Bath & Beyond, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the three months ended March 31, 2026. A copy of the press release is furnished herewith as Exhibit 99.1. In connection with the release of financial results, the Company posted an updated presentation in the "Events & Presentation" portion of its investor relations website at https://investors.beyond.com.
The information in this Current Report on Form 8-K and in Exhibit 99.1 is furnished herewith and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall it be incorporated by reference into any filing under the Securities Act of 1933, as amended, except as may expressly be set forth in any such filing by specific reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
| Exhibit Number | Exhibit Description | |||||||
| 99.1 | Press Release issued April 27, 2026 | |||||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101) | |||||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BED BATH & BEYOND, INC. | ||||||||
| By: | /s/ ADRIANNE B. LEE | |||||||
| Adrianne B. Lee | ||||||||
| Chief Financial Officer | ||||||||
| Date: | ||||||||
3
Bed Bath & Beyond, Inc. Delivers First Significant Revenue Growth in 19 Quarters on a Materially Lower Cost Base, Driving Improved Profitability
Revenue Growth, Financial Discipline and Strategic Advancements Position the Company Well
MURRAY, Utah - April 27, 2026 - Bed Bath & Beyond, Inc. (NYSE:BBBY), owner of Bed Bath & Beyond, Overstock, buybuy BABY, and more recently, the Kirkland’s and Kirkland's Home brands, as well as a blockchain asset portfolio, today reported financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Highlights
First quarter net revenue was $248 million, representing an increase of 6.9% year-over-year. Net revenue excluding the impact from our exit from Canada (non-GAAP) increased 9.4% year-over-year.
Notably this was the first quarter of significant revenue growth in 19 quarters, signaling strong brand awareness among customers and improved assortment and realization of investments in customer experience.
Gross profit was $59 million, or 23.9% of net revenue.
Sales & Marketing expense was $32 million, or 13.0% of net revenue, a 50 basis point reduction year-over-year.
Technology and general and administrative expense declined to $36 million compared to $41 million in the prior year, a $5 million improvement year-over-year.
Net loss was $16 million, a $24 million improvement year-over-year. Adjusted EBITDA (non-GAAP) was ($8) million, a $5 million improvement year-over-year.
Cash, cash equivalents, and restricted cash totaled $163 million at quarter end.
Strategic Progress
“Our first quarter results show that the work we’ve been doing to stabilize and rebuild the business is taking hold,” said Marcus Lemonis, Executive Chairman and Chief Executive Officer. “We delivered real year-over-year revenue growth, something we haven’t seen meaningfully in several years, while continuing to take costs out of the business and operate more efficiently. That combination matters.”
“Our omnichannel retail brands remain the front door to the customer,” Lemonis continued. “We’re seeing better engagement, stronger conversion and improvements in average order value, which tells us the customer is responding to the investment we’ve made.”
“Our product categories and home services initiatives are the engines that drive demand. When you connect that with our digital and financial capabilities, you start to build an ecosystem that keeps the customer engaged longer and increases lifetime value. Our improving results and strategic advancements, including our most recent announcement to acquire The Container Store, Elfa and Closet Works will position us well to deliver long-term shareholder value aligned to our Everything Home 3 pillar ecosystem.”
1
Earnings Webcast and Replay Information
Bed Bath & Beyond will host a webcast to discuss its first quarter 2026 financial results and its strategic vision, key initiatives, and provide business updates on Monday, April 27, 2026, at 4:30 p.m. ET. To access the live webcast, visit https://investors.beyond.com. Questions may be emailed in advance of the call to ir@beyond.com.
A replay of the webcast will be available at https://investors.beyond.com shortly after the live event has ended.
On April 27, 2026, in connection with the release of financial results, the Company posted an updated presentation in the “Events & Presentation” portion of its investor relations website at https://investors.beyond.com.
About Bed Bath & Beyond
Bed Bath & Beyond, Inc. (NYSE:BBBY), based in Murray, Utah, is an ecommerce-focused retailer with an affinity model that owns or has ownership interests in various retail brands, offering a comprehensive array of products and services that enable its customers to enhance everyday life through quality, style, and value. The Company currently owns Bed Bath & Beyond, Overstock, buybuy BABY, and now Kirkland's and Kirkland's Home, as well as other related brands and websites and a blockchain asset portfolio inclusive of tZERO, GrainChain, and other assets. The Company regularly posts information and updates on its Newsroom and Investor Relations pages on its website, bedbathandbeyond.com.
Contact Information Investor Relations ir@beyond.com pr@beyond.com | |||||
2
Cautionary Note Regarding Forward-Looking Statements
This press release and webcast to discuss our financial results and strategy may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include all statements other than statements of historical fact, including but not limited to statements regarding our quarterly earnings reporting, forecasts of and plans for our growth, our planned acquisition of The Container Store, Elfa and Closet Works and expected benefits therefrom, and demand for our products, revenue improvement, profitability or sustained profitability, and business strategy. You should not place undue reliance on any forward-looking statements, which speak only as of the date they were made. We undertake no obligation to update any forward-looking statements as a result of any new information, future developments, or otherwise. These forward-looking statements are inherently difficult to predict. Actual results could differ materially due to variety of risks, uncertainties, and other important factors including but not limited to: our dependence on third parties, including our fulfillment partners; our competition; consumer needs, expectations, or trends; our reliance on effective marketing; economic factors including recessions, downturns, inflation, exposure to the housing market, and consumer spending; trade policies or restrictions, including tariffs, and related macroeconomic effects; our changing business model and use of our brands, such as the Overstock brand, Bed Bath & Beyond brand, buybuy BABY brand, Kirkland’s and Kirkland’s Home brands; the changing job market and changes to our leadership team or compensation approach; our reliance on paid and natural search engines; our ability to become profitable or generate positive cash flows; our ability to raise additional capital, obtain financing, or monetize significant assets; our dependence on the Internet; our infrastructure; and transaction-processing systems; compliance with ever-evolving federal, state, and foreign laws; cyberattacks or data security incidents; legal proceedings to which we are subject; damage to our reputation or brand image; shipping and customer service; operations; technological advancements, including artificial intelligence; global conflicts; product safety and quality concerns, content and quality; our ever evolving business model; risks related to our Warrants; risks related to our completed merger with TBHC and our planned merger with The Container Store; our investments in new business strategies, acquisitions, dispositions, partnerships, or other transactions; and regulatory changes or actions related to cryptocurrencies and blockchain technology. Additional information regarding risks, uncertainties, and other important factors that could materially affect results and the accuracy of the forward-looking statements contained herein may be found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 24, 2026, and in our subsequent filings with the SEC.
3
Bed Bath & Beyond, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except per share data) | |||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 135,829 | $ | 175,295 | |||||||
| Restricted cash | 26,673 | 26,924 | |||||||||
| Accounts receivable, net | 24,005 | 20,829 | |||||||||
| Inventories | 496 | 5,162 | |||||||||
| Prepaids and other current assets | 9,713 | 11,905 | |||||||||
| Total current assets | 196,716 | 240,115 | |||||||||
| Property and equipment, net | 12,586 | 13,712 | |||||||||
| Intangible assets, net | 45,079 | 45,140 | |||||||||
| Goodwill | 6,160 | 6,160 | |||||||||
| Equity securities | 64,236 | 66,641 | |||||||||
| Operating lease right-of-use assets | 4,937 | 5,156 | |||||||||
| Other long-term assets, net | 74,740 | 48,554 | |||||||||
| Total assets | $ | 404,454 | $ | 425,478 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 91,532 | $ | 89,992 | |||||||
| Accrued liabilities | 47,480 | 51,297 | |||||||||
| Unearned revenue | 34,639 | 34,429 | |||||||||
| Operating lease liabilities, current | 946 | 928 | |||||||||
| Short-term debt, net | 15,500 | 15,500 | |||||||||
| Total current liabilities | 190,097 | 192,146 | |||||||||
| Operating lease liabilities, non-current | 5,404 | 5,643 | |||||||||
| Other long-term liabilities | 6,500 | 9,745 | |||||||||
| Total liabilities | 202,001 | 207,534 | |||||||||
| Stockholders' equity: | |||||||||||
Preferred stock, $0.0001 par value, authorized shares - 5,000, issued and outstanding - none | — | — | |||||||||
Common stock, $0.0001 par value, authorized shares - 100,000 | |||||||||||
Issued shares - 77,045 and 76,358 | |||||||||||
Outstanding shares - 69,355 and 68,863 | 8 | 8 | |||||||||
| Additional paid-in capital | 1,241,225 | 1,239,338 | |||||||||
| Accumulated deficit | (859,109) | (842,711) | |||||||||
| Accumulated other comprehensive loss | (2,574) | (2,574) | |||||||||
Treasury stock at cost - 7,690 and 7,495 | (177,458) | (176,478) | |||||||||
| Equity attributable to stockholders of Bed Bath & Beyond, Inc. | 202,092 | 217,583 | |||||||||
| Equity attributable to noncontrolling interests | 361 | 361 | |||||||||
| Total stockholders' equity | 202,453 | 217,944 | |||||||||
| Total liabilities and stockholders' equity | $ | 404,454 | $ | 425,478 | |||||||
4
Bed Bath & Beyond, Inc. Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) | |||||||||||
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net revenue | $ | 247,755 | $ | 231,748 | |||||||
| Cost of goods sold | 188,557 | 173,616 | |||||||||
| Gross profit | 59,198 | 58,132 | |||||||||
| Operating expenses | |||||||||||
| Sales and marketing | 32,310 | 31,290 | |||||||||
| Technology | 21,214 | 26,718 | |||||||||
| General and administrative | 14,863 | 14,314 | |||||||||
| Customer service and merchant fees | 9,018 | 9,357 | |||||||||
Other operating income, net1 | — | (336) | |||||||||
| Total operating expenses | 77,405 | 81,343 | |||||||||
| Operating loss | (18,207) | (23,211) | |||||||||
| Interest income, net | 1,729 | 762 | |||||||||
Other expense, net1 | 329 | (17,269) | |||||||||
| Loss before income taxes | (16,149) | (39,718) | |||||||||
| Provision for income taxes | 249 | 194 | |||||||||
| Net loss | $ | (16,398) | $ | (39,912) | |||||||
| Net loss per share of common stock: | |||||||||||
| Basic | $ | (0.24) | $ | (0.74) | |||||||
| Diluted | $ | (0.24) | $ | (0.74) | |||||||
| Weighted average shares of common stock outstanding: | |||||||||||
| Basic | 69,049 | 53,661 | |||||||||
| Diluted | 69,049 | 53,661 | |||||||||
1 The amounts in prior period columns have been revised to conform to current period’s presentation for the correction of immaterial errors.
5
Bed Bath & Beyond, Inc. Consolidated Statements of Cash Flows (Unaudited) (in thousands) | |||||||||||
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (16,398) | $ | (39,912) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Depreciation and amortization | 3,204 | 4,844 | |||||||||
| Non-cash operating lease cost | 219 | 727 | |||||||||
| Stock-based compensation to employees and directors | 1,533 | 1,094 | |||||||||
| Loss from equity method securities | 2,405 | 17,073 | |||||||||
| Other non-cash adjustments | (3,055) | (136) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable, net | (3,176) | (2,225) | |||||||||
| Inventories | 4,666 | (13,042) | |||||||||
| Prepaids and other current assets | 2,518 | 2,167 | |||||||||
| Other long-term assets, net | 22 | (125) | |||||||||
| Accounts payable | 640 | (4,087) | |||||||||
| Accrued liabilities | (3,810) | (14,302) | |||||||||
| Unearned revenue | 210 | (2,288) | |||||||||
| Operating lease liabilities | (221) | (662) | |||||||||
| Other long-term liabilities | (553) | (47) | |||||||||
| Net cash used in operating activities | (11,796) | (50,921) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Disbursement for notes receivable | (26,168) | — | |||||||||
| Expenditures for property and equipment | (1,027) | (1,181) | |||||||||
| Purchase of intangible assets | (100) | (5,214) | |||||||||
| Purchase of equity securities | — | (8,000) | |||||||||
| Proceeds from the sale of intangible assets | — | 1,250 | |||||||||
| Net cash used in investing activities | (27,295) | (13,145) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from sale of common stock, net of offering costs | — | 19,472 | |||||||||
| Payments of taxes withheld upon vesting of employee stock awards | (980) | (527) | |||||||||
| Other financing activities, net | 354 | 509 | |||||||||
| Net cash (used in) provided by financing activities | (626) | 19,454 | |||||||||
| Net decrease in cash, cash equivalents, and restricted cash | (39,717) | (44,612) | |||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 202,219 | 186,093 | |||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 162,502 | $ | 141,481 | |||||||
6
Supplemental Operational Data
We measure our business using operational metrics, in addition to the financial metrics shown above and the non-GAAP financial measures explained below. We believe these metrics provide investors with additional information regarding our financial results and provide key performance indicators to track our progress. These indicators include changes in customer order patterns and the mix of products purchased by our customers.
Active customers represent the total number of unique customers who have made at least one purchase during the prior twelve-month period. This metric captures both the inflow of new customers and the outflow of existing customers who have not made a purchase during the prior twelve-month period.
Last twelve months (LTM) net revenue per active customer represents total net revenue in a twelve-month period divided by the total number of active customers for the same twelve-month period.
Orders delivered represents the total number of orders delivered in any given period, including orders that may eventually be returned. As we ship a large volume of packages through multiple carriers, actual delivery dates may not always be available, and in those circumstances, we estimate delivery dates based on historical data.
Average order value is defined as total net revenue in any given period divided by the total number of orders delivered in that period.
Orders per active customer is defined as orders delivered in a twelve-month period divided by active customers for the same twelve-month period.
The following table provides our key operating metrics:
(in thousands, except for LTM net revenue per active customer, average order value and orders per active customer)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Active customers | 3,951 | 4,779 | |||||||||
| LTM net revenue per active customer | $ | 268 | $ | 260 | |||||||
| Orders delivered | 1,209 | 1,196 | |||||||||
| Average order value | $ | 205 | $ | 194 | |||||||
| Orders per active customer | 1.31 | 1.34 | |||||||||
Non-GAAP Financial Measures and Reconciliations
We are providing certain non-GAAP financial measures in this release and related earnings conference call, including adjusted diluted net loss per share, adjusted EBITDA, Net revenue excluding the impact from our exit from Canada, and free cash flow. We use these non-GAAP measures internally in analyzing our financial results and we believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance and, in the case of free cash flow, our liquidity position, in the same manner as our management and board of directors. We have provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in this earnings release. These non-GAAP financial measures should be used in addition to and in conjunction with the results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures.
7
Adjusted diluted net loss per share is a non-GAAP financial measure that is calculated as net income (net loss) less the income or losses recognized from our equity method securities and the gains on derecognition of loan commitment. We believe that these adjustments to our net income (net loss) before calculating per share amounts provide meaningful supplemental information for investors by excluding items that are not reflective of our core retail operations and that introduce significant volatility into GAAP results. We believe excluding these adjustments enhances the comparability of our financial results across reporting periods and offers greater and supplemental insight into the performance of our core retail operations when presented in conjunction with our GAAP disclosures.
More specifically, the income or loss from equity method securities relates to our blockchain asset portfolio, which includes passive investments in early-stage blockchain technology companies. These investments are ancillary to our retail business and are not part of our strategic or operational planning for the retail segment. Additionally, the market value and performance of these investments are subject to material volatility driven by external factors unrelated to our retail business. Similarly, the gain on derecognition of loan commitment arises from non-operating investments where we do not participate in day-to-day operations, capital allocation, or economically significant decision-making. These gains or losses are all non-cash, and the Company believes their inclusion in GAAP net income (net loss) can, in the absence of additional context, distort the comparability of our operating performance across periods.
Adjusted EBITDA is a non-GAAP financial measure that is calculated as net income (net loss) before depreciation and amortization, stock-based compensation, interest and other income (expense), provision (benefit) for income taxes, and special items. We believe the exclusion of certain benefits and expenses in calculating adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring.
Net revenue excluding the impact from our exit from Canada as a percentage year-over-year is a non-GAAP financial measure that is calculated as net revenue of $248 million for the three months ending March 31, 2026 less $226 million for the three months ending March 31, 2025, divided by the $226 million for the three months ending March 31, 2025. These figures exclude the impacts of Canada for the same periods which were $0 for the three months ending March 31, 2026, and $5 million for the three months ending March 31, 2025. Bed Bath & Beyond, Inc. discontinued sales through their Canadian website on July 4, 2025.
Free cash flow is a non-GAAP financial measure that is calculated as net cash provided by or used in operating activities reduced by expenditures for property and equipment. We believe free cash flow is a useful measure to evaluate the cash impact of the operations of the business including purchases of property and equipment which are a necessary component of our ongoing operations.
8
The following tables reflect the reconciliation of diluted net loss per share to adjusted diluted net loss per share (in thousands, except per share data):
| Three months ended March 31, | |||||||||||||||||||||||
| 2026 | |||||||||||||||||||||||
| Diluted EPS | Less: gain on derecognition of loan commitment1 | Less: equity method loss1 | Adjusted Diluted EPS | ||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Net loss attributable to common stockholders | $ | (16,398) | $ | 2,766 | $ | (2,405) | $ | (16,759) | |||||||||||||||
| Denominator: | |||||||||||||||||||||||
| Weighted average shares of common stock outstanding—diluted | 69,049 | 69,049 | 69,049 | 69,049 | |||||||||||||||||||
| Net loss per share of common stock: | |||||||||||||||||||||||
| Diluted | $ | (0.24) | $ | 0.04 | $ | (0.03) | $ | (0.25) | |||||||||||||||
| Three months ended March 31, | |||||||||||||||||
| 2025 | |||||||||||||||||
| Diluted EPS | Less: equity method loss1 | Adjusted Diluted EPS | |||||||||||||||
| Numerator: | |||||||||||||||||
| Net loss attributable to common stockholders | $ | (39,912) | $ | (17,073) | $ | (22,839) | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted average shares of common stock outstanding—diluted | 53,661 | 53,661 | 53,661 | ||||||||||||||
| Net loss per share of common stock: | |||||||||||||||||
| Diluted | $ | (0.74) | $ | (0.32) | $ | (0.42) | |||||||||||
1 There was no income tax effect related to the non-GAAP adjustments for any of the periods presented. Our non-GAAP income tax rate was 0% for each period primarily due to having operating losses and that the gains and losses reflected in the non-GAAP adjustments were unrealized. Further, there is no deferred income tax impact related to these adjustments primarily due to the valuation allowance against our deferred tax assets.
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The following table reflects the reconciliation of adjusted EBITDA to net loss (in thousands):
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net loss | $ | (16,398) | $ | (39,912) | |||||||
| Depreciation and amortization | 3,204 | 4,844 | |||||||||
| Stock-based compensation | 1,533 | 1,094 | |||||||||
| Interest income, net | (1,729) | (762) | |||||||||
Other expense, net1 | (329) | 17,269 | |||||||||
| Provision for income taxes | 249 | 194 | |||||||||
| Special items (see table below) | 5,610 | 4,040 | |||||||||
| Adjusted EBITDA | $ | (7,860) | $ | (13,233) | |||||||
| Special items: | |||||||||||
| Acquisition-related costs | $ | 5,514 | $ | — | |||||||
Restructuring costs2 | 96 | 4,376 | |||||||||
Gains on discrete asset disposals1 | — | (336) | |||||||||
| $ | 5,610 | $ | 4,040 | ||||||||
1 The amounts in prior period columns have been revised to conform to current period’s presentation for the correction of immaterial errors.
2 Inclusive of certain severance and lease termination costs.
The following table reflects the reconciliation of free cash flow to net cash used in operating activities (in thousands):
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash used in operating activities | $ | (11,796) | $ | (50,921) | |||||||
| Expenditures for property and equipment | (1,027) | (1,181) | |||||||||
| Free cash flow | $ | (12,823) | $ | (52,102) | |||||||
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FAQ
How did Bed Bath & Beyond (BBBY) perform financially in Q1 2026?
Bed Bath & Beyond posted Q1 2026 net revenue of $247.8 million, up 6.9% year-over-year, with gross profit of $59.2 million and a 23.9% margin. Net loss narrowed to $16.4 million, or $0.24 per share, versus $39.9 million last year.
Did Bed Bath & Beyond (BBBY) return to revenue growth in Q1 2026?
Yes. Q1 2026 net revenue reached $247.8 million, a 6.9% year-over-year increase. Excluding the impact of the prior exit from Canada, revenue grew 9.4%. Management described this as the first quarter of significant revenue growth in 19 quarters.
What was Bed Bath & Beyond’s (BBBY) profitability trend in Q1 2026?
Profitability improved but remained negative. Net loss was $16.4 million, a $24 million improvement from Q1 2025. Adjusted EBITDA loss improved to $7.9 million from $13.2 million, helped by lower technology and general and administrative expenses.
How strong was Bed Bath & Beyond’s (BBBY) cash position at March 31, 2026?
At quarter end, Bed Bath & Beyond held $162.5 million in cash, cash equivalents, and restricted cash. Free cash flow was negative $12.8 million, better than the negative $52.1 million a year earlier, indicating reduced but ongoing cash usage.
What key operating metrics did Bed Bath & Beyond (BBBY) report for Q1 2026?
Active customers were 3.95 million, down from 4.78 million a year earlier, while last twelve months net revenue per active customer rose to $268. Average order value increased to $205, and orders delivered were 1.21 million, slightly above the prior-year period.
What non-GAAP measures did Bed Bath & Beyond (BBBY) highlight in Q1 2026?
The company emphasized adjusted diluted net loss per share, adjusted EBITDA, net revenue excluding Canada, and free cash flow. These measures remove equity method results, certain gains, and special items to focus on core retail operations and cash generation trends.
What strategic initiatives did Bed Bath & Beyond (BBBY) reference in this update?
Management highlighted strengthening omnichannel engagement, higher average order value, and its “Everything Home” ecosystem. It referenced a planned acquisition of The Container Store, Elfa and Closet Works as part of building a broader home-focused platform alongside existing brands and a blockchain asset portfolio.