Bed Bath & Beyond (BBBY) investor relations material

Executive summary

• Net loss narrowed to $4.5 million, a 93% year-over-year improvement, with adjusted EBITDA loss improving 85% to $4.9 million, marking the seventh consecutive quarter of progress toward profitability.

• Revenue for Q3 2025 was $257.2 million, down 17% year-over-year, mainly due to discontinued Canada operations, but partially offset by a 3% increase in average order value.

• Gross margin improved by 420 basis points to 25.3% year-over-year, driven by lower fulfillment and returns costs and optimized logistics.

• Technology and G&A expenses decreased by $13 million year-over-year, reflecting operational efficiencies and disciplined execution.

• Liquidity remained strong with over $200 million in cash, equivalents, restricted cash, and inventory, plus $36 million in transit from ATM settlements post quarter-end.

Financial highlights

• Net revenue for Q3 2025 was $257.2 million, down 17% year-over-year, or 13% excluding Canada exit.

• Gross profit: $65.2 million (25.3% of revenue), up 420 bps year-over-year.

• Net loss: $4.5 million, a $57 million improvement year-over-year; adjusted EBITDA loss narrowed to $4.9 million.

• Sales and marketing expense improved by 260 basis points to 14% of revenue.

• Cash and cash equivalents: $167.4 million as of September 30, 2025.

Outlook and guidance

• Management expects year-over-year revenue trends to turn positive in 2026, with continued margin consistency and an additional $20 million in operating expense efficiencies.

• Targeting a 12% sales and marketing expense ratio in 2026, with improved conversion and retention as key drivers.

• Liquidity is expected to be sufficient for at least the next 12 months, with ongoing cost controls and capital management.

• No formal revenue or bottom-line guidance provided, but confidence expressed in achieving year-over-year growth.