Bob's Discount Furniture (BOBS) investor relations material

Executive summary

• Net revenue grew 8.5% year-over-year to $578.1 million, driven by new store openings and 1.2% comparable sales growth, with higher conversion and average order value offsetting lower in-store traffic due to severe winter weather.

• Five new stores opened, bringing the total to 214 across 26 states, and a Midwest regional distribution center was launched.

• Completed an IPO in February 2026, raising $304.2 million in net proceeds and repaid a $350 million Term Loan.

• Strategic focus on merchandising, omni-channel capabilities, and customer acquisition drove results and market share gains despite industry headwinds.

• Gross profit increased 8.4% to $256.5 million, with gross margin steady at 44.4%.

Financial highlights

• Adjusted EBITDA was $37.6 million (6.5% of revenue), nearly flat year-over-year, while adjusted net income was $11.1 million, down from $14.1 million.

• Net income declined sharply to $2.5 million, primarily due to non-recurring charges related to debt repayment and IPO costs.

• Adjusted diluted EPS was $0.09 versus $0.13 last year; basic and diluted EPS were $0.02, down from $0.12.

• SG&A expenses rose 9.0% to $235.1 million, mainly due to new store payroll, higher occupancy, and increased marketing.

• Cash and equivalents at quarter end were $27.7 million; total liquidity was $127.1 million, including $99.4 million in available credit.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: net revenues of $2,600–$2,625 million, comparable sales growth of 1.5–2.5%, adjusted net income of $121–$129 million, and adjusted EBITDA of $255–$265 million.

• Approximately 20 new stores planned for the year, with net capital expenditures of $110–$115 million, mainly for new stores and infrastructure.

• 53rd week expected to contribute $40 million in revenue and $3.5 million in net income.

• Management expects cash on hand, operations, and expanded credit facility to meet liquidity needs for at least the next twelve months.

• Gross margin in Q2 expected to be 100 basis points below last year due to non-recurring favorable freight rates in prior year.