Bob's Discount Furniture (BOBS) investor relations material

Executive summary

• Achieved 16.8% net sales growth for FY25, reaching $2.37 billion, driven by new store expansion and 7.7% comparable sales growth.

• Adjusted EBITDA grew 24.1% year-over-year to $240.8 million (10.2% margin).

• Successfully completed IPO in February 2026, raising $302–$302.7 million in net proceeds and resulting in a debt-free balance sheet.

• Expanded to 209 stores in 26 states, entering new markets in North Carolina and Vermont, with strong performance in new locations.

• Maintained a differentiated value proposition with pricing ~10% below competitors’ lowest promoted prices.

Financial highlights

• Q4 2025 net revenue increased 8.2% to $648.8 million, with adjusted comparable sales up 2.8%.

• Net income for Q4 2025 grew to $41 million; adjusted EBITDA was $76.5 million (11.8% margin).

• Gross margin for Q4 2025 increased 20 bps to 45.7%, aided by normalized freight costs.

• SG&A as a percentage of net revenue increased 30 bps in Q4; inventories rose 15.3% to $350.3 million due to store growth.

• Ended FY25 with $53.2 million cash and $177.6 million in total liquidity.

Outlook and guidance

• FY26 net revenue guidance: $2.6B–$2.625B, with comparable sales growth of 1.5%-2.5%.

• Adjusted net income expected between $121M–$129M; adjusted EBITDA $255M–$265M (10% margin midpoint).

• Plans to open ~20 new stores in FY26, including new markets in South Carolina and Tennessee; CapEx planned at $110M–$115M.

• 53rd week in FY26 expected to contribute $40 million in net revenues and $3.5 million in net income.

• Q1 2026 comparable sales growth expected at 1.0%-1.5%, with EBITDA margin around 6%.