1-800-FLOWERS.COM (FLWS) Q3 2026 earnings summary

Executive summary

• Revenue declined 11.6% year-over-year in Q3 2026 to $293.0 million, with a net loss of $100.1 million including a $45.2 million non-cash goodwill and intangible impairment charge in the Consumer Floral & Gifts segment.

• Adjusted EBITDA loss was $31.2 million for the quarter, an improvement from $34.9 million loss in the prior year period; for the nine months, adjusted EBITDA was positive $33.9 million.

• Achieved $50 million in cost savings ahead of schedule, with a 20% reduction in core headcount since January 2025 and two-year cost savings target met.

• Strategic shift toward balanced investment in marketing and digital capabilities, with improved customer experience metrics and operational efficiency.

• Free cash flow for the nine months improved to $20.0 million, up from negative $31.7 million in the prior year period, due to improved working capital management.

Financial highlights

• Consolidated revenue for the quarter decreased 11.6% year-over-year to $293.0 million; for the nine months, revenue was $1.21 billion, down 10.3%.

• Gross profit margin for Q3 was 33.2%, up from 31.7% year-over-year; for the nine months, gross margin was 38.8%.

• Operating expenses decreased by $106.6 million to $191.9 million, including the impairment charge; excluding non-recurring items, operating expenses fell by $16.4 million to $144.3 million.

• Net loss per diluted share was $(1.56) for the quarter; adjusted net loss per share was $(0.77).

• Net debt at quarter end was $94.3 million, up from $75.3 million a year ago; cash and cash equivalents at quarter end were $50.7 million.

Outlook and guidance

• Fiscal 2026 revenue expected to decline 10–12% year-over-year, with adjusted EBITDA projected to be approximately breakeven (±$2 million), including $22 million in incentive compensation and consultant costs.

• Management is focused on stabilizing the business, improving execution, and building a platform for long-term growth.

• The company expects to maintain sufficient liquidity for operating needs through fiscal 2026, with seasonal borrowing anticipated for pre-holiday inventory.