Build-A-Bear Workshop (BBW) Q3 2025 earnings summary

Executive summary

• Achieved record third quarter with revenues of $119.4 million, up 11% year-over-year, and pre-tax income of $13.1 million, up 26%, driven by strong store and commercial performance, international expansion, and strategic initiatives.

• Diluted EPS rose 37.7% to $0.73, with net income of $9.9 million, and EBITDA for Q3 at $16.7 million, up 25.3%.

• Opened 17 net new locations in Q3, expanded into six new countries, and 40 net new experience locations year-to-date, with guidance raised to at least 65 net new units for fiscal 2024.

• Returned $31.3 million to shareholders through share repurchases and dividends in the first nine months, with a new $100 million repurchase program launched in September 2024.

• Added new leadership roles and launched successful new products, including Build-A-Bear Mini Beans and a flagship Hello Kitty and Friends Workshop.

Financial highlights

• Q3 2024 total revenues were $119.4 million, net retail sales $109.5 million (up 9.1%), and commercial/international franchise revenues $9.9 million (up 38.8%).

• Retail gross margin for Q3 was 54.2%, up 160 basis points year-over-year, driven by lower merchandise, freight, and occupancy costs.

• SG&A expenses for Q3 were $51.6 million (43.2% of revenue), a slight improvement year-over-year.

• Cash and equivalents at quarter-end were $29 million, with no outstanding borrowings on the $25 million credit facility.

• EBITDA for the quarter was $16.7 million (up 25.3%), and $49.9 million for nine months (up 1.5%).

Outlook and guidance

• Fiscal 2024 revenue guidance narrowed to $489–$495 million, representing low single-digit growth on a comparable 52-week basis.

• Pre-tax income expected at $65–$67 million, also low single-digit growth at midpoint.

• Net new unit growth target raised to at least 65 experience locations globally, focusing on non-traditional and international markets.

• Capital expenditures projected at $18–$20 million; tax rate expected at approximately 24.5%.

• Guidance reflects continued web demand softness, inflationary pressures, increased depreciation, freight costs, and assumes stable macroeconomic and FX conditions.