Barnes & Noble Education(BNED) - 2026 Q2 - Quarterly Results

Financial Performance - Preliminary full-year fiscal 2025 revenue is expected to be $1.6 billion, an increase of $40.8 million, or 2.6%, year-over-year[7] - Gross Comparable Store Sales are expected to increase by $116.9 million, or 7.5%, year-over-year[7] - Revenues from BNC First Day programs are expected to increase by $119.9 million, or 25.3%, year-over-year, with total enrollment reaching approximately 957,000 students, up 19.0% from the prior year[8] - Full-year fiscal 2025 net loss is expected to be in the range of $(68.0) to $(62.0) million, an improvement from the prior year's expected net loss of $(78.0) to $(72.0) million[8] - Adjusted EBITDA for fiscal 2025 is expected to range from $55.0 to $63.0 million, an increase of $15.0 to $29.0 million from the prior fiscal year[9] - Preliminary revenue for the first half of fiscal 2026 is expected to be approximately $933.0 million, an increase of approximately 7.8% year-over-year[11] - The company's preliminary net income for the first half of fiscal 2026 is expected to range from $3.0 to $8.0 million, an improvement of $62.0 to $73.0 million over the prior year's net loss[11] - Adjusted EBITDA for the first half of fiscal 2026 is expected to be in the range of $32.0 to $42.0 million, compared to $30.0 to $36.0 million in the prior year[12] - The company expects Adjusted EBITDA in fiscal 2026 to be in the range of $65 to $75 million, with a material reduction in interest costs compared to the previous fiscal year[16] Debt and Liquidity - Total debt at year-end is expected to be $103.1 million, a decrease from $196.3 million on April 27, 2024, with total net debt expected to be $94.0 million[10] - The company emphasizes the importance of maintaining adequate liquidity levels for ongoing inventory purchases and vendor payments[25] Risks and Challenges - The company is currently undergoing a financial restatement process, which may impact expected financial results[25] - There is a dependency on strategic service provider relationships, which could affect operational and financial stability[25] - The company faces risks from potential declines in college enrollment and decreased funding available for students[25] - Technological changes, including the adoption of artificial intelligence in educational content, are a significant factor for future operations[25] - The company operates in a competitive environment, with new risks emerging that could impact business outcomes[25] - Forward-looking statements reflect current views but are subject to various risks and uncertainties[25] - The company does not intend to update forward-looking statements after the date of the press release, except as required by law[26] - Interested parties are encouraged to review risk factors in the company's Annual Report on Form 10-K for the year ended May 3, 2025[26] Growth Expectations - Anticipated growth in the BNC First Day program is expected, although the pace of adoption may be slower than anticipated[25]