Barnes & Noble Education Reports First Half Fiscal 2026 Results and Files Related Quarterly Reports

Core Insights - Barnes & Noble Education, Inc. reported a 29.0% increase in revenue from its BNC First Day programs, totaling $91.7 million year-over-year, driven by strong institutional adoption [4][16] - The company achieved a net income of $6.7 million for the first half of fiscal 2026, a significant improvement from a net loss of $60.8 million in the prior year [5][11] - Total net debt decreased by $55.1 million year-over-year to $110.8 million as of November 1, 2025, reflecting improved financial health [2][8] Financial Performance - Revenue for the first half of fiscal 2026 was $932.6 million, up 7.7% from $865.6 million in the same period of fiscal 2025 [3] - Gross comparable store sales increased by $54.4 million, or 6.0%, year-over-year [3] - Adjusted EBITDA for the first half of fiscal 2026 was $38.3 million, an increase of $4.4 million from $33.9 million in the prior year [5][12] Operational Highlights - A total of 224 campus stores utilized the First Day Complete program in fall 2025, with enrollment rising to approximately 1.1 million students, a 22.2% increase from the previous year [4] - The company’s business is highly seasonal, with significant sales and operating profit realized during the second and third fiscal quarters [7] - The fiscal year 2026 includes 52 weeks compared to 53 weeks in fiscal 2025, impacting revenue recognition [6] Debt and Cash Flow - Total debt as of November 1, 2025, was $122.5 million, down from $177.6 million a year earlier [8] - The company’s net working capital improved to $217.8 million from $165.8 million year-over-year [8] - Adjusted Free Cash Flow for the first half of fiscal 2026 was $(15.4) million, an improvement from $(110.9) million in the prior year [40] Future Outlook - The company reiterated its fiscal 2026 outlook, expecting Adjusted EBITDA in the range of $65 million to $75 million, supported by anticipated gross profit growth and expense discipline [17] - Looking ahead to fiscal 2027, the company aims for a 15% to 20% growth in Adjusted EBITDA [18]