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From Home Furnishing Business

Bed Bath & Beyond, Inc. Reports Financial Results for Fourth Quarter and Year End

February 23, 2026  by Karen Parrish in Business Strategy, Industry   

The Company delivered its eighth consecutive quarter of measurable improvement toward profitability, reflecting continued margin expansion, disciplined cost management and consistent progress across key operating metrics.

The Company has successfully built the base of its business through disciplined retail execution. We are building the first Everything Home Company designed to make homeownership and living simpler through a disciplined, interconnected ecosystem.

Fourth Quarter 2025 Results
Fourth quarter net revenue was $273 million, representing a 9.8% decrease year-over-year. Excluding the impact of the Company’s exit from Canada (non-GAAP), revenue declined 6.4% year-over-year.

Importantly, the rate of revenue decline continued to narrow as the year progressed. While full year 2025 revenue declined 25.1% year-over-year, fourth quarter results reflect meaningful stabilization and improving trajectory, particularly when adjusting for the impact of the exit from Canada. The Company believes this compression in the rate of decline demonstrates that the structural work completed is translating into improved top line performance.

Gross profit was $67 million, or 24.6% of net revenue, a 160 bps improvement year-over-year.

Sales and marketing expense was $38 million, or 13.8% of net revenue, a 350 bps improvement year-over-year.

Technology and general and administrative expense declined to $33 million compared to $48 million in the prior year, a $15 million improvement year-over-year.

Net loss was $21 million, a $60 million improvement year-over-year. Adjusted EBITDA loss (non-GAAP) was $4 million, a $23 million improvement year-over-year.

Cash, cash equivalents, restricted cash and inventory totaled $207 million at quarter end.

Full Year 2025 Results
Net revenue for the full year was $1.0 billion, representing a 25.1% decrease year-over-year. Excluding the impact of the Company’s exit from Canada (non-GAAP), revenue declined 21.6% year-over-year.

Gross profit was $258 million, or 24.7% of net revenue, a 390 bps improvement year-over-year.

Sales and marketing expense was $143 million, or 13.7% of net revenue, a 340 bps improvement year-over-year.

Technology and general and administrative expense declined to $144 million compared to $189 million in the prior year, a $45 million improvement year-over-year.

Net loss narrowed to $85 million, a $174 million improvement year-over-year. Adjusted EBITDA loss (non-GAAP) was $31 million, a $113 million improvement year-over-year.

Operating cash flow use improved by $118 million year-over-year, reflecting structural improvements in the business model and capital discipline.

Strategic Progress
"Our fourth quarter capped a year of measurable financial and operational progress," said Marcus Lemonis, executive chairman and CEO. "We built our core retail discipline, improved margins, enhanced marketing efficiency and strengthened our balance sheet. As importantly, we saw the rate of revenue decline compress meaningfully throughout the year, positioning us for a return to top line growth."

"Our omnichannel retail brands serve as the front door relationship with the customer," Lemonis continued. "Our product categories and home services initiatives act as transaction engines that originate demand. These activities feed into our expanding digital and financial infrastructure, creating a connected home ecosystem that increases retention, improves revenue quality and expands lifetime value."

President and Chief Financial Officer Adrianne Lee added, "We closed 2025 by delivering against our commitments to enhance margins, improve marketing efficiency, and reduce fixed costs. Revenue remains a key priority with focused efforts on conversion and retention tactics to drive disciplined growth. We are encouraged by the significant narrowing of net loss, Adjusted EBITDA loss and operating cash flow use we achieved in 2025."

2026 Outlook
As the Company enters 2026, it expects revenue trends to continue to improve, targeting low to mid-single digit top line growth for the full year while maintaining disciplined margin and expense management.

Growth is expected to be driven by improved conversion, higher average order value, enhanced retention efforts and expanding ecosystem capabilities. The Company believes it is well positioned to transition from stabilization to durable growth as it advances its objective of becoming the Everything Home Company.

Earnings Webcast and Replay Information
A replay of the webcast will be available at https://investors.beyond.com. On February 23, 2026, in connection with the release of financial results, the Company posted an updated presentation in the "Events & Presentation" portion of its investor relations website at https://investors.beyond.com.