Murray, Utah — February 23, 2026 — Leads & Copy — Bed Bath & Beyond, Inc. (NYSE:BBBY) reported its financial results for the fourth quarter and full year ended December 31, 2025, showing progress toward profitability and strategic development. The company owns Bed Bath & Beyond, Overstock, buybuy BABY, Kirkland’s Home and a blockchain asset portfolio.
The company reported its eighth consecutive quarter of measurable improvement toward profitability through margin expansion and disciplined cost management.
“Our fourth quarter capped a year of measurable financial and operational progress,” said Marcus Lemonis, Executive Chairman and Chief Executive Officer. “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.”
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.”
Fourth Quarter 2025 Results
Fourth quarter net revenue was $273 million, a 9.8% decrease year-over-year. Excluding the impact of exiting Canada, revenue declined 6.4% year-over-year.
The rate of revenue decline narrowed as the year progressed. While full year 2025 revenue declined 25.1% year-over-year, fourth quarter results reflect stabilization and improving trajectory, particularly when adjusting for the impact of the exit from Canada. The company believes completed structural work 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, 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.
2026 Outlook
The company expects revenue trends to continue to improve, targeting low to mid-single digit top line growth for the full year while maintaining 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.
Bed Bath & Beyond will host a live webcast on February 23, 2026, at 4:30 p.m. ET to discuss its fourth quarter and full year 2025 financial results. To access the live webcast, visit https://investors.beyond.com. A replay of the webcast will be available shortly after the live event has ended. On February 23, 2026, the Company posted an updated presentation in the “Events & Presentation” portion of its investor relations website at https://investors.beyond.com.
Bed Bath & Beyond, Inc., based in Murray, Utah, is an ecommerce-focused retailer with an affinity model that owns or has ownership interests in various retail brands. The Company currently owns Bed Bath & Beyond, Overstock, buybuy BABY, and now Kirkland’s Home, as well as other related brands and websites and a blockchain asset portfolio inclusive of tZERO, GrainChain, and other assets. The Company regularly posts information and updates on its Newsroom and Investor Relations pages on its website, bedbathandbeyond.com.
Source: Bed Bath & Beyond
