Barnes & Noble Education — Fiscal 2027 Q1 Earnings Summary

Financial Performance

• Revenue for the quarter ended August 1, 2026, was $290.6 million, an increase of $2.4 million (0.8%) compared to $288.2 million in the prior-year period.
• Gross comparable store sales increased by $10.7 million (3.7%) year-over-year.
• Revenue from BNC First Day® programs rose $10.3 million (9.0%) to $124.7 million.
• Net loss improved 29.3% to $12.9 million, compared to a net loss of $18.3 million in the prior-year period.
• Adjusted EBITDA improved 18.9% to a loss of $9.3 million, compared to a loss of $11.5 million in the prior-year period.
• Total debt decreased to $123.5 million at quarter-end, down from $170.0 million in the prior-year period.
• Net working capital remained strong at $236.8 million positive working capital as of the quarter-end.
• Depreciation and amortization expense was $8.151 million, down from $9.185 million in the prior year.
• Interest expense, net, was $2.718 million, down from $3.745 million in the prior year.
• Stock-based compensation expense was $1.084 million, down from $2.536 million in the prior year.

Guidance and Future Outlook

• The Company reiterated its fiscal 2027 outlook based on first-quarter performance.
• The Company expects continued revenue growth and is focused on driving operating leverage through disciplined expense management.
• Fiscal 2027 Adjusted EBITDA is targeted in the range of $85 million to $92 million.
• The Company anticipates further significant improvements in net income profitability.
• Capital expenditures are anticipated to be approximately $20 million for fiscal 2027.
• The Company expects to be a normal cash taxpayer in fiscal 2027.
• The Company sees opportunities to drive better capital efficiency, contributing to additional debt and interest expense reductions.

Business Segments and Product Lines

• First Day® Complete is expected to reach more than 1.43 million students in Fall 2026, a 26% increase over Fall 2025.
• First Day® Complete will be offered across 263 campuses during the Fall 2026 academic term.
• Revenue growth was driven by BNC First Day® programs, partially offset by store closures including exits from less profitable locations.
• The financial impact of the expanded Fall 2026 First Day® Complete participation will be primarily reflected in the second and subsequent quarters of fiscal 2027 due to seasonality.

Other Key Points

• The Company declared a quarterly dividend of $0.08 per share, paid on July 30, 2026, to shareholders of record on July 16, 2026.
• The Company plans to host earnings conference calls following fiscal 2027 second quarter and full-year results.
• The business is highly seasonal, with the majority of sales and operating profit typically realized during the second and third fiscal quarters.
• The Board reserves the right to adjust or withdraw any quarterly dividend in future periods based on capital allocation strategy and credit agreement compliance.