A Wall Street beat on net loss and some better metrics in the third quarter had Bed Bath & Beyond saying it has made progress toward turning revenue around and in pursuit of profitability as the company looks ahead to 2026.
Net loss was $4.5 million, or seven cents per diluted share, versus $61 million, or $1.33 per diluted share, in the year-previous quarter, according to the company. Adjusted for one-time events, net loss was $11.5 million, or 19 cents per diluted share, versus $43.8 million, or 96 cents per diluted share, in the year-before period.
A Zacks Investment Research analyst consensus estimate called for loss per adjusted diluted share of 38 cents and revenues of $258.4 million.
Net revenue was $257.2 million, a decrease of 17.4% from the year-prior quarter. Net revenue excluding the impact from the company’s exit from Canada, a business consideration it made after considering means of independently financing the operation, decreased 13.2% year-over-year. Operating loss was $12.5 million versus $45.2 million in the year-earlier period.
In a conference call, Marcus Lemonis, Bed Bath & Beyond executive chairman and principal executive officer, noted the company completed its name change from Beyond in the third quarter. With that change back to Bed Bath & Beyond, the company now can leverage the connection that home goods consumers have in the brand.
Lemonis emphasized that Bed Bath & Beyond’s has had seven consecutive quarters of measurable improvement toward achieving profitability, and the company has stabilized its business, which, as a result, is positioned for growth. He maintained Bed Bath & Beyond delivered a 93% improvement in net loss and an 85% improvement in adjusted EBITDA, a 420 basis point increase in gross margin, all driven by disciplined execution, sharper focus and smarter spending.
“We know what’s working, and we also know what still needs improvement,” Lemonis said. “Ahead, we’ll place greater emphasis on data-driven decisions, faster technology and customer-focused solution-based experiences.”
As it moves forward, Bad Bath & Beyond is enhancing technology and analytics teams, combining internal talent with external experts and auditing every part of the customer journey to ensure personalized solicitation, discovery, checkout and post-purchase experiences. It is doing so to deliver the conversion and retention the Bed Bath & Beyond financial model requires, Lemonis stated
Although the company doesn’t provide guidance on revenue or bottom line, Lemonis said Bed Bath & Beyond is committed to having positive revenue growth in 2026. With regard to physical operations, he pointed out that the company expects completion of the 250 planned store conversions from Kirkland’s Home to Bed Bath & Beyond to occur by mid-2026 through its investment in and partnership with The Brand House Collective.
In announcing the financial results, Lemonis said, “The third quarter marked substantial progress towards achieving profitability through outstanding metric performance as well as material progress at both tZERO and GrainChain, two important platforms driving our long-term goal of becoming the ‘Everything Home’ company. As the company prepares for 2026, we expect year-over-year revenue trends to turn positive. We believe this upward trajectory, combined with margin consistency, an additional $20 million in operating expense efficiencies, and improved site conversion, position the company to achieve its profitability objectives.”
Adrianne Lee, Bed Bath & Beyond president and CFO, added, “We have made meaningful financial and operational progress this year. For the past seven quarters, we have delivered on our commitment to improve key business metrics critical to achieving profitability. I am pleased with both the narrowing of the year-over- year revenue decline in the quarter and the stabilization of key metrics we achieved. We recognize the necessity to generate more revenue while maintaining our disciplined approach to profitability.”
