Bed Bath & Beyond posted a net loss in its fourth quarter, lighter than Wall Street expected, while revenues also beat analyst estimates, and the company looked forward to reversing revenue declines in the year ahead.
Net loss was $20.9 million, or 30 cents per diluted share, versus a net loss of $81.3 million, or $1.66 per diluted share, in the year-before quarter. Adjusted for one-time events, the company reported a net loss of $11 million, or 16 cents per diluted share, versus a loss of $44.5 million, or 91 cents per diluted share, in the year-previous period.
For the quarter, a Zacks Investment Research analyst consensus estimate pegged loss per adjusted diluted share at 23 cents and revenues at $265.5 million.
Net revenue was $273.4 million versus $303.2 million in the year-prior quarter. Operating loss was $13.1 million versus an operating loss of $44.6 million in the period a year earlier.
For the full fiscal year, net loss was $84.6 million, or $1.41 per diluted share, versus a net loss of $258.8 million, or $5.56 per diluted share, in the year before. Adjusted net loss was $57.4 million, or 96 cents per diluted share, Bed Bath & Beyond noted, versus a net loss of $178.7 million, or $3.84 per diluted share, in the year previous.
Net revenue was $1.04 billion versus $1.39 billion in the year prior. Operating loss was $61.2 million versus an operating loss of $184.1 million in the year earlier.
In a conference call, Marcus Lemonis, Bed Bath & Beyond executive chairman and CEO, said, “We believe the true base of the business has now been established in 2025. We are seeing low to mid single-digit year-over-year increases in revenue growth early in the year and are targeting low to mid single-digit revenue growth for the full year 2026 based on current trends. While we are not providing formal guidance, it is important because the company is in an active building phase, growing its base business while layering in complementary acquisitions.”
In setting the base, Lemonis said, Bed Bath & Beyond deliberately eliminated vendors and SKUs, which, with housing market softness, hit revenues as the company determined to support margins.
“We chose margin integrity over headline revenue,” Lemonis said. “That was intentional, and it’s also in our past.”
In focusing on its goal of serving homeowners throughout their lives, Lemonis said, Bed Bath & Beyond will continue following the three pillar strategy, which consists of the omnichannel business, including the Bed Bath & Beyond, Overstock, Buy Buy Baby and Kirkland business; services, including the protection, advocacy, brokerage and financial solutions businesses; and home services installation and maintenance infrastructure businesses.
With the expansion of physical stores in 2026, Lemonis added, the company will lean more heavily into pre-bankruptcy Bed Bath & Beyond categories, such as housewares and small appliances.
In announcing the financial results, Lemonis said, “Our fourth quarter capped a year of measurable financial and operational progress. 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. 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.”
Bed Bath & Beyond President and CFO 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.”
