Barnes & Noble Education Q3 revenue rises

Overview

• U.S. education solutions provider's fiscal Q3 revenue rose 11.3% year-over-year

• Net income and adjusted EBITDA declined due to absence of prior-year one-time gains

• Company to begin quarterly dividend program in fiscal Q1 2027

Outlook

• Barnes & Noble Education expects fiscal 2026 Adjusted EBITDA of $65 mln to $75 mln

• Company anticipates about $18 mln in capital expenditures for fiscal 2026

• Barnes & Noble Education targets fiscal 2027 Adjusted EBITDA growth of 15% to 20% or more

Result Drivers

• BNC FIRST DAY GROWTH - Revenue from BNC First Day programs rose 32.1% year-over-year, driven by increased institutional adoption and higher student enrollment

• GROSS MARGIN PRESSURE - Adjusted EBITDA declined in part due to a decrease in gross margins resulting from timing differences in revenue recognition during the spring rush selling season

• ABSENCE OF ONE-TIME GAINS - Net income fell year-over-year primarily due to the absence of a one-time non-cash restructuring gain and a tax benefit recognized in the prior period

Company press release: ID:nGNXn1QpC

Key Details

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