Barnes & Noble Education completes investigation, reports preliminary results

Barnes & Noble Education Inc. (NYSE: BNED) completed an internal investigation and reported preliminary unaudited financial results for fiscal 2025 and the first half of fiscal 2026, according to a company statement.

The investigation found that a former payment processing employee made unsupported manual journal entries that improperly reduced cost of sales in fiscal years 2024 and 2025. The company terminated the employee, who acted alone without assistance from other personnel and did not derive financial gains from the actions.

For fiscal 2025, preliminary revenue reached $1.6 billion, an increase of $40.8 million or 2.6% from the prior year. Net loss is expected to range from $62.0 million to $68.0 million, compared to $72.0 million to $78.0 million in fiscal 2024. The fiscal 2025 results include a $55.2 million non-cash loss related to debt extinguishment.

Adjusted EBITDA for fiscal 2025 is expected to range from $55.0 million to $63.0 million, compared to $34.0 million to $40.0 million in the prior year. Total debt decreased to $103.1 million from $196.3 million, while net working capital improved to $188.9 million from $46.1 million.

Revenue from BNC First Day programs increased $119.9 million or 25.3% year-over-year. First Day Complete reached 191 campus stores with approximately 957,000 students enrolled in spring 2025, up 19.0% from 803,000 in the prior year.

For the first half of fiscal 2026, preliminary revenue is expected to be approximately $933.0 million, an increase of 7.8% year-over-year. Net income is projected to range from $3.0 million to $8.0 million, compared to a net loss of $59.0 million to $65.0 million in the first half of fiscal 2025.

For fall 2025, First Day Complete enrollment reached approximately 1.14 million students across 223 campus stores, representing 24% growth from the prior year.

The company expects fiscal 2026 adjusted EBITDA in the range of $65 million to $75 million and projects 15% to 20% adjusted EBITDA growth for fiscal 2027.

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