Barnes & Noble Education, Inc. (BNED) Market Cap
Barnes & Noble Education, Inc. has a market capitalization of $376.2M.
Financials based on reported quarter end 2026-01-31
Price: $10.97
▼ -0.12 (-1.08%)
Market Cap: 376.23M
NYSE · time unavailable
CEO: Jonathan Shar
Sector: Consumer Cyclical
Industry: Specialty Retail
IPO Date: 2015-07-23
Website: https://www.bned.com
Barnes & Noble Education, Inc. (BNED) - Company Information
Market Cap: 376.23M · Sector: Consumer Cyclical
Barnes & Noble Education, Inc. operates bookstores for college and university campuses, and K-12 institutions in the United States. It operates through three segments: Retail, Wholesale, and Digital Student Solutions. The company sells and rents new and used print textbooks, digital textbooks, and publisher hosted digital courseware through physical and virtual bookstores, as well as directly to students through Textbooks.com. It also offers First Day and First Day Complete access programs; BNC OER+, a turnkey solution for colleges and universities, that offers digital content, such as videos, activities, and auto-graded practice assessments; and general merchandise, including collegiate and athletic apparel, school spirit products, lifestyle products, technology products, supplies, graduation products, and convenience items. In addition, the company sources, sells, and distributes new and used textbooks; and sells hardware and a software suite of applications that provides inventory management and point-of-sale solutions to approximately 350 college bookstores. Further, it offers direct-to-student subscription-based writing services; and bartleby, a direct-to-student subscription-based offering that includes textbook solutions, expert questions and answers, and writing and tutoring services. The company operates 805 physical college and university bookstores; 622 virtual bookstores; 8 True Spirit e-commerce websites; pop-up retail locations; 73 customized cafés and 11 stand-alone convenience stores; and a media channel for brands targeting the college demographic. Barnes & Noble Education, Inc. was founded in 1965 and is headquartered in Basking Ridge, New Jersey.
Analyst Sentiment
Based on 3 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 2 sources)
Consensus Price Target
Low
$1
Median
$2
High
$4
Average
$2
Downside: -78.3%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"For the quarter ending January 31, 2026, BNED reported revenue of $515.1M and a net income of $6.7M, yielding an EPS of $0.19. However, the company has faced challenges, reflected in negative operating cash flow of -$29.4M and free cash flow of -$33.1M. With $1.13B in total assets and $840.3M in total liabilities, the company's leverage position indicates a net debt of $305.9M against its total equity of $290M. Despite improvements in market performance year-to-date with a 5.92% increase, the stock has declined by 14.29% over the past year. The lack of dividends further underscores challenges in cash flow. The price targets vary considerably, ranging from $0.75 to $4, suggesting mixed sentiment regarding valuation. Overall, while the revenue is substantial, profitability and cash flow concerns warrant cautious evaluation."
Revenue Growth
Solid revenue of $515.1M, indicating a stable position.
Profitability
Net income of $6.7M shows minimal profitability.
Cash Flow Quality
Negative operating and free cash flow raise concerns.
Leverage & Balance Sheet
High liabilities compared to equity suggest cautious leverage management.
Shareholder Returns
Negative 1-year performance and no dividends limit returns.
Analyst Sentiment & Valuation
Wide price target range reflects uncertainty in valuation.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management is signaling a clear top-line inflection: First Day/FDC revenue acceleration (+52% FDC; +39% First Day programs) is now more than offsetting à la carte declines on a year-to-date basis, and they claim predictable revenue is enabling cost structure right-sizing. Financially, the quarter backs this with a 180 bps EBITDA margin expansion to 8.2% and S&A down $12.9M YoY (210 bps as % of revenue). However, the Q&A reveals ongoing operational frictions: delayed inventory receipts are still weighing on general merchandise comps (-1.7%), and gross margin fell 70 bps due to higher markdowns tied to underperforming store closures and mix shifts (more digital/lower commissions). On demand risk, management said churn isn’t evident yet and participation rates in the newer cohort align with or exceed expectations. When pressed on deferred cash collection timing (drop/add), management argued receivables collection improved and the model is B2B-aligned rather than requiring a larger credit facility.
Growth Catalysts
- First Day Complete (FDC) revenue up 52% YoY to $136M; First Day programs revenue up 39% to $199M
- Combined First Day programs revenue $199M supporting retail top-line growth while à la carte declines continued
- FDC comp store course material sales up 6.5% driven by higher student participation rates
- Courseware mix shift: First Day and First Day Complete nearing 50% of course material revenue
Business Development
- 157 campus stores transitioned to FDC since launch; fall term enrollment nearly 800,000 students
- Contracts already signed for spring term '24 and fiscal 2025 (customer pipeline referenced as 'robust')
- Hundreds of conversations with institutions; management: 'not a matter of if, it's really a matter of when' for further launches
- Fanatics and Lids relationship benefits highlighted (Ohio State University book store exclusive lululemon launch at 4:30 a.m.)
Financial Highlights
- Total revenue $610.4M, up 0.3% YoY (+$1.7M)
- Adjusted EBITDA (continuing operations) $50.3M, up 28.3% (+$11.1M)
- EBITDA margin increased by 180 basis points to 8.2%
- Strategic cost savings: achieved planned $30M to $35M annualized cost savings; S&A decrease of $13M YoY drove adjusted EBITDA growth
- Retail segment: adjusted EBITDA up 23%; retail revenue $599.3M up 0.1% YoY
- Retail comparable store course material sales +5.8%; comparable general merchandise -1.7% (trade books and cafe/convenience hit by delayed inventory receipts from prior quarter)
- Retail selling & admin: decreased $12.9M YoY and fell 210 bps as % of revenue to 12.9% from 15%
- Retail gross margin: 20.9%, down 70 bps; retail gross profit down $4M (-3.1%) driven by higher markdowns (including store closures) and mix shift (higher % lower-margin digital course material sales, lower emblematic commissions)
- Wholesale: gross profit $6.1M (29% of sales) vs $5.5M (25.8%) prior year; wholesale S&A down 9.7% to $3.5M
- Guidance maintained: FY2024 adjusted EBITDA from continuing operations ~ $40M (expect YoY increase driven by retail/First Day growth and cost reduction actions)
Capital Funding
- Cash balance $15M at quarter end
- Outstanding borrowings $234M vs $250M prior year and $278M in prior quarter
- CapEx $4M vs $9.3M prior year-quarter period; decreased by $5.3M due to spending reduction/efficiencies
Strategy & Ops
- Ongoing transition to First Day Complete / subscription-like B2B model
- Operating footprint: maintained top-line growth while operating in 128 fewer stores
- Store closure/underperformance noted as part of markdown pressure (gross margin down); markdowns include closures of underperforming stores
- Right-sizing costs and aligning inventory management/operating efficiency as revenue shifts to more predictable FDC/FDC-like model
Market Outlook
- Pipeline: management expects acceleration of FDC scaling going forward
- Spring '24 transitions described as consistent with past trends; additional conversions linked to 'hundreds of conversations' and 'Fall term '24 launch' (fiscal '25) pipeline
Risks & Headwinds
- Delayed inventory receipts continued to pressure general merchandise comps (-1.7%), especially trade books and cafe/convenience
- Gross margin headwinds from higher markdowns (including store closures) and unfavorable mix toward lower-margin digital course material and reduced emblematic commissions
- Working capital timing question raised re: deferred cash collection after drop/add dates in FDC model; management pushed back that collections have improved and framed timing as aligned with B2B contract model (not explicitly quantified).
- Potential customer churn risk: management stated no opt-out/churn signals observed 'at this point' and participation/participation rates align with or exceed expectations
Sentiment: MIXED
Note: This summary was synthesized by AI from the BNED Q2 2024 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.