Bed Bath & Beyond (BBBY)
NYSE:BBBY
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Bed Bath & Beyond
(NYSE:BBBY)
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Rating:46Neutral
Price Target:
$4.50
▲(3.45% Upside)
Action:ReiteratedDate:04/03/26
The score is held down primarily by weak financial performance (shrinking revenue base, continued losses, and ongoing cash burn) and bearish technical trends (price below key moving averages with negative MACD). These are partly offset by a more positive earnings-call read-through showing material margin/EBITDA improvement and a clearer path toward breakeven, plus value-creation potential from recent M&A—though execution and integration risks remain meaningful.
Positive Factors
Gross margin expansion
Sustained gross margin improvement driven by better vendor terms, product mix, tighter inventory controls and freight/returns changes. Higher structural margins reduce the revenue needed to cover fixed costs and improve resilience, making future profitability easier if top-line stabilizes.
Negative Factors
Negative cash flow
Persistent negative operating and free cash flow constrains internal funding for transformation and increases dependence on external financing. Limited cash generation raises liquidity risk during multi-transaction integration and reduces buffer against operational setbacks or housing-market softness.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin expansion
Sustained gross margin improvement driven by better vendor terms, product mix, tighter inventory controls and freight/returns changes. Higher structural margins reduce the revenue needed to cover fixed costs and improve resilience, making future profitability easier if top-line stabilizes.
Read all positive factors
Bed Bath & Beyond (BBBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$314.89M
Dividend YieldN/A
Average Volume (3M)1.62M
Price to Earnings (P/E)―
Beta (1Y)2.60
Revenue Growth-27.23%
EPS Growth62.19%
CountryUS
Employees32,000
SectorGeneral
Sector StrengthN/A
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.30
Shares Outstanding72,388,435
10 Day Avg. Volume1,276,547
30 Day Avg. Volume1,619,159
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.51
Price to Sales (P/S)0.31
P/FCF Ratio-5.12
Enterprise Value/Market Cap0.57
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit0.70
Enterprise Value/Ebitda-3.06
Forecast
1Y Price Target
$10.00Price Target Upside129.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.69
Revenue Forecast (FY)$1.09B
Bed Bath & Beyond Business Overview & Revenue Model
Company Description
Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. It sells a range of domestics merchandise, including bed linens and related items, bath items, and kitchen textiles; and home furnishings, such as kitchen a...
How the Company Makes Money
Historically, Bed Bath & Beyond made money primarily through retail sales of home goods and related merchandise to consumers. Its core revenue stream was merchandise revenue generated from selling branded and private-label products across categori...
Bed Bath & Beyond Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call emphasized substantial operational and margin progress (gross margin expansion, large YoY adjusted EBITDA improvement, cost reductions, improved AOV and orders) and laid out a detailed, multi-pillar strategic plan with near-term M&A and integration milestones. Key near-term risks include a recent revenue decline, remaining reported losses, integration and transaction costs, limited combined cash/inventory balance, and early-stage technology initiatives. On balance, the improvements in profitability metrics, structural margin progress and a clear strategic roadmap outweigh the challenges, though successful execution of acquisitions and tech integrations will be critical to realize the upside.Positive Updates
Significant Adjusted EBITDA Improvement
Adjusted EBITDA loss narrowed to $4.0M in Q4 (an improvement of $23M or 84% year-over-year) and full-year adjusted EBITDA loss improved to $31M, a $113M improvement versus 2024 (about 79% improvement).
Negative Updates
Quarterly Revenue Decline
Revenue declined 10% year-over-year in Q4 2025 (a 6% decline excluding discontinued Canadian operations), attributed to housing market softness and deliberate SKU/vendor eliminations that sacrificed top-line for margin integrity.
Read all updates
Q4-2025 Updates
Positive
Negative
Significant Adjusted EBITDA Improvement
Adjusted EBITDA loss narrowed to $4.0M in Q4 (an improvement of $23M or 84% year-over-year) and full-year adjusted EBITDA loss improved to $31M, a $113M improvement versus 2024 (about 79% improvement).
Read all positive updates
Company Guidance
Management delivered directional (not formal) 2026 commentary calling for low- to mid-single-digit revenue growth for the full year (e‑commerce base only) and a push to advance gross margin toward 25% (midpoint of a 24%–26% framework); Q4 2025 GM was 24.6% (+160 bps YoY) and FY GM was 24.7% (+390 bps YoY). They expect Q1 2026 revenue up roughly 3%–5% YoY with at least ~30% improvement in EBITDA versus Q1 last year, view Q2 (Kirkland’s close on/around April 1) as an integration quarter with ~90–120 days to realize synergies, expect integration to flow more materially in Q3 with a stretch objective to approach breakeven, and see an opportunity for profitability in Q4 if milestones are met. Recent quarterly metrics referenced include Q4 revenue down 10% YoY (down 6% ex‑Canada), AOV +7%, orders delivered +13% vs Q3, Q4 adjusted EBITDA loss $4M (an $23M/84% YoY improvement) and FY adjusted EBITDA loss $31M (a $113M YoY improvement), reported diluted EPS loss $0.30 (an $1.36/82% YoY improvement), S&M down $15M (~350 bps efficiency gain), G&A & tech $33M (down $15M YoY), exceeded a $150M annual run‑rate cost reduction target, ended the quarter with cash + restricted cash + inventory of $207M, and improved cash used in operations by >$118M (≈67%). Management also noted omnichannel scale (~$1.5B including Kirkland plus an expected additional ~$500M transaction) and potential Pillar 2/3 acquisitions that could add north of $1.5B, which they say could drive consolidated margins above 30% over time in a normal housing environment.Bed Bath & Beyond Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
47
Neutral
Cash Flow
12
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.04B | 1.39B | 1.56B | 1.93B | 2.76B |
| Gross Profit | 257.52M | 272.55M | 295.84M | 427.37M | 606.04M |
| EBITDA | -67.52M | -236.85M | -244.91M | -11.89M | 147.06M |
| Net Income | -84.62M | -258.80M | -307.84M | -35.24M | 108.55M |
Balance Sheet | |||||
| Total Assets | 425.48M | 401.95M | 635.82M | 878.55M | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 175.29M | 159.17M | 302.61M | 371.26M | 503.34M |
| Total Debt | 22.07M | 32.66M | 3.75M | 42.51M | 51.35M |
| Total Liabilities | 207.53M | 239.22M | 276.69M | 232.72M | 321.58M |
| Stockholders Equity | 217.58M | 162.73M | 359.13M | 645.83M | 744.39M |
Cash Flow | |||||
| Free Cash Flow | -64.11M | -194.66M | -63.58M | -1.32B | -336.33M |
| Operating Cash Flow | -56.70M | -174.30M | -18.59M | -990.98M | 17.85M |
| Investing Cash Flow | -49.23M | 24.93M | -44.63M | -298.74M | -349.18M |
| Financing Cash Flow | 122.05M | 32.72M | -5.49M | 967.03M | -606.02M |
Bed Bath & Beyond Technical Analysis
Negative
4.35
Price Trends
5.18
Negative
5.70
Negative
7.26
Negative
Market Momentum
-0.20
Negative
37.23
Neutral
43.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBBY, the sentiment is Negative. The current price of 4.35 is below the 20-day moving average (MA) of 4.70, below the 50-day MA of 5.18, and below the 200-day MA of 7.26, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 37.23 is Neutral, neither overbought nor oversold. The STOCH value of 43.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBBY.
Bed Bath & Beyond Risk Analysis
Bed Bath & Beyond disclosed 76 risk factors in its most recent earnings report. Bed Bath & Beyond reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bed Bath & Beyond Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $5.07B | 28.32 | 25.85% | 3.10% | 13.37% | -19.37% | |
67 Neutral | $21.41B | 23.88 | 51.45% | 1.37% | 5.10% | 7.59% | |
67 Neutral | $3.68B | 9.73 | 18.07% | 1.04% | -0.65% | -10.35% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | $9.12B | -41.81 | 11.30% | ― | 3.35% | 42.99% | |
51 Neutral | $13.39B | 12.85 | 38.54% | 5.46% | -0.95% | -48.28% | |
46 Neutral | $314.89M | -3.88 | -48.74% | ― | -27.23% | 62.19% |
* General Sector Average
BBBY
Bed Bath & Beyond
4.82
0.37
8.31%
BBY
Best Buy Co
64.48
4.23
7.02%
WSM
Williams-Sonoma
187.53
31.69
20.34%
W
Wayfair
74.18
44.52
150.10%
ASO
Academy Sports and Outdoors
56.20
16.72
42.35%
MNSO
MINISO Group Holding
16.81
1.03
6.55%
Bed Bath & Beyond Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Bed Bath & Beyond Finalizes Brand House Collective Acquisition
Positive
Apr 2, 2026
On April 2, 2026, Bed Bath Beyond completed its previously announced acquisition of The Brand House Collective, merging its Knight Merger Sub subsidiary into TBHC and making TBHC a wholly owned unit. Each TBHC common share outstanding before the ...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Bed Bath & Beyond Announces Transformative Container Store Merger
Positive
Apr 2, 2026
On April 2, 2026, Bed Bath Beyond, Inc. signed a merger agreement under which Falcon Merger Sub, its wholly owned subsidiary, will merge with The Container Store Holdings, LLC, leaving The Container Store as a wholly owned subsidiary. The deal va...
Business Operations and StrategyPrivate Placements and Financing
Bed Bath & Beyond expands loan participation in retailer
Positive
Jan 9, 2026
On January 9, 2026, Bed Bath Beyond purchased an additional $2.17 million participation in term loans issued by The Container Store under an existing credit agreement, following an earlier $6.46 million loan participation made on November 25, 202...
Business Operations and StrategyExecutive/Board Changes
Bed Bath & Beyond Names Marcus Lemonis as CEO
Neutral
Jan 5, 2026
On December 30, 2025, Bed Bath Beyond’s board appointed Executive Chairman and principal executive officer Marcus Lemonis as Chief Executive Officer, effective January 1, 2026, consolidating the company’s top leadership roles under a ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.