Revenue grew 7-18% year-over-year across comparable quarters with Q2 2026 reaching $644.4M, yet gross margins of 17.2-21.3% and a fixed SG&A base of $67.0-77.3M per quarter leave minimal cost-absorption room, producing operating losses of $18-92M in seasonal troughs.
Barnes & Noble Education, Inc. (BNED) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | May'26 | May'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 | Apr'19 | Apr'18 | Apr'17 | Apr'16 | Apr'15 | Apr'14 | Apr'13 |
|---|
| Sales/Revenue | 1.72B | 1.71B | 1.61B | 1.57B | 1.54B | 1.5B | 1.41B | 1.85B | 2.03B | 2.2B | 1.87B | 1.81B | 1.77B | 1.75B | 1.76B |
| Revenue Growth % | 5.03% | 6.5% | 2.75% | 1.55% | 3.17% | 6.34% | -24.02% | -9.02% | -7.67% | 17.57% | 3.67% | 1.98% | 1.43% | -0.87% | - |
| Cost of Goods Sold | 1.36B | 1.35B | 1.27B | 1.22B | 1.19B | 1.15B | 1.18B | 1.41B | 1.51B | 1.65B | 1.42B | 1.35B | 1.33B | 1.31B | 1.36B |
| COGS % of Revenue | - | 78.65% | 79.02% | 77.99% | 77.36% | 77.08% | 83.62% | 76.09% | 74.06% | 74.71% | 75.51% | 74.85% | 74.98% | 75.01% | 77.05% |
| Gross Profit | 360.41M | 366.17M | 337.8M | 344.91M | 349.44M | 342.83M | 230.34M | 442.55M | 527.73M | 557.23M | 459.06M | 454.7M | 443.57M | 436.76M | 404.62M |
| Gross Margin % | 20.99% | 21.35% | 20.98% | 22.01% | 22.64% | 22.92% | 16.38% | 23.91% | 25.94% | 25.29% | 24.49% | 25.15% | 25.02% | 24.99% | 22.95% |
| Gross Profit Growth % | - | 8.4% | -2.06% | -1.3% | 1.93% | 48.84% | -47.95% | -16.14% | -5.3% | 21.39% | 0.96% | 2.51% | 1.56% | 7.95% | - |
| Operating Expenses | 309.67M | 322.38M | 321.88M | 378.71M | 415.88M | 403.45M | 399.11M | 485.33M | 555.38M | 819.94M | 445.51M | 450.08M | 410.01M | 378.44M | 349.75M |
| OpEx % of Revenue | - | 18.8% | 19.99% | 24.17% | 26.95% | 26.97% | 28.38% | 26.22% | 27.3% | 37.21% | 23.77% | 24.89% | 23.13% | 21.65% | 19.84% |
| Selling, General & Admin | 289.08M | 289.62M | 283.8M | 311.57M | 357.61M | 353.97M | 316.16M | 404.47M | 423.88M | 433.75M | 380.79M | 374.17M | 359.5M | 330.43M | 302.9M |
| SG&A % of Revenue | - | 16.89% | 17.63% | 19.88% | 23.17% | 23.67% | 22.48% | 21.85% | 20.83% | 19.68% | 20.32% | 20.7% | 20.28% | 18.9% | 17.18% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 32.75M | 38.08M | 67.14M | 58.27M | 49.48M | 82.94M | 80.86M | 131.5M | 386.19M | 64.71M | 75.91M | 50.51M | 48.01M | 46.85M |
| Operating Income | 49.58M | 43.79M | 15.92M | -33.8M | -66.45M | -60.62M | -168.76M | -42.78M | -27.65M | -262.7M | 13.55M | 4.62M | 33.56M | 58.33M | 54.87M |
| Operating Margin % | 2.89% | 2.55% | 0.99% | -2.16% | -4.31% | -4.05% | -12% | -2.31% | -1.36% | -11.92% | 0.72% | 0.26% | 1.89% | 3.34% | 3.11% |
| Operating Income Growth % | - | 175.01% | 147.12% | 49.14% | -9.62% | 64.08% | -294.46% | -54.71% | 89.47% | -2038.05% | 193.21% | -86.22% | -42.46% | 6.31% | - |
| EBITDA | 81.3M | 76.55M | 53.86M | 6.76M | -24.26M | -18.11M | -122.81M | 23.16M | 39.31M | -197.12M | 66.87M | 57.31M | 84.07M | 106.34M | 101.71M |
| EBITDA Margin % | 4.73% | 4.46% | 3.35% | 0.43% | -1.57% | -1.21% | -8.73% | 1.25% | 1.93% | -8.95% | 3.57% | 3.17% | 4.74% | 6.08% | 5.77% |
| EBITDA Growth % | -25.67% | 42.11% | 696.32% | 127.88% | -33.98% | 85.26% | -630.3% | -41.08% | 119.94% | -394.76% | 16.68% | -31.83% | -20.94% | 4.55% | - |
| D&A (Non-Cash Add-back) | 31.72M | 32.75M | 37.94M | 40.56M | 42.19M | 42.51M | 45.95M | 65.94M | 66.96M | 65.59M | 53.32M | 52.69M | 50.51M | 48.01M | 46.85M |
| EBIT | 36.81M | 32.96M | -44.12M | -45.77M | -69.06M | -60.62M | -168.76M | -42.78M | -27.65M | -262.7M | 13.55M | 4.62M | 33.56M | 58.33M | 54.87M |
| Net Interest Income | -13.92M | -15.87M | -17.1M | -27.21M | -19.55M | -10.1M | -8.09M | -7.45M | -9.78M | -10.31M | -3.46M | -1.87M | -210K | -385K | -4.87M |
| Interest Income | 94K | 86K | 350K | 1.18M | 518K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 14.01M | 15.95M | 17.45M | 28.39M | 20.07M | 10.1M | 8.09M | 7.45M | 9.78M | 10.31M | 3.46M | 1.87M | 210K | 385K | 4.87M |
| Other Income/Expense | -21.98M | -23.12M | -77.49M | -40.37M | -22.68M | -10.1M | -8.09M | -7.45M | -9.78M | -10.31M | -3.46M | -1.87M | -210K | -385K | -4.87M |
| Pretax Income | 27.61M | 20.67M | -61.57M | -74.16M | -89.13M | -70.71M | -176.85M | -50.23M | -37.43M | -273.01M | 10.09M | 2.75M | 33.35M | 57.94M | 49.99M |
| Pretax Margin % | 1.61% | 1.21% | -3.82% | -4.73% | -5.78% | -4.73% | -12.57% | -2.71% | -1.84% | -12.39% | 0.54% | 0.15% | 1.88% | 3.31% | 2.84% |
| Income Tax | 5.38M | 3.8M | 4.26M | 858K | 1.01M | -9.15M | -43.28M | -11.98M | -13.06M | -20.44M | 4.73M | 2.67M | 14.22M | 22.83M | 19.82M |
| Effective Tax Rate % | 19.48% | 18.38% | -6.91% | -1.16% | -1.13% | 12.94% | 24.47% | 23.85% | 34.89% | 7.49% | 46.87% | 96.95% | 42.63% | 39.41% | 39.64% |
| Net Income | 22.23M | 16.87M | -65.83M | -75.75M | -101.86M | -68.86M | -139.81M | -38.25M | -24.37M | -252.57M | 5.36M | 84K | 19.13M | 35.11M | 30.17M |
| Net Margin % | 1.29% | 0.98% | -4.09% | -4.83% | -6.6% | -4.6% | -9.94% | -2.07% | -1.2% | -11.46% | 0.29% | 0% | 1.08% | 2.01% | 1.71% |
| Net Income Growth % | 152.32% | 125.63% | 13.1% | 25.64% | -47.93% | 50.75% | -265.52% | -56.93% | 90.35% | -4811.17% | 6282.14% | -99.56% | -45.5% | 16.35% | - |
| Net Income (Continuing) | 22.23M | 16.87M | -65.83M | -75.02M | -90.14M | -61.56M | -133.57M | -38.25M | -24.37M | -252.57M | 5.36M | 84K | 19.13M | 35.11M | 30.17M |
| Discontinued Operations | 0 | 0 | 0 | -730K | -11.72M | -7.3M | -6.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.64 | 0.49 | -2.50 | -23.47 | -42.28 | -28.99 | -57.75 | -80.00 | -52.00 | -540.10 | 11.00 | 0.18 | 33.00 | 87.67 | 0.78 |
| EPS Growth % | -27.27% | 119.6% | 89.35% | 44.49% | -45.84% | 49.8% | 27.81% | -53.85% | 90.37% | -5010% | 6011.11% | -99.45% | -62.36% | 11139.74% | - |
| EPS (Basic) | - | 0.49 | -2.50 | -23.47 | -42.28 | -28.99 | -57.75 | -79.67 | -51.52 | -540.10 | 11.57 | 0.18 | 33.14 | 87.67 | 0.78 |
| Diluted Shares Outstanding | 34.53M | 34.61M | 26.3M | 26.62M | 20.98M | 20.72M | 19.87M | 19.21M | 18.92M | 18.71M | 18.71M | 18.59M | 15.4M | 14.91M | 14.72M |
| Basic Shares Outstanding | 34.53M | 34.33M | 26.3M | 26.62M | 20.98M | 20.69M | 19.86M | 19.13M | 18.75M | 18.71M | 19.48M | 18.59M | 15.45M | 14.91M | 14.72M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying BNED stock.
For fiscal year 2026, Barnes & Noble Education, Inc. (BNED) reported total revenue of $1.71B. This represents a 2.7% decline compared to $1.76B in 2013.
Barnes & Noble Education, Inc. (BNED) is profitable, generating $16.9M in net income for the fiscal year ending 2026 with a net profit margin of 1.0%.
Barnes & Noble Education, Inc. (BNED) reported an operating income of $43.8M, resulting in an operating profit margin of 2.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Barnes & Noble Education, Inc. (BNED) generated $366.2M in gross profit for the year, representing a gross profit margin of 21.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Seasonal margin volatility constrains earnings durability
Metrics are mathematically derived from official filings.
Seasonal Revenue Growth Holds Steady
BNED's revenue grew 7-18% year-over-year across comparable quarters, per reported financial statements, with Q2 2026 reaching $644.4M versus $602.1M a year earlier, suggesting modest but consistent top-line expansion tied to back-to-school demand.
BNED's revenue is structurally seasonal, with the July-October back-to-school window driving $600M+ quarters while Q1 and Q4 run at roughly $240-290M. Growth has been positive but inconsistent in magnitude — Q4 2025 posted +18% while Q2 2026 came in at +7% — suggesting the business captures incremental demand in peak periods but doesn't yet show a durable secular tailwind. Investors should watch whether the mid-2026 growth spurt (Q2/Q3 2026 up 7-10%) reflects structural share gains or simply favorable timing of purchases.
Structurally Thin Margins vs. Digital Peers
BNED's gross margin has hovered between 17.2% and 21.3% across core quarters, per its income statements, far below Chegg's 60.2% and Perdoceo's 71.7%, reflecting a low-margin physical distribution model that leaves minimal room for cost absorption.
The Q4 gross margin spikes — 29.6% in 2024Q4 and 31.8% in 2026Q4 — appear to reflect mix effects or non-recurring items during lower-revenue quarters rather than sustainable pricing power. More concerning is 2026Q3, where gross profit fell to $88.7M from $96.4M a year earlier despite $48.8M more revenue, implying significant margin erosion from pricing pressure, product mix, or inventory costs. At these margin levels, even a 200-basis-point compression could eliminate BNED's peak-quarter operating profit entirely.
Fixed Overhead Amplifies Seasonal Losses
SG&A has remained tightly range-bound at $67.0-77.3M per quarter, per reported financials, meaning BNED's fixed cost base generates negative operating leverage in trough quarters — producing operating losses of $18-92M in Q1s even as peak quarters swing positive.
The fixed SG&A structure creates asymmetric operating outcomes — 2026Q2 generated $40.8M operating income on $644.4M revenue, while 2026Q1 lost $23.2M on $288.2M with essentially the same overhead. The structural improvement from 2025Q1's -$91.7M loss to 2026Q1's -$23.2M loss suggests either meaningful cost actions or favorable gross margin shifts, though Q1 2027's -$18.4M loss shows the seasonal trough remains loss-making. SG&A efficiency should be evaluated on a full-year basis given the extreme intra-year variation.
Early 2025 Marks Clear Loss Reduction Inflection
The most significant operational inflection occurred between 2025Q1 and 2026Q1, when the quarterly operating loss narrowed from $91.7M to $23.2M per SEC filings, suggesting either meaningful cost restructuring or improved gross margin execution during the seasonal trough.
The dramatic improvement from 2025Q1's -$91.7M operating loss (on a 17.9% gross margin) to 2026Q1's -$23.2M loss (on a 19.2% gross margin) appears to reflect a combination of modest gross margin recovery and potentially cost actions, since SG&A was essentially flat at $67.0M versus $67.9M. The inflection held through 2027Q1, where the loss further narrowed to $18.4M. However, the trajectory remains fragile — the sequential 2027Q1 loss still represents meaningful cash burn during the seasonally weakest period, and the durability of this improvement depends on whether the underlying margin and cost changes are structural rather than temporary.
Net Income Volatility Signals Non-Operating Drag
Net income swings wildly relative to operating income — 2025Q4 posted $28.5M in operating profit yet delivered a $23.2M net loss, per SEC filings, implying roughly $52M in non-operating charges that materially obscured underlying business performance.
Non-operating items — likely interest expense on debt given the magnitude, though not directly disclosed in the data provided — have been materially negative in multiple quarters, with the largest divergence appearing in 2025Q4 ($51.7M gap) and 2026Q2 ($15.8M gap). EPS has ranged from -$7.36 to $1.87 over the trailing 10 quarters, making valuation multiples unreliable without normalizing for these items. SBC has been minimal at $0.8-2.5M per quarter, so dilution risk from equity compensation appears limited, but the persistent non-operating drag warrants scrutiny of debt servicing costs and their trajectory.
Seasonality and Margin Pressure Challenge Durability
The strongest bear case rests on structural margin compression and seasonal dependence — 2026Q3 gross profit fell to $88.7M from $96.4M a year earlier despite higher revenue, per income statements, raising questions about whether demand growth is coming at the cost of pricing power.
A short-seller would point to the fundamental disconnect between BNED's ~19% gross margins and peer digital education companies at 60%+ margins, arguing that the company's growth comes with structurally inferior unit economics that leave no cushion for cost inflation. The repeated Q1 operating losses and volatile EPS trajectory suggest that reported profitability may be more dependent on seasonal timing and non-operating items than on underlying pricing power. If back-to-school demand softens or if cost of goods pressures intensify, the fixed SG&A base could push BNED into persistent unprofitability — an outcome that historical seasonal recovery patterns don't eliminate as a risk.