Bed Bath & Beyond Q4 Revenue of $273M, Adjusted EBITDA Loss Narrows to $4M
In Q4, Bed Bath & Beyond generated $273 million in net revenue, down 6.4% ex-Canada, with gross margin up 160 bps to 24.6% and net loss narrowing $60 million to $21 million. Adjusted EBITDA loss improved by $23 million to $4 million and operating cash flow use decreased by $118 million.
1. Fourth-Quarter Financial Highlights
In the fourth quarter ended December 31, 2025, Bed Bath & Beyond reported net revenue of $273 million, a 9.8% year-over-year decline (6.4% excluding Canada), with gross profit of $67 million (24.6% margin, up 160 bps). Net loss narrowed $60 million to $21 million while adjusted EBITDA loss improved $23 million to $4 million.
2. Year-Over-Year Cost Reductions and Cash Flow Improvement
Sales and marketing expense fell to $38 million (13.8% of revenue, down 350 bps) and technology and general administrative costs declined $15 million year-over-year to $33 million, contributing to a $118 million year-over-year improvement in operating cash flow usage. Structural cost discipline and margin expansion marked the eighth consecutive quarter of measurable improvement.
3. 2026 Outlook and Growth Targets
For 2026, the company targets low to mid-single-digit top-line growth driven by improved conversion, higher average order value and expanding ecosystem capabilities, while maintaining gross margins in the mid-20% range and continuing expense discipline to support a return to profitability.