revenue
500–525 $million
FY 2026
official guidance
BUILD-A-BEAR WORKSHOP, INC.
Last · —$25.18+0.15 (+0.60%)live · yahoo · 0s ago
Market cap$310.20M12.3M sh
P/E · TTM6.2fwd — · eps 4.04
Beta—vs S&P 500
Div yield3.68%annual · TTM
52w range
$24.22$69.50
Volume318.4Ksession
| Revenue | $517.8M |
|---|---|
| Operating income | $67.8M |
| Net income | $51.6M |
| Free cash flow | $24.5M |
| Operating margin | 13.1% |
| Net margin | 10.0% |
| Return on equity | 32.4% |
| Period | TTM 2026-08-01 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Recovery signals are encouraging, but traffic, product-market fit, and wholesale execution remain unproven.
Hold: Q2 revenue fell 7.2% to $115.3 million, pre-tax income declined 24.1% to $11.6 million, and gross margin compressed 340 bps to 54.2%.
Management’s Halloween momentum and core customizable products offer a recovery path, but the lowered FY2026 revenue outlook of $500-$525 million, flat commercial outlook after losing the Walmart program, soft traffic, and $10-$11 million of tariff costs make this a wait-for-proof story rather than a clean buy.
Themes
- Consumer Traffic
- Summer Product Miss
- Halloween Momentum
- Commercial Wholesale
- Walmart Program
- Tariffs
Near term
Track whether Halloween and holiday launches sustain the early third-quarter improvement in traffic and sales, despite difficult comparisons in August.
Gross-margin recovery depends on moving through weak summer trend inventory without further promotions and absorbing the 12.5% tariff environment.
Fourth-quarter execution is critical because management still expects it to be the strongest quarter despite an anticipated commercial-revenue decline.
Monitor cash preservation: cash fell to $14 million after $8.5 million of Q2 repurchases and front-loaded capital expenditures.
Longer term
The core customization proposition remains the clearest moat: dressable, stuffable products with voice recording and accessories produced better engagement and dollars per transaction than less customizable summer concepts.
International partner-operated expansion could scale the footprint efficiently, with at least 50 net new locations targeted for FY2026, but partner store repositioning and closures show the model still requires test-and-learn execution.
Wholesale and outbound licensing remain potentially valuable but are not yet dependable growth engines; the business lacks broad replenishment capabilities and commercial revenue guidance was cut from 20% growth to approximately flat.
The ICON Park multilevel location may validate higher-value personalization, gifting, and retail-tainment economics, but it also introduces execution and capital-allocation risk.
The 2027 30th-anniversary product relaunch, nostalgia strategy, licensing, and collaborations could support demand if they reinforce the core customization experience rather than repeat the summer innovation misstep.
Red flags
Domestic store traffic lagged broader U.S. traffic trends, while e-commerce demand declined 15.6%, indicating a demand problem broader than a single product launch.
Management acknowledged that less customizable concepts such as Slushie Plushies and Beary Goods were pushed too far and failed to resonate, exposing uncertainty in the innovation pipeline.
The Walmart multimillion-dollar program did not repeat, and management said other wholesale opportunities progressed more slowly than expected; commercial growth was revised from 20% to flat.
Gross margin declined 340 bps because of occupancy deleverage and heavier promotions, while management’s recovery commentary remains based on early reads rather than quantified sustained trends.
The revised outlook still embeds $10-$11 million of ongoing tariff and related costs, and the balance sheet has less cash after buybacks and investment spending.
Forward outlook
revenue growth
0 pct
FY 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Earnings transcripts
Documents
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