Bed Bath & Beyond Extends Revenue Growth Into a Second Quarter

The Tip Desk · August 4, 2026 · 3 min read

Net revenue reached $361 million, up 28.0% year-over-year, after a 6.9% increase in the first quarter, as the company added The Brand House Collective.

Bed Bath & Beyond, Inc. (BBBY) reported second-quarter net revenue of $361 million, up 28.0% from a year earlier, extending year-over-year growth into a second consecutive quarter after nineteen quarters of decline.

The sequential step-up was steeper than the first quarter’s 6.9% year-over-year increase. The company said the second-quarter result reflected continued strength in its base online marketplace, improved assortment, realized investments in the customer experience, and the inclusion of The Brand House Collective, owner of the Kirkland’s and Kirkland’s Home brands, which closed during the quarter.

Active customers rose 47% year-over-year to 6.4 million, and orders delivered rose 117% to 2.8 million. Orders per active customer increased to 1.79 from 1.32 a year earlier. Average order value fell to $129 from $219, and last-twelve-months net revenue per active customer fell to $178 from $259.

Gross profit was $97 million, or 26.8% of net revenue, compared with 23.9% in the first quarter. Sales and marketing expense was $43 million, or 11.9% of net revenue, an improvement of 160 basis points year-over-year. Technology and general and administrative expense was $82 million, compared with $37 million a year earlier, which the company attributed to expansion of the physical retail footprint, including store labor, occupancy, distribution, and other operating costs associated with The Brand House Collective.

Net loss was $39 million, or $0.53 a share, compared with a net loss of $19 million, or $0.34 a share, a year earlier. The current period included $21 million of special items, primarily acquisition-related costs, restructuring costs, and non-cash store-closure impairments. Adjusted EBITDA was a loss of $12 million, compared with a loss of $8 million a year earlier.

Cash, cash equivalents, and restricted cash totaled $126 million at quarter end, down from $163 million at the end of the first quarter. Inventories were $52 million at June 30, 2026, compared with $5 million at year-end 2025. Goodwill rose to $102 million from $6 million at year-end, and operating lease right-of-use assets rose to $116 million from $5 million.

The Container Store, Elfa, and Closet Works closed on July 8, 2026, after quarter end. The company also announced definitive agreements to acquire Fathom Holdings Inc. and F9 Brands Inc. in June and July 2026. As signed transactions close and fold into results, the company said it expects continued revenue growth in its base online marketplace, together with growth in total revenue and active customer count, over the coming quarters.

Executive Chairman and Chief Executive Officer Marcus Lemonis said the second-quarter results showed the transformation of the business taking hold and that two consecutive quarters of growth after nineteen in the other direction was hard evidence that the direction of the business had changed. He said the company is growing revenue and active customers while continuing to take cost out of the business.

In a shareholder letter issued with the results, the company said its parent is becoming Neighborhood Intelligence, that it will begin trading on Nasdaq under the ticker NXH after a last NYSE session on August 14, 2026, and that it will relocate its corporate headquarters to Nashville, Tennessee. The letter described three pillars — Omni-Channel Retail, Home Services, and Home Ownership — and a proprietary agent, Norm, with a first customer-facing version planned for later this year.

Lemonis said that as revenue ramps, the company believes that over the next twelve months it can remove more than $50 million of annualized cost by bringing businesses together onto one platform, eliminating non-performing assets, consolidating disciplines and shared resources, improving supply-chain infrastructure, and eliminating or consolidating duplicative third-party services, software agreements, and locations.