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Investing.com -- Barnes & Noble Education (NYSE:BNED) stock surged 23% after the company announced the conclusion of its internal investigation and released preliminary financial results for fiscal 2025 and the first half of fiscal 2026.
The education solutions provider revealed that its internal probe found a former employee had improperly reduced cost of sales figures by making unsupported manual journal entries. The investigation determined the employee acted alone and has since been terminated.
Despite the accounting issues, BNED reported preliminary unaudited revenue of $1.6 billion for fiscal 2025, representing a 2.6% increase from the previous year. The company’s gross comparable store sales rose by 7.5% YoY, while revenues from its BNC First Day programs jumped 25.3%.
For the first half of fiscal 2026, preliminary revenue reached approximately $933 million, up 7.8% YoY. The company expects to report net income between $3 million and $8 million for this period, a significant improvement from the net loss of $59-65 million in the comparable period of fiscal 2025.
"In Fiscal 2025, our preliminary results include strong sales and a significant year-over-year increase in Adjusted EBITDA, driven by continued adoption of our BNC First Day offerings, improved comparable store performance, and disciplined expense management," said Jonathan Shar, Chief Executive Officer.
The company also highlighted the growth of its First Day Complete program, which now serves approximately 1.14 million students across 223 campus stores in the fall 2025 term, representing a 24% enrollment increase from the previous year.
Looking ahead, Barnes & Noble Education expects continued revenue growth in fiscal 2026 despite having one fewer operating week. The company projects Adjusted EBITDA between $65-75 million for the full year and anticipates 15-20% Adjusted EBITDA growth in fiscal 2027.
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