Highlights for the Fourth Quarter of Fiscal Year 2025:
Net Revenue Increased 8.2%
Adjusted Comparable Sales(1) Increased 2.8%
Opened Three New Stores
MANCHESTER, Conn. -- (Business Wire)
Bob’s Discount Furniture, Inc. (NYSE:BOBS) (“we,” “our,” the “Company,” “Bob’s Discount Furniture” or “Bob’s”) today announced financial results for the fourth fiscal quarter and fiscal year ended December 28, 2025.
“We delivered strong full year performance, gaining market share while successfully navigating macro uncertainty through the strength of our differentiated business model - combining everyday low prices with best-in-class omnichannel capabilities and a customer-first culture,” said Bill Barton, President and Chief Executive Officer of Bob's. “Our recent IPO marks a historic milestone that represents years of dedication from our nearly 6,000 team members who live our values every day. As we execute our disciplined expansion strategy targeting the significant whitespace ahead, we remain focused on our core belief: everyone deserves a home they love. With our strong unit economics, a proven portable store model, and significant runway for growth, we are well-positioned to deliver sustainable value for our customers, team members, and shareholders.”
Fourth Quarter of Fiscal Year 2025
-
Net revenue of $648.8 million increased 8.2% from $599.8 million in the fourth quarter of fiscal year 2024 driven by new stores and comparable sales growth.
-
The Company opened three new stores and ended the quarter with 209 stores in 26 states.
-
Comparable sales growth of 1.0% and adjusted comparable sales growth(1) of 2.8% were driven primarily by growth in conversion, higher average order values in the retail channel, and increased eCommerce traffic.
-
Gross profit increased 8.6% to $296.5 million compared to the fourth quarter of fiscal year 2024. Gross margin increased 20 basis points to 45.7% due to lower freight costs, partially offset by product mix shift due to customer preference for the "Good" product category mix relative to historical levels. Freight costs in the prior year were impacted by unusually high short-term freight rates.
-
Selling, general and administrative expenses (“SG&A”) increased 9.2% to $236.9 million compared to the fourth quarter of fiscal year 2024 due to new store growth and higher commissions on revenue growth. SG&A as a percentage of revenue increased 30 basis points to 36.5%. SG&A as a percentage of sales in the prior year was favorably impacted by the timing shift of approximately $10.2 million of sales due to a system outage between the third quarter and fourth quarter in 2024.
-
Net income of $41.0 million compared to $38.6 million in the fourth quarter of fiscal year 2024. Adjusted net income was $41.2 million compared to $40.8 million in the fourth quarter of fiscal year 2024.
-
Diluted net income per share of $0.35 compared to $0.34 in the fourth quarter of fiscal year 2024. Adjusted net diluted income per share was $0.35 compared to $0.36 in the fourth quarter of fiscal year 2024.
-
Adjusted EBITDA of $76.5 million or 11.8% as a percentage of net revenues compared to $72.9 million or 12.2% as a percentage of net revenues in the fourth quarter of fiscal year 2024.
(1) Adjusted comparable sales growth refers to comparable sales growth as adjusted to eliminate the impact of a $10.2 million anomalous timing shift in comparable sales for the fourth quarter of fiscal year 2024 as a result of a system outage impacting the final two delivery days of the third quarter of fiscal year 2024.
Fiscal Year 2025
-
Net revenue of $2.4 billion increased 16.8% from $2.0 billion in fiscal year 2024 driven by new stores and comparable sales growth.
-
The Company opened 20 new stores and ended the fiscal year with 209 stores in 26 states.
-
Comparable sales growth of 7.7% was driven primarily by in-store conversion growth related to investments in sales force efficiency and increased eCommerce traffic driven by our digital Omnicart.
-
Gross profit increased 14.0% to $1.1 billion in fiscal year 2025 compared to fiscal year 2024. Gross margin decreased 110 basis points to 45.7% driven by product mix shift and higher freight costs.
-
SG&A increased 10.6% to $899.9 million in fiscal year 2025 compared to fiscal year 2024, primarily due to new store growth and higher commissions on revenue growth. SG&A as a percentage of revenue decreased 210 basis points to 38.0%, driven by broad-based expense leverage on higher sales performance.
-
Net income of $121.7 million compared to $87.9 million in fiscal year 2024. Adjusted net income was $120.2 million compared to $90.8 million in fiscal year 2024.
-
Diluted net income per share of $1.07 compared to $0.78 in fiscal year 2024. Adjusted diluted net income per share was $1.06 compared to $0.81 in fiscal year 2024.
-
Adjusted EBITDA of $240.8 million or 10.2% as a percentage of net revenues compared to $194.0 million or 9.6% as a percentage of net revenues in fiscal year 2024.
Balance Sheet and Liquidity
-
Total liquidity of $177.6 million, comprised of cash and cash equivalents of $53.2 million and available borrowing capacity of $124.4 million, as of the end of fiscal year 2025.
-
Inventories were $350.3 million as of the end of fiscal year 2025, an increase of 15.3% compared to fiscal year end 2024.
-
Net cash provided by operating activities was $164.5 million in fiscal year 2025, an increase of $3.3 million compared to the prior year, primarily driven by higher net earnings, partially offset by the timing of payments on inventory purchases.
-
Investments in capital expenditures of $83.0 million in fiscal year 2025 was primarily associated with new stores opened and the new regional distribution center anticipated to be fully operating in early 2026.
Recent Developments
-
On February 6, 2026, the Company closed its initial public offering (“IPO”) at an offering price of $17.00 per share. The Company sold 19,450,000 shares of its common stock in the IPO, resulting in net proceeds to the Company of approximately $302.7 million after deducting underwriters’ discounts and commissions and other offering expenses.
-
The Company used the net proceeds from the IPO, together with cash on hand and other available liquidity, to prepay all of the approximately $350.0 million of indebtedness under the Term Loan Facility in the first fiscal quarter of fiscal 2026.
The table below presents our expectations for the full fiscal year 2026 financial operating results. Fiscal year 2026 includes 53 weeks. The “53rd week” is expected to deliver $40.0 million in net revenues, $3.5 million in net income and $5.0 million in adjusted EBITDA.
| | Fiscal Year 2026 |
Net revenues
| |
$2,600 to $2,625 million
|
Comparable sales growth(1) | |
1.5% to 2.5%
|
Net income
| |
$113 to $121 million
|
Adjusted EBITDA(2) | |
$255 to $265 million
|
Adjusted net income(2) | |
$121 to $129 million
|
Other estimates: | |
|
Net capital expenditures(3) | |
$110 to $115 million
|
Pre-opening expenses
| |
$23 to $24 million
|
Effective tax rate
| |
Approximately 27%
|
New store count
| |
Approximately 20
|
FD Shares Outstanding(4) | |
Approximately 137 million
|
| | |
(1) Comparable sales growth is a key performance indicator that measures performance during the current reporting period against the performance of the comparable store sales and eCommerce sales in the corresponding period of the previous fiscal year. Comparable sales growth excludes net sales from the non-comparable 53rd week.
|
(2) See Non-GAAP Financial Measures for definitions of Adjusted EBITDA and Adjusted net income.
|
(3) Net capital expenditures represents capital expenditures net of tenant allowances.
|
(4) FD shares outstanding reflects average fully diluted shares outstanding for fiscal year 2026.
|
Conference Call
A conference call to discuss the fourth fiscal quarter 2025 financial results is scheduled for today, March, 17, 2026, at 4:30 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-0779 (international callers dial 1-201-389-0914) approximately 10 minutes prior to the start of the call. The conference call will be webcast and once available, a recorded replay can be accessed online at ir.mybobs.com for six months.
About Bob’s Discount Furniture
Bob’s Discount Furniture is a high-growth, national omnichannel retailer of value home furnishings with 209 showrooms as of December 28, 2025 across 26 U.S. states. Since our founding in 1991, we have built our ethos as a trusted and reliable brand offering superior value and service, without compromising on quality or style. Our business model is anchored in delivering furniture at “Everyday Low Prices,” and at the heart of Bob’s success is not just the value of our furniture, but the team members who bring our promise to life every day. From showroom to living room, it’s our people who make Bob’s feel like home. Our belief that everyone deserves a home they love is reflected in how we operate daily and the appreciation we have for our people and communities. From our in-store guest experience specialists who create a no-pressure, no-gimmicks shopping experience, to our distribution and logistics teams who enable fast, reliable fulfillment, Bob’s is built on the dedication of nearly 6,000 team members nationwide. For more information, please visit www.mybobs.com.
Non-GAAP Financial Measures
In addition to the results provided in accordance with U.S. GAAP, this earnings release and related tables include adjusted net income, adjusted EBITDA and adjusted diluted net income per share which present operating results on an adjusted basis. We define adjusted net income as net income adjusted to eliminate the impact of certain items that we do not consider indicative of our core operating performance and the tax effect related to those items. We define adjusted diluted net income per share as adjusted net income divided by weighted average shares outstanding. We define adjusted EBITDA as net income before interest expense, interest income, income tax expense, and depreciation and amortization, adjusted for items that are not indicative of the operating performance of the business. We believe that excluding certain items from our GAAP results allows management to better understand our financial performance from period to period. Moreover, we believe these non-GAAP financial measures provide our stakeholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. We use these non-GAAP measures to evaluate the effectiveness of our business strategies, to make budgeting decisions, to evaluate our performance in connection with compensation decisions and to compare our performance against that of peer companies using similar measures. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. These non-U.S. GAAP measures are not a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. These measures should only be read together with the corresponding U.S. GAAP measures. Please refer to the reconciliations of adjusted net income and adjusted EBITDA to net income and adjusted diluted net income per share to diluted net income per share, the most directly comparable financial measures prepared in accordance with U.S. GAAP, below.
Forward-Looking Statements
Certain statements contained herein, including statements under the headings “Recent Developments”, are not based on historical fact and are “forward-looking statements” within the meaning of applicable securities laws.
Forward-looking statements can generally be identified by words such as “anticipate,” “believe,” “envision,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “contemplate” and other similar expressions, although not all forward-looking statements contain these identifying words. Forward-looking statements include, but are not limited to, statements concerning: our expected financial operating results for fiscal year 2026; plans to open new stores, expand into new regions and increase market share; and plans to increase brand awareness and increase comparable sales.
The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, factors and assumptions described in “Risk Factors” in our Annual Report on Form 10-K, including those relating to, among other things:
-
our reliance on foreign manufacturing, suppliers and imports for our products;
-
the significant competition within our industry;
-
our ability to successfully anticipate or respond to changes in consumer preferences;
-
global economic conditions and the effect of economic pressures and other business factors on discretionary consumer spending;
-
the impact of current and future tariffs on our business;
-
managing the challenges associated with our planned new store growth;
-
failures by our third-party suppliers or the unavailability of suitable suppliers at reasonable prices;
-
failures of our vendors to meet our quality standards or applicable regulatory frameworks;
-
disruption in our distribution capabilities or supply chain;
-
our ability to protect our intellectual property rights;
-
compliance with applicable governmental regulations;
-
our ability to protect the privacy and security of information related to our customers, us, our employees or others;
-
disruption in our information systems; and
-
our ability to effectively manage our eCommerce platform and digital marketing efforts.
The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Bob's Discount Furniture, Inc. Consolidated Balance Sheets (In thousands, except share and per share amounts) |
|
|
|
|
|
|
| December 28, 2025 |
| December 29, 2024 |
Assets | |
|
|
|
Current assets
| |
|
|
|
Cash and cash equivalents
| |
$
|
53,202
|
|
|
$
|
80,558
|
|
Restricted cash
| |
|
9,412
|
|
|
|
—
|
|
Accounts receivable
| |
|
17,590
|
|
|
|
17,223
|
|
Inventories
| |
|
350,284
|
|
|
|
303,930
|
|
Prepaids and other current assets
| |
|
40,871
|
|
|
|
46,208
|
|
Total current assets
| |
|
471,359
|
|
|
|
447,919
|
|
Property and equipment, net
| |
|
328,827
|
|
|
|
280,391
|
|
Operating lease right-of-use assets
| |
|
641,529
|
|
|
|
533,690
|
|
Intangible assets
| |
|
179,100
|
|
|
|
179,100
|
|
Goodwill
| |
|
181,699
|
|
|
|
181,699
|
|
Deferred offering costs
| |
|
3,981
|
|
|
|
—
|
|
Other assets
| |
|
5,260
|
|
|
|
2,265
|
|
Total assets
| |
$
|
1,811,755
|
|
|
$
|
1,625,064
|
|
Liabilities and Stockholders' Equity | |
|
|
|
Current liabilities
| |
|
|
|
Accounts payable
| |
$
|
260,610
|
|
|
$
|
279,389
|
|
Self-insurance reserves
| |
|
27,959
|
|
|
|
26,831
|
|
Accrued expenses
| |
|
66,211
|
|
|
|
61,136
|
|
Customer deposits
| |
|
70,740
|
|
|
|
66,606
|
|
Current portion of long-term debt
| |
|
1,750
|
|
|
|
—
|
|
Finance lease liabilities, current portion
| |
|
15,201
|
|
|
|
9,926
|
|
Operating lease liabilities, current portion
| |
|
100,563
|
|
|
|
88,891
|
|
Total current liabilities
| |
|
543,034
|
|
|
|
532,779
|
|
Long-term debt
| |
|
337,430
|
|
|
|
—
|
|
Finance lease liabilities, noncurrent portion
| |
|
44,254
|
|
|
|
30,211
|
|
Operating lease liabilities, noncurrent portion
| |
|
678,800
|
|
|
|
562,069
|
|
Deferred income taxes
| |
|
43,306
|
|
|
|
34,928
|
|
Other long-term liabilities
| |
|
1,011
|
|
|
|
847
|
|
Total long-term liabilities
| |
|
1,104,801
|
|
|
|
628,055
|
|
Total liabilities
| |
|
1,647,835
|
|
|
|
1,160,834
|
|
Commitments and Contingencies
| |
|
|
|
Stockholders' Equity | |
|
|
|
Preferred stock, $0.01 par value, 50,000 shares authorized; no shares issued or outstanding as of December 28, 2025 and December 29, 2024
| |
|
—
|
|
|
|
—
|
|
Common stock, $0.0001 par value, 300,000,000 shares authorized; 119,777,765 shares issued and 110,530,029 outstanding at December 28, 2025; 118,703,566 shares issued and 109,872,523 outstanding at December 29, 2024
| |
|
11
|
|
|
|
11
|
|
Additional paid-in capital
| |
|
199,796
|
|
|
|
225,886
|
|
Treasury stock shares, at cost, 9,247,736 and 8,831,043 shares at December 28, 2025 and December 29, 2024, respectively
| |
|
(67,336
|
)
|
|
|
(63,351
|
)
|
Retained earnings
| |
|
31,449
|
|
|
|
301,684
|
|
Total stockholders' equity
| |
|
163,920
|
|
|
|
464,230
|
|
Total liabilities and stockholders' equity
| |
$
|
1,811,755
|
|
|
$
|
1,625,064
|
|
Bob's Discount Furniture, Inc. Consolidated Statements of Operations and Comprehensive Income (In thousands, except per share amounts) |
|
|
|
|
| Three-Month Fiscal Period Ended |
|
| December 28, 2025 |
| December 29, 2024 |
| Increase (Decrease) |
|
| Amount |
| % of Net Revenues |
| Amount |
| % of Net Revenues |
| Amount |
| %(1) |
Net revenues
| |
$
|
648,827
|
|
|
100.0
|
%
|
|
|
599,761
|
|
|
100.0
|
%
|
|
$
|
49,066
|
|
|
8.2
|
%
|
Cost of sales
| |
|
352,302
|
|
|
54.3
|
%
|
|
|
326,722
|
|
|
54.5
|
%
|
|
|
25,580
|
|
|
7.8
|
%
|
Gross profit
| |
|
296,525
|
|
|
45.7
|
%
|
|
|
273,039
|
|
|
45.5
|
%
|
|
|
23,486
|
|
|
8.6
|
%
|
Operating expenses (income) | |
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses
| |
|
236,905
|
|
|
36.5
|
%
|
|
|
216,937
|
|
|
36.2
|
%
|
|
|
19,968
|
|
|
9.2
|
%
|
Pre-opening expenses
| |
|
3,625
|
|
|
0.6
|
%
|
|
|
1,764
|
|
|
0.3
|
%
|
|
|
1,861
|
|
|
105.5
|
%
|
(Gain) loss on disposal of fixed assets
| |
|
(21
|
)
|
|
—
|
%
|
|
|
7
|
|
|
—
|
%
|
|
|
(28
|
)
|
|
NM
|
|
Impairment of long-lived assets
| |
|
—
|
|
|
—
|
%
|
|
|
2,061
|
|
|
0.3
|
%
|
|
|
(2,061
|
)
|
|
(100.0
|
)%
|
Insurance recoveries
| |
|
(503
|
)
|
|
(0.1
|
)%
|
|
|
—
|
|
|
—
|
%
|
|
|
503
|
|
|
100.0
|
%
|
Total operating expenses
| |
|
240,006
|
|
|
37.0
|
%
|
|
|
220,769
|
|
|
36.8
|
%
|
|
|
19,237
|
|
|
8.7
|
%
|
Operating income
| |
|
56,519
|
|
|
8.7
|
%
|
|
|
52,270
|
|
|
8.7
|
%
|
|
|
4,249
|
|
|
8.1
|
%
|
Other (income) expense | |
|
|
|
|
|
|
|
|
|
|
|
Interest expense
| |
|
5,890
|
|
|
0.9
|
%
|
|
|
894
|
|
|
0.1
|
%
|
|
|
4,996
|
|
|
NM
|
|
Interest income
| |
|
(548
|
)
|
|
(0.1
|
)%
|
|
|
(411
|
)
|
|
(0.1
|
)%
|
|
|
137
|
|
|
33.3
|
%
|
Other income, net
| |
|
(10
|
)
|
|
—
|
%
|
|
|
(446
|
)
|
|
(0.1
|
)%
|
|
|
(436
|
)
|
|
(97.8
|
)%
|
Total other expense, net
| |
|
5,332
|
|
|
0.8
|
%
|
|
|
37
|
|
|
—
|
%
|
|
|
5,295
|
|
|
NM
|
|
Income before taxes
| |
|
51,187
|
|
|
7.9
|
%
|
|
|
52,233
|
|
|
8.7
|
%
|
|
|
(1,046
|
)
|
|
(2.0
|
)%
|
Income tax expense
| |
|
10,160
|
|
|
1.6
|
%
|
|
|
13,612
|
|
|
2.3
|
%
|
|
|
(3,452
|
)
|
|
(25.4
|
)%
|
Net income
| |
$
|
41,027
|
|
|
6.3
|
%
|
|
$
|
38,621
|
|
|
6.4
|
%
|
|
|
2,406
|
|
|
6.2
|
%
|
Other comprehensive (loss) income | |
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized interest rate hedging, net of tax expense
| |
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Total other comprehensive loss
| |
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Total comprehensive income
| |
$
|
41,027
|
|
|
|
|
$
|
38,621
|
|
|
|
|
|
|
|
Basic net income per share
| |
$
|
0.37
|
|
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
Diluted net income per share
| |
$
|
0.35
|
|
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
__________________
| | | | | | | | | | | | | | | | |
(1) NM refers to a value that is not meaningful.
|
Bob's Discount Furniture, Inc. Consolidated Statements of Operations and Comprehensive Income (In thousands, except per share amounts) |
|
|
|
|
| Fiscal Year Ended |
|
| December 28, 2025 |
| December 29, 2024 |
| Increase (Decrease) |
|
| Amount |
| % of Net Revenues |
| Amount |
| % of Net Revenues |
| Amount |
| %(1) |
Net revenues
| |
$
|
2,368,039
|
|
|
100.0
|
%
|
|
$
|
2,028,143
|
|
|
100.0
|
%
|
|
$
|
339,896
|
|
|
16.8
|
%
|
Cost of sales
| |
|
1,286,703
|
|
|
54.3
|
%
|
|
|
1,079,703
|
|
|
53.2
|
%
|
|
|
207,000
|
|
|
19.2
|
%
|
Gross profit
| |
|
1,081,336
|
|
|
45.7
|
%
|
|
|
948,440
|
|
|
46.8
|
%
|
|
|
132,896
|
|
|
14.0
|
%
|
Operating expenses (income) | |
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses
| |
|
899,873
|
|
|
38.0
|
%
|
|
|
813,302
|
|
|
40.1
|
%
|
|
|
86,571
|
|
|
10.6
|
%
|
Pre-opening expenses
| |
|
18,782
|
|
|
0.8
|
%
|
|
|
15,326
|
|
|
0.8
|
%
|
|
|
3,456
|
|
|
22.5
|
%
|
(Gain) loss on disposal of fixed assets
| |
|
(155
|
)
|
|
—
|
%
|
|
|
17
|
|
|
—
|
%
|
|
|
(172
|
)
|
|
NM
|
|
Impairment of long-lived assets
| |
|
—
|
|
|
—
|
%
|
|
|
2,061
|
|
|
0.1
|
%
|
|
|
(2,061
|
)
|
|
(100.0
|
)%
|
Restructuring charges
| |
|
292
|
|
|
—
|
%
|
|
|
—
|
|
|
—
|
%
|
|
|
292
|
|
|
100.0
|
%
|
Insurance recoveries
| |
|
(5,000
|
)
|
|
(0.2
|
)%
|
|
|
—
|
|
|
—
|
%
|
|
|
5,000
|
|
|
100.0
|
%
|
Total operating expenses
| |
|
913,792
|
|
|
38.6
|
%
|
|
|
830,706
|
|
|
41.0
|
%
|
|
|
83,086
|
|
|
10.0
|
%
|
Operating income
| |
|
167,544
|
|
|
7.1
|
%
|
|
|
117,734
|
|
|
5.8
|
%
|
|
|
49,810
|
|
|
42.3
|
%
|
Other (income) expense | |
|
|
|
|
|
|
|
|
|
|
|
Interest expense
| |
|
9,091
|
|
|
0.4
|
%
|
|
|
10,538
|
|
|
0.5
|
%
|
|
|
(1,447
|
)
|
|
(13.7
|
)%
|
Interest income
| |
|
(2,050
|
)
|
|
(0.1
|
)%
|
|
|
(2,450
|
)
|
|
(0.1
|
)%
|
|
|
(400
|
)
|
|
(16.3
|
)%
|
Other income, net
| |
|
(663
|
)
|
|
—
|
%
|
|
|
(3,778
|
)
|
|
(0.2
|
)%
|
|
|
(3,115
|
)
|
|
(82.5
|
)%
|
Total other expense, net
| |
|
6,378
|
|
|
0.3
|
%
|
|
|
4,310
|
|
|
0.2
|
%
|
|
|
2,068
|
|
|
48.0
|
%
|
Income before taxes
| |
|
161,166
|
|
|
6.8
|
%
|
|
|
113,424
|
|
|
5.6
|
%
|
|
|
47,742
|
|
|
42.1
|
%
|
Income tax expense
| |
|
39,442
|
|
|
1.7
|
%
|
|
|
25,491
|
|
|
1.3
|
%
|
|
|
13,951
|
|
|
54.7
|
%
|
Net income
| |
$
|
121,724
|
|
|
5.1
|
%
|
|
$
|
87,933
|
|
|
4.3
|
%
|
|
|
33,791
|
|
|
38.4
|
%
|
Other comprehensive (loss) income | |
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized rate hedging, net of tax expense (benefit) of $— and $1,160, respectively
| |
|
—
|
|
|
|
|
|
(3,038
|
)
|
|
|
|
|
|
|
Total other comprehensive loss
| |
|
—
|
|
|
|
|
|
(3,038
|
)
|
|
|
|
|
|
|
Total comprehensive income
| |
$
|
121,724
|
|
|
|
|
$
|
84,895
|
|
|
|
|
|
|
|
Basic net income per share
| |
$
|
1.10
|
|
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
Diluted net income per share
| |
$
|
1.07
|
|
|
|
|
$
|
0.78
|
|
|
|
|
|
|
|
__________________
| | | | | | | | | | | | |
(1) NM refers to a value that is not meaningful.
|
Bob's Discount Furniture, Inc. Consolidated Statements of Cash Flows (In thousands) |
|
|
|
|
| Fiscal Year Ended |
|
| December 28, 2025 |
| December 29, 2024 |
Cash flows from operating activities | |
|
|
|
Net income
| |
$
|
121,724
|
|
|
$
|
87,933
|
|
Adjustments to reconcile net income to net cash provided by operating activities
| |
|
|
|
Stock-based compensation expense
| |
|
3,507
|
|
|
|
3,648
|
|
Transaction losses
| |
|
2,996
|
|
|
|
4,890
|
|
Depreciation and amortization
| |
|
71,105
|
|
|
|
65,194
|
|
Non-cash interest expense
| |
|
285
|
|
|
|
2,973
|
|
Impairment and (gain) loss on disposal of fixed assets
| |
|
(155
|
)
|
|
|
743
|
|
Impairment of operating lease right-of-use assets
| |
|
—
|
|
|
|
1,335
|
|
Non-cash lease costs
| |
|
76,843
|
|
|
|
68,496
|
|
Deferred income taxes
| |
|
8,378
|
|
|
|
(3,133
|
)
|
Change in reserve for product warranties
| |
|
712
|
|
|
|
857
|
|
Changes in operating assets and liabilities
| |
|
|
|
Accounts receivable
| |
|
(3,363
|
)
|
|
|
(5,331
|
)
|
Inventories
| |
|
(46,354
|
)
|
|
|
(76,444
|
)
|
Prepaids and other current assets
| |
|
5,337
|
|
|
|
(10,054
|
)
|
Other assets
| |
|
(5,557
|
)
|
|
|
649
|
|
Accounts payable
| |
|
(24,493
|
)
|
|
|
72,877
|
|
Accrued expenses
| |
|
5,655
|
|
|
|
23
|
|
Customer deposits
| |
|
4,134
|
|
|
|
4,193
|
|
Operating leases
| |
|
(56,280
|
)
|
|
|
(57,695
|
)
|
Net cash provided by operating activities
| |
|
164,474
|
|
|
|
161,154
|
|
Cash flows from investing activities | |
|
|
|
Purchase of property and equipment
| |
|
(83,047
|
)
|
|
|
(78,224
|
)
|
Net cash used in investing activities
| |
|
(83,047
|
)
|
|
|
(78,224
|
)
|
Cash flows from financing activities | |
|
|
|
Proceeds from issuance of Term Loan
| |
|
350,000
|
|
|
|
—
|
|
Principal payments on First Lien Note
| |
|
—
|
|
|
|
(82,936
|
)
|
Proceeds from Line of Credit
| |
|
3,000
|
|
|
|
30,000
|
|
Principal payments on Line of Credit
| |
|
(3,000
|
)
|
|
|
(30,000
|
)
|
Debt issuance costs
| |
|
(11,017
|
)
|
|
|
—
|
|
Principal payments on financing lease obligations
| |
|
(11,306
|
)
|
|
|
(8,955
|
)
|
Proceeds (payments) related to exercise of employee stock options
| |
|
1,480
|
|
|
|
(7,604
|
)
|
Payments for the acquisition of treasury stock
| |
|
(1,127
|
)
|
|
|
(5,974
|
)
|
Dividends paid
| |
|
(425,893
|
)
|
|
|
—
|
|
Payments of initial public offering costs
| |
|
(1,508
|
)
|
|
|
—
|
|
Net cash used in financing activities
| |
|
(99,371
|
)
|
|
|
(105,469
|
)
|
Net decrease in cash and cash equivalents, and restricted cash
| |
|
(17,944
|
)
|
|
|
(22,539
|
)
|
Cash, cash equivalents, and restricted cash beginning of period
| |
|
80,558
|
|
|
|
103,097
|
|
Cash, cash equivalents, and restricted cash end of period
| |
$
|
62,614
|
|
|
$
|
80,558
|
|
| |
|
|
|
Supplemental disclosure of cash flow data | |
|
|
|
Cash paid for interest
| |
$
|
4,515
|
|
|
$
|
6,129
|
|
Supplemental disclosure of noncash investing and financing activities | |
|
|
|
Assets acquired under financing leases
| |
$
|
30,737
|
|
|
$
|
11,467
|
|
Purchase of property and equipment included in accounts payable and accrued expenses
| |
|
19,224
|
|
|
|
13,508
|
|
Deferred offering costs included in accounts payable
| |
|
2,473
|
|
|
|
—
|
|
Employees cashless exercising of stock options
| |
|
2,858
|
|
|
|
14,744
|
|
Reconciliation of GAAP to Non-GAAP Measures (Unaudited, amounts in thousands) |
| | | | |
| | Three-Month Fiscal Period Ended | | Fiscal Year Ended |
| | December 28, 2025 | | December 29, 2024 | | December 28, 2025 | | December 29, 2024 |
Net revenues
| |
$
|
648,827
|
| |
$
|
599,761
|
| |
$
|
2,368,039
|
| |
$
|
2,028,143
|
|
| |
| |
| |
| |
|
Adjusted net income | |
| |
| |
| |
|
Net income
| |
$
|
41,027
|
| |
$
|
38,621
|
| |
$
|
121,724
|
| |
$
|
87,933
|
|
Restructuring charges
| |
|
—
|
| |
|
—
|
| |
|
292
|
| |
|
—
|
|
Insurance recoveries(1) | |
|
(617
|
)
| |
|
—
|
| |
|
(5,114
|
)
| |
|
—
|
|
Gain on hedge accounting de-designation of interest rate cap
| |
|
—
|
| |
|
—
|
| |
|
—
|
| |
|
(3,067
|
)
|
(Gain) loss on disposal of fixed assets
| |
|
(21
|
)
| |
|
7
|
| |
|
(155
|
)
| |
|
17
|
|
Impairment of long-lived assets
| |
|
—
|
| |
|
2,061
|
| |
|
—
|
| |
|
2,061
|
|
Management fee(2) | |
|
515
|
| |
|
507
|
| |
|
2,046
|
| |
|
2,013
|
|
Other expenses(3) | |
|
335
|
| |
|
274
|
| |
|
889
|
| |
|
2,616
|
|
Tax effect of adjustments
| |
|
(71
|
)
| |
|
(640
|
)
| |
|
500
|
| |
|
(819
|
)
|
Adjusted net income
| |
$
|
41,168
|
| |
$
|
40,830
|
| |
$
|
120,182
|
| |
$
|
90,754
|
|
Adjusted net income as % of net revenue
| |
|
6.3
|
%
| |
|
6.8
|
%
| |
|
5.1
|
%
| |
|
4.5
|
%
|
Adjusted EBITDA | |
| |
| |
| |
|
Net income
| |
$
|
41,027
|
| |
$
|
38,621
|
| |
$
|
121,724
|
| |
$
|
87,933
|
|
Interest expense
| |
|
5,890
|
| |
|
894
|
| |
|
9,091
|
| |
|
10,538
|
|
Interest income
| |
|
(548
|
)
| |
|
(411
|
)
| |
|
(2,050
|
)
| |
|
(2,450
|
)
|
Income tax expense
| |
|
10,160
|
| |
|
13,612
|
| |
|
39,442
|
| |
|
25,491
|
|
Depreciation and amortization
| |
|
19,021
|
| |
|
16,512
|
| |
|
71,105
|
| |
|
65,194
|
|
Stock-based compensation expense
| |
|
718
|
| |
|
854
|
| |
|
3,507
|
| |
|
3,648
|
|
Restructuring charges
| |
|
—
|
| |
|
—
|
| |
|
292
|
| |
|
—
|
|
Insurance recoveries(1) | |
|
(617
|
)
| |
|
—
|
| |
|
(5,114
|
)
| |
|
—
|
|
Gain on hedge accounting de-designation of interest rate cap
| |
|
—
|
| |
|
—
|
| |
|
—
|
| |
|
(3,067
|
)
|
(Gain) loss on disposal of fixed assets
| |
|
(21
|
)
| |
|
7
|
| |
|
(155
|
)
| |
|
17
|
|
Impairment of long-lived assets
| |
|
—
|
| |
|
2,061
|
| |
|
—
|
| |
|
2,061
|
|
Management fee(2) | |
|
515
|
| |
|
507
|
| |
|
2,046
|
| |
|
2,013
|
|
Other expenses(3) | |
|
335
|
| |
|
274
|
| |
|
889
|
| |
|
2,616
|
|
Adjusted EBITDA
| |
$
|
76,480
|
| |
$
|
72,931
|
| |
$
|
240,777
|
| |
$
|
193,994
|
|
Adjusted EBITDA as % of revenue
| |
|
11.8
|
%
| |
|
12.2
|
%
| |
|
10.2
|
%
| |
|
9.6
|
%
|
| | | | | | | | |
(1) Of these amounts, $0.1 million related to the recovery of costs and the remainder related to the recovery of lost profits. Recovery of lost profits was recorded to SG&A expenses and recovery of lost profits was recorded to insurance recoveries on the Company’s Consolidated Statements of Operations and Comprehensive Income.
|
(2) Represents management fees paid in accordance with our Advisory Agreement with our controlling stockholder, which terminated in connection with our IPO.
|
(3) Other expenses represents costs that are not indicative of ongoing business operations and performance, including, but not limited to, third-party professional fees related to the planned initial public offering readiness, litigation matters outside the ordinary course of business and senior termination benefits.
|
Reconciliation of GAAP to Non-GAAP Measures (Unaudited, amounts in thousands) |
| | | | | |
| | Three-Month Fiscal Period Ended |
| Fiscal Year Ended |
| | December 28, 2025 |
| December 29, 2024 |
| December 28, 2025 |
| December 29, 2024 |
Adjusted diluted net income per share | |
|
|
| |
|
|
|
|
Diluted net income per share
| |
$
|
0.35
|
|
|
$
|
0.34
| |
|
$
|
1.07
|
|
|
$
|
0.78
|
|
Restructuring charges
| |
|
—
|
|
|
|
—
| |
|
|
—
|
|
|
|
—
|
|
Insurance recoveries
| |
|
(0.01
|
)
|
|
|
—
| |
|
|
(0.04
|
)
|
|
|
—
|
|
Gain on hedge accounting de-designation of interest rate cap
| |
|
—
|
|
|
|
—
| |
|
|
—
|
|
|
|
(0.03
|
)
|
(Gain) loss on disposal of fixed assets
| |
|
—
|
|
|
|
—
| |
|
|
—
|
|
|
|
—
|
|
Impairment of long-lived assets
| |
|
—
|
|
|
|
0.02
| |
|
|
—
|
|
|
|
0.02
|
|
Management fee(1) | |
|
0.01
|
|
|
|
—
| |
|
|
0.02
|
|
|
|
0.02
|
|
Other expenses(2) | |
|
—
|
|
|
|
—
| |
|
|
0.01
|
|
|
|
0.02
|
|
Tax effect of adjustments
| |
|
—
|
|
|
|
—
| |
|
|
—
|
|
|
|
—
|
|
Adjusted diluted net income per share
| |
$
|
0.35
|
|
|
$
|
0.36
| |
|
$
|
1.06
|
|
|
$
|
0.81
|
|
| | | | | | | | | |
(1) Represents management fees paid in accordance with our Advisory Agreement with our controlling stockholder, which terminated in connection with our IPO.
|
(2) Other expenses represents costs that are not indicative of ongoing business operations and performance, including, but not limited to, third-party professional fees related to the planned initial public offering readiness, litigation matters outside the ordinary course of business and senior termination benefits.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260317161277/en/
Contacts:
Media:
BobsPR@icrinc.com
Investor Relations:
bobs@icrinc.com
Source: Bob’s Discount Furniture, Inc.
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