Barnes & Noble Education Posts $6.7M Profit in Q3 FY2026 Despite Revenue Surge

Barnes & Noble Education Inc. (NYSE: BNED), a provider of educational products and services to colleges and universities, reported net income of $6.7 million for the three months ending January 31, 2026, down 63% from $17.9 million in the same quarter a year earlier. The company recorded diluted earnings per share of $0.19, compared to $0.59 in the prior-year period. Read more earnings reports.

Revenue for the quarter rose 11% to $515.1 million from $462.8 million a year earlier. Cost of goods sold increased to $419.0 million from $369.1 million, while gross profit climbed to $96.1 million from $93.8 million.

Operating income fell to $14.6 million from $18.9 million in the year-ago quarter. Labor and related expenses edged up to $51.4 million from $51.1 million, while selling, general and administrative expenses rose to $72.6 million from $71.6 million.

Nine-Month Performance Shows Turnaround

For the nine months ending January 31, 2026, the company swung to a profit of $13.4 million compared to a loss of $42.8 million in the same period of fiscal 2025. Revenue for the nine-month period climbed 9% to $1.45 billion from $1.33 billion.

Operating income for the nine-month period reached $32.3 million versus $27.3 million in the prior year. The company recorded income tax expense of $6.3 million for the nine months compared to a tax benefit of $3.2 million in the prior-year period.

Balance Sheet Expands

Total assets increased to $1.13 billion as of January 31, 2026, from $790.3 million at the end of the previous fiscal year on May 3, 2025. The expansion was driven by a surge in current assets to $825.7 million from $465.4 million.

Accounts receivable jumped to $416.4 million from $98.1 million at the prior fiscal year-end, while inventory rose to $329.4 million from $299.6 million. Cash and cash equivalents stood at $10.1 million compared to $9.1 million.

Total liabilities climbed to $840.3 million from $518.1 million, with accounts payable more than doubling to $319.2 million from $148.8 million. Long-term debt increased to $138.4 million from $103.1 million at the prior fiscal year-end.

Stockholders' equity rose to $290.0 million from $272.2 million. The company had 34.3 million shares outstanding as of January 31, 2026.

Cash Flow Improves

Cash used in operations for the nine months totaled $30.8 million, a significant improvement from $138.0 million used in the prior-year period. Cash used in investing activities was $11.8 million compared to $9.0 million, while cash from financing activities totaled $32.2 million versus $135.2 million in the prior year.