1800FLOWERSCOM Inc (FLWS) Q2 2025 Earnings Report

1800FLOWERSCOM Inc reported a Q2 2025 revenue of $775.5 million, down 5.7% year over year, as management flagged softer consumer demand and a difficult promotional environment. The company attribute s part of the revenue shortfall to a high-impact OMS implementation for Harry & David that escalated during peak holiday demand, estimating a roughly $20 million drag to Q2 e-commerce revenue. Despite the revenue headwind, FLWS delivered a solid gross margin of 43.3% (flat vs. prior year) and an EBITDA trajectory that remained positive, with adjusted EBITDA at $116.3 million for the quarter (versus $130.1 million a year ago). The company stressed that OMS-related costs (expedited shipping, higher customer care costs, and redundancy costs tied to a platform migration) pressured EBITDA by about $6.3 million in Q2. Management reaf firmed a disciplined approach to cost control under its Work Smarter program while accelerating investments in growth-oriented initiatives under Relationship Innovation and AI-enabled marketing enhancements. The Q2 performance prompted an updated fiscal 2025 outlook: mid-single digit revenue decline, adjusted EBITDA of $65–75 million, and free cash flow of $25–35 million. Management underscored that the OMS issues are being resolved and expect most operating issues to be cleared in Q3–Q4, with the flower business and key holidays (Valentine’s Day, Easter) benefiting from improved order processing and marketing allocations. The guidance reflects a cautious yet constructive path to stabilizing profitability while reinvesting in growth channels and customer engagement.