Barnes & Noble Education, Inc. (BNED) reported Q1 2025 results characterized by modest top-line movement but material deterioration in profitability and a sharp cash burn. Revenue stood at $263.4 million, up 11.7% sequentially but down 0.3% year over year, with a gross profit of $47.2 million and a gross margin of 17.9%. The company posted an operating loss of $91.7 million and a net loss of $99.5 million, driven by high selling, general and administrative expenses and other operating costs that, combined with non-cash items, overwhelmed top-line gains. EBITDA was negative at $78.7 million, yielding an EBITDAR of -29.9%. Earnings per share were negative at -$7.36, with 27.0 million weighted average shares outstanding.
From a cash flow perspective, BNED generated negative operating cash flow of $143.99 million and free cash flow of $147.46 million for the quarter. Free cash flow erosion, along with substantial working capital movements (change in working capital of -$114.37 million), underscored balance sheet pressures and liquidity risk. Total debt sits around $502 million with net debt of roughly $494 million, and interest coverage is well negative, signaling financing headwinds in a high-leverage structure. On the balance sheet, total assets are about $1.005 billion against liabilities of $860.8 million and stockholders’ equity of $144.4 million, with current liabilities of $489.9 million versus current assets of $601.4 million (current ratio ~1.23). The near-term liquidity environment remains challenging, prompting focus on cost optimization, inventory discipline, and deleveraging strategies.
Overall, BNED faces a difficult near-term operating environment amid secular headwinds for print textbooks, a required acceleration of its digital student-solutions growth, and a concerted effort to repair liquidity. The company’s stock and credit profile will hinge on management’s ability to stabilize cash burn, reduce operating costs, and drive meaningful monetization of its digital platforms and campus-based services.