Bed Bath & Beyond, Inc. (BBBY) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 27 2025
0mins
Should l Buy BBBY?
Source: SeekingAlpha
Net Loss Net loss narrowed to $4.5 million, a 93% improvement year-over-year. This improvement was attributed to better execution, efficiency, and balance sheet strength.
Adjusted EBITDA Adjusted EBITDA loss of $4.9 million improved 85% year-over-year. This was driven by improved operational efficiency and cost management.
Gross Margin Gross margin was 25.3%, up 420 basis points year-over-year. This increase was driven by lower fulfillment and returns costs and tighter promotions.
Net Revenue Net revenue was $257 million for the third quarter, down 17% year-over-year or 13% excluding the impact from the exit from Canada. The decline was due to reduced orders, although average order value improved by 3%.
Sales and Marketing Expense Sales and marketing expense improved by 260 basis points to 14% of revenue year-over-year. This was due to more efficient channel allocation and improved return on spend.
Technology and G&A Expense Technology and G&A expense declined by $13 million year-over-year. This was achieved by rightsizing the organizational structure, streamlining vendors, and automating key functions.
Cash Equivalents and Inventory The company ended the quarter with $202 million in cash equivalents and inventory, plus an additional $36 million from ATM settlements post quarter-end. This reflects improved balance sheet stability and flexibility.
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Analyst Views on BBBY
Wall Street analysts forecast BBBY stock price to rise
5 Analyst Rating
1 Buy
4 Hold
0 Sell
Hold
Current: 4.870
Low
8.00
Averages
11.67
High
17.00
Current: 4.870
Low
8.00
Averages
11.67
High
17.00
About BBBY
Bed Bath & Beyond, Inc. is an e-commerce focused retailer that owns or has ownership interests in various retail brands. The Company owns Bed Bath & Beyond, Overstock, buybuy BABY, Kirkland’s Home, and other related brands and websites, and a blockchain asset portfolio inclusive of tZERO, GrainChain, and other assets. Through its Bed Bath & Beyond brand, it provides an array of home-related products. Through its Overstock brand, the Company provides an array of goods at discounted prices, and a treasure hunt-like experience for its target customers. Its product assortment includes home categories such as indoor and outdoor furniture, rugs, decor, and lighting, as well as lifestyle categories such as jewelry and watches, apparel and accessories, and designer shoes and handbags. In addition, the Company also offers a range of add-on services across its platforms, including warranties, shipping insurance, and installation services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bed Bath & Beyond Joins ChatGPT Ad Pilot Program
- Ad Pilot Participation: Bed Bath & Beyond announced its participation in ChatGPT's ad pilot launching this week, aimed at enhancing customer experience in product discovery and inspiration through new platforms, thereby strengthening brand connection with consumers.
- Contextual Ad Targeting: The ad pilot will feature sponsored messages relevant to users' conversation topics, with advertisers unable to access chat histories, allowing for personalized ads based on past interactions, which could improve ad relevance and effectiveness.
- User Experience Assurance: ChatGPT's ads will not alter the responses generated, and they will be visually distinct from organic content to maintain user trust and experience, ensuring that users do not feel disrupted during their interactions.
- Stock Price Reaction: Following the announcement, Bed Bath & Beyond's shares rose 3.3% in afternoon trading, reflecting a positive market response to its new marketing strategy, which may help improve the company's financial situation.
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- Platform Functionality: The platform will integrate the company's fintech, insurance, and blockchain businesses, providing customers with a clear view of their assets and interests, including ownership structure, estimated value ranges, and liquidity options, thereby enhancing asset management capabilities.
- Compliance Support Infrastructure: Tokens.com will leverage the regulatory and operational infrastructure provided by tZERO to support capital markets, tokenization, custody, and trading, forming an integrated stack for compliant liquidity that ensures investor rights are protected.
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- Historical Reflection: Gardner reflects on the history of Bed Bath & Beyond, noting its bankruptcy filing in 2023 due to failure to adapt to e-commerce trends, highlighting the rapid changes in the retail sector and the lessons for investors.
- Importance of Investment Education: He emphasizes the crucial role of retail investors in the economy, arguing that they provide capital to businesses and, despite being viewed as amateur investors, their long-term investment potential should not be underestimated.
- Personal Investment Philosophy: Gardner shares his views on AI in investing, suggesting that while AI can assist, individual investors should actively engage in investing to gain deeper learning and growth experiences.
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- Proposal for National Share Day: David Gardner of Motley Fool suggests establishing a National Share Day to encourage every American to own a share of a company, potentially inspiring 320 million Americans to open investment accounts, thereby enhancing public engagement and awareness in investing.
- Reflection on Investor Identity: Gardner criticizes the term 'retail investor' as derogatory, asserting that individual investors play a crucial role in providing capital and fostering market growth, thus highlighting their importance in the economy.
- Short Selling History Review: Gardner recalls the early days of Motley Fool when they shorted Bed Bath & Beyond, noting its failure to adapt to e-commerce trends, which ultimately led to its bankruptcy, reflecting the harsh realities faced by retailers in the market.
- Sharing Life Hacks: Gardner shares a life hack of picking up two items every time one enters a room, aimed at helping individuals improve their living spaces, emphasizing that small changes can lead to significant long-term positive impacts.
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- Public Investment Initiative: David Gardner of Motley Fool introduces the concept of National Share Day, aiming to encourage every American to receive a random share of a company, thereby enhancing public awareness and participation in the stock market.
- Historical Reflection: Gardner reflects on the history of Bed Bath & Beyond, noting its bankruptcy in 2023 due to failure to adapt to e-commerce trends, highlighting the challenges faced by the retail industry and the risks investors must be aware of.
- Importance of Investment Education: He emphasizes that while the term 'retail investor' is often looked down upon, individual investors play a crucial role in providing capital and driving market growth, calling for greater societal recognition of their contributions.
- Personal Investment Philosophy: Gardner mentions that despite the rise of AI in investing, he advocates for individuals to actively engage in investment decisions to gain deeper learning and growth experiences.
See More
Bed Bath & Beyond Joins ChatGPT Ad Pilot Program
- Ad Pilot Participation: Bed Bath & Beyond announced its participation in ChatGPT's ad pilot launching this week, aimed at enhancing customer experience in product discovery and inspiration through new platforms, thereby strengthening brand connection with consumers.
- Contextual Ad Targeting: The ad pilot will feature sponsored messages relevant to users' conversation topics, with advertisers unable to access chat histories, allowing for personalized ads based on past interactions, which could improve ad relevance and effectiveness.
- User Experience Assurance: ChatGPT's ads will not alter the responses generated, and they will be visually distinct from organic content to maintain user trust and experience, ensuring that users do not feel disrupted during their interactions.
- Stock Price Reaction: Following the announcement, Bed Bath & Beyond's shares rose 3.3% in afternoon trading, reflecting a positive market response to its new marketing strategy, which may help improve the company's financial situation.
See More
Bed Bath & Beyond Acquires Tokens.com to Build Unified Financial Platform
- Acquisition Agreement: Bed Bath & Beyond has signed an agreement to acquire Tokens.com, aiming to establish a unified investment and personal finance platform that addresses the fragmented financial services market by integrating traditional and tokenized investing.
- Platform Functionality: The platform will integrate the company's fintech, insurance, and blockchain businesses, providing customers with a clear view of their assets and interests, including ownership structure, estimated value ranges, and liquidity options, thereby enhancing asset management capabilities.
- Compliance Support Infrastructure: Tokens.com will leverage the regulatory and operational infrastructure provided by tZERO to support capital markets, tokenization, custody, and trading, forming an integrated stack for compliant liquidity that ensures investor rights are protected.
- Strategic Investment Positioning: Bed Bath & Beyond currently holds strategic investments in digital asset and blockchain businesses, including tZERO and GrainChain, both directly and through its Medici portfolio, with the Tokens.com platform expected to be operational by July 1, 2026.
See More
Sector Update: Consumer Stocks Mixed Late Afternoon
See More
David Gardner Proposes National Share Day to Encourage Public Investment
- Public Investment Initiative: David Gardner proposes the establishment of National Share Day, envisioning that every American receives a share of a company, aimed at increasing public interest in investing and promoting financial literacy.
- Historical Reflection: Gardner reflects on the history of Bed Bath & Beyond, noting its bankruptcy filing in 2023 due to failure to adapt to e-commerce trends, highlighting the rapid changes in the retail sector and the lessons for investors.
- Importance of Investment Education: He emphasizes the crucial role of retail investors in the economy, arguing that they provide capital to businesses and, despite being viewed as amateur investors, their long-term investment potential should not be underestimated.
- Personal Investment Philosophy: Gardner shares his views on AI in investing, suggesting that while AI can assist, individual investors should actively engage in investing to gain deeper learning and growth experiences.
See More
Motley Fool Proposes National Share Day to Promote Ownership
- Proposal for National Share Day: David Gardner of Motley Fool suggests establishing a National Share Day to encourage every American to own a share of a company, potentially inspiring 320 million Americans to open investment accounts, thereby enhancing public engagement and awareness in investing.
- Reflection on Investor Identity: Gardner criticizes the term 'retail investor' as derogatory, asserting that individual investors play a crucial role in providing capital and fostering market growth, thus highlighting their importance in the economy.
- Short Selling History Review: Gardner recalls the early days of Motley Fool when they shorted Bed Bath & Beyond, noting its failure to adapt to e-commerce trends, which ultimately led to its bankruptcy, reflecting the harsh realities faced by retailers in the market.
- Sharing Life Hacks: Gardner shares a life hack of picking up two items every time one enters a room, aimed at helping individuals improve their living spaces, emphasizing that small changes can lead to significant long-term positive impacts.
See More
Motley Fool Introduces National Share Day to Encourage Public Investment
- Public Investment Initiative: David Gardner of Motley Fool introduces the concept of National Share Day, aiming to encourage every American to receive a random share of a company, thereby enhancing public awareness and participation in the stock market.
- Historical Reflection: Gardner reflects on the history of Bed Bath & Beyond, noting its bankruptcy in 2023 due to failure to adapt to e-commerce trends, highlighting the challenges faced by the retail industry and the risks investors must be aware of.
- Importance of Investment Education: He emphasizes that while the term 'retail investor' is often looked down upon, individual investors play a crucial role in providing capital and driving market growth, calling for greater societal recognition of their contributions.
- Personal Investment Philosophy: Gardner mentions that despite the rise of AI in investing, he advocates for individuals to actively engage in investment decisions to gain deeper learning and growth experiences.
See More
