Barnes & Noble Education Faces Investigation Over $23M Revenue Overstatement

Written by Emily J. Thompson, Senior Investment Analyst

Source: Businesswire

Updated: Dec 05 2025

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Should l Buy BNED?

Source: Businesswire

Potential Overstatement: Barnes & Noble Education disclosed that management identified issues with the recording of digital sales costs, potentially leading to an overstatement of up to $23 million in accounts receivable as of May 3, 2025, raising significant investor concerns about financial integrity.
Stock Price Decline: Following this revelation, on July 21, 2025, Barnes & Noble's shares fell by $2.36, approximately 21%, closing at $8.87 per share, indicating market apprehension regarding the company's financial transparency.
Legal Investigation: Kirby McInerney LLP is investigating possible violations of federal securities laws by Barnes & Noble Education and its senior management, which could impact the company's reputation and future investor confidence.
Investor Action: The law firm is urging investors who purchased Barnes & Noble securities to provide information, highlighting that the legal risks faced by the company may lead to shareholder losses, necessitating vigilance among investors regarding future developments.

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About BNED

Barnes & Noble Education, Inc. is a contract operator of physical and virtual bookstores for college and university campuses and K-12 institutions across the United States. The Company also textbook wholesalers and inventory management hardware and software providers. The Company operates through two segments: Retail, and Wholesale. The Retail Segment operates 1,245 college, university, and K-12 school bookstores, comprised of 707 physical bookstores and 538 virtual bookstores. The Wholesale Segment provided a comprehensive selection of new and used textbooks to approximately 2,750 physical bookstores, including its Retail segment's 707 physical bookstores and sources, and distributes new and used textbooks to its 538 virtual bookstores. Additionally, the Wholesale Segment sells hardware and a software suite of applications that provides inventory management and point-of-sale solutions to approximately 325 college bookstores.

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.

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