Bob’s Discount Furniture Announces Fourth Quarter and Fiscal Year 2025 Financial Results
MANCHESTER, Conn.--( BUSINESS WIRE)--Bob’s Discount Furniture, Inc. (NYSE:BOBS) (“we,” “our,” the “Company,” “Bob’s Discount Furniture” or “Bob’s”) today announced financial results for the fourth fiscal quarter and fiscal year ended December 28, 2025.
“We delivered strong full year performance, gaining market share while successfully navigating macro uncertainty through the strength of our differentiated business model - combining everyday low prices with best-in-class omnichannel capabilities and a customer-first culture,” said Bill Barton, President and Chief Executive Officer of Bob's. “Our recent IPO marks a historic milestone that represents years of dedication from our nearly 6,000 team members who live our values every day. As we execute our disciplined expansion strategy targeting the significant whitespace ahead, we remain focused on our core belief: everyone deserves a home they love. With our strong unit economics, a proven portable store model, and significant runway for growth, we are well-positioned to deliver sustainable value for our customers, team members, and shareholders.”
Fourth Quarter of Fiscal Year 2025
(1) Adjusted comparable sales growth refers to comparable sales growth as adjusted to eliminate the impact of a $10.2 million anomalous timing shift in comparable sales for the fourth quarter of fiscal year 2024 as a result of a system outage impacting the final two delivery days of the third quarter of fiscal year 2024.
Fiscal Year 2025
Balance Sheet and Liquidity
Recent Developments
The table below presents our expectations for the full fiscal year 2026 financial operating results. Fiscal year 2026 includes 53 weeks. The “53rd week” is expected to deliver $40.0 million in net revenues, $3.5 million in net income and $5.0 million in adjusted EBITDA.
Fiscal Year 2026
Net revenues
$2,600 to $2,625 million
Comparable sales growth (1)
1.5% to 2.5%
Net income
$113 to $121 million
Adjusted EBITDA (2)
$255 to $265 million
Adjusted net income (2)
$121 to $129 million
Other estimates:
Net capital expenditures (3)
$110 to $115 million
Pre-opening expenses
$23 to $24 million
Effective tax rate
Approximately 27%
New store count
Approximately 20
FD Shares Outstanding (4)
Approximately 137 million
(1) Comparable sales growth is a key performance indicator that measures performance during the current reporting period against the performance of the comparable store sales and eCommerce sales in the corresponding period of the previous fiscal year. Comparable sales growth excludes net sales from the non-comparable 53rd week.
(2) See Non-GAAP Financial Measures for definitions of Adjusted EBITDA and Adjusted net income.
(3) Net capital expenditures represents capital expenditures net of tenant allowances.
(4) FD shares outstanding reflects average fully diluted shares outstanding for fiscal year 2026.
Conference Call
A conference call to discuss the fourth fiscal quarter 2025 financial results is scheduled for today, March, 17, 2026, at 4:30 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-0779 (international callers dial 1-201-389-0914) approximately 10 minutes prior to the start of the call. The conference call will be webcast and once available, a recorded replay can be accessed online at ir.mybobs.com for six months.
About Bob’s Discount Furniture
Bob’s Discount Furniture is a high-growth, national omnichannel retailer of value home furnishings with 209 showrooms as of December 28, 2025 across 26 U.S. states. Since our founding in 1991, we have built our ethos as a trusted and reliable brand offering superior value and service, without compromising on quality or style. Our business model is anchored in delivering furniture at “Everyday Low Prices,” and at the heart of Bob’s success is not just the value of our furniture, but the team members who bring our promise to life every day. From showroom to living room, it’s our people who make Bob’s feel like home. Our belief that everyone deserves a home they love is reflected in how we operate daily and the appreciation we have for our people and communities. From our in-store guest experience specialists who create a no-pressure, no-gimmicks shopping experience, to our distribution and logistics teams who enable fast, reliable fulfillment, Bob’s is built on the dedication of nearly 6,000 team members nationwide. For more information, please visit www.mybobs.com.
Non-GAAP Financial Measures
In addition to the results provided in accordance with U.S. GAAP, this earnings release and related tables include adjusted net income, adjusted EBITDA and adjusted diluted net income per share which present operating results on an adjusted basis. We define adjusted net income as net income adjusted to eliminate the impact of certain items that we do not consider indicative of our core operating performance and the tax effect related to those items. We define adjusted diluted net income per share as adjusted net income divided by weighted average shares outstanding. We define adjusted EBITDA as net income before interest expense, interest income, income tax expense, and depreciation and amortization, adjusted for items that are not indicative of the operating performance of the business. We believe that excluding certain items from our GAAP results allows management to better understand our financial performance from period to period. Moreover, we believe these non-GAAP financial measures provide our stakeholders with useful information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period-to-period comparisons. We use these non-GAAP measures to evaluate the effectiveness of our business strategies, to make budgeting decisions, to evaluate our performance in connection with compensation decisions and to compare our performance against that of peer companies using similar measures. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. These non-U.S. GAAP measures are not a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. These measures should only be read together with the corresponding U.S. GAAP measures. Please refer to the reconciliations of adjusted net income and adjusted EBITDA to net income and adjusted diluted net income per share to diluted net income per share, the most directly comparable financial measures prepared in accordance with U.S. GAAP, below.
Forward-Looking Statements
Certain statements contained herein, including statements under the headings “Recent Developments”, are not based on historical fact and are “forward-looking statements” within the meaning of applicable securities laws.
Forward-looking statements can generally be identified by words such as “anticipate,” “believe,” “envision,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “contemplate” and other similar expressions, although not all forward-looking statements contain these identifying words. Forward-looking statements include, but are not limited to, statements concerning: our expected financial operating results for fiscal year 2026; plans to open new stores, expand into new regions and increase market share; and plans to increase brand awareness and increase comparable sales.
The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, factors and assumptions described in “Risk Factors” in our Annual Report on Form 10-K, including those relating to, among other things:
The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Bob's Discount Furniture, Inc.
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
December 28,
2025
December 29,
2024
Assets
Current assets
Cash and cash equivalents
$
53,202
$
80,558
Restricted cash
9,412
—
Accounts receivable
17,590
17,223
Inventories
350,284
303,930
Prepaids and other current assets
40,871
46,208
Total current assets
471,359
447,919
Property and equipment, net
328,827
280,391
Operating lease right-of-use assets
641,529
533,690
Intangible assets
179,100
179,100
Goodwill
181,699
181,699
Deferred offering costs
3,981
—
Other assets
5,260
2,265
Total assets
$
1,811,755
$
1,625,064
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$
260,610
$
279,389
Self-insurance reserves
27,959
26,831
Accrued expenses
66,211
61,136
Customer deposits
70,740
66,606
Current portion of long-term debt
1,750
—
Finance lease liabilities, current portion
15,201
9,926
Operating lease liabilities, current portion
100,563
88,891
Total current liabilities
543,034
532,779
Long-term debt
337,430
—
Finance lease liabilities, noncurrent portion
44,254
30,211
Operating lease liabilities, noncurrent portion
678,800
562,069
Deferred income taxes
43,306
34,928
Other long-term liabilities
1,011
847
Total long-term liabilities
1,104,801
628,055
Total liabilities
1,647,835
1,160,834
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $0.01 par value, 50,000 shares authorized; no shares issued or outstanding as of December 28, 2025 and December 29, 2024
—
—
Common stock, $0.0001 par value, 300,000,000 shares authorized; 119,777,765 shares issued and 110,530,029 outstanding at December 28, 2025; 118,703,566 shares issued and 109,872,523 outstanding at December 29, 2024
11
11
Additional paid-in capital
199,796
225,886
Treasury stock shares, at cost, 9,247,736 and 8,831,043 shares at December 28, 2025 and December 29, 2024, respectively
(67,336
)
(63,351
)
Retained earnings
31,449
301,684
Total stockholders' equity
163,920
464,230
Total liabilities and stockholders' equity
$
1,811,755
$
1,625,064
Bob's Discount Furniture, Inc.
Consolidated Statements of Operations and Comprehensive Income
(In thousands, except per share amounts)
Three-Month Fiscal Period Ended
December 28, 2025
December 29, 2024
Increase (Decrease)
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Amount
% (1)
Net revenues
$
648,827
100.0
%
599,761
100.0
%
$
49,066
8.2
%
Cost of sales
352,302
54.3
%
326,722
54.5
%
25,580
7.8
%
Gross profit
296,525
45.7
%
273,039
45.5
%
23,486
8.6
%
Operating expenses (income)
Selling, general, and administrative expenses
236,905
36.5
%
216,937
36.2
%
19,968
9.2
%
Pre-opening expenses
3,625
0.6
%
1,764
0.3
%
1,861
105.5
%
(Gain) loss on disposal of fixed assets
(21
)
—
%
7
—
%
(28
)
NM
Impairment of long-lived assets
—
—
%
2,061
0.3
%
(2,061
)
(100.0
)%
Insurance recoveries
(503
)
(0.1
)%
—
—
%
503
100.0
%
Total operating expenses
240,006
37.0
%
220,769
36.8
%
19,237
8.7
%
Operating income
56,519
8.7
%
52,270
8.7
%
4,249
8.1
%
Other (income) expense
Interest expense
5,890
0.9
%
894
0.1
%
4,996
NM
Interest income
(548
)
(0.1
)%
(411
)
(0.1
)%
137
33.3
%
Other income, net
(10
)
—
%
(446
)
(0.1
)%
(436
)
(97.8
)%
Total other expense, net
5,332
0.8
%
37
—
%
5,295
NM
Income before taxes
51,187
7.9
%
52,233
8.7
%
(1,046
)
(2.0
)%
Income tax expense
10,160
1.6
%
13,612
2.3
%
(3,452
)
(25.4
)%
Net income
$
41,027
6.3
%
$
38,621
6.4
%
2,406
6.2
%
Other comprehensive (loss) income
Change in unrealized interest rate hedging, net of tax expense
—
—
Total other comprehensive loss
—
—
Total comprehensive income
$
41,027
$
38,621
Basic net income per share
$
0.37
$
0.35
Diluted net income per share
$
0.35
$
0.34
__________________
(1) NM refers to a value that is not meaningful.
Bob's Discount Furniture, Inc.
Consolidated Statements of Operations and Comprehensive Income
(In thousands, except per share amounts)
Fiscal Year Ended
December 28, 2025
December 29, 2024
Increase (Decrease)
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Amount
% (1)
Net revenues
$
2,368,039
100.0
%
$
2,028,143
100.0
%
$
339,896
16.8
%
Cost of sales
1,286,703
54.3
%
1,079,703
53.2
%
207,000
19.2
%
Gross profit
1,081,336
45.7
%
948,440
46.8
%
132,896
14.0
%
Operating expenses (income)
Selling, general, and administrative expenses
899,873
38.0
%
813,302
40.1
%
86,571
10.6
%
Pre-opening expenses
18,782
0.8
%
15,326
0.8
%
3,456
22.5
%
(Gain) loss on disposal of fixed assets
(155
)
—
%
17
—
%
(172
)
NM
Impairment of long-lived assets
—
—
%
2,061
0.1
%
(2,061
)
(100.0
)%
Restructuring charges
292
—
%
—
—
%
292
100.0
%
Insurance recoveries
(5,000
)
(0.2
)%
—
—
%
5,000
100.0
%
Total operating expenses
913,792
38.6
%
830,706
41.0
%
83,086
10.0
%
Operating income
167,544
7.1
%
117,734
5.8
%
49,810
42.3
%
Other (income) expense
Interest expense
9,091
0.4
%
10,538
0.5
%
(1,447
)
(13.7
)%
Interest income
(2,050
)
(0.1
)%
(2,450
)
(0.1
)%
(400
)
(16.3
)%
Other income, net
(663
)
—
%
(3,778
)
(0.2
)%
(3,115
)
(82.5
)%
Total other expense, net
6,378
0.3
%
4,310
0.2
%
2,068
48.0
%
Income before taxes
161,166
6.8
%
113,424
5.6
%
47,742
42.1
%
Income tax expense
39,442
1.7
%
25,491
1.3
%
13,951
54.7
%
Net income
$
121,724
5.1
%
$
87,933
4.3
%
33,791
38.4
%
Other comprehensive (loss) income
Change in unrealized rate hedging, net of tax expense (benefit) of $— and $1,160, respectively
—
(3,038
)
Total other comprehensive loss
—
(3,038
)
Total comprehensive income
$
121,724
$
84,895
Basic net income per share
$
1.10
$
0.80
Diluted net income per share
$
1.07
$
0.78
__________________
(1) NM refers to a value that is not meaningful.
Bob's Discount Furniture, Inc.
Consolidated Statements of Cash Flows
(In thousands)
Fiscal Year Ended
December 28, 2025
December 29, 2024
Cash flows from operating activities
Net income
$
121,724
$
87,933
Adjustments to reconcile net income to net cash provided by operating activities
Stock-based compensation expense
3,507
3,648
Transaction losses
2,996
4,890
Depreciation and amortization
71,105
65,194
Non-cash interest expense
285
2,973
Impairment and (gain) loss on disposal of fixed assets
(155
)
743
Impairment of operating lease right-of-use assets
—
1,335
Non-cash lease costs
76,843
68,496
Deferred income taxes
8,378
(3,133
)
Change in reserve for product warranties
712
857
Changes in operating assets and liabilities
Accounts receivable
(3,363
)
(5,331
)
Inventories
(46,354
)
(76,444
)
Prepaids and other current assets
5,337
(10,054
)
Other assets
(5,557
)
649
Accounts payable
(24,493
)
72,877
Accrued expenses
5,655
23
Customer deposits
4,134
4,193
Operating leases
(56,280
)
(57,695
)
Net cash provided by operating activities
164,474
161,154
Cash flows from investing activities
Purchase of property and equipment
(83,047
)
(78,224
)
Net cash used in investing activities
(83,047
)
(78,224
)
Cash flows from financing activities
Proceeds from issuance of Term Loan
350,000
—
Principal payments on First Lien Note
—
(82,936
)
Proceeds from Line of Credit
3,000
30,000
Principal payments on Line of Credit
(3,000
)
(30,000
)
Debt issuance costs
(11,017
)
—
Principal payments on financing lease obligations
(11,306
)
(8,955
)
Proceeds (payments) related to exercise of employee stock options
1,480
(7,604
)
Payments for the acquisition of treasury stock
(1,127
)
(5,974
)
Dividends paid
(425,893
)
—
Payments of initial public offering costs
(1,508
)
—
Net cash used in financing activities
(99,371
)
(105,469
)
Net decrease in cash and cash equivalents, and restricted cash
(17,944
)
(22,539
)
Cash, cash equivalents, and restricted cash beginning of period
80,558
103,097
Cash, cash equivalents, and restricted cash end of period
$
62,614
$
80,558
Supplemental disclosure of cash flow data
Cash paid for interest
$
4,515
$
6,129
Supplemental disclosure of noncash investing and financing activities
Assets acquired under financing leases
$
30,737
$
11,467
Purchase of property and equipment included in accounts payable and accrued expenses
19,224
13,508
Deferred offering costs included in accounts payable
2,473
—
Employees cashless exercising of stock options
2,858
14,744
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited, amounts in thousands)
Three-Month Fiscal Period Ended
Fiscal Year Ended
December 28,
2025
December 29,
2024
December 28,
2025
December 29,
2024
Net revenues
$
648,827
$
599,761
$
2,368,039
$
2,028,143
Adjusted net income
Net income
$
41,027
$
38,621
$
121,724
$
87,933
Restructuring charges
—
—
292
—
Insurance recoveries (1)
(617
)
—
(5,114
)
—
Gain on hedge accounting de-designation of interest rate cap
—
—
—
(3,067
)
(Gain) loss on disposal of fixed assets
(21
)
7
(155
)
17
Impairment of long-lived assets
—
2,061
—
2,061
Management fee (2)
515
507
2,046
2,013
Other expenses (3)
335
274
889
2,616
Tax effect of adjustments
(71
)
(640
)
500
(819
)
Adjusted net income
$
41,168
$
40,830
$
120,182
$
90,754
Adjusted net income as % of net revenue
6.3
%
6.8
%
5.1
%
4.5
%
Adjusted EBITDA
Net income
$
41,027
$
38,621
$
121,724
$
87,933
Interest expense
5,890
894
9,091
10,538
Interest income
(548
)
(411
)
(2,050
)
(2,450
)
Income tax expense
10,160
13,612
39,442
25,491
Depreciation and amortization
19,021
16,512
71,105
65,194
Stock-based compensation expense
718
854
3,507
3,648
Restructuring charges
—
—
292
—
Insurance recoveries (1)
(617
)
—
(5,114
)
—
Gain on hedge accounting de-designation of interest rate cap
—
—
—
(3,067
)
(Gain) loss on disposal of fixed assets
(21
)
7
(155
)
17
Impairment of long-lived assets
—
2,061
—
2,061
Management fee (2)
515
507
2,046
2,013
Other expenses (3)
335
274
889
2,616
Adjusted EBITDA
$
76,480
$
72,931
$
240,777
$
193,994
Adjusted EBITDA as % of revenue
11.8
%
12.2
%
10.2
%
9.6
%
(1) Of these amounts, $0.1 million related to the recovery of costs and the remainder related to the recovery of lost profits. Recovery of lost profits was recorded to SG&A expenses and recovery of lost profits was recorded to insurance recoveries on the Company’s Consolidated Statements of Operations and Comprehensive Income.
(2) Represents management fees paid in accordance with our Advisory Agreement with our controlling stockholder, which terminated in connection with our IPO.
(3) Other expenses represents costs that are not indicative of ongoing business operations and performance, including, but not limited to, third-party professional fees related to the planned initial public offering readiness, litigation matters outside the ordinary course of business and senior termination benefits.
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited, amounts in thousands)
Three-Month Fiscal Period Ended
Fiscal Year Ended
December 28,
2025
December 29,
2024
December 28,
2025
December 29,
2024
Adjusted diluted net income per share
Diluted net income per share
$
0.35
$
0.34
$
1.07
$
0.78
Restructuring charges
—
—
—
—
Insurance recoveries
(0.01
)
—
(0.04
)
—
Gain on hedge accounting de-designation of interest rate cap
—
—
—
(0.03
)
(Gain) loss on disposal of fixed assets
—
—
—
—
Impairment of long-lived assets
—
0.02
—
0.02
Management fee (1)
0.01
—
0.02
0.02
Other expenses (2)
—
—
0.01
0.02
Tax effect of adjustments
—
—
—
—
Adjusted diluted net income per share
$
0.35
$
0.36
$
1.06
$
0.81
(1) Represents management fees paid in accordance with our Advisory Agreement with our controlling stockholder, which terminated in connection with our IPO.
(2) Other expenses represents costs that are not indicative of ongoing business operations and performance, including, but not limited to, third-party professional fees related to the planned initial public offering readiness, litigation matters outside the ordinary course of business and senior termination benefits.