Barnes & Noble Education (NYSE:BNED) shares surged 23% on Tuesday after the company announced it has wrapped up an internal investigation and released preliminary financial results for fiscal 2025 as well as the first half of fiscal 2026.
The company said the internal review uncovered that a former employee had improperly lowered cost of sales through unsupported manual journal entries. According to the findings, the individual acted independently and has since been terminated.
Despite the accounting issues, BNED reported preliminary unaudited revenue of $1.6 billion for fiscal 2025, up 2.6% from the prior year. Comparable store sales climbed 7.5% year over year, and revenue from its BNC First Day programs increased by 25.3%.
For the first six months of fiscal 2026, BNED generated approximately $933 million in preliminary revenue, reflecting 7.8% growth from the previous year. The company expects net income of $3 million to $8 million for the period, a notable turnaround from the prior year’s net loss of $59–65 million.
“In Fiscal 2025, our preliminary results include strong sales and a significant year-over-year increase in Adjusted EBITDA, driven by continued adoption of our BNC First Day offerings, improved comparable store performance, and disciplined expense management,” said Jonathan Shar, Chief Executive Officer.
The company also highlighted continued momentum in its First Day Complete program, which served roughly 1.14 million students across 223 campus stores during the fall 2025 term—marking a 24% increase in participating students year over year.
Looking forward, Barnes & Noble Education anticipates further revenue gains in fiscal 2026, even with one fewer operating week. The company is forecasting full-year Adjusted EBITDA of $65–75 million and expects Adjusted EBITDA growth of 15–20% in fiscal 2027.