Fiscal 2026 revenue fell 10.8% to $1.50 billion and adjusted EBITDA declined to $2.9 million, while the company amended its credit agreement and began reviewing financing and asset-sale alternatives.
Key Investor Takeaways
- 1-800-FLOWERS.COM (NASDAQ:FLWS) reported fiscal 2026 revenue of $1.50 billion, down 10.8% from $1.69 billion, while adjusted EBITDA fell to $2.9 million from $29.2 million.
- The company is evaluating capital raising options that could include debt or equity financing, divestitures of non-strategic assets or other capital structure transactions.
- FLWS amended its credit agreement to extend existing covenant relief and provide greater flexibility over proceeds from potential asset sales.
- Management expects another mid-single-digit revenue decline in fiscal 2027 but forecasts adjusted EBITDA of $10 million to $15 million.
- Fourth-quarter revenue declined 12.9%, with both Consumer Floral & Gifts and Gourmet Foods & Gift Baskets recording double-digit decreases.
Why FLWS Stock Is in Focus
1-800-FLOWERS.COM reported lower fiscal 2026 revenue and adjusted profitability while outlining measures intended to provide additional financial flexibility.
Full-year revenue decreased 10.8% to $1.50 billion, while adjusted EBITDA fell to $2.9 million from $29.2 million. The company recorded a net loss of $134.8 million, including a $45.2 million non-cash goodwill and intangible impairment charge, compared with a $200.0 million loss a year earlier.
Fourth-quarter revenue declined 12.9% to $293.1 million. Adjusted EBITDA was a loss of $31.0 million, widening from a $24.2 million loss in the prior-year quarter.
The company has amended its credit agreement to extend existing covenant relief. It is also evaluating potential debt or equity financings, sales of non-strategic assets and other capital structure transactions, with Guggenheim Securities retained as financial adviser.
Why This Matters for Investors
The combination of declining revenue, lower adjusted EBITDA and the review of capital raising options puts the company’s balance-sheet flexibility and operating recovery in focus.
The financing review could result in additional capital or asset divestitures, although 1-800-FLOWERS.COM said the process remains at an early stage and there is no assurance that any transaction will occur. Potential equity or debt financing would also carry different implications for existing shareholders and the company’s capital structure.
Operating trends remain another consideration. Consumer Floral & Gifts full-year revenue fell 17.7% to $638.9 million, while Gourmet Foods & Gift Baskets revenue decreased 5.2% to $768.5 million. BloomNet revenue declined 1.9% to $96.8 million.
At the same time, operating expenses fell substantially during fiscal 2026. Excluding non-recurring charges and effects from the company’s deferred compensation plan, expenses decreased $62.0 million to $633.3 million.
Fiscal 2027 guidance suggests management expects some improvement in adjusted EBITDA despite another anticipated revenue decline. The company plans to reinvest a significant portion of its cost savings in marketing technology, digital customer experience, personalisation and customer acquisition and retention initiatives.
What to Watch Next
The outcome of the capital structure review is a key development to monitor, particularly whether FLWS pursues debt or equity financing, asset sales or another transaction.
Investors can also watch whether fiscal 2027 adjusted EBITDA reaches the projected $10 million to $15 million range while revenue declines by the expected mid-single-digit percentage.
Progress in stabilising Consumer Floral & Gifts revenue and the effect of reinvestment in marketing and digital capabilities may provide further indications of whether the company’s operating strategy is translating into improved financial performance.