Barnes & Noble Education (BNED) has just wrapped up FY 2025 with fourth quarter revenue of $278.3 million and a basic EPS of about -$0.67, alongside trailing 12 month revenue of roughly $1.6 billion and EPS of about -$2.50. These figures underscore an earnings profile still under pressure. The company has seen quarterly revenue move from $235.9 million in Q4 FY 2024 through $602.1 million in Q2 FY 2025 before landing at $278.3 million in Q4 FY 2025. EPS has swung from about -$14.95 to as high as $1.87 and back to a loss of about -$0.67, highlighting volatility in margins that many investors may watch to see whether they can stabilize.

With the headline numbers on the table, the next step is to compare these results with the dominant narratives around Barnes & Noble Education to see which margin stories hold up and which ones start to crack.

Price to sales sits at just 0.2x

• BNED is trading on a 0.2x price to sales ratio, well below the US Specialty Retail average of 0.5x and far under the 6.8x peer average. This means the stock is being valued at a much lower level of sales than many competitors.
• What stands out for a bullish view is that this discounted multiple sits beside $1.6 billion of trailing 12 month revenue and shrinking losses of $65.8 million. Together, these figures suggest some investors may see room for a re rating if the business can convert more of that sales base into profit.
  • Supporters can point to losses narrowing at about 2.6% per year over the last five years as evidence the income statement is moving in the right direction, even if it is not yet profitable.
  • Skeptics, however, will note that being unprofitable on $1.6 billion of revenue shows the turnaround is still incomplete, so the low multiple may also reflect the market pricing in that execution risk.

Trailing losses still total $65.8 million

• On a trailing 12 month basis, BNED recorded a net loss of $65.8 million and basic EPS of about negative $2.50, which means the company remains firmly in loss making territory despite the progress from deeper losses a year ago.
• From a more bearish angle, critics highlight that even with EPS improving from around negative $28.18 a year earlier to about negative $2.50 now, the business has not yet shown that it can sustain the occasional profitable quarters seen in FY 2025.
  • Bears can reasonably argue that positive EPS in Q2 and Q3 FY 2025, at roughly $1.87 and $0.23, did not prevent the full year from ending with a sizeable loss, so the profitability pattern is still uneven.
  • They may also point out that net income remained negative at $23.2 million in Q4 FY 2025 after a $39.97 million loss in Q4 FY 2024, indicating the company is still working through structural cost and margin pressures.

Cash runway under one year

• The company is assessed as having less than one year of cash runway based on trailing 12 month metrics, which makes liquidity a central financial risk alongside its ongoing unprofitability.
• From a bearish perspective, this short runway heavily reinforces concerns that the low 0.2x price to sales ratio may be compensating investors for real balance sheet pressure rather than offering a straightforward bargain.
  • With $65.8 million of trailing losses and no forward earnings forecasts provided, bears argue that additional funding or deeper cost cuts could be needed if the business does not stabilize quickly.
  • They also note that recent share price volatility over the past three months, compared with the broader US market, is consistent with investors reacting to this combination of thin liquidity and continuing losses.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Barnes & Noble Education's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Explore Alternatives

Barnes & Noble Education still faces sizable losses, a short cash runway and volatile profitability. This raises questions about the resilience of its balance sheet.

If this level of financial strain feels uncomfortable, use our solid balance sheet and fundamentals stocks screener (1942 results) to quickly focus on businesses with stronger liquidity, lower leverage and sturdier fundamentals that are built to withstand shocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.