Build A Bear Workshop (BBW) has just reported new figures for FY 2026, with third quarter revenue of US$122.7 million and basic EPS of US$0.62. Trailing twelve month figures show revenue of US$525.8 million and EPS of US$4.38 backed by net income of US$57.5 million. Over recent quarters the company has seen revenue move from US$119.4 million in Q3 2025 to US$150.4 million in Q4 2025 and then to US$128.4 million and US$124.2 million in Q1 and Q2 2026. Basic EPS was US$0.64, US$1.63, US$1.17 and US$0.94 across those same periods. This sets up a results season where a 10.9% net margin and modest growth forecasts will be central to how investors interpret the earnings story.

See our full analysis for Build-A-Bear Workshop.

With the headline numbers in place, the next step is to see how they compare with the widely held market and community narratives around Build A Bear Workshop, highlighting where the story is reinforced and where the latest results raise fresh questions.

TTM earnings up 9.8% with a 10.9% margin

• Over the last 12 months, Build A Bear Workshop generated US$57.5 million of net income on US$525.8 million of revenue, which works out to a 10.9% net margin and 9.8% earnings growth versus a year earlier.
• Analysts' consensus view links this margin profile to growth from international expansion and digital and experiential retail, yet the modest 3.7% forecast earnings growth and 4.1% forecast revenue growth create a contrast:
  • On one hand, the consensus narrative points to higher value transactions from omnichannel initiatives and broader customer segments, which fits with earnings growing faster than revenue over the past year.
  • On the other hand, the below market growth forecasts indicate that, even with a 10.9% margin, the business is expected to expand more slowly than the wider US market benchmarks.

Earnings per share seasonality across recent quarters

• EPS moved from US$0.64 in Q2 2025 to US$1.63 in Q4 2025, then to US$1.17, US$0.94 and US$0.62 in Q1, Q2 and Q3 2026, while revenue ranged between US$111.8 million and US$150.4 million over those same periods.
• Consensus narrative highlights growth from international partners and new product lines, and these quarterly swings give context to that view:
  • Supporters point to expanding overseas units and additional channels such as wholesale and new product ranges as drivers for revenue over multiple quarters, which lines up with trailing 12 month revenue of US$525.8 million.
  • At the same time, the pattern of higher EPS in Q4 2025 and lower EPS in Q2 and Q3 2026 shows that even with new channels, earnings can be concentrated in certain periods, so the story is not a straight line when you look quarter by quarter.

P/E of 9.2x against mixed growth forecasts

• With a current share price of US$41.57 and a P/E of 9.2x, the stock is priced below the DCF fair value of US$64.94 and below the US Specialty Retail industry P/E of 18.2x, while trading above the peer average P/E of 6.3x and below an analyst price target of US$70.00.
• Critics highlight the bearish angle that forecast earnings growth of 3.7% and revenue growth of 4.1% lag broader US market expectations, which interacts directly with these valuation signals:
  • The gap between the US$41.57 share price and the DCF fair value of US$64.94, plus the analyst target of US$70.00, is often cited as support, yet the below market growth outlook helps explain why the P/E sits between direct peers and the wider industry.
  • Bears also point to ongoing cost and footprint risks, and when combined with a P/E that is higher than the 6.3x peer average, the case is that some of those risks may already be reflected in how the stock is priced today.

Over 12 month earnings growth of 9.8%, a 10.9% net margin and a P/E of 9.2x give bulls plenty to talk about, but the slower forecast growth profile means the full bull case is far from settled, especially for longer term holders. 🐂 Build-A-Bear Workshop Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Build-A-Bear Workshop on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mix of optimism and caution in this update feels familiar, it is a good moment to look through the numbers yourself and move quickly to shape your own conclusion. To see what is driving some of that optimism, take a closer look at 4 key rewards.

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Build A Bear Workshop pairs a 10.9% net margin with modest 3.7% earnings and 4.1% revenue forecasts, which some investors may view as limited growth potential.

If that slower outlook makes you cautious about future upside, use our 47 high quality undervalued stocks to quickly spot companies where current prices look more compelling right now.

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.