Build A Bear Workshop capped fiscal 2025 with record sales and earnings, then lifted its quarterly dividend as it prepares for another year of expansion under heavier tariff pressure. Total revenue, pre tax income and EPS all reached new highs even though costs tied to tariffs, labor and healthcare weighed on margins.
Record 2025 in the books
For fiscal 2025, total revenues hit a record $529.8 million, up 6.7% from $496.4 million the prior year. Pre tax income was essentially flat but still a record at $67.2 million, including roughly $11 million in tariffs and related costs that management says would otherwise have dropped to the bottom line. Diluted EPS for the year rose to a record $3.99, up from $3.80, helped by higher pre tax profit, a lower tax rate and fewer shares outstanding. EBITDA for fiscal 2025 came in at $81.4 million, about 15.0% of revenues.
In Q4 (13 weeks ended January 31, 2026), total revenues were a fourth quarter record $154.5 million, up 2.7% year over year. Net retail sales held roughly flat at $139.5 million, while commercial and international franchising revenue grew 37.5% to $15.1 million. Q4 pre tax income fell to $21.5 million from $27.5 million, reflecting about $6 million in tariff and related costs; diluted EPS declined to $1.26 from $1.62.
“We are pleased to report a year of solid revenue expansion, driven by growth across each of our three operating segments. This momentum, even amid external distractions, was further supported by the successful opening of more than 60 net new units across multiple geographies for the second year in a row,” commented Sharon Price John, President and Chief Executive Officer of Build-A-Bear Workshop. “Looking ahead, with a strong plan and key infrastructure in place, given we have now surpassed the half‑billion‑dollar milestone revenue mark this fiscal year, we are focused on further leveraging our success and the power of our brand to drive more incremental business,” concluded Ms. John.
Expansion and diversification
Management highlighted growth across all three operating segments, company owned stores, e commerce/commercial, and international/franchise, and the opening of more than 60 new locations globally for the second year running. While consolidated e commerce demand declined about 13.6% in Q4, higher margin commercial and franchise revenues continued to scale, helping offset store and cost headwinds.
Voin Todorovic, Chief Financial Officer of Build-A-Bear Workshop, added, “The company achieved its fifth consecutive year of record revenue and pre-tax income. These results reflect approximately $11 million in tariffs and related costs that we partially offset through continued operational excellence, strong store contribution margins, and actions to further diversify our business model. This consistent performance, together with solid cash flow generation, has enabled us to return more than $170 million to shareholders through stock repurchases and dividends over the past five years.”
Looking ahead to 2026, the company is signaling at least 50 net new experiences through a mix of company owned shops, partner locations, and entertainment venues, leaning into its broader positioning as a branded experience company rather than a mall only retailer.
Tariffs, margins and cash returns
Tariffs remain a swing factor: approximately $11 million of added tariff and related costs in fiscal 2025 equated to roughly $0.65 of EPS drag, partially offset by operational efficiencies, strong store margins, and a more diversified revenue mix. Gross margin for the year actually improved by about 90 basis points, thanks to reduced promotional activity and fixed cost leverage, but pre tax margin slipped 80 basis points as SG&A rose roughly 170 basis points and tariffs and benefits costs climbed.
Even with those pressures, Build-A-Bear returned $39.0 million to shareholders in fiscal 2025 via buybacks and dividends, and over $170 million over the past five years. In March 2026, the board raised the quarterly cash dividend by about 4.5%, to $0.23 per share.
2026 outlook
For fiscal 2026, guidance calls for mid single digit total revenue growth and pre tax income that could be down mid single digits or up low single digits versus 2025, assuming a full year tariff impact of around $16 million and continued investment in growth initiatives. The company expects capital expenditures of $22 to $25 million, commercial revenue growth of at least 20%, and depreciation and amortization of around $16 million, with an effective tax rate near 24% excluding one time items.
