Build-A-Bear 2026 Q2 Earnings Strong Performance as Net Income Surges 40.9%

Build-A-Bear Workshop (BBW) reported its fiscal 2026 Q2 earnings on September 11, 2025. The results exceeded expectations with a 46.9% rise in EPS and a record-high net income. The company also raised its guidance for store expansion and earnings, reflecting confidence in future performance.

Revenue
Build-A-Bear's total revenue for the quarter reached $124.25 million, representing an 11.1% increase compared to $111.80 million in the same period in 2025.

Earnings/Net Income
The company’s EPS increased by 46.9% to $0.94 in 2026 Q2 from $0.64 in 2025 Q2, showcasing continued earnings momentum. Net income rose to $12.37 million, a 40.9% increase from $8.78 million in the prior-year quarter. This marks the highest net income in over 20 years for a fiscal Q2 report. The EPS and net income results reflect strong operational performance and improved profitability.

Price Action
Build-A-Bear’s stock price has shown robust performance post-earnings, rising 0.70% on the latest trading day, surging 22.42% for the week, and climbing 45.21% month-to-date.

Post-Earnings Price Action Review
The company’s stock has experienced a sharp rally following the strong earnings and positive guidance. Over the past month, shares have surged 26%, with the annual gain now exceeding 100%. This momentum appears driven by the combination of solid financial results, an optimistic expansion plan, and improved digital engagement strategies that are broadening the customer base. However, forecasts suggest that future earnings growth may moderate, prompting some investors to question whether the stock has already priced in all of the company’s positive developments.

CEO Commentary
Build-A-Bear’s CEO emphasized the company’s mission to “add a little more heart to life” through its interactive brand. The CEO noted ongoing growth in e-commerce, licensing, and content creation through Build-A-Bear Entertainment. Strategic investments are focused on expanding into non-plush consumer categories and enhancing digital engagement. The tone reflects cautious optimism, acknowledging the importance of managing risks while leveraging long-standing brand loyalty and diversified revenue streams.

Guidance
Management raised its guidance for both earnings and new store locations for 2025, signaling confidence in the company’s strategic initiatives and future performance. The company, however, has not provided specific revenue or earnings guidance for future periods and acknowledges uncertainties that may affect future results, as outlined in its SEC filings.

Additional News
Build-A-Bear Workshop has drawn attention for its valuation potential following a series of positive announcements. Analysts estimate the stock trades nearly 19% below its fair value, with expectations for continued earnings and expansion growth. Digital transformation efforts, including enhanced social media and omnichannel strategies, are attracting higher-value segments like “Kidults” and collectors. These initiatives are supporting revenue and margin expansion. A fair value estimate of $80 suggests the stock is undervalued, but rising input costs and tariffs pose risks to future margins. A DCF analysis from Simply Wall St also suggests the stock is below its estimated fair value, though with differing assumptions. Investors are encouraged to consider both bullish and bearish views when evaluating the stock’s potential.