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Barnes & Noble Education, Inc.

For the period ended Aug 1, 2026. Filed Sep 8, 2026.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Aug 1, 2026 · Filed Sep 8, 2026

BNED$13.18+4.8%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Non-GAAP Measures

Use of Non-GAAP Measures - Adjusted Net Income (Loss), Adjusted EBITDA, and Adjusted Free Cash Flow

To supplement our results prepared in accordance with generally accepted accounting principles (“GAAP”), we present certain non-GAAP financial measures, including Adjusted Net Income (Loss), Adjusted EBITDA, and Adjusted Free Cash Flow. These measures are "non-GAAP financial measures" as defined in Regulation G of the Securities Exchange Act of 1934 and Item 10(e) of Regulation S-K.

We define Adjusted Net Income (Loss) as net income (loss), the most directly comparable GAAP measure, adjusted for certain reconciling items that are subtracted from or added to net income (loss). We define Adjusted EBITDA as net income (loss), the most directly comparable GAAP measure, plus (1) depreciation and amortization; (2) interest expense (3) income taxes, (4) stock compensation, and (5) certain other non-cash or non-recurring items, and other adjustments permitted under our credit agreement. We define Adjusted Free Cash Flow as cash flows from operating activities, the most directly comparable GAAP measure, less capital expenditures, cash interest and cash taxes.

We consistently calculate these non-GAAP measures using the same methodology each period. Management uses these measures as internal performance metrics to evaluate results at the consolidated level, to plan and forecast performance, to allocate capital, and in connection with performance incentive plans. The Board of Directors and management also use Adjusted EBITDA as one of the primary tools for assessing operating performance and determining capital allocation. We believe that Adjusted Free Cash Flow provides useful additional information about liquidity, including cash available for debt service, working capital requirements, and strategic investments.

We encourage investors to review our condensed consolidated financial statements included elsewhere in this Form 10-Q. Reconciliations of Adjusted Net Income (Loss) to net income (loss), Adjusted EBITDA to net income (loss), and Adjusted Free Cash flow to cash flow from operating activities, the most directly comparable financial measure presented in accordance with GAAP, set forth in the tables below. All of the items included in the reconciliations below are either (i) non-cash items or (ii) items that management does not consider in assessing our on-going operating performance.

These non-GAAP financial measures are not intended as substitutes for and should not be considered superior to measures of financial performance prepared in accordance with GAAP. In addition, our definitions of these non-GAAP financial measures may differ from those used by other companies, limiting comparability.

For a discussion regarding the Seasonality of our business, see Management Discussion and Analysis - Seasonality discussion above.

Adjusted Net Income (Loss)

13 weeks ended
Dollars in thousandsAugust 1, 2026August 2, 2025
Net loss$(12,914)$(18,271)
Reconciling items (below)(214)2,487
Adjusted Net Loss$(13,128)$(15,784)
Reconciling items
Other (income) expense(1,298)(49)
Stock-based compensation expense1,0842,536
Reconciling items$(214)$2,487

Adjusted EBITDA

13 weeks ended
Dollars in thousandsAugust 1, 2026August 2, 2025
Net loss$(12,914)$(18,271)
Add:
Depreciation and amortization expense8,1519,185
Interest expense, net2,7183,745
Income tax (benefit) expense(7,062)(8,640)
Other (income) expense, net of Investigation expenses(a)(1,298)(49)
Stock-based compensation expense1,0842,536
Adjusted EBITDA$(9,321)$(11,494)

(a)Other (income) expense is exclusive of Investigation costs of $0.1 million incurred during 13 weeks ended August 1, 2026

and $1.5 million for the 13 weeks ended August 2, 2025.

Adjusted Free Cash Flow

13 weeks ended
Dollars in thousandsAugust 1, 2026August 2, 2025
Adjusted EBITDA$(9,321)$(11,494)
Less:
Capital expenditures (a)3,5293,736
Cash interest1,6642,927
Cash taxes255185
Adjusted Free Cash Flow$(14,769)$(18,342)

(a)Purchases of property and equipment are also referred to as capital expenditures. Our investing activities consist principally of capital expenditures for contractual capital investments associated with renewing existing contracts, new store construction, and enhancements to internal systems and our website.

The following table provides the components of total purchases of property and equipment:

Capital Expenditures13 weeks ended
Dollars in thousandsAugust 1, 2026August 2, 2025
Physical store capital expenditures$2,727$2,201
Product and system development7221,400
Other80135
Total Capital Expenditures$3,529$3,736
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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.