Barnes & Noble Education, Inc. stock research
FY2026 Q1
Barnes & Noble Education (BNED) Gross Margin — Quarter Ended Aug 2, 2025
Revenue for the quarter was higher than the same quarter last year but lower than the previous quarter. Gross profit also increased year-over-year but decreased sequentially, while cost of revenue rose both compared to the prior year and the prior quarter, resulting in a gross margin that improved from the year-ago quarter but weakened from the immediately preceding quarter.
Gross margin takeaway
Quarter ended Aug 2, 2025 · FY2026 Q1
Revenue for the quarter was higher than the same quarter last year but lower than the previous quarter. Gross profit also increased year-over-year but decreased sequentially, while cost of revenue rose both compared to the prior year and the prior quarter, resulting in a gross margin that improved from the year-ago quarter but weakened from the immediately preceding quarter.
- The strongest observable margin driver is the sequential decline in gross margin, which fell from the prior quarter's level. This was driven by a combination of lower revenue and higher cost of revenue, leading to a lower gross profit.
- Compared to the same quarter one year earlier, gross margin improved. Compared to the immediately preceding quarter, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.2%
Gross profit
$55.4M
Revenue
$274.2M
Cost of revenue
$232.8M
Quarter-over-quarter change
-2.1 pts
Year-over-year change
+2.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jul 27, 2024 | $250.9M | $45.0M | $218.4M | 17.9% |
| Oct 26, 2024 | $559.7M | $128.5M | $473.6M | 23.0% |
| Jan 25, 2025 | $419.7M | $93.8M | $369.1M | 22.3% |
| Aug 2, 2025 | $274.2M | $55.4M | $232.8M | 20.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 25, 2025
-2.1 pts
Year-over-year change
Jul 27, 2024
+2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential decline in gross margin, which fell from the prior quarter's level. This was driven by a combination of lower revenue and higher cost of revenue, leading to a lower gross profit.
Compared to the same quarter one year earlier, gross margin improved. Compared to the immediately preceding quarter, gross margin weakened.
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