The second consecutive quarterly revenue decline and lowered guidance suggest the consumer headwinds are persistent, not transitory. The termination of the Chief Growth Officer adds execution risk to the wholesale expansion strategy. Monitor Q3 results for any stabilization in retail sales and e-commerce trends; the lowered $500M-$525M revenue guidance implies H2 revenue must improve sequentially from H1's $240.6M run rate.
Price Chart
Executive Summary
Build-A-Bear Workshop reported Q2 fiscal 2026 results that missed expectations, with total revenues of $115.3M (down 7.2% YoY) vs $124.2M consensus and GAAP EPS of $0.70 (down 25.5% YoY) vs $0.94 prior year. The company lowered its full-year revenue guidance to $500M-$525M (from $530M-$550M) and pre-tax income guidance to $60M-$68M (from $72M-$78M), citing weaker consumer traffic and delayed wholesale opportunities. Separately, the company terminated Chief Growth Officer David Henderson without cause, triggering a $501,500 cash severance. The combination of a second consecutive quarterly revenue decline, lowered guidance, and a C-suite departure is bearish for the stock.
Key Financial Metrics
Key Facts
- Q2 total revenues were $115.3M, down 7.2% YoY from $124.2M
- Q2 GAAP diluted EPS was $0.70, down 25.5% from $0.94 in the prior year
- Q2 pre-tax income was $11.6M, down 24.1% from $15.3M
- Consolidated e-commerce demand decreased 15.6% in Q2
- Full-year revenue guidance lowered to $500M-$525M from prior $530M-$550M
- Full-year pre-tax income guidance lowered to $60M-$68M from prior $72M-$78M
- Chief Growth Officer David Henderson terminated without cause on August 26, 2026
- Henderson receives $501,500 cash severance payable over 12 months plus $31,724 lump sum for health benefits
- First-half total revenues were $240.6M, down 4.8% YoY
- Company returned $22.7M to shareholders in H1 via buybacks and dividends
Financial Impact
Q2 revenue miss of ~$8.9M vs consensus; full-year revenue guidance cut by $30M at midpoint; pre-tax income guidance cut by $11M at midpoint
Risk Factors
- Consumer traffic weakness may persist into H2 2026
- Tariff costs of $10M-$11M and 12.5% tariff rate pressure margins
- Wholesale revenue expected to be flat vs fiscal 2025, a downgrade from prior 20% growth expectation
- Cash position declined 64.2% YoY to $14.0M, limiting financial flexibility
- C-suite departure may signal internal challenges or strategic misalignment
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-029054 |
| Document: 0001437749-26-029054-index.html | 0001437749-26-029054 |
| Document: 0001437749-26-029054.txt | 0001437749-26-029054 |
| 8-K Data (Synthetic) | 0001437749-26-029054 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 2, 2026 25d ago | SC 13G | $25.56 | awaiting T+20 | — | $24.56 (−3.91%) |
Aug 27, 2026 8w ago | 8-K | $28.44 $25.10 | ▲ +11.74% | ▲ +11.24% | $24.56 (+13.64%) |
Aug 15, 2026 10w ago | Institutional Cluster | $38.19 $25.74 | ▼ −32.60% | ▼ −30.62% | $24.56 (−35.69%) |
Jun 12, 2026 19w ago | 8-K | $32.13 $34.42 | ▲ +7.13% | ▲ +5.35% | $24.56 (−23.56%) |
Jun 11, 2026 19w ago | 8-K | $32.13 $34.42 | ▲ +7.13% | ▲ +5.35% | $24.56 (−23.56%) |
Jun 11, 2026 19w ago | Institutional Cluster | $33.89 $31.15 | ▼ −8.09% | ▼ −9.98% | $24.56 (−27.53%) |
May 28, 2026 21w ago | 8-K | $38.90 $31.34 | ▲ +19.43% | ▲ +16.29% | $24.56 (+36.86%) |
Apr 30, 2026 25w ago | DEFA14A | $36.94 $37.21 | ▲ +0.73% | ▼ −4.50% | $24.56 (−33.51%) |
Mar 12, 2026 32w ago | 8-K | $41.33 $37.26 | ▼ −9.85% | ▼ −11.82% | $24.56 (−40.57%) |
Mar 12, 2026 32w ago | 8-K | $41.33 $37.26 | ▼ −9.85% | ▼ −11.82% | $24.56 (−40.57%) |
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