Bed Bath & Beyond Inc. is forecasting a return to top-line growth in 2026, despite steep revenue declines last year, as it expands into home services, financing and brokerage.
Fourth-quarter net revenue fell 9.8% year over year to $273 million. Gross profit declined nearly 3.5% to $67.3 million. Net loss narrowed significantly to $20.9 million, from $81.3 million in the prior-year period.
For full-year 2025, revenue dropped 25.1% to $1 billion. The company expects revenue trends to improve in 2026 and is targeting low- to mid-single-digit sales growth.
Bed Bath & Beyond Inc. operates banners including Bed Bath & Beyond, Overstock, BuyBuy Baby and Kirkland’s Home.
It has a pending deal to acquire The Brand House Collective (formerly Kirkland’s Home) and said it has another omnichannel transaction agreed to in principle, which would round out its retail brand coverage.
CEO and Executive Chairman Marcus Lemonis said the retailer is repositioning itself around what he calls the “Everything Home Ecosystem.”
Under the strategy, omnichannel retail brands act as the customer acquisition front door, while home services, installable products, financing and protection offerings drive higher-margin transaction growth and customer lifetime value.
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The plan is structured around three pillars: retail brands; “protection, advocacy and financing solutions”; and home services and installable products.
Lemonis told analysts the company is pursuing the acquisition or development of a large-scale residential brokerage network, potentially encompassing thousands of agents, to convert retail demand into renovation and home improvement projects.
External analysts expressed caution. Jefferies said in a note that while the core business is improving and could support a return to positive EBITDA in the second half, expanding aggressively into adjacent verticals introduces integration risk.
The company’s bet is that building an integrated ecosystem, spanning retail, services and financial infrastructure, will strengthen retention and expand long-term value, even as its legacy retail business continues to recover.
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