Bob's Discount Furniture, Inc. (BOBS)

Price$17.64Cached quoteAs of 2026-09-05 21:12 UTC

AI: Fair-priced

Price checkValuation looks balanced: growth is real, but margin pressure and lease obligations limit obvious upside.

With equity value around $2.3 billion and enterprise value near $3.15 billion, the stock trades at roughly a high-teens multiple of management’s midpoint adjusted 2026 earnings and a low-teens multiple of adjusted EBITDA. EBITDA is earnings before interest, taxes, depreciation and amortization, a rough operating-profit measure. Those levels are not demanding for a retailer still adding about 20 stores annually, but they are not bargain levels either because adjusted margins have weakened and the business carries sizable lease commitments.

Big pictureBob’s is expanding rapidly while same-store demand has cooled from an unusually strong 2025.

Bob’s Discount Furniture, Inc. trades on the NYSE as BOBS. Fiscal 2025 revenue grew 16.8% and comparable sales rose 7.7%, helped by strong conversion and e-commerce traffic. For 2026, management guides to $2.60-$2.625 billion of revenue, 1.5%-2.5% comparable-sales growth and about 20 new stores. Comparable sales measure established stores plus e-commerce against the prior year. Q2 comparable growth was 2.3%, so current momentum is positive but much slower than 2025, leaving results sensitive to housing activity and discretionary furniture spending.

Business strengthDebt cleanup, positive operating cash flow, and a value-focused model support financial durability.

Through the first half of 2026, operating cash flow was $93.1 million versus $59.9 million of capital spending, leaving a useful cash cushion before financing. At quarter end Bob’s had $176.6 million of liquidity, no term-loan balance and no revolver borrowings; a $41.9 million tariff refund arrived afterward. The IPO added 19.45 million shares and largely funded repayment of a $350 million term loan, improving balance-sheet risk but diluting owners. Lease liabilities were about $894 million, so store rent remains an important fixed obligation.

What could change the storyUpside needs steady comps and tariff mitigation; downside comes from weaker furniture demand and stubborn freight costs.

A bull case assumes comparable sales hold near 2%-3%, roughly 20 annual openings mature well, sourcing actions offset tariffs, and adjusted EBITDA can grow around 10% annually. That could justify a higher earnings multiple. A bear case assumes flat or negative comparable sales, adjusted gross margin staying pressured near recent levels, and new-store marketing, pre-opening costs and freight absorbing scale benefits. Because leases are fixed and 2026 fully diluted shares are guided near 135 million, weak sales or option exercises can magnify per-share disappointment.

AI: News

Q2 stayed on planRevenue grew, comparable sales stayed positive, and management reaffirmed its full-year operating outlook.

On August 6, Bob’s reported Q2 revenue of $619.6 million, up 8.8%, with comparable sales up 2.3% and four new stores opened. Adjusted EBITDA was $60.8 million, down 3.3%, while adjusted gross margin slipped to 45.4% from 46.4% because the prior year had unusually favorable freight rates. Management kept its 2026 revenue, comparable-sales, adjusted EBITDA and adjusted net-income ranges unchanged, signaling confidence despite cost pressure.

Guidance corrected next dayThe company lowered GAAP net-income guidance after catching an omitted tax effect on tariff refunds.

On August 7, Bob’s filed an 8-K correcting full-year GAAP net-income guidance to $142-$150 million. The prior range had inadvertently omitted the tax impact of the tariff refund recognized in Q2. The company said all other outlook metrics were unchanged. The correction does not change the underlying adjusted operating targets, but it is worth noting because it shows the reported Q2 profit contained a sizable one-time tariff benefit and because guidance-quality mistakes can affect investor confidence.

Credit capacity expandedBob’s increased its revolving credit commitment and extended maturity, strengthening backup liquidity for expansion.

On April 29, Bob’s amended its asset-based revolving credit facility, increasing total commitments from $125 million to $200 million and extending maturity to April 2031. The borrowing base still depends on eligible cash, receivables and inventory, so the full headline amount is not always available. By June 28 the company had no revolver balance and $144.6 million of available capacity. That gives management useful flexibility for inventory, new stores and distribution-center investment without immediately issuing more stock.

IPO reset the balance sheetThe February listing raised fresh equity and helped eliminate the company’s large term loan.

On February 5, Bob’s completed its IPO, issuing 19.45 million new shares and receiving about $304.2 million of net proceeds. Those proceeds, together with cash on hand and temporary revolver borrowings, were used to repay a $350 million term loan during the first quarter. The trade-off was dilution: basic shares outstanding rose materially, and employee options remain. For investors, this converted a meaningful amount of financial leverage into equity dilution and lower ongoing interest risk.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$2.37B	$2.03B	$2.01B	$2.11B
Gross profit	$1.08B	$948.4M	$934.7M	$853.4M
Gross margin	45.66%	46.76%	46.55%	40.53%
Operating expenses	$899.9M	$813.3M	$806.9M	$793.9M
Operating income	$181.5M	$135.1M	$127.8M	$59.5M
Operating margin	7.66%	6.66%	6.36%	2.83%
EBITDA	$241.4M	$189.2M	$185.4M	$119.8M
EBITDA margin	10.19%	9.33%	9.23%	5.69%
Net income	$121.7M	$87.9M	$78.1M	$27.6M
Net profit margin	5.14%	4.34%	3.89%	1.31%
Basic EPSper basic share	$0.94	$0.68	$0.60	$0.21
Diluted EPSper diluted share	$0.94	$0.78	$0.69	$0.21

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 13 reported holders of BOBS
Holder	Shares held
BCPE BDF GP, LLC / BCPE BDF Investor, LP / BAIN CAPITAL BEACON ROLL SPV X, L.P. / Bain Capital Beacon General Partner, LLC / BAIN CAPITAL INVESTORS LLC	95.37M
Kilgallon John Thomas	95.37M
Davis Jennifer Lynn	95.37M
ENGLISH EDMOND J	3.92M
Glaser Carol	273.07K
Nesle Stephen	194.49K
Davies Patricia	191.61K
Moeller Stephen	45K
BARTON WILLIAM G	22.85K
Williams Scott K	12K
Lang Trevor	1.85K
Schaffer Ryan Gregory	1.25K
Carbone Barbara	1.2K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys7$834.8K disclosed value

Sells (SEC code S)3$139.51M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 12, 2026Form 4	BARTON WILLIAM GSee Remarks	BuyCommon Stock · indirect	200	$12.17	$2.4K	700
May 8, 2026Form 4	BARTON WILLIAM GSee Remarks	BuyCommon Stock	22.1K	$13.56	$300.4K	22.1K
Feb 13, 2026Form 4	BCPE BDF GP, LLC +4TenPercentOwner	SellCommon Stock · indirect	2.92M	$15.94	$46.50M	95.37M
Feb 13, 2026Form 4	Davis Jennifer LynnDirector,TenPercentOwner	SellCommon Stock · indirect	2.92M	$15.94	$46.50M	95.37M
Feb 13, 2026Form 4	Kilgallon John ThomasDirector,TenPercentOwner	SellCommon Stock · indirect	2.92M	$15.94	$46.50M	95.37M

Review ownership filings at SEC.gov ↗

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Bob's Discount Furniture, Inc. (BOBS)

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