Build-A-Bear Reports Q2 2026 Results; Chief Growth Officer Departed

What Happened Build-A-Bear Workshop, Inc. filed an 8-K on August 27, 2026 reporting results for the fiscal quarter ended August 1, 2026 and announcing the termination of Chief Growth Officer David Henderson effective August 26, 2026. For Q2 2026 the Company reported total revenues of $115.3 million (vs. $124.2 million prior year), pre-tax income of $11.6 million (vs. $15.3 million prior year), and diluted EPS of $0.70 (vs. $0.94 prior year). For the first half of fiscal 2026, revenues were $240.6 million (down 4.8% year-over-year), pre-tax income was $35.5 million (14.8% of revenues) and diluted EPS was $2.16 (vs. $2.11 prior year). The Company returned $22.7 million to shareholders in H1 2026 through buybacks and dividends. Build-A-Bear updated its fiscal 2026 outlook, lowering revenue guidance to $500–$525 million and pre-tax income guidance to $60–$68 million.

Key Details

• Q2 2026: Revenues $115.3M; pre-tax income $11.6M; diluted EPS $0.70.
• H1 2026: Revenues $240.6M (−4.8% YoY); pre-tax income $35.5M (14.8% of revenues); diluted EPS $2.16.
• FY2026 guidance revised: revenue $500M–$525M; pre-tax income $60M–$68M.
• Executive change: David Henderson (Chief Growth Officer) terminated Aug 26, 2026; offered a Separation Agreement with (i) $501,500 severance paid over 12 months (starting 30 days after termination), (ii) lump-sum $31,723.92 for employer health contributions (paid within 30 days), and (iii) prorated 2026 bonus if earned; unvested restricted stock and performance cash awards forfeited; release, confidentiality, one-year non-compete/non-solicit required and conditioned on signing within 21 days.

Why It Matters The quarter shows lower revenue, pre-tax income and EPS versus the prior year and the Company lowered full-year revenue and profit guidance — signals investors should reassess near-term expectations for growth and profitability. The company continues returning capital to shareholders (buybacks/dividends), but the guidance cut is the headline change to monitor. The departure of the Chief Growth Officer may affect execution of growth initiatives; the separation terms limit ongoing cash and equity obligations (forfeiture of unvested awards and a modest severance), and include standard restrictive covenants. Keywords: earnings, revenue, quarterly results, guidance, chief growth officer, executive departure.