BuildABear (BBW) Stock Forecast & Price Target

Build-A-Bear Workshop Inc demonstrated strong financial performance, with commercial and franchise revenue increasing by 4.9% year-over-year, aided by international expansion and the easing of tariffs impacting domestic partners. A noteworthy 25% year-over-year rise in commercial revenue highlights the company’s successful development of wholesale relationships, particularly for popular products like Mini Beans. Additionally, the company reported a 9.2% increase in EBITDA and an 18.1% rise in EPS for the third quarter, underscoring robust operational efficiency and growth potential in the market.

Build-A-Bear Workshop Inc has demonstrated a potential decline in 4QFY25 pre-tax income, showing a YoY range of a decrease between 18.9% and an increase of only 10.2%, indicating substantial uncertainty surrounding future profitability. Despite reporting record results for 3QFY25, the results were hindered by challenging comparisons with the previous year’s strong performance tied to a successful licensing launch, leading to a revenue miss relative to market expectations. Additionally, the decline of over 35% in share price since September, coupled with rising tariffs and waning consumer spending concerns for the upcoming holiday season, signals a difficult economic environment impacting the company’s financial outlook.