Barnes & Noble Education (NYSE:BNED) shares rose Tuesday after the campus bookstore operator reported a return to profitability for its fiscal second quarter, driven by aggressive growth in its inclusive-access course material programs.
The Florham Park, New Jersey-based company posted net income of $25 million, or 72 cents per share, for the quarter ended Nov. 1, 2025—a significant turnaround from the net loss reported in the same period a year earlier.
Excluding non-recurring costs, adjusted earnings reached 76 cents per share.
Revenue climbed to $644.4 million, supported by a 29% surge in the company's "First Day" programs, which provide students with digital and physical textbooks at a discounted rate through institutional partnerships.
The results also marked a critical regulatory milestone, as BNED filed its delayed quarterly reports to become current with SEC requirements.
Beyond the quarterly recovery, the company’s first-half performance showed a dramatic swing to a $6.7 million net profit, compared to a $60.8 million loss in the prior-year period.
CEO Jonathan Shar attributed the improved margins to disciplined expense management and the continued expansion of the "First Day Complete" model, which now serves approximately 1.1 million students across 224 campus stores.