Earnings release
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Jan 29, 2026 Reports Revenue of $702.2 million and Net Income of $70.6 million Generates Adjusted EBITDA of $98.1 million Provides Outlook for the Second Half of Fiscal Year 2026 JERICHO, N.Y.--(BUSINESS WIRE)-- 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading provider of thoughtful expressions designed to help inspire customers to give more, connect more, and build more and better relationships, today reported results for its Fiscal 2026 second quarter ended December 28, 2025. “Our teams remained focused on executing against our key strategic priorities throughout the holiday period, which continues to re lect the early stages of our broader transformation,” said Adolfo Villagomez, Chief Executive O icer. “While the topline impact of our initiatives will take time as we address structural challenges within the business, we made solid progress in the second quarter on our cost-optimization and organizational-streamlining efforts, including meaningful steps toward transforming our structure into a more functional and e icient organization. These actions are strengthening our operating foundation and better positioning the Company to achieve sustainable, pro itable growth. I am proud of how our teams supported our customers and advanced the operational improvements and strategic priorities that are essential to our long-term success.” Fiscal 2026 Second Quarter Performance 1-800-FLOWERS.COM, Inc. Reports Fiscal 2026 Second Quarter Results 1 Total consolidated revenues decreased 9.5% to $702.2 million, compared with the prior year period, mainly due to a strategic shift that is focused on improving marketing effectiveness and pro itability. Gross pro it margin decreased 120 basis points to 42.1%, compared with 43.3% in the prior year period, primarily due to deleveraging on the sales decline. Operating expenses decreased $23.4 million to $221.1 million, compared with the prior year period, primarily due to lower marketing and labor costs. Excluding non-recurring charges and the impact of the Company’s non-quali ied deferred compensation plan in both periods, operating expenses declined $25.9 million as compared with the prior year to $213.2 million. Net income for the quarter was $70.6 million, or $1.10 per diluted share, as compared to a net income of $64.3 million, or $1.00 per share, in the prior year period. Page 1 of 15
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(1) Refer to “De initions of Non-GAAP Financial Measures” and the tables attached at the end of this press release for reconciliation of non-GAAP results to applicable GAAP results. Segment Results The Company provides Fiscal 2026 second quarter selected inancial results for its Gourmet Foods & Gift Baskets, Consumer Floral & Gifts, and BloomNet® segments in the tables attached to this release and as follows: Fiscal Year 2026 Outlook The Company views Fiscal Year 2026 as a pivotal period of foundation setting. By transforming 1- 800-Flowers.com, Inc. into a customer-centric, data-driven organization with clear objectives and ROI-focused decision making, the Company aims to position itself to fuel future growth. For the second half of Fiscal Year 2026, the Company expects revenue to decline in the low double-digit range, re lecting a continued focus on improving marketing contribution margin, the impact of changes to search engine results page, including increased paid placements and AI-driven content, which negatively impacted organic visibility and direct tra ic, and tougher comparisons following higher levels of less e icient marketing spend in the prior year. Adjusted net income was $76.7 million, or $1.20 per diluted share, compared with an Adjusted Net income of $69.2 million, or $1.08 per share, in the prior year period. 1 1 Adjusted EBITDA for the quarter was $98.1 million, compared with Adjusted EBITDA of $116.3 million in the prior year period. 1 1 Gourmet Foods & Gift Baskets: For the quarter, revenues declined 3.8% to $499.0 million, as compared with the prior year period. Gross pro it margin decreased 120 basis points from the prior year period to 42.3% due to deleveraging on the sales decline and increased tariff, commodity and shipping costs. The segment contribution margin was $105.3 million, compared with segment contribution margin of $111.4 million in the prior year period, excluding severance and system implementation costs. 1 Consumer Floral & Gifts: For the quarter, revenues declined 22.7% to $181.2 million, as compared with the prior year period. Gross pro it margin decreased 180 basis points from the prior year period to 40.1% due to deleveraging on the sales decline, as well as higher tariff and commodity costs. The segment contribution margin was $16.6 million, compared with $21.6 million in the prior year period, excluding severance costs. 1 BloomNet: For the quarter, revenues decreased 3.1% to $22.1 million, as compared with the prior year period. Gross pro it margin remained consistent with the prior year period at 50.9%. The segment contribution margin was $6.4 million, compared with $7.5 million in the prior year period, excluding severance costs. 1 Page 2 of 15
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For the second half of Fiscal Year 2026, the Company expects Adjusted EBITDA to decline slightly compared to the prior year. On a normalized basis for the second half of Fiscal Year 2026, Adjusted EBITDA is expected to increase slightly year over year, which excludes approximately $12 million of anticipated incentive compensation and consultant costs incurred in the period. Ongoing cost-optimization initiatives and organizational-streamlining efforts are expected to help offset topline pressure. The Company’s strategic priorities are focused on positioning the organization for long-term growth. These priorities include: With a renewed commitment to agility and customer-centricity, the Company believes these foundational steps will set the stage for sustainable revenue and pro it growth in the years to come. Conference Call The Company will conduct a conference call to discuss its inancial results today, January 29, 2026, at 8:00 a.m. (ET). The conference call will be webcast from the Investors section of the Company’s website at www.1800 lowersinc.com. A recording of the call will be posted on the Investors section of the Company’s website within two hours of the call’s completion. De initions of non-GAAP Financial Measures: We sometimes use inancial measures derived from consolidated inancial information, but not presented in our inancial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain of these are considered "non-GAAP inancial measures" under the U.S. Securities and Exchange Commission rules. Non-GAAP inancial measures referred to in this document are either labeled as “non-GAAP,” “adjusted” or designated as such with a “1”. See below for de initions and the reasons why we use these non-GAAP inancial measures. Where applicable, see the Selected Financial Information below for reconciliations of these non-GAAP measures to their most directly comparable GAAP inancial measures. Reconciliations for forward-looking igures would require unreasonable efforts at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including, for example, those related to compensation, tax items, amortization or others that may arise during the year, and the Company’s management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the Company is unable to address the probable signi icance of the unavailable information. The lack of such reconciling information should be considered when assessing the impact of such disclosures. 1 1 driving cost savings and organizational e iciency, building a customer-centric and data-driven organization, broadening our reach beyond our e-commerce sites into new channels, and strengthening our team through enhanced talent and accountability. Page 3 of 15
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EBITDA and Adjusted EBITDA: We de ine EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. Adjusted EBITDA is de ined as EBITDA adjusted for the impact of stock-based compensation, Non-Quali ied Deferred Compensation Plan (“NQDC”) investment appreciation/depreciation, and for certain items affecting period-to-period comparability. See Selected Financial Information for details on how EBITDA and Adjusted EBITDA were calculated for each period presented. The Company presents EBITDA and Adjusted EBITDA because it considers such information meaningful supplemental measures of its performance and believes such information is frequently used by the investment community in the evaluation of similarly situated companies. The Company uses EBITDA and Adjusted EBITDA as factors to determine the total amount of incentive compensation available to be awarded to executive o icers and other employees. The Company's credit agreement uses EBITDA and Adjusted EBITDA-related items to determine its interest rate and to measure compliance with certain covenants. EBITDA and Adjusted EBITDA are also used by the Company to evaluate and price potential acquisition candidates. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of the limitations are: (a) EBITDA and Adjusted EBITDA do not re lect changes in, or cash requirements for, the Company's working capital needs; (b) EBITDA and Adjusted EBITDA do not re lect the interest expense, or the cash requirements necessary to service interest or principal payments, on the Company's debts; and (c) although depreciation and amortization are non- cash charges, the assets being depreciated and amortized may have to be replaced in the future and EBITDA does not re lect any cash requirements for such capital expenditures. EBITDA and Adjusted EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company's performance. Segment Contribution Margin and Adjusted Segment Contribution Margin: We de ine Segment Contribution Margin as earnings before interest, taxes, depreciation, and amortization, before the allocation of corporate overhead expenses. Adjusted Segment Contribution Margin is de ined as Segment Contribution Margin adjusted for certain items affecting period-to-period comparability. See Selected Financial Information for details on how Segment Contribution Margin and Adjusted Segment Contribution Margin were calculated for each period presented. When viewed together with our GAAP results, we believe Segment Contribution Margin and Adjusted Segment Contribution Margin provide management and users of the inancial statements meaningful information about the performance of our business segments. Segment Contribution Margin and Adjusted Segment Contribution Margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP inancial measures. The material limitation associated with the use of Segment Contribution Margin and Adjusted Segment Contribution Margin is that they are an incomplete measure of pro itability as they do not include all operating expenses or non-operating income and expenses. Management compensates for this limitation when using these measures by looking at other GAAP measures, such as Operating Income and Net Income. Page 4 of 15
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Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share: We de ine Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share as Net Income (Loss) and Net Income (Loss) Per Common Share adjusted for certain items affecting period-to-period comparability. See Selected Financial Information below for details on how Adjusted Net Income (Loss) Per Common Share and Adjusted or Comparable Net Income (Loss) Per Common Share were calculated for each period presented. We believe that Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share are meaningful measures because they increase the comparability of period-to-period results. Since these are not measures of performance calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, GAAP Net Income (Loss) and Net Income (Loss) Per Common Share, as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies. Free Cash Flow: We de ine Free Cash Flow as net cash provided by (used in) operating activities less capital expenditures. The Company considers Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of ixed assets, which can then be used to, among other things, invest in the Company’s business, make strategic acquisitions, strengthen the balance sheet, and repurchase stock or retire debt. Free Cash Flow is a liquidity measure that is frequently used by the investment community in the evaluation of similarly situated companies. Since Free Cash Flow is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. A limitation of the utility of Free Cash Flow as a measure of inancial performance is that it does not represent the total increase or decrease in the Company's cash balance for the period. About 1-800-FLOWERS.COM, Inc. Page 5 of 15
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1-800-FLOWERS.COM, Inc. is a leading provider of thoughtful expressions designed to help inspire customers to share more, connect more, and build more and better relationships. The Company’s e-commerce business platform features an all-star family of brands, including: 1-800- Flowers.com®, 1-800-Baskets.com®, Card Isle®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Simply Chocolate® and Scharffen Berger®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge on eligible products across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international loral and gift industry service provider offering a broad-range of products and services designed to help members grow their businesses pro itably; Napco ℠ , a resource for loral gifts and seasonal décor; and DesignPac®, a manufacturer of gift baskets and towers. 1-800-FLOWERS.COM, Inc. was recognized among America’s Most Trustworthy Companies by Newsweek for 2024. 1-800-FLOWERS.COM, Inc. was also recognized as one of America’s Most Admired Workplaces for 2025 by Newsweek and was named to the Fortune 1000 list in 2022. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800 lowersinc.com. FLWS-COMP FLWS-FN Special Note Regarding Forward Looking Statements: Page 6 of 15
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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s current expectations or forecasts concerning future events; they do not relate strictly to historical or current facts. Such statements can generally be identi ied by words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “foresee,” “forecast,” “likely,” “should,” “will,” “target,” or similar words or phrases. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, but not limited to, statements relating to future actions; the Company’s ability to leverage its operating platform and reduce its operating expense ratio; its ability to successfully integrate acquired businesses and assets; its ability to successfully execute its strategic priorities; its ability to cost effectively acquire and retain customers and drive purchase frequency; the outcome of contingencies, including legal proceedings in the normal course of business; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; its ability to reduce promotional activities and achieve more e icient marketing programs; and general consumer sentiment and industry and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. The Company cannot guarantee that any forward-looking statement will be realized. Achievement of future results is subject to risk, uncertainties and potentially inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind as you consider forward-looking statements. The Company undertakes no obligation to publicly update any of the forward-looking statements, whether because of new information, future events or otherwise, made in this release or in any of its SEC ilings. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. For a more detailed description of these and other risk factors, refer to the Company’s SEC ilings, including the Company’s Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. Page 7 of 15
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1-800-FLOWERS.COM, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) December 28, 2025 June 29, 2025 (unaudited) Assets Current assets: Cash and cash equivalents $ 193,337 $ 46,502 Trade receivables, net 55,666 21,693 Inventories 148,884 177,127 Prepaid and other 19,393 37,405 Total current assets 417,280 282,727 Property, plant and equipment, net 204,623 215,596 Operating lease right-of-use assets 100,477 107,476 Goodwill 37,625 37,625 Trademarks with inde inite lives 86,673 86,673 Other intangibles, net 1,875 2,691 Other assets 44,507 39,829 Total assets $ 893,060 $ 772,617 Liabilities and Stockholder’s Equity Current liabilities: Accounts payable $ 123,149 $ 74,581 Accrued expenses 168,901 109,887 Current maturities of long-term debt 24,000 21,000 Current portion of long-term operating lease liabilities 16,711 15,918 Total current liabilities 332,761 221,386 Long term debt, net 123,470 134,764 Long-term operating lease liabilities 93,552 99,644 Deferred tax liabilities, net 6,776 6,679 Other liabilities 46,800 41,862 Total liabilities 603,359 504,335 Total stockholders’ equity 289,701 268,282 Total liabilities and stockholders’ equity $ 893,060 $ 772,617 Page 8 of 15
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1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Operations (in thousands, except for per share data) (unaudited) Three Months Ended Six Months Ended December 28, 2025 December 29, 2024 December 28, 2025 December 29, 2024 Net revenues: E-Commerce $ 595,666 $ 677,326 $ 764,680 $ 870,500 Other 106,513 98,166 152,699 147,082 Total net revenues 702,179 775,492 917,379 1,017,582 Cost of revenues 406,713 439,899 545,151 589,670 Gross pro it 295,466 335,593 372,228 427,912 Operating expenses: Marketing and sales 156,068 187,003 225,173 269,100 Technology and development 14,438 15,973 28,588 31,612 General and administrative 37,066 27,410 68,184 55,936 Depreciation and amortization 13,569 14,130 26,471 27,168 Total operating expenses 221,141 244,516 348,416 383,816 Operating income 74,325 91,077 23,812 44,096 Interest income (122) (484) (433) (1,144) Interest expense 6,208 4,880 10,829 8,900 Other income, net (1,871) (1,164) (4,218) (2,931) Income before income taxes 70,110 87,845 17,634 39,271 Income tax (bene it) expense (443) 23,497 38 9,113 Net income $ 70,553 $ 64,348 $ 17,596 $ 30,158 Basic net income per common share $ 1.11 $ 1.01 $ 0.28 $ 0.47 Diluted net income per common share $ 1.10 $ 1.00 $ 0.28 $ 0.47 Weighted average shares used in the calculation of net income per common share Basic 63,816 63,836 63,723 64,017 Diluted 63,965 64,306 63,913 64,501 Page 9 of 15
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1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statement of Cash Flows (in thousands) (unaudited) Six Months Ended December 28, 2025 December 29, 2024 Operating Activities: Net income $ 17,596 $ 30,158 Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions: Depreciation and amortization 26,471 27,168 Amortization of deferred inancing costs 706 361 Deferred income taxes 421 (1,496) Bad debt expense 62 131 Stock-based compensation 4,607 6,108 Other non-cash items (392) (412) Changes in operating items, net of acquisitions: Trade receivables (30,380) (43,400) Inventories 28,243 20,446 Prepaid and other 18,013 5,850 Accounts payable and accrued expenses 103,602 104,671 Other assets and liabilities 1,960 1,722 Net cash provided by operating activities 170,909 151,307 Investing activities: Acquisitions, net of cash acquired — (3,000) Capital expenditures (14,290) (23,023) Net cash used in investing activities (14,290) (26,023) Financing activities: Acquisition of treasury stock (784) (7,683) Proceeds from exercise of employee stock options — 182 Proceeds from bank borrowings 175,000 110,000 Repayment of bank borrowings (184,000) (140,000) Net cash used in inancing activities (9,784) (37,501) Net change in cash and cash equivalents 146,835 87,783 Cash and cash equivalents: Beginning of period 46,502 159,437 End of period $ 193,337 $ 247,220 Page 10 of 15
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1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information - Category Information (dollars in thousands) (unaudited) Three Months Ended December 28, 2025 Restructuring cost/Severance As adjusted (non-GAAP) December 28, 2025 December 29, 2024 System Implementation Costs As adjusted (non-GAAP) December 29, 2024 % Cha Net revenues: Consumer Floral & Gifts $ 181,245 $ — $ 181,245 $234,349 $ — $234,349 (22.7 BloomNet 22,124 — 22,124 22,837 — 22,837 (3. Gourmet Foods & Gift Baskets 498,989 — 498,989 518,454 — 518,454 (3.8 Corporate 89 — 89 113 — 113 (21.2 Intercompany eliminations (268) — (268) (261) — (261) (2.7 Total net revenues $ 702,179 $ — $ 702,179 $ 775,492 $ — $ 775,492 (9.5 Gross Pro it: Consumer Floral & Gifts $ 72,757 — $ 72,757 $ 98,288 — $ 98,288 (26.0 40.1% 40.1% 41.9% 41.9% BloomNet 11,267 — 11,267 11,624 — 11,624 (3. 50.9% 50.9% 50.9% 50.9% Gourmet Foods & Gift Baskets 211,254 — 211,254 225,390 1,992 227,382 (7. 42.3% 42.3% 43.5% 43.9% Corporate 188 — 188 291 — 291 (35.4 211.2% 211.2% 257.5% 257.5% Total gross pro it $295,466 $ — $295,466 $335,593 $ 1,992 $ 337,585 (12.5 42.1% 42.1% 43.3% 43.5% EBITDA (non- GAAP) Segment Contribution Margin (non- GAAP) (a) Consumer Floral & Gifts $ 15,536 $ 1,108 $ 16,644 $ 21,587 $ — $ 21,587 (22.9 BloomNet 6,160 248 6,408 7,460 — 7,460 (14. Gourmet Foods & Gift Baskets 103,471 1,813 105,284 107,277 4,166 111,443 (5.5 Segment Contribution Margin Subtotal 125,167 3,169 128,336 136,324 4,166 140,490 (8.7 Corporate (b) (37,273) 2,910 (34,363) (31,117) 2,141 (28,976) (18.6 EBITDA( Page 11 of 15
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EBITDA (non- GAAP) 87,894 6,079 93,973 105,207 6,307 111,514 (15.7 Add: Stock- based compensation 2,295 — 2,295 3,629 — 3,629 (36.8 Add: Compensation charge related to NQDC Plan investment appreciation 1,850 — 1,850 1,135 — 1,135 63.0 Adjusted EBITDA (non- GAAP) $ 92,039 $ 6,079 $ 98,118 $ 109,971 $ 6,307 $ 116,278 (15.6 1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information - Category Information (dollars in thousands) (unaudited) Six Months Ended December 28, 2025 Restructuring cost/Severance As adjusted (non- GAAP) December 28, 2025 December 29, 2024 System Implementation Costs As adjusted (non-GAAP) December 29, 2024 Ch Net revenues: Consumer Floral & Gifts $296,675 $ — $296,675 $ 369,529 $ — $ 369,529 (1 BloomNet 45,249 — 45,249 45,912 — 45,912 ( Gourmet Foods & Gift Baskets 575,773 — 575,773 602,457 — 602,457 (4 Corporate 157 — 157 202 — 202 (22 Intercompany eliminations (475) — (475) (518) — (518) 8 Total net revenues $ 917,379 $ — $ 917,379 $1,017,582 $ — $1,017,582 (9 Gross Pro it: Consumer Floral & Gifts $ 116,501 — $ 116,501 $ 152,217 — $ 152,217 (23 39.3% 39.3% 41.2% 41.2% BloomNet 22,297 — 22,297 23,152 — 23,152 ( 49.3% 49.3% 50.4% 50.4% Gourmet Foods & Gift Baskets 233,215 — 233,215 252,234 1,992 254,226 (8 40.5% 40.5% 41.9% 42.2% Corporate 215 — 215 309 — 309 (30 136.9% 136.9% 153.0% 153.0% Total gross pro it $372,228 $ — $372,228 $ 427,912 $ 1,992 $ 429,904 (13 40.6% 40.6% 42.1% 42.2% EBITDA (non- GAAP) Segment Contribution Margin (non-GAAP) (a) Consumer Floral & Gifts $ 20,037 $ 1,108 $ 21,145 $ 26,531 $ — $ 26,531 (20 BloomNet 12,099 248 12,347 14,301 — 14,301 (1 Gourmet Foods & Gift Baskets 90,113 1,813 91,926 95,024 5,079 100,103 (8 Segment Contribution Margin Subtotal 122,249 3,169 125,418 135,856 5,079 140,935 (1 Corporate (b) (71,966) 2,910 (69,056) (64,592) 3,008 (61,584) (1 EBITDA (non- GAAP) 50283 6079 56362 71264 8087 79351 (29Page 12 of 15
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GAAP) 50,283 6,079 56,362 71,264 8,087 79,351 (29 Add: Stock- based compensation 4,607 — 4,607 6,108 — 6,108 (24 Add: Compensation charge related to NQDC Plan investment appreciation 4,202 — 4,202 2,873 — 2,873 46 Adjusted EBITDA (non- GAAP) $ 59,092 $ 6,079 $ 65,171 $ 80,245 $ 8,087 $ 88,332 (26 1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands, except for per share data) (unaudited) Reconciliation of net income to adjusted net income (non-GAAP): Three Months Ended Six Months Ended December 28, 2025 December 29, 2024 December 28, 2025 December 29, 2024 Net income $ 70,553 $ 64,348 $ 17,596 $ 30,158 Adjustments to reconcile net income to adjusted net income (non-GAAP) Add: System implementation costs — 6,307 — 8,087 Add: Restructuring cost/ Severance 6,079 — 6,079 — Deduct: Income tax effect on adjustments 29 (1,475) 29 (2,002) Adjusted net income (non-GAAP) $ 76,661 $ 69,180 $ 23,704 $ 36,243 Basic and diluted net income per common share Basic $ 1.11 $ 1.01 $ 0.28 $ 0.47 Diluted $ 1.10 $ 1.00 $ 0.28 $ 0.47 Basic and diluted adjusted net income per common share (non-GAAP) Basic $ 1.20 $ 1.08 $ 0.37 $ 0.57 Diluted $ 1.20 $ 1.08 $ 0.37 $ 0.56 Weighted average shares used in the calculation of basic and diluted net income and adjusted net income per common share Basic 63,816 63,836 63,723 64,017 Diluted 63,965 64,306 63,913 64,501 Page 13 of 15
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1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited) Reconciliation of net income to adjusted EBITDA (non-GAAP): Three Months Ended Six Months Ended December 28, 2025 December 29, 2024 December 28, 2025 December 29, 2024 Net income $ 70,553 $ 64,348 $ 17,596 $ 30,158 Add: Interest expense and other, net 4,215 3,232 6,178 4,825 Add: Depreciation and amortization 13,569 14,130 26,471 27,168 Add: Income tax (bene it) expense (443) 23,497 38 9,113 EBITDA 87,894 105,207 50,283 71,264 Add: Stock-based compensation 2,295 3,629 4,607 6,108 Add: Compensation charge related to NQDC Plan investment appreciation 1,850 1,135 4,202 2,873 Add: System implementation costs — 6,307 — 8,087 Add: Restructuring cost/Severance 6,079 — 6,079 — Adjusted EBITDA $ 98,118 $ 116,278 $ 65,171 $ 88,332 (a) Segment performance is measured based on segment contribution margin or segment Adjusted EBITDA, re lecting only the direct controllable revenue and operating expenses of the segments, both of which are non-GAAP measurements. As such, management’s measure of pro itability for these segments does not include the effect of corporate overhead, described above, depreciation and amortization, other income (net), and other items that we do not consider indicative of our core operating performance. (b) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive, and stock- based compensation, as well as changes in the fair value of the Company's NQDC Plan. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions are included within corporate expenses as they are not directly allocable to a speci ic segment. 1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited) Reconciliation of net cash provided by operating activities to free cash low (non-GAAP): Six Months Ended December 28, 2025 December 29, 2024 Net cash provided by operating activities $ 170,909 $ 151,307 Capital expenditures (14,290) (23,023) Free cash low $ 156,619 $ 128,284 View source version on businesswire.com: https://www.businesswire.com/news/home/20260129151598/en/ Page 14 of 15
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Investor Contact: Andy Milevoj investors@1800 lowers.com Media Contact: press@1800 lowers.com Source: 1-800-FLOWERS.COM, Inc. Categories: Company Tags: Financial News Page 15 of 15