BNED reported a strong QQ2 2025 quarter with revenue of $602.1 million, up sharply on a sequential basis and reflecting the seasonality of back-to-school cycles, while still delivering meaningful profitability and cash flow generation. The company posted gross profit of $137.6 million and a gross margin of 22.86%, contributing to operating income of $56.3 million and EBITDA of $64.9 million, translating into an EBITDARatio of 10.77% and a net income of $49.7 million (EPS $1.87). The quarter also showcased meaningful cash flow strength, with net cash provided by operating activities of $47.4 million and free cash flow of $44.35 million, supporting a solid liquidity position ahead of deleveraging efforts. On the balance sheet, BNED maintained a prudent debt profile with total debt of $254.7 million and net debt of $243.1 million, while cash and equivalents stood at $11.6 million and total assets at $1.052 billion. The current ratio was 1.31 and the quick ratio 0.71, underscoring moderate near-term liquidity amid ongoing operational investments. Management commentary (where available) emphasized continued optimization of the store footprint alongside expansion of digital offerings and subscription-based student services as levers for sustainable growth. The period’s year-over-year momentum in profitability (Operating income up ~57.2%, Net income up ~105.7%) contrasted with a muted revenue trajectory versus the prior year (Revenue down ~1.4%), highlighting improved operating leverage even as revenue trends remain sensitive to textbook cycles and mix shifts. Investors should monitor the pace of deleveraging, progression of digital monetization (Bartleby, First Day programs, and OER), and the evolving mix of Retail, Wholesale, and Digital Student Solutions as catalysts for sustained earnings quality.