1-800-FLOWERS.COM, Inc. Reports Fiscal 2026 Fourth Quarter and Year-End Results

1-800-FLOWERS.COM, Inc. Reports Fiscal 2026 Fourth Quarter and Year-End Results 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 fourth quarter and year ended June 28, 2026.

“Fiscal 2026 was a year of meaningful progress as we strengthened the foundation of our business and positioned the Company for its next phase of transformation,” said Adolfo Villagomez, Chief Executive Officer of 1-800-Flowers.com. “We strengthened our leadership team, began to modernize our digital and marketing capabilities, simplified how we operate, and became a more customer-first, data-driven organization. As we enter fiscal 2027, accelerating the recovery of our revenue trends is our highest priority. We will continue building these capabilities while increasingly putting them to work to improve customer acquisition, engagement, and retention and to drive better business performance over time.”

“As part of our continued efforts to enhance our financial flexibility and support the ongoing transformation of the business, we recently amended our credit agreement to provide additional financial flexibility,” continued Mr. Villagomez. “We are also evaluating a range of options, including the sale of non-strategic assets and capital raising options, intended to optimize our capital structure and support investments in our transformation and drive future growth. While this work is underway, we remain focused on executing our fiscal 2027 priorities and improving the fundamental drivers of our business.”

Credit Agreement Amendment

The Company announced that it has amended its credit agreement to extend its existing covenant relief and provide the Company with additional flexibility to use a portion of the proceeds from potential asset sales to invest in strategic initiatives and support the ongoing transformation of the business. Additional information regarding the amendment can be found in the Company’s Form 8-K filed with the SEC on September 10, 2026.

Evaluation of Capital Raising Options

The Company is also evaluating a range of options intended to optimize its capital structure and provide additional capital to support investments in its transformation and drive future growth. The potential options may include, but are not limited to, one or more public or private debt or equity financings, potential divestitures of non-strategic assets, or other capital structure transactions. The Company has retained Guggenheim Securities, LLC as its financial advisor in connection with this evaluation. There can be no assurance that the evaluation will result in any transaction or outcome or, if one or more transactions ensue, what the terms of any such transaction might be. The Company is in the early stages of the evaluation and will not comment further during the process.

Fiscal 2026 Fourth Quarter Performance

(1)

Refer to “Definitions 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.

Fiscal Year 2026 Performance

Segment Results

The Company provides Fiscal 2026 fourth quarter and full year selected financial results for its Gourmet Foods & Gift Baskets, Consumer Floral & Gifts, and BloomNet® segments in the tables attached to this release and as follows:

Gourmet Foods & Gift Baskets: For the quarter, revenues decreased 15.4% to $85.8 million, as compared with the prior year period. Gross profit margin decreased 830 basis points from the prior year period to 17.7% due to deleveraging on the sales decline and increased tariff, commodity and shipping costs. The segment contribution margin 1 loss was $23.4 million, compared with segment contribution margin loss of $19.0 million in the prior year period, excluding severance costs.

For the full fiscal year, revenue decreased 5.2% to $768.5 million. Gross profit margin decreased 130 basis points to 35.5%. Excluding non-recurring costs in both years, segment contribution margin 1 for the year was $52.7 million, compared with $58.8 million in the prior year.

Consumer Floral & Gifts: For the quarter, revenues decreased 13.4% to $182.8 million, as compared with the prior year period. Gross profit margin increased 220 basis points from the prior year period to 40.7% on lower commodity and shipping costs. The segment contribution margin 1 was $17.1 million, compared with $17.4 million in the prior year period, excluding severance and impairment costs.

For the full fiscal year, revenues decreased 17.7% to $638.9 million, as compared with the prior year period. Gross profit margin increased 10 basis points from the prior year period to 39.4%. Excluding the non-recurring costs in both years, segment contribution margin was $48.6 million, compared with $50.5 million in the prior year.

BloomNet: For the quarter, revenues increased 1.9% to $24.7 million, as compared with the prior year period. Gross profit margin increased 190 basis points from the prior year period to 48.8%. The segment contribution margin 1 was $7.4 million, compared with $6.5 million in the prior year period, excluding severance costs.

For the full fiscal year, revenues decreased 1.9% to $96.8 million, as compared with the prior year period. Gross profit margin decreased 10 basis points from the prior year period to 48.4%. Excluding the impact of the severance charges, segment contribution margin 1 for the year was $27.2 million, compared with $29.3 million in the prior year.

Fiscal Year 2027 Outlook

During Fiscal 2027, the Company expects to continue reinvesting a significant portion of the cost savings achieved through its operational efficiency initiatives into strategic growth investments. These investments include further modernization of the Company's marketing capabilities, continued development of its marketing technology platform, enhancements to its digital customer experience and personalization capabilities, and other initiatives designed to strengthen customer acquisition, engagement, and retention.

While the Company expects the benefits of these investments to build over multiple years, management believes Fiscal 2027 marks the next phase of its transformation. The Company will continue to build key capabilities while increasingly leveraging the investments made during Fiscal 2026 to improve operating performance and create sustainable long-term value.

For Fiscal 2027, the Company expects net revenues to decline in the mid-single digit range compared with Fiscal 2026. The Company expects Fiscal 2027 adjusted EBITDA of $10 million to $15 million, which includes approximately $12 million of additional compensation expense versus Fiscal 2026.

Conference Call

The Company will conduct a conference call to discuss its financial results today, September 10, 2026, at 8:00 a.m. (ET). The conference call will be webcast from the Investors section of the Company’s website at www.1800flowersinc.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.

Definitions of Non-GAAP Financial Measures:

We sometimes use financial measures derived from consolidated financial information, but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain of these are considered "Non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. Non-GAAP financial measures referred to in this document are either labeled as “Non-GAAP,” “adjusted” or designated as such with a “1”. See below for definitions and the reasons why we use these non-GAAP financial measures. Where applicable, see the Selected Financial Information below for reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures. Reconciliations for forward-looking figures 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 significance of the unavailable information. The lack of such reconciling information should be considered when assessing the impact of such disclosures.

EBITDA and Adjusted EBITDA:

We define EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA adjusted for the impact of stock-based compensation, Non-Qualified Deferred Compensation Plan (“NQDC”) investment appreciation/depreciation, goodwill and intangible impairment 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 officers 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 reflect changes in, or cash requirements for, the Company's working capital needs; (b) EBITDA and Adjusted EBITDA do not reflect 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 reflect 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 define Segment Contribution Margin as earnings before interest, taxes, depreciation, and amortization, before the allocation of corporate overhead expenses. Adjusted Segment Contribution Margin is defined 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 financial 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 financial 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 profitability 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 (Loss) and Net Income (Loss).

Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share:

We define 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 define 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 fixed 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 financial 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.

1-800-FLOWERS.COM, Inc. is a leading provider of thoughtful expressions designed to help inspire customers to give 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 floral and gift industry service provider offering a broad-range of products and services designed to help its members grow their businesses profitably; Napco℠, a resource for floral 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 1800flowersinc.com.

FLWS-COMP

FLWS-FN

Special Note Regarding Forward Looking Statements:

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 identified 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 efficient 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 filings. 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 filings, including the Company’s Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.

1-800-FLOWERS.COM, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

June 28, 2026

June 29, 2025

(unaudited)

Assets

Current assets:

Cash and cash equivalents

11,366

46,502

Trade receivables, net

21,572

21,693

Inventories

152,783

177,127

Prepaid and other

25,719

37,405

Total current assets

211,440

282,727

Property, plant and equipment, net

194,216

215,596

Operating lease right-of-use assets

103,035

107,476

Goodwill

3,071

37,625

Trademarks with indefinite lives

76,073

86,673

Other intangibles, net

1,304

2,691

Other assets

47,853

39,829

Total assets

636,992

772,617

Liabilities and Stockholder’s Equity

Current liabilities:

Accounts payable

68,963

74,581

Accrued expenses

118,961

109,887

Current maturities of long-term debt

24,000

21,000

Current portion of long-term operating lease liabilities

17,291

15,918

Total current liabilities

229,215

221,386

Long-term debt, net

112,176

134,764

Long-term operating lease liabilities

95,468

99,644

Deferred tax liabilities, net

5,986

6,679

Other liabilities

50,496

41,862

Total liabilities

493,341

504,335

Total stockholders’ equity

143,651

268,282

Total liabilities and stockholders’ equity

636,992

772,617

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

Years Ended

June 28, 2026

June 29, 2025

June 28, 2026

June 29, 2025

Net revenues:

E-Commerce

258,656

302,187

1,273,126

1,464,445

Other

34,462

34,435

230,385

221,213

Total net revenues

293,118

336,622

1,503,511

1,685,658

Cost of revenues

191,308

217,261

932,176

1,033,386

Gross profit

101,810

119,361

571,335

652,272

Operating expenses:

Marketing and sales

91,412

104,611

402,821

480,439

Technology and development

14,568

15,939

57,857

62,279

General and administrative

37,963

35,356

139,003

116,926

Depreciation and amortization

14,239

13,331

53,617

53,618

Goodwill impairment

—

5,603

34,554

119,023

Intangible impairment

—

10,600

24,800

Total operating expenses

158,182

174,840

698,452

857,085

Operating loss

(56,372

)

(55,479

)

(127,117

)

(204,813

)

Interest income

(367

)

(759

)

(1,857

)

(3,380

)

Interest expense

2,883

3,599

16,959

15,438

Other income, net

(6,343

)

(2,410

)

(7,450

)

(3,514

)

Loss before income taxes

(52,545

)

(55,909

)

(134,769

)

(213,357

)

Income tax (benefit) expense

(248

)

(4,002

)

(13,364

)

Net loss

(52,297

)

(51,907

)

(134,765

)

(199,993

)

Basic and diluted net loss per common share

(0.82

)

(0.82

)

(2.11

)

(3.13

)

Basic and diluted weighted average shares used in the calculation of net loss per common share

64,134

63,598

63,912

63,807

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

Consolidated Statement of Cash Flows

(in thousands)

(unaudited)

Years Ended

June 28, 2026

June 29, 2025

Operating Activities:

Net loss

(134,765

)

(199,993

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities, net of acquisitions:

Goodwill and intangible impairment

45,154

143,823

Depreciation and amortization

53,617

53,618

Amortization of deferred financing costs

1,412

866

Deferred income taxes

(693

)

(12,723

)

Bad debt expense

223

674

Stock-based compensation

11,256

11,891

Other non-cash items

776

2,013

Changes in operating items, net of acquisitions:

Trade receivables

3,553

(4,284

)

Inventories

24,344

756

Prepaid and other

11,686

(5,682

)

Accounts payable and accrued expenses

(199

)

(16,997

)

Other assets and other liabilities

1,944

(325

)

Net cash provided by (used in) operating activities

18,308

(26,363

)

Investing activities:

Acquisitions, net of cash acquired

—

(3,000

)

Capital expenditures

(31,280

)

(41,463

)

Net cash used in investing activities

(31,280

)

(44,463

)

Financing activities:

Acquisition of treasury stock

(1,164

)

(10,175

)

Proceeds from exercise of employee stock options

—

281

Proceeds from bank borrowings

175,000

110,000

Repayment of bank borrowings

(196,000

)

(140,000

)

Debt issuance costs

—

(2,215

)

Net cash used in financing activities

(22,164

)

(42,109

)

Net change in cash and cash equivalents

(35,136

)

(112,935

)

Cash and cash equivalents:

Beginning of period

46,502

159,437

End of period

11,366

46,502

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information - Category Information

(dollars in thousands)

(unaudited)

Three Months Ended

June 28, 2026

Restructuring cost / Severance

As adjusted (non-GAAP) June 28, 2026

June 29, 2025

Goodwill and Intangible Impairment

Restructuring cost / Severance

As adjusted (non-GAAP) June 29, 2025

% Change

Net revenues:

Consumer Floral & Gifts

182,813

—

182,813

211,222

—

211,222

(13.4

BloomNet

24,708

—

24,708

24,243

—

24,243

1.9

Gourmet Foods & Gift Baskets

85,801

—

85,801

101,396

—

101,396

(15.4

Corporate

—

(32.3

Intercompany eliminations

(246

)

—

(246

)

(301

)

—

(301

)

18.3

Total net revenues

293,118

—

293,118

336,622

—

336,622

(12.9

Gross profit:

Consumer Floral & Gifts

74,367

—

74,367

81,246

—

81,246

(8.5

40.7

38.5

BloomNet

12,061

—

12,061

11,363

—

11,363

6.1

48.8

46.9

Gourmet Foods & Gift Baskets

15,195

—

15,195

26,382

—

26,382

(42.4

17.7

26.0

Corporate

187

—

187

370

—

370

(49.5

445.2

596.8

Total gross profit

101,810

—

101,810

119,361

—

119,361

(14.7

34.7

35.5

EBITDA (non-GAAP):

Segment Contribution Margin (non-GAAP) (a):

Consumer Floral & Gifts

16,887

198

17,085

10,539

5,603

1,261

17,403

(1.8

BloomNet

7,404

—

7,404

6,274

—

189

6,463

14.6

Gourmet Foods & Gift Baskets

(23,381

)

—

(23,381

)

(20,229

)

—

1,206

(19,023

)

(22.9

Segment Contribution Margin Subtotal

910

198

1,108

(3,416

)

5,603

2,656

4,843

(77.1

Corporate (b)

(43,043

)

525

(42,518

)

(38,732

)

—

2,459

(36,273

)

(17.2

EBITDA (non-GAAP)

(42,133

)

723

(41,410

)

(42,148

)

5,603

5,115

(31,430

)

(31.8

Add: Stock-based compensation

3,761

—

3,761

2,785

—

2,785

35.0

Add: Compensation charge related to NQDC Plan investment appreciation

6,632

—

6,632

4,399

—

4,399

50.8

Adjusted EBITDA (non-GAAP)

(31,740

)

723

(31,017

)

(34,964

)

5,603

5,115

(24,246

)

(27.9

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information - Category Information

(dollars in thousands)

(unaudited)

Years Ended

June 28, 2026

Goodwill and Intangible Impairment

Restructuring cost / Severance

As adjusted (non-GAAP) June 28, 2026

June 29, 2025

System Implementation Costs

Goodwill and Intangible Impairment

Restructuring cost / Severance

As adjusted (non-GAAP) June 29, 2025

% Change

Net revenues:

Consumer Floral & Gifts

638,931

—

638,931

776,781

—

776,781

(17.7

BloomNet

96,832

—

96,832

98,707

—

98,707

(1.9

Gourmet Foods & Gift Baskets

768,520

—

768,520

810,941

—

810,941

(5.2

Corporate

249

—

249

333

—

333

(25.2

Intercompany eliminations

(1,021

)

—

(1,021

)

(1,104

)

—

(1,104

)

7.5

Total net revenues

1,503,511

—

1,503,511

1,685,658

—

1,685,658

(10.8

Gross profit:

Consumer Floral & Gifts

251,517

—

251,517

305,508

—

305,508

(17.7

39.4

39.3

BloomNet

46,829

—

46,829

47,914

—

47,914

(2.3

48.4

48.5

Gourmet Foods & Gift Baskets

272,569

—

272,569

298,052

6,625

—

304,677

(10.5

35.5

36.8

37.6

Corporate

420

—

420

798

—

798

(47.4

168.7

239.6

Total gross profit

571,335

—

571,335

652,272

6,625

—

658,897

(13.3

38.0

38.7

39.1

EBITDA (non-GAAP):

Segment Contribution Margin (non-GAAP) (a):

Consumer Floral & Gifts

573

45,154

2,859

48,586

(94,620

)

—

143,823

1,261

50,464

(3.7

BloomNet

26,930

—

281

27,211

29,047

—

222

29,269

(7.0

Gourmet Foods & Gift Baskets

47,994

—

4,725

52,719

46,993

10,393

—

1,387

58,773

(10.3

Segment Contribution Margin Subtotal

75,497

45,154

7,865

128,516

(18,580

)

10,393

143,823

2,870

138,506

(7.2

Corporate (b)

(148,997

)

—

4,447

(144,550

)

(132,615

)

3,008

—

2,953

(126,654

)

(14.1

EBITDA (non-GAAP)

(73,500

)

45,154

12,312

(16,034

)

(151,195

)

13,401

143,823

5,823

11,852

(235.3

Add: Stock-based compensation

11,256

—

11,256

11,891

—

11,891

(5.3

Add: Compensation charge related to NQDC Plan investment appreciation

7,708

—

7,708

5,423

—

5,423

42.1

Adjusted EBITDA (non-GAAP)

(54,536

)

45,154

12,312

2,930

(133,881

)

13,401

143,823

5,823

29,166

(90.0

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

(in thousands, except for per share data)

(unaudited)

Reconciliation of net loss to adjusted net loss (non-GAAP):

Three Months Ended

Years Ended

June 28, 2026

June 29, 2025

June 28, 2026

June 29, 2025

Net loss

(52,297

)

(51,907

)

(134,765

)

(199,993

)

Adjustments to reconcile net loss to adjusted net loss (non-GAAP):

Add: System implementation costs

—

13,401

Add: Restructuring cost/ Severance

723

5,115

12,312

5,823

Add: Goodwill and intangible impairment

—

5,603

45,154

143,823

Deduct: Income tax effect on adjustments

(30

)

(2,639

)

(182

)

(15,572

)

Adjusted net loss (non-GAAP)

(51,604

)

(43,828

)

(77,481

)

(52,518

)

Basic and diluted net loss per common share

(0.82

)

(0.82

)

(2.11

)

(3.13

)

Basic and diluted adjusted net loss per common share (non-GAAP)

(0.80

)

(0.69

)

(1.21

)

(0.82

)

Weighted average shares used in the calculation of basic and diluted net loss and adjusted net loss per common share

64,134

63,598

63,912

63,807

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

(in thousands)

(unaudited)

Reconciliation of net loss to adjusted EBITDA (non-GAAP):

Three Months Ended

Years Ended

June 28, 2026

June 29, 2025

June 28, 2026

June 29, 2025

Net loss

(52,297

)

(51,907

)

(134,765

)

(199,993

)

Add: Interest expense and other, net

(3,827

)

430

7,652

8,544

Add: Depreciation and amortization

14,239

13,331

53,617

53,618

Add: Income tax (benefit) expense

(248

)

(4,002

)

(13,364

)

EBITDA

(42,133

)

(42,148

)

(73,500

)

(151,195

)

Add: Stock-based compensation

3,761

2,785

11,256

11,891

Add: Compensation charge related to NQDC Plan investment appreciation

6,632

4,399

7,708

5,423

Add: System implementation costs

—

13,401

Add: Restructuring cost/Severance

723

5,115

12,312

5,823

Add: Goodwill and intangible impairment

—

5,603

45,154

143,823

Adjusted EBITDA

(31,017

)

(24,246

)

2,930

29,166

(a) Segment performance is measured based on segment contribution margin or segment Adjusted EBITDA, reflecting only the direct controllable revenue and operating expenses of the segments, both of which are non-GAAP measurements. As such, management’s measure of profitability 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 specific segment.

1-800-FLOWERS.COM, Inc. and Subsidiaries

Selected Financial Information

(in thousands)

(unaudited)

Reconciliation of net cash provided by (used in) operating activities to free cash flow (non-GAAP):

Years Ended

June 28, 2026

June 29, 2025

Net cash provided by (used in) operating activities

18,308

(26,363

)

Capital expenditures

(31,280

)

(41,463

)

Free cash flow

(12,972

)

(67,826

)