What are the main concerns in BJ's Wholesale Club Holdings, Inc.'s latest SEC filing?

The analysis identified 5 key concerns: Operating cash flow saw a slight increase, but adjusted free cash flow declined due to increased capital spending and working capital shifts.; SBC as a percentage of revenue is elevated.; The company is subject to typical retail legal proceedings, but management states no material impact is expected..

What are the top risks for BJ's Wholesale Club Holdings, Inc. (BJ)?

The top risks identified in the 10-Q filing are: Customer Loyalty and Acquisition, Supply Chain and Vendor Dependence, Cybersecurity and Technology Failures. The company faces significant risks related to maintaining customer loyalty and acquiring new members, which directly impacts revenue and profitability. Supply chain vulnerabilities and potential disruptions, coupled with substantial cybersecurity and technology risks, present further challenges that could lead to financial and reputational damage.

BJ - Comprehensive Filing Intelligence

Q4 2026•10-Q•Filed Nov 26, 2025

6.0/10

Filing Health:GOOD

Solid fundamentals with minor concerns to monitor

Executive Summary

Revenue growth continues, driven by increased traffic, unit sales, and membership fee income, supported by club expansion and higher-tier memberships.. Gross margins remain stable, with management focused on driving profitable growth across the merchandise assortment.. The company is subject to typical retail legal proceedings, but management states no material impact is expected.. Total revenues increased by 4.8% to $5.35B for the quarter.

Top Concerns

!Operating cash flow saw a slight increase, but adjusted free cash flow declined due to increased capital spending and working capital shifts.
!SBC as a percentage of revenue is elevated.
!The company is subject to typical retail legal proceedings, but management states no material impact is expected.
!The ABL Revolving Facility has $200.0 million outstanding and matures on July 28, 2027.
!Customer Loyalty and Acquisition (high)

Analysis Dimensions

Our 5-pass AI analysis examines this filing across multiple dimensions. Each dimension score is derived from direct analysis of SEC filing text.

Narrative Intelligence

7.0/10

Management tone is confidently optimistic with focus on merchandise gross margin rate, which excludes gasoline sales and membership fee income, remained flat compared to the prior year period..

Full analysis includes: tone changes vs prior quarter, margin driver breakdown, forward guidance analysis, strategic priorities.

Accounting Quality

7.0/10

Earnings quality shows moderate accounting practices.

Full analysis includes: reserve and allowance changes, non-recurring item analysis, stock-based compensation impact, disclosure concerns.

Hidden Liabilities

Off-balance sheet risk is low with $0 in identified exposure.

Full analysis includes: cloud and purchase commitments, VIE/SPE exposure, covenant compliance status, refinancing risk assessment.

Risk Landscape

3.0/10

Overall risk profile shows customer loyalty and acquisition as primary concern.

Full analysis includes: 8 risk categories with severity, new vs escalated risks, management response assessment, risk trend analysis.

Segment Performance

5.0/10

Segment health analysis.

Full analysis includes: segment-by-segment revenue breakdown, geographic concentration risk, customer concentration analysis, segment margin trends.