SCHEDULE: Divisadero Street Capital Discloses Stake in Build-a-Bear

Divisadero Street Capital Management, LP and affiliated entities have reported beneficial ownership of 7.9% of Build-a-Bear Workshop, Inc. common stock as of March 31, 2026.

Summary

• Divisadero Street Capital Management, LP, along with William Zolezzi, Divisadero Street Partners, L.P., Divisadero Street Partners GP, LLC, and Divisadero Street Capital, LLC, have filed a Schedule 13G amendment.
• The filing indicates beneficial ownership of 1,024,970 shares of Build-a-Bear Workshop, Inc. common stock by Divisadero Street Capital Management, LP, William Zolezzi, and Divisadero Street Capital, LLC.
• This represents 7.9% of the class of securities.
• Divisadero Street Partners, L.P. and Divisadero Street Partners GP, LLC beneficially own 709,761 shares, representing 5.5% of the class of securities.
• The reporting entities have shared voting and dispositive power over these shares.
• The event requiring this filing occurred on March 31, 2026.
• All securities reported are owned by advisory clients of Divisadero Street Capital Management, LP, with no single client (other than Divisadero Street Partners, L.P.) deemed to beneficially own more than 5%.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing. It reports a significant ownership stake but provides no operational or financial performance data, making it impossible to assess the company's current health or future prospects based solely on this document.

Positives

• Significant stake of 7.9% held by Divisadero Street Capital Management, LP and related entities, indicating investor confidence.
• Clear disclosure of beneficial ownership and percentage of class held.

Negatives

• The filing does not contain financial performance data or operational updates, making it difficult to assess the company's current health.
• The nature of the investment (passive vs. active) is not detailed beyond the standard certification that the securities were not acquired for the purpose of influencing control.

Risks

• The filing does not explicitly mention any risks. However, any investment carries inherent market risks.
• Potential for increased scrutiny or activism from a significant shareholder, although the filing certifies no intent to influence control.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance. It is purely a disclosure of beneficial ownership.

Management Comments

• Each Reporting Person disclaims beneficial ownership of the reported securities except to the extent of his, her or its pecuniary interest therein, and this report shall not be deemed an admission that such Reporting Person is the beneficial owner of the securities for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, or for any other purpose.

Industry Context

StockSavvy.ai notes that Schedule 13G filings typically indicate passive investment stakes. The disclosure by Divisadero Street Capital Management, LP suggests a significant institutional interest in Build-a-Bear Workshop, Inc., which could be influenced by broader retail sector trends or specific company valuations.

Stakeholder Impact

• Shareholders: May view the increased institutional ownership as a sign of confidence, potentially influencing stock price, but the passive nature of the filing limits immediate impact assessment.
• Management: May face increased scrutiny or engagement from a significant shareholder, even if the intent is passive.
• Creditors: No direct impact indicated by this filing.

Next Steps

• Monitor future filings from Divisadero Street Capital Management, LP for any changes in beneficial ownership.
• Observe Build-a-Bear Workshop, Inc.'s future financial reports and strategic announcements for context regarding this investment.

Key Dates

Keywords

Schedule 13G, Build-a-Bear Workshop, Divisadero Street Capital Management, Beneficial Ownership, Common Stock, SEC Filing, Investment Management