UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-41850 BEYOND, INC. (Exact name of registrant as specified in its charter) Delaware 87-0634302 (State or other jurisdiction of in ...

MURRAY, Utah - July 28, 2025 - Beyond, Inc. (NYSE:BYON), owner of Bed Bath & Beyond, Overstock, buybuy BABY, and a blockchain asset portfolio, today reported financial results for the second quarter ended June 30, 2025. Beyond, Inc. Reports Second Quarter Results with Sequential Revenue Growth and Significant Profitability Gains Q2 Revenue of $282M Increased 22% Sequentially Over First Quarter 2025 Year-over-Year Net Loss narrows by 55% with Adjusted EBITDA loss of $8M improving 78% reflecting focused execu ...

Financial Performance - Net revenue for Q1 2025 was $231.748 million, a decrease of 39.4% compared to $382.281 million in Q1 2024[17] - Gross profit for Q1 2025 was $58.132 million, down 21.8% from $74.359 million in Q1 2024[17] - Operating loss for Q1 2025 was $23.547 million, an improvement from a loss of $57.525 million in Q1 2024[17] - Net loss for Q1 2025 was $39.912 million, compared to a net loss of $73.928 million in Q1 2024, reflecting a 46.0% reduction[17] - Net loss attributable to common stockholders improved to $(39,912,000) in Q1 2025 compared to $(73,928,000) in Q1 2024, a reduction of 46%[70] Assets and Liabilities - Total current assets decreased to $196.464 million as of March 31, 2025, down from $227.507 million as of December 31, 2024[15] - Total liabilities decreased to $220.357 million as of March 31, 2025, compared to $239.222 million as of December 31, 2024[15] - Total stockholders' equity decreased to $143.368 million as of March 31, 2025, from $162.732 million as of December 31, 2024[15] - As of March 31, 2025, total assets measured at fair value amounted to $65,633,000, with Level 1 assets at $33,469,000 and Level 3 assets at $32,164,000[35] - Level 3 investments decreased from $47,439,000 at December 31, 2024, to $32,164,000 at March 31, 2025, primarily due to a decrease in fair value of $8,794,000[37] Cash Flow and Investments - Cash, cash equivalents, and restricted cash at the end of Q1 2025 were $141.481 million, down from $186.093 million at the beginning of the period[25] - Cash used in operating activities for Q1 2025 was $50.921 million, compared to $34.610 million in Q1 2024[25] - The company reported a net cash outflow of $50.9 million from operating activities for the three months ended March 31, 2025, compared to a net outflow of $34.6 million in the same period in 2024[115] - Investing activities resulted in a net cash outflow of $13.1 million for the three months ended March 31, 2025, primarily due to $8.0 million for purchases of equity securities and $5.2 million for intangible assets[119] - Financing activities generated a net cash inflow of $19.5 million for the three months ended March 31, 2025, primarily from the sale of common stock[121] Expenses - Sales and marketing expenses decreased by 53.9% to $31.3 million for the three months ended March 31, 2025, representing 13.5% of net revenue, down from 17.8% in the same period in 2024[83][95] - Technology expenses totaled $26.7 million for the three months ended March 31, 2025, a decrease of $2.9 million compared to the same period in 2024, primarily due to reduced staff-related expenses[83] - General and administrative expenses decreased by $6.1 million for the three months ended March 31, 2025, compared to the same period in 2024, also due to a reduction in staff-related expenses[84] - Operating lease cost increased to $912,000 in Q1 2025 from $882,000 in Q1 2024, a rise of 3.4%[51] - Total stock-based compensation expense decreased to $1,094,000 in Q1 2025 from $4,776,000 in Q1 2024, a decline of 77%[59] Shareholder Activity - The company issued 3.487 million shares of common stock through offerings during Q1 2025[23] - The company sold 3,486,895 shares of common stock for proceeds of $19.5 million in Q1 2025, net of offering costs[56] - The approximate dollar value of shares that may yet be purchased under the stock repurchase program is $69.9 million as of March 31, 2025[141] - The company has not made any repurchases of equity securities during the three months ended March 31, 2025[141] Acquisitions and Investments - The Company acquired intellectual property related to the buybuy BABY brand for a total purchase price of $5.0 million, with an aggregate purchase price of $7.1 million including assumed liabilities[39] - The Company funded an additional $8.0 million investment in Kirkland's, increasing its ownership to approximately 40%[42] Market and Economic Conditions - The company continues to monitor macroeconomic trends that may impact consumer confidence and spending, including inflation and geopolitical events[86] - Inflationary pressures from increased commodity and shipping prices, energy, and labor costs are being monitored to limit impacts on customers[130] - The company does not expect changes in prevailing interest rates to have a material impact on its results of operations[128] - Most sales and operating expenses are denominated in U.S. dollars, minimizing current foreign currency risk[129] Compliance and Controls - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended March 31, 2025[134] - The company recognizes that its disclosure controls and procedures can only provide reasonable assurance of achieving desired control objectives[133] - The company is involved in litigation that could materially affect its business and financial position[137] Other Financial Metrics - Total unearned revenue at March 31, 2025, was $40,807,000, down from $43,095,000 at December 31, 2024, a decrease of 5.3%[67] - The allowance for returns decreased to $7,721,000 at March 31, 2025, from $9,526,000 at December 31, 2024, a decline of 19%[69] - The effective tax rate for the three months ended March 31, 2025, was (0.5)%, compared to (0.4)% for the same period in 2024, primarily due to year-to-date losses on retail operations[105] - As of March 31, 2025, the recorded value in equity securities of private and public companies was $77.7 million, with $11.4 million related to publicly-traded companies[131] - $14.0 million of equity securities and $18.2 million of debt securities are recorded at fair value using Level 3 inputs, representing 49.0% of assets measured at fair value[131]

Financial Performance - Net revenue for Q1 2025 was $232 million, a decrease of 39.4% year-over-year[8] - Gross profit was $58 million, representing 25.1% of net revenue, with a 560 basis points improvement year-over-year[8] - Adjusted EBITDA improved by $35 million year-over-year, resulting in an adjusted EBITDA of ($13) million[8] - Net loss decreased by 46% year-over-year to $40 million, including $17 million of non-core and non-cash expenses[8] - The company reported a diluted net loss per share of $0.74, compared to $1.62 in the previous year[8] - Adjusted diluted net loss per share was $(0.74) in Q1 2025 compared to $(0.32) in Q1 2024[26] - Adjusted EBITDA improved to $(13,233) in Q1 2025 from $(47,843) in Q1 2024, indicating a significant reduction in losses[26] - The company reported a net loss of $(39,912) in Q1 2025, an improvement from $(73,928) in Q1 2024[26] Operational Metrics - Active customers decreased to 4,779 in Q1 2025 from 6,041 in Q1 2024, representing a decline of approximately 20.9%[21] - Total orders delivered in Q1 2025 were 1,196, down 46% from 2,211 in Q1 2024[21] - Average order value increased to $194 in Q1 2025 from $173 in Q1 2024, reflecting an increase of 12.1%[21] - Orders per active customer decreased to 1.34 in Q1 2025 from 1.41 in Q1 2024, a decline of 4.9%[21] Cash Flow and Expenses - Cash, cash equivalents, restricted cash, and inventory totaled $166 million at the end of Q1 2025[8] - Free cash flow was $(52,102) in Q1 2025, compared to $(38,032) in Q1 2024, reflecting an increase in cash outflow[27] - Net cash used in operating activities increased to $(50,921) in Q1 2025 from $(34,610) in Q1 2024[27] - Sales and marketing expenses were $31 million, or 13.5% of net revenue, reflecting a 430 basis points improvement year-over-year[8] - Technology and G&A expenses decreased to $41 million from $50 million in 2024, showing a $9 million improvement year-over-year[8] Strategic Focus - The company expects to transition out of restructuring and into a revenue growth phase within 60 days[1] - The company is focused on margin optimization, SKU rationalization, and fixed cost restructuring to restore financial discipline[2] - The company continues to focus on non-GAAP financial measures to provide a clearer picture of operational performance[22]

Corporate Changes and Branding - Beyond, Inc. changed its corporate name from Overstock.com, Inc. in November 2023 and transferred its common stock listing to the New York Stock Exchange [19]. - The company has undergone significant changes, including a rebranding from Overstock.com, Inc. to Beyond, Inc., and the acquisition of Bed Bath & Beyond and Zulily brands, which may lead to customer confusion and increased marketing costs [73]. Product and Service Offerings - The company offers a comprehensive array of products, with retail transactions fulfilled through a network of partners, reaching millions of product assortments [22]. - Beyond has entered into a collaborative partnership with Kirkland's Home brand to operate Bed Bath & Beyond neighborhood stores, enhancing market presence [21]. - The company actively cultivates relationships with manufacturers, distributors, and suppliers to ensure a diverse product offering, maintaining flexibility in supplier selection [23]. Customer Engagement and Experience - Beyond+ membership program and Welcome Rewards loyalty program enhance customer engagement and retention [21]. - The company emphasizes a simplified customer experience through a user-friendly interface and dedicated customer service [21]. - Effective marketing strategies are crucial for customer engagement and revenue generation, relying on email and search engine marketing [67]. Employee Relations and Development - The company reported approximately 610 full-time employees as of December 31, 2024, with a focus on maintaining good employee relations and high competition for qualified personnel [37]. - Beyond's total rewards philosophy includes competitive compensation programs designed to attract and retain employees, linking compensation to company performance [40]. - The company offers a competitive benefits package, including medical, dental, vision insurance, health savings accounts, and a generous 401(k) matching program [49]. - The corporate culture is performance-based, inclusive, and collaborative, contributing to high levels of employee engagement [51]. - The company emphasizes employee development through various resources, including online courses and mentoring programs [50]. Financial Performance and Challenges - The company reported an accumulated deficit of $740.5 million as of December 31, 2024, with significant losses incurred from 2022 to 2024, including non-cash losses on equity method investments and a write-down loss on corporate headquarters [77]. - Economic downturns, inflation, and weaknesses in the U.S. housing market have adversely affected the company's financial performance, particularly in sales of home-related products, which are sensitive to consumer discretionary spending [71]. - Revenue decreased by 11% in 2024 compared to 2023, primarily due to an 8% decrease in orders delivered and a 3% decrease in average order value [173]. - Gross profit decreased by 21% in 2024 compared to 2023, with gross margin declining to 20.8% from 23.4% [174]. Operational Risks and Compliance - The company faces intense competition from numerous online and traditional retailers, including Amazon and Wayfair [62]. - The company must adapt to evolving consumer preferences and technological advancements to maintain market share [64]. - Compliance with evolving data privacy laws requires significant resources, and any failure to comply could result in legal liabilities and damage to the company's reputation [81]. - Cybersecurity incidents could lead to financial penalties and damage to the company's brand, as it relies on both internal and third-party IT systems for operations [88]. - The company is subject to Payment Card Industry Data Security Standard (PCI-DSS) compliance, and failure to meet these standards could result in fines and restrictions [93]. Investment and Financial Strategies - The company provided $17.0 million in debt financing to Kirkland's Stores, Inc., including an $8.5 million convertible promissory note [184]. - The company entered into an asset purchase agreement to acquire the Buy Buy Baby brand for a total purchase price of $5.0 million [185]. - The company may issue additional shares of common or preferred stock in the future, which could adversely affect trading prices [130]. Market and Economic Conditions - Global conflicts have increased costs and limited availability of resources, impacting commodity pricing and potentially reducing consumer demand [109]. - The company faces risks from tariffs and trade restrictions that could increase product prices and limit access to imported goods, particularly from China [72]. - The evolving business model increases complexity, impacting management, operations, and financial resources [116]. Tax and Legal Matters - The company reported tax contingencies of $3.7 million for both 2024 and 2023, with potential for additional assessments within the next 12 months [195]. - The effective tax rate for 2024 was (0.3)%, a significant decrease from (15.7)% in 2023, influenced by recurring and non-recurring items [216]. Cybersecurity and Technology - The company has established a cybersecurity risk management program guided by frameworks like NIST CSF, overseen by its Board of Directors [143]. - The company acknowledges the challenges posed by evolving cyber threats and has not observed significant impacts from known cybersecurity threats [144]. - Cyberattacks are expected to increase in frequency and sophistication, potentially hindering the company's ability to detect and recover from incidents [90].

Financial Performance - Fourth quarter net revenue was $303 million, a decrease of 21.1% year-over-year, with total net revenue for the full year at $1.4 billion, down 10.6% year-over-year[10] - The fourth quarter net loss was $81 million, representing a 50% improvement compared to the previous year, with an adjusted EBITDA loss of $28 million, a 43% year-over-year improvement[4] - Gross profit for the fourth quarter was $70 million, or 23.0% of total net revenue, with a gross margin expansion of 380 basis points year-over-year[10] - Operating loss for the fourth quarter was $42.9 million, compared to a loss of $64.6 million in the same quarter last year[14] - The company reported a diluted net loss per share of $1.66 for the fourth quarter and $5.56 for the full year[10] - The net loss for the year ended December 31, 2024, was $258,795 thousand, a decrease from a net loss of $307,842 thousand in 2023, representing a 15.9% improvement[17] - The adjusted EBITDA for the year ended December 31, 2024, was $(143,984) thousand, compared to $(61,293) thousand in 2023, indicating a decline in operational performance[30] Customer Metrics - Active customers decreased by 4% year-over-year to 5.4 million, while orders delivered fell by 34% year-over-year to 1.7 million[10] - Active customers decreased to 5,415 in the three months ended December 31, 2024, down from 5,612 in the same period of 2023, reflecting a decline of 3.5%[24] - Last twelve months (LTM) net revenue per active customer decreased to $258 in 2024 from $278 in 2023, a decline of 7.2%[24] - Orders delivered fell to 1,675 in the three months ended December 31, 2024, compared to 2,549 in the same period of 2023, a decrease of 34.3%[24] - Average order value increased to $181 in the three months ended December 31, 2024, up from $151 in 2023, an increase of 19.9%[24] Cash Flow and Liquidity - The company ended the fourth quarter with a cash and restricted cash balance of $186 million[10] - Net cash used in operating activities for the year ended December 31, 2024, was $174,304 thousand, compared to $18,586 thousand in 2023, indicating a significant increase in cash outflow[30] - Free cash flow for the year ended December 31, 2024, was $(188,619) thousand, compared to $(37,767) thousand in 2023, reflecting a worsening cash position[30] - Net cash provided by investing activities was $24,926 thousand in 2024, contrasting with a net cash outflow of $(44,630) thousand in 2023[19] - The company reported proceeds from the sale of intangible assets amounting to $10,275 thousand in 2024, with no such proceeds reported in 2023[19] Strategic Focus - The company is focused on margin improvement and fixed cost reductions, aiming to build a profitable foundation[3] - Beyond, Inc. is ramping up its Overstock brand and refining its SKU/vendor strategy, which is expected to drive growth and profitability[4] Balance Sheet - Total liabilities decreased to $239.2 million from $276.7 million year-over-year, while stockholders' equity fell to $162.7 million from $359.1 million[13]

Financial Performance - Total net revenue for the three months ended September 30, 2024, was $311,428, a decrease of 16.6% compared to $373,313 for the same period in 2023[14] - Gross profit for the nine months ended September 30, 2024, was $220,502, down 24.5% from $292,156 in the prior year[14] - Operating loss for the three months ended September 30, 2024, was $(43,553), compared to $(40,930) for the same period in 2023, indicating a worsening of 6.5%[14] - Net loss for the nine months ended September 30, 2024, was $(177,536), an increase of 20.9% from $(146,849) in the same period of 2023[14] - For the three months ended September 30, 2024, the net loss was $61,030 thousand, compared to a net loss of $63,049 thousand for the same period in 2023, representing a decrease of 3.2%[19] - The net loss attributable to common shareholders for the three months ended September 30, 2024, was $61.0 million, resulting in a basic and diluted net loss per share of $1.33[74] - The nine-month net revenue decreased by 7.2% for the period ended September 30, 2024, primarily due to an 11% decrease in average order value[95] - Gross profit for the nine months ended September 30, 2024, decreased by 24.5% compared to the same period in 2023, with gross margin decreasing to 20.2% from 24.8%[100] Assets and Liabilities - Total current assets decreased to $183,082 as of September 30, 2024, from $350,073 as of December 31, 2023, reflecting a decline of 47.5%[10] - Total liabilities decreased to $232,145 as of September 30, 2024, down 16.0% from $276,686 as of December 31, 2023[10] - Cash and cash equivalents were $140,371 as of September 30, 2024, a significant decrease from $302,605 as of December 31, 2023[10] - Total stockholders' equity decreased to $196,193 as of September 30, 2024, down 45.4% from $359,132 as of December 31, 2023[12] - The total stockholders' equity at the end of the period was $196,193 thousand, a significant decrease from $516,184 thousand at the end of the same period in 2023[19] - Total assets as of December 31, 2023, amounted to $298,451 thousand, with cash equivalents at $246,425 thousand and equity securities at fair value of $41,046 thousand[31] Cash Flow and Financing - Cash used in operating activities for the nine months ended September 30, 2024, was $152,625 thousand, compared to cash provided of $9,131 thousand for the same period in 2023[21] - The company reported a net cash decrease of $161,252 thousand for the period, compared to a decrease of $45,984 thousand in the prior year[21] - As of September 30, 2024, the company had $200.0 million available under its "at the market" sales program[59] - For the nine months ended September 30, 2024, the company reported a net cash outflow of $152.6 million from operating activities, compared to a net cash inflow of $9.1 million for the same period in 2023[128] - Financing activities led to a net cash outflow of $2.1 million for the nine months ended September 30, 2024, mainly due to $3.3 million for payment of taxes withheld upon vesting of employee stock awards[130] Expenses - Operating expenses for the three months ended September 30, 2024, totaled $109,528, a decrease of 11.6% from $123,833 in the same period of 2023[14] - Sales and marketing expenses for the three months ended September 30, 2024, were $51,859,000, a decrease of 9.9% compared to $57,541,000 in the same period in 2023[105] - General and administrative expenses for the three months ended September 30, 2024, were $17,571,000, a decrease of 27.1% compared to $24,109,000 in the same period in 2023[109] - Technology expenses totaled $27.7 million for the three months ended September 30, 2024, a decrease of $1.6 million compared to the same period in 2023[89] - Cash payments included in operating cash flows from lease arrangements for the nine months ended September 30, 2024, were $2.628 million, down from $4.475 million in the prior year[50] Strategic Initiatives - Beyond, Inc. continues to focus on its asset-light ecommerce model, owning various retail brands including Overstock and Bed Bath & Beyond[23] - The company announced a reduction-in-force affecting approximately 20% of its workforce to strategically reduce costs[80] - The company plans to expand its global loyalty program, Beyond +, to enhance customer retention[83] - The Zulily acquisition has allowed the company to attract a younger demographic that shops more frequently[87] - The company continues to monitor macroeconomic trends, including higher interest rates and inflation, which may impact consumer confidence and spending[91] Legal and Compliance - Company involved in various legal proceedings which could materially affect business operations and financial position[144] - Potential significant damages and costs associated with ongoing litigation could divert management's focus from business operations[144] Investments and Acquisitions - The company entered into a collaboration agreement and a $40 million investment into The Container Store Group, Inc., involving the purchase of 40,000 shares of Series B Convertible Preferred Stock[76] - The company will provide $17 million in debt financing to Kirkland's Stores, Inc., including an $8.5 million convertible note with a conversion price of $1.85 per share[78] - A Loan and Security Agreement was established with BMO Bank N.A. for a $25 million revolving line of credit to support strategic ventures[79] Miscellaneous - The company has made a strategic change in the presentation of merchant fees and customer service costs, now classified under operating expenses for greater transparency[27] - The company recorded a gain on the sale of intangible assets amounting to $10,250 thousand during the nine months ended September 30, 2024[21] - The company recognized a gain of $10.3 million from the sale of intellectual property related to the Wamsutta brand, included in Other expense, net[40] - The company recorded a value of $112.5 million in equity securities of private companies as of September 30, 2024, with $21.5 million in equity securities and $10.9 million in debt securities recorded at fair value using Level 3 inputs[139] - The company's Senior Note carries a fixed annual interest rate of 4.242%, indicating no material direct financial statement risk associated with changes in interest rates[136] - Most sales and operating expenses are denominated in U.S. dollars, minimizing current exposure to foreign currency risk[137] - The company continues to monitor inflationary pressures affecting commodity and shipping prices, energy, and labor costs, which could impact financial performance[138] - No changes in internal control over financial reporting during the quarter ended September 30, 2024, that materially affected internal controls[142] - The effective tax rate for the three months ended September 30, 2024, was (0.3)%, compared to 17.5% for the same period in 2023[119]

Financial Performance - Total net revenue for Q3 2024 was $311 million, a decrease of 16.6% year-over-year[3] - Gross profit was $66 million, representing 21.2% of total net revenue[3] - The net loss for the quarter was $61 million, with a diluted net loss per share of $1.33[3] - Adjusted EBITDA was ($32) million, or (10.2)% of net revenue[3] - Net loss for the three months ended September 30, 2024, was $61,030,000 compared to a net loss of $63,049,000 for the same period in 2023[22] - Adjusted EBITDA for the three months ended September 30, 2024, was $(31,913,000), compared to $(23,931,000) for the same period in 2023[23] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $(161,252,000) for the three months ended September 30, 2024[22] - Free cash flow for the nine months ended September 30, 2024, was $(163,954,000), compared to $(7,412,000) for the same period in 2023[25] - Net cash used in operating activities for the nine months ended September 30, 2024, was $(152,625,000), compared to $9,131,000 for the same period in 2023[25] Customer Metrics - Active customers increased by 21% year-over-year to 6.0 million[3] - Active customers increased to 5,961,000 in the last twelve months, up from 4,907,000 in the previous year, representing a growth of approximately 21.5%[18] - Last twelve months (LTM) net revenue per active customer decreased to $248 from $322, a decline of about 22.9%[18] Orders and Average Order Value - Orders delivered decreased by 19% year-over-year to 1.6 million[3] - Total orders delivered in the three months ended September 30, 2024, were 1,569,000, down from 1,945,000 in the same period last year, a decrease of approximately 19.3%[18] - Average order value increased to $199 from $192, reflecting a growth of about 3.6%[18] Cost Management and Business Strategy - The company expects to reduce its fixed expense base by an annualized $65 million heading into 2025[2] - Beyond is transforming its business model to focus on affinity marketing and data monetization[2] - The company announced a $20 million annualized reduction in staff-related expenses[2] Other Financial Highlights - Cash and cash equivalents totaled $140 million at the end of Q3 2024[3] - The company recognized a gain of $10,250,000 from the sale of intangible assets during the three months ended September 30, 2024[22]

Financial Performance - Net revenue for the three months ended June 30, 2024, was $398.1 million, a decrease of 5.7% compared to $422.2 million for the same period in 2023[23]. - Gross profit for the three months ended June 30, 2024, was $80.2 million, down 25.4% from $107.6 million in the prior year[23]. - Operating loss for the three months ended June 30, 2024, was $(47.0) million, compared to a loss of $(4.2) million for the same period in 2023[23]. - Net loss for the three months ended June 30, 2024, was $(42.6) million, compared to $(73.5) million in the same period last year[23]. - Net loss for the three months ended June 30, 2024, was $42,578 thousand, compared to a net loss of $73,493 thousand for the same period in 2023, representing a 42% improvement[25]. - For the six months ended June 30, 2024, the net loss was $116,506 thousand, an increase from $83,800 thousand in the prior year, indicating a 39% increase in losses[25]. - The company reported a comprehensive loss of $42,574 thousand for the three months ended June 30, 2024, compared to a comprehensive loss of $73,489 thousand for the same period in 2023[25]. Assets and Liabilities - Total current assets decreased to $232.2 million as of June 30, 2024, from $350.1 million as of December 31, 2023, representing a decline of 33.7%[18]. - Total liabilities decreased to $246.4 million as of June 30, 2024, down from $276.7 million at the end of 2023, a reduction of 10.9%[18]. - Cash and cash equivalents were $186.2 million as of June 30, 2024, down from $302.6 million at December 31, 2023, a decrease of 38.5%[18]. - Total cash, cash equivalents, and restricted cash decreased to $186,342 thousand at the end of the period from $343,076 thousand a year earlier, reflecting a decline of 46%[31]. - As of June 30, 2024, total contractual cash obligations amount to $46.354 million, with $4.312 million due within one year and $35.610 million due after five years[150]. Expenses - Sales and marketing expenses increased to $66.3 million for the three months ended June 30, 2024, up 34.7% from $49.2 million in the same period last year[23]. - Technology expenses totaled $27.3 million for the three months ended June 30, 2024, a decrease of $364,000 compared to the same period in 2023[108]. - General and administrative expenses decreased by $3.1 million for the three months ended June 30, 2024, compared to the same period in 2023[109]. - Customer service and merchant fees increased by $1.8 million for the three months ended June 30, 2024, primarily due to increased outsourced labor and credit card costs[109]. - Operating lease costs for the three months ended June 30, 2024, were $677,000, compared to $1,492,000 for the same period in 2023[68]. Stock and Equity - The company reported a weighted average of 45.7 million shares of common stock outstanding for the three months ended June 30, 2024[23]. - The total shares of common stock outstanding remained at 45,750 thousand as of June 30, 2024, unchanged from the previous year[29]. - The company had approximately 2.7 million shares of common stock remaining available under the Employee Stock Purchase Plan (ESPP) as of June 30, 2024[91]. - Stock-based compensation to employees and directors was $10,035 thousand for the six months ended June 30, 2024, down from $12,065 thousand in the prior year, a decrease of 17%[31]. - The stock-based compensation expense for the three months ended June 30, 2024, was $5,259,000, down from $6,270,000 for the same period in 2023[82]. Cash Flow - Operating cash flows showed a net cash used of $110,502 thousand for the six months ended June 30, 2024, compared to a net cash provided of $18,772 thousand in the same period of 2023[31]. - Net cash used in operating activities for the six months ended June 30, 2024, was $110.5 million, primarily due to a loss from operating activities adjusted for non-cash items[146]. - Investing activities resulted in a net cash outflow of $3.3 million for the six months ended June 30, 2024, mainly due to $8.0 million in property and equipment expenditures[147]. - Financing activities resulted in a net cash outflow of $2.6 million for the six months ended June 30, 2024, primarily due to tax payments upon vesting of employee stock awards[148]. Business Operations and Strategy - The company anticipates continued challenges in generating positive cash flow from operations due to ongoing market conditions and competition[12]. - The company is modifying its business model and expanding product offerings, which increases operational complexity and associated risks[170]. - The company is planning to sell its corporate headquarters, which could lead to an increase in remote work[173]. - The company continues to monitor liquidity and expects cash flows from future operations to be sufficient for at least the next twelve months[142]. - The company is evaluating the impact of recently issued accounting standards on its consolidated financial statements[41]. Legal and Regulatory Risks - The company is exposed to various legal proceedings that could materially affect its business and financial position[166]. - The company is subject to a wide variety of laws and regulations that may impede growth and increase expenses[154]. - Accrued tax contingencies as of June 30, 2024, stand at $3.8 million, with potential for additional assessments within the next 12 months[151]. Management and Workforce - The company underwent significant changes to its executive management team and board of directors in 2023 and 2024, with key positions still remaining open[173]. - In 2023, the company implemented a reduction in force and structural changes, including the elimination of Co-Chief Executive roles and dual Chief Merchant roles[173]. - The company emphasizes the importance of attracting and retaining highly-skilled personnel for future success[173]. - Uncertainties related to leadership changes and performance-based compensation may negatively impact employee retention and engagement[173].

Financial Performance - Total net revenue was $398 million, a decrease of 5.7% year-over-year[2] - The net loss for the quarter was $43 million, with a diluted net loss per share of $0.93[2] - Adjusted EBITDA was ($36) million, representing (9.1)% of net revenue[2] - The company reported a net loss of $116,506 thousand for the three months ended June 30, 2024, compared to a net loss of $83,800 thousand for the same period in 2023[15] - Adjusted EBITDA for the three months ended June 30, 2024, was $(36,376) thousand, compared to $8,234 thousand for the same period in 2023[24] - The company reported a free cash flow of $(118,453) thousand for the six months ended June 30, 2024, compared to $6,724 thousand for the same period in 2023[26] - Net cash used in operating activities was $(110,502) thousand for the six months ended June 30, 2024, compared to $18,772 thousand for the same period in 2023[26] Customer Metrics - Active customers grew to 6.2 million, representing a 35% year-over-year increase[2] - Active customers increased to 6,221 thousand in June 2024, up from 4,621 thousand in June 2023, representing a growth of approximately 34.6%[19] - Last twelve months (LTM) net revenue per active customer decreased to $247 in June 2024 from $361 in June 2023, a decline of approximately 31.6%[19] Orders and Revenue - Orders delivered reached 1.9 million, an increase of 8% year-over-year[2] - Total orders delivered increased to 1,949 thousand in June 2024, compared to 1,803 thousand in June 2023, reflecting a growth of about 8.1%[19] - Average order value decreased to $204 in June 2024 from $234 in June 2023, a decline of approximately 12.8%[19] Cash and Expenses - Cash and cash equivalents totaled $186 million at the end of the second quarter[2] - The company experienced a net decrease in cash, cash equivalents, and restricted cash of $(116,407) thousand for the three months ended June 30, 2024[15] - The company incurred stock-based compensation expenses of $10,035 thousand for the three months ended June 30, 2024, down from $12,065 thousand for the same period in 2023[15] Strategic Outlook - The company is on track to reduce fixed expenses by $45 million on an annualized basis, with significant progress made in the second quarter[1] - The company aims to leverage its brands and technology platforms for strategic partnerships and joint ventures to enhance capital returns[1] - Beyond, Inc. expects financial performance to improve throughout the remainder of the year[1]