Financial Performance - For the three months ended September 30, 2025, net revenue was $257,187, a decrease of 17.4% compared to $311,428 for the same period in 2024[17]. - Gross profit for the nine months ended September 30, 2025, was $190,264, down 13.7% from $220,502 in the same period of 2024[17]. - The consolidated net loss for the three months ended September 30, 2025, was $4,521, significantly improved from a net loss of $61,030 in the same period of 2024[20]. - The company reported a basic net loss per share of $0.07 for the three months ended September 30, 2025, compared to a loss of $1.33 per share in the same period of 2024[17]. - Consolidated net loss for the nine months ended September 30, 2025, was $63,746, a significant improvement from a loss of $177,536 in the same period of 2024, representing a reduction of approximately 64%[27]. - Revenue for the nine months ended September 30, 2025, was $771.2 million, a decrease of $320.6 million, or 29%, compared to $1,091.8 million for the same period in 2024[111]. Assets and Liabilities - Total current assets increased to $231,803 as of September 30, 2025, compared to $227,507 as of December 31, 2024[15]. - Total liabilities decreased to $211,436 as of September 30, 2025, down from $239,222 as of December 31, 2024[15]. - Total stockholders' equity increased to $202,940 as of September 30, 2025, compared to $162,732 as of December 31, 2024[15]. - Cash and cash equivalents increased to $167,366 as of September 30, 2025, compared to $159,169 as of December 31, 2024[15]. - The company reported a total of $194,417 in cash, cash equivalents, and restricted cash at the end of the period, up from $141,497 at the end of the same period in 2024[27]. Operating Expenses - Operating loss for the nine months ended September 30, 2025, was $48,089, an improvement from a loss of $139,452 in the same period of 2024[17]. - Sales and marketing expenses were $36.1 million, or 14.0% of revenue, for the three months ended September 30, 2025, a decrease of $15.7 million, or 30%, compared to $51.9 million, or 16.7% of revenue, for the same period in 2024[102]. - Technology expenses decreased by $7.1 million for the three months ended September 30, 2025, primarily due to a reduction in staff-related expenses and third-party expenses[103]. - General and administrative expenses decreased by $5.6 million for the three months ended September 30, 2025, primarily due to a reduction in staff-related expenses and third-party expenses[104]. - Customer service and merchant fees decreased by $3.6 million for the three months ended September 30, 2025, primarily driven by decreased order volume[105]. Cash Flow - Net cash used in operating activities decreased to $50,212 for the nine months ended September 30, 2025, compared to $152,625 in the prior year, indicating improved cash flow management[27]. - Cash flows from financing activities provided net cash of $88,952, primarily from proceeds of $101,690 from the sale of common stock, offset by payments on short-term debt of $7,000[27]. - The company reported a net cash outflow of $50.2 million from operating activities for the nine months ended September 30, 2025, compared to a net cash outflow of $152.6 million for the same period in 2024[150][151]. - Investing activities resulted in a net cash outflow of $30.4 million for the nine months ended September 30, 2025, primarily due to $15.2 million for purchases of intangible assets[152]. Stock and Equity - The company issued 8,100 shares of common stock during the three months ended September 30, 2025, contributing to an increase in total shares outstanding to 72,471[23]. - The Company repurchased $4.9 million of its common stock during the three months ended September 30, 2025, at an average price of $8.59 per share[73]. - The Company sold 12,432,021 shares of its common stock for $101.7 million in proceeds during the nine months ended September 30, 2025[72]. - The Company had approximately 2.5 million shares of common stock available under the Employee Stock Purchase Plan (ESPP) as of September 30, 2025[83]. - The Company announced a warrant dividend distribution, with an exercise price of $15.50, to be distributed to common stockholders on October 2, 2025[91]. Investments and Acquisitions - The Company acquired 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[51]. - The Company recognized a gain of $5.0 million from the sale of certain intellectual property related to Bed Bath & Beyond trademarks in Canada and the UK[53]. - The company funded an additional $8.0 million investment in The Brand House Collective, increasing its ownership to approximately 40%[56]. - The company is actively evaluating opportunities for acquisitions and investments in complementary businesses, which may impact future liquidity[143]. Risks and Market Conditions - The company sources a large percentage of its products from China, and increased tariffs or trade barriers could adversely affect product prices and consumer demand, impacting sales volume[175]. - The company has experienced declines in its rankings in Google's natural search engine, which has led to increased reliance on more expensive marketing channels[177]. - The trading price of the company's common stock has been highly volatile, with a range between $3.68 and $12.11 per share in 2025 to date, which may affect the liquidity and market price of the Warrants[184]. - The company may seek debt financing or additional equity capital to fund its operations and expansion efforts[197]. - The company is subject to risks associated with future offerings that could reduce the market price of its common stock[198].

Financial Performance - Net loss narrowed to $4.5 million, a 93% improvement year-over-year, while Adjusted EBITDA loss improved 85% to $4.9 million[2] - Consolidated net loss improved by $57 million year-over-year, with a diluted net loss per share of $0.07 compared to $1.33 in the prior year[11][16] - Consolidated net loss for the nine months ended September 30, 2025, was $63,746 thousand, compared to a loss of $177,536 thousand for the same period in 2024[18] - Adjusted EBITDA for the three months ended September 30, 2025, was $(4,936) thousand, an improvement from $(31,913) thousand in 2024[29] - Free cash flow for the nine months ended September 30, 2025, was $(55,461) thousand, compared to $(163,954) thousand in 2024[30] - Net cash used in operating activities for the nine months ended September 30, 2025, was $(50,212) thousand, significantly reduced from $(152,625) thousand in 2024[30] - The company reported net cash provided by financing activities of $88,952 thousand for the nine months ended September 30, 2025[18] Revenue and Customer Metrics - Net revenue for Q3 2025 was $257 million, a decrease of 17.4% year-over-year, but a 13.2% decrease when excluding the impact from the exit from Canada[11] - Net revenue for the three months ending September 30, 2025, was $257 million, down from $296 million in 2024, reflecting the impact of exiting the Canadian market[27] - Active customers decreased to 4,151 thousand as of September 30, 2025, down from 5,961 thousand in 2024[23] - Last twelve months (LTM) net revenue per active customer increased to $259 from $248 year-over-year[23] - Total orders delivered in the three months ended September 30, 2025, were 1,254 thousand, a decrease from 1,569 thousand in 2024[23] - Average order value rose to $205 in the three months ended September 30, 2025, compared to $199 in 2024[23] Cost Management and Efficiency - Gross margin improved by 420 basis points to 25.3%, and sales & marketing expenses decreased to 14% of revenue, a 260 basis point improvement[3][11] - Total operating expenses decreased to $77.6 million from $111.2 million year-over-year, reflecting a significant reduction in costs[16] - The company expects year-over-year revenue trends to turn positive in 2026, supported by margin consistency and an additional $20 million in operating expense efficiencies[5] Strategic Investments - The company invested an additional $3 million in GrainChain and purchased Kirkland's intellectual property for $10 million[6] - The company raised $113 million through its ATM to strengthen the balance sheet and pursue new strategic investments[6] Company Vision - The company aims to become the 'Everything Home' company, focusing on home-centric technology and services[4]

PART I. FINANCIAL INFORMATION This section presents the company's unaudited consolidated financial statements and management's discussion and analysis for the reporting period [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) This section presents the unaudited consolidated financial statements of Beyond, Inc. for the periods ended June 30, 2025, and December 31, 2024 (balance sheets), and for the three and six months ended June 30, 2025 and 2024 (statements of operations, comprehensive loss, changes in stockholders' equity, and cash flows). It also includes detailed notes explaining the company's business, significant accounting policies, fair value measurements, asset breakdowns, equity securities, borrowings, leases, commitments, stockholders' equity, stock-based awards, revenue recognition, net loss per share, business segments, and subsequent events [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity at specific points in time | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | **Assets** | | | | Cash and cash equivalents | $120,553 | $159,169 | | Total current assets | $195,855 | $227,507 | | Total assets | $358,072 | $401,954 | | **Liabilities & Equity** | | | | Total current liabilities | $215,438 | $224,861 | | Total liabilities | $226,867 | $239,222 | | Total stockholders' equity | $131,205 | $162,732 | - Total assets decreased by **$43.88 million** from December 31, 2024, to June 30, 2025, primarily driven by a reduction in cash and cash equivalents[15](index=15&type=chunk) [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) This section details the company's financial performance, including revenue, gross profit, operating loss, and net loss over specific periods | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :----------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net revenue | $282,251 | $398,104 | $513,999 | $780,385 | | Gross profit | $66,969 | $80,168 | $125,101 | $154,527 | | Operating loss | $(17,880) | $(47,001) | $(41,427) | $(104,526) | | Consolidated net loss | $(19,313) | $(42,578) | $(59,225) | $(116,506) | | Net loss per share (Basic & Diluted) | $(0.34) | $(0.93) | $(1.07) | $(2.55) | - Net revenue decreased by **29.1%** for the three months ended June 30, 2025, and by **34.1%** for the six months ended June 30, 2025, compared to the same periods in the prior year. The company reported a reduced net loss for both the three-month and six-month periods year-over-year[17](index=17&type=chunk)[94](index=94&type=chunk) [Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) This section reports the company's comprehensive loss, encompassing net loss and other comprehensive income or loss components | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :------------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Consolidated net loss | $(19,313) | $(42,578) | $(59,225) | $(116,506) | | Other comprehensive income | $0 | $4 | $0 | $8 | | Comprehensive loss | $(19,313) | $(42,574) | $(59,225) | $(116,498) | - The comprehensive loss for the three and six months ended June 30, 2025, significantly decreased compared to the same periods in 2024, primarily reflecting the reduction in consolidated net loss[20](index=20&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section outlines changes in the company's equity, reflecting net income/loss, stock transactions, and other equity adjustments | Metric | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :------------------------------------ | :----------------------------- | :----------------------------- | | Total equity attributable to stockholders of Beyond, Inc. | $130,868 | $250,354 | | Total stockholders' equity | $131,205 | $250,354 | - Total stockholders' equity decreased from **$250.35 million** at June 30, 2024, to **$131.21 million** at June 30, 2025. This change was influenced by net losses, common stock offerings, and share repurchases[23](index=23&type=chunk)[25](index=25&type=chunk) - The company issued **4,332 thousand** common shares through offerings for the six months ended June 30, 2025, generating **$24.22 million** in additional paid-in capital[23](index=23&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section analyzes the company's cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net cash used in operating activities | $(35,092) | $(110,502) | | Net cash used in investing activities | $(20,188) | $(3,308) | | Net cash provided by (used in) financing activities | $16,718 | $(2,597) | | Net decrease in cash, cash equivalents, and restricted cash | $(38,562) | $(116,407) | | Cash, cash equivalents, and restricted cash, end of period | $147,531 | $186,342 | - Net cash used in operating activities significantly decreased from **$110.50 million** in H1 2024 to **$35.09 million** in H1 2025. Investing activities saw a higher net cash outflow in H1 2025 (**$20.19 million**) compared to H1 2024 (**$3.31 million**). Financing activities shifted from a net outflow of **$2.60 million** in H1 2024 to a net inflow of **$16.72 million** in H1 2025, primarily due to common stock sales[27](index=27&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[137](index=137&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited consolidated financial statements [1. DESCRIPTION OF BUSINESS](index=12&type=section&id=1.%20DESCRIPTION%20OF%20BUSINESS) This section describes Beyond, Inc.'s e-commerce business model, including its retail brands and blockchain assets - Beyond, Inc. is an e-commerce focused retailer utilizing an affinity model, owning or having interests in retail brands like Bed Bath & Beyond, Overstock, and buybuy BABY, along with a blockchain asset portfolio[29](index=29&type=chunk) [2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines the key accounting principles and policies applied in preparing the financial statements - The unaudited consolidated financial statements are prepared in accordance with SEC rules for interim reporting, omitting certain GAAP disclosures. The company's significant accounting policies remain largely unchanged from the 2024 Annual Report on Form 10-K, with new disclosures regarding noncontrolling interests and debt securities carried at fair value[31](index=31&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - In April 2025, a controlled subsidiary launched a token offering, resulting in **$467,000** in cumulative proceeds classified as noncontrolling interest[34](index=34&type=chunk) - The company amended its Term Loan Credit Agreement with Kirkland's Inc. in May 2025, providing an additional **$5.2 million** loan and remeasuring an existing **$8.5 million** loan at fair value, resulting in a **$406,000** unrealized loss[35](index=35&type=chunk)[36](index=36&type=chunk) [3. FAIR VALUE MEASUREMENT](index=14&type=section&id=3.%20FAIR%20VALUE%20MEASUREMENT) This section details the valuation methodologies and inputs used for assets and liabilities measured at fair value | Asset Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Cash equivalents—Money market funds | $22,256 | $21,799 | | Equity securities, at fair value | $24,067 | $21,640 | | Available-for-sale debt securities | $10,989 | $10,985 | | Debt securities, at fair value | $11,769 | $14,814 | | Total assets measured at fair value | $69,081 | $69,238 | - Level 3 investments decreased from **$47.44 million** at December 31, 2024, to **$37.18 million** at June 30, 2025, primarily due to a **$9.50 million** decrease in fair value and **$7.51 million** in transfers out, partially offset by **$6.80 million** in purchases[40](index=40&type=chunk) [4. PROPERTY AND EQUIPMENT, NET](index=15&type=section&id=4.%20PROPERTY%20AND%20EQUIPMENT,%20NET) This section presents the company's property and equipment, net of accumulated depreciation | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------------------------- | :----------------------------- | :------------------------------- | | Computer hardware and software, including internal-use software and website development | $183,620 | $202,005 | | Total property and equipment, net | $16,461 | $23,544 | - Net property and equipment decreased by **$7.08 million** from December 31, 2024, to June 30, 2025. Capitalized internal-use software and website development costs were **$2.95 million** for the six months ended June 30, 2025, down from **$7.96 million** in the prior year period[42](index=42&type=chunk) [5. INTANGIBLE ASSETS, NET](index=15&type=section&id=5.%20INTANGIBLE%20ASSETS,%20NET) This section details the company's intangible assets, including those subject to and not subject to amortization | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Intangible assets subject to amortization, net | $2,225 | $3,094 | | Intangible assets not subject to amortization | $30,351 | $27,152 | | Total intangible assets, net | $32,576 | $30,246 | - The company acquired intellectual property related to the buybuy BABY brand for **$7.1 million** in February 2025. It also sold its rights in the Zulily brand for **$5.0 million**, retaining a **25%** ownership stake, and sold certain Bed Bath & Beyond trademarks in Canada and the UK for **$5.0 million**, recognizing a gain on sale[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) [6. EQUITY SECURITIES](index=16&type=section&id=6.%20EQUITY%20SECURITIES) This section provides information on the company's investments in equity securities, including ownership interests and valuation methods | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------------------------- | :----------------------------- | :------------------------------- | | Equity securities accounted for under the equity method under ASC 323 | $47,552 | $56,546 | | Equity securities accounted for under the equity method under the fair value option | $24,067 | $21,640 | | Total equity securities | $71,619 | $78,186 | - The company increased its investment in Kirkland's Inc. by **$8.0 million** and converted an **$8.5 million** convertible promissory note into Kirkland's common stock, resulting in approximately **40%** ownership. It also retained a **25%** ownership stake in Zulily Newco[47](index=47&type=chunk) | Equity Method Investee | Ownership interest (June 30, 2025) | | :--------------------- | :------------------------------- | | Medici Ventures, L.P. | 99% | | tZERO Group, Inc. | 28% | | SpeedRoute, LLC | 49% | | Kirkland's, Inc. | 40% | | Zulily Newco | 25% | [7. BORROWINGS](index=17&type=section&id=7.%20BORROWINGS) This section outlines the company's outstanding debt obligations and compliance with debt covenants - As of June 30, 2025, the company had an outstanding balance of **$18.5 million** on its revolving line of credit with BMO Bank N.A., net of debt issuance costs, and a **$6.5 million** standby letter of credit[54](index=54&type=chunk) - The company is in compliance with its debt covenants, which include maintaining cash in a Cash Collateral Account at three percent greater than BMO's aggregate commitments[55](index=55&type=chunk) [8. LEASES](index=17&type=section&id=8.%20LEASES) This section details the company's lease arrangements, including lease liabilities and related expenses | Lease Metric | June 30, 2025 | | :------------------------------------ | :------------ | | Weighted-average remaining lease term | 7.17 years | | Weighted-average discount rate | 7 % | | Present value of lease liabilities | $6,906 (in thousands) | | Lease Expense Category | Three months ended June 30, 2025 (in thousands) | Six months ended June 30, 2025 (in thousands) | | :--------------------- | :------------------------------------------ | :---------------------------------------- | | Operating lease cost | $521 | $1,433 | | Variable lease cost | $308 | $617 | [9. COMMITMENTS AND CONTINGENCIES](index=18&type=section&id=9.%20COMMITMENTS%20AND%20CONTINGENCIES) This section discloses the company's various commitments and potential liabilities from legal proceedings and other matters - The company is involved in various legal proceedings, including consumer protection, employment, and intellectual property matters, which could result in significant damages or require changes to business practices. Liabilities for probable and estimable contingencies were not material at June 30, 2025[58](index=58&type=chunk)[59](index=59&type=chunk) [10. INDEMNIFICATIONS AND GUARANTEES](index=19&type=section&id=10.%20INDEMNIFICATIONS%20AND%20GUARANTEES) This section describes the company's indemnification and guarantee obligations - The company has various indemnities, commitments, and guarantees, including those related to facility leases and directors/officers. The potential future payments are generally unlimited and not estimable, thus no liability has been recorded[60](index=60&type=chunk) [11. STOCKHOLDERS' EQUITY](index=19&type=section&id=11.%20STOCKHOLDERS'%20EQUITY) This section details changes in stockholders' equity, including stock offerings and repurchases - For the six months ended June 30, 2025, the company sold **4,331,713** shares of common stock through its 'at the market' public offering, generating **$24.2 million** in net proceeds. As of June 30, 2025, **$131.4 million** remained available under this program[62](index=62&type=chunk) - During the three and six months ended June 30, 2025, the company repurchased **$1.3 million** of common stock at an average price of **$3.92** per share. **$68.6 million** remained available for future repurchases under the program through December 31, 2025[63](index=63&type=chunk) [12. STOCK-BASED AWARDS](index=19&type=section&id=12.%20STOCK-BASED%20AWARDS) This section provides information on the company's stock-based compensation plans and related expenses | Expense Category | Three months ended June 30, 2025 (in thousands) | Six months ended June 30, 2025 (in thousands) | | :------------------------ | :------------------------------------------ | :---------------------------------------- | | Total stock-based compensation | $3,386 | $4,480 | - The company granted **780,709** performance-based shares (PSUs) to its executive management team in H1 2025, vesting based on Adjusted EBITDA, Gross Margin, and Contribution Margin performance metrics[68](index=68&type=chunk) - Stock-based compensation related to PSUs was **$807,000** for the three months ended June 30, 2025, and a credit of **$1.3 million** for the six months ended June 30, 2025, due to staff reductions[69](index=69&type=chunk) [13. REVENUE AND CONTRACT LIABILITY](index=21&type=section&id=13.%20REVENUE%20AND%20CONTRACT%20LIABILITY) This section details the company's revenue recognition policies and contract liabilities | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------- | :----------------------------- | :------------------------------- | | Unearned revenue | $37,662 | $43,095 | | Unearned revenue (loyalty program rewards) | $6,100 | $11,100 | | Allowance for returns | $8,246 | $9,526 | - Breakage income from loyalty program rewards and gift cards recognized in revenue was **$1.1 million** for the three months ended June 30, 2025, and **$7.7 million** for the six months ended June 30, 2025[75](index=75&type=chunk) [14. NET LOSS PER SHARE](index=22&type=section&id=14.%20NET%20LOSS%20PER%20SHARE) This section presents the calculation of basic and diluted net loss per share | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss per share (Basic & Diluted) | $(0.34) | $(0.93) | $(1.07) | $(2.55) | | Weighted average shares outstanding (Basic & Diluted) | 57,503 (in thousands) | 45,742 (in thousands) | 55,593 (in thousands) | 45,665 (in thousands) | - The net loss per share improved significantly for both the three-month and six-month periods ended June 30, 2025, compared to the prior year, despite an increase in weighted average shares outstanding[77](index=77&type=chunk) [15. BUSINESS SEGMENTS](index=23&type=section&id=15.%20BUSINESS%20SEGMENTS) This section describes the company's reportable business segments and how performance is evaluated - The company operates with one reportable segment: Retail, which aggregates the Overstock.com and Bed Bath & Beyond (including buybuy BABY) operating segments due to similar economic characteristics and business activities[78](index=78&type=chunk) - The Chief Operating Decision Maker (CODM) evaluates segment performance based on Net Revenues, Gross Profit, Sales and Marketing, Technology, General & Administrative expenses as a percentage of Gross Profit, and Operating Income (Loss)[79](index=79&type=chunk) [16. SUBSEQUENT EVENTS](index=23&type=section&id=16.%20SUBSEQUENT%20EVENTS) This section discloses significant events occurring after the balance sheet date - On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, which includes tax reform provisions such as elective deduction for domestic R&D and reinstatement of **100%** first-year bonus depreciation. The company does not expect a material impact on its effective tax rate or cash flows in the current fiscal year[81](index=81&type=chunk)[120](index=120&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=23&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial condition and results of operations, highlighting key performance drivers, macroeconomic impacts, and strategic initiatives. It details revenue and gross profit trends, operating expense changes, and the company's liquidity and capital resources, including cash flow analysis and contractual obligations [Overview](index=23&type=section&id=Overview) This section provides an overview of Beyond, Inc.'s e-commerce strategy and brand portfolio - Beyond, Inc. is an e-commerce retailer with an affinity model, owning Overstock, Bed Bath & Beyond, and buybuy BABY brands. The company plans to expand its loyalty program, Beyond+, across all affiliated entities[83](index=83&type=chunk) - The Bed Bath & Beyond brand focuses on home-related products, aiming for category leadership in bedroom, bathroom, kitchen, and patio, with a strategy emphasizing stylish, high-quality assortments and trusted aspirational brands[84](index=84&type=chunk)[85](index=85&type=chunk) - The Overstock brand targets deal-seeking online consumers with discounted quality goods, including home and lifestyle categories. The buybuy BABY acquisition reunites traditionally related brands to support customers through life-stage shopping moments[86](index=86&type=chunk)[87](index=87&type=chunk) [Executive Commentary](index=25&type=section&id=Executive%20Commentary) This section offers management's insights into recent financial performance and key operational drivers - Revenue decreased **29.1%** for the three months ended June 30, 2025, primarily due to a **34%** decrease in orders delivered, partially offset by a **7%** increase in average order value. This decline was attributed to reduced website visits, shifts in consumer spending, macroeconomic factors, and a reduction in sales and marketing spend[88](index=88&type=chunk) - Gross profit decreased **16.5%** for the three months ended June 30, 2025, but gross margin increased to **23.7%** (from **20.1%** in 2024) due to merchandising actions and reduced carrier and return costs[89](index=89&type=chunk) - Sales and marketing expenses as a percent of revenue decreased from **16.7%** to **13.5%** for the three months ended June 30, 2025, driven by decreased performance marketing, brand advertising, and improved ROAS and email marketing effectiveness[90](index=90&type=chunk) - Technology expenses decreased by **$4.1 million**, and General and administrative expenses decreased by **$4.4 million** for the three months ended June 30, 2025, both primarily due to reductions in staff-related expenses and third-party vendor costs[91](index=91&type=chunk) - Customer service and merchant fees decreased by **$5.7 million**, mainly due to decreased order volume and outsourced labor[92](index=92&type=chunk) [Additional commentary related to macroeconomic trends](index=26&type=section&id=Additional%20commentary%20related%20to%20macroeconomic%20trends) This section discusses the influence of broader economic and geopolitical factors on the company's business - The company continues to monitor macroeconomic trends and geopolitical events, including global conflicts, trade barriers, inflation, and higher interest rates, which have negatively impacted consumer confidence and spending in the home furnishings industry[93](index=93&type=chunk) - Despite challenges, these events have not adversely affected the company's liquidity or debt servicing capacity, nor have they required a reduction in capital expenditures as of June 30, 2025[93](index=93&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance across key revenue and expense categories [Net revenue, cost of goods sold, gross profit and gross margin](index=26&type=section&id=Net%20revenue,%20cost%20of%20goods%20sold,%20gross%20profit%20and%20gross%20margin) This section analyzes trends in net revenue, cost of goods sold, gross profit, and gross margin | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net revenue | $282,251 | $398,104 | $513,999 | $780,385 | | Cost of goods sold | $215,282 | $317,936 | $388,898 | $625,858 | | Gross profit | $66,969 | $80,168 | $125,101 | $154,527 | | Net revenue YoY % change | (29.1)% | | (34.1)% | | | Gross profit YoY % change | (16.5)% | | (19.0)% | | | Gross margin | 23.7 % | 20.1 % | 24.3 % | 19.8 % | - Net revenue decreased by **29.1%** for the three months and **34.1%** for the six months ended June 30, 2025, primarily due to a **34%** and **40%** decrease in orders delivered, respectively. This was partially offset by a **7%** and **10%** increase in average order value[95](index=95&type=chunk)[96](index=96&type=chunk) [Change in estimate of average transit times (days)](index=27&type=section&id=Change%20in%20estimate%20of%20average%20transit%20times%20(days)) This section discusses the impact of changes in estimated average shipping transit times on revenue and income - The company uses estimated average shipping transit times to recognize revenue upon delivery. A hypothetical **2-day** increase in transit times would decrease revenue by **$6.34 million** and income before income taxes by **$1.04 million** for the three months ended June 30, 2025[98](index=98&type=chunk)[99](index=99&type=chunk) [Gross profit and gross margin](index=27&type=section&id=Gross%20profit%20and%20gross%20margin) This section provides a detailed analysis of gross profit and gross margin trends | Quarter | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | FY 2024 | Q1 2025 | Q2 2025 | | :---------- | :------ | :------ | :------ | :------ | :------ | :------ | :------ | | Gross margin | 19.5 % | 20.1 % | 21.2 % | 23.0 % | 20.8 % | 25.1 % | 23.7 % | - Gross margin increased to **23.7%** for the three months ended June 30, 2025 (from **20.1%** in 2024), and to **24.3%** for the six months ended June 30, 2025 (from **19.8%** in 2024), primarily due to merchandising actions and reductions in carrier and return costs[101](index=101&type=chunk)[102](index=102&type=chunk) [Operating expenses](index=28&type=section&id=Operating%20expenses) This section details the components and trends of the company's operating expenses [Sales and marketing expenses](index=28&type=section&id=Sales%20and%20marketing%20expenses) This section analyzes sales and marketing expenditures and their impact on revenue | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Sales and marketing expenses | $38,209 | $66,290 | $69,499 | $134,196 | | Sales and marketing expenses YoY % change | (42.4)% | | (48.2)% | | | Sales and marketing expenses as % of net revenue | 13.5 % | 16.7 % | 13.5 % | 17.2 % | - Sales and marketing expenses decreased by **42.4%** for the three months and **48.2%** for the six months ended June 30, 2025, primarily due to reduced performance marketing, brand advertising, and improved effectiveness of marketing channels[105](index=105&type=chunk)[106](index=106&type=chunk) [Technology expenses](index=28&type=section&id=Technology%20expenses) This section details technology-related expenses and investments in innovation | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Technology expenses | $23,221 | $27,342 | $49,939 | $56,923 | | Technology expenses YoY % change | (15.1)% | | (12.3)% | | | Technology expenses as % of net revenue | 8.2 % | 6.9 % | 9.7 % | 7.3 % | - Technology expenses decreased by **$4.1 million** for the three months and **$7.0 million** for the six months ended June 30, 2025, primarily due to a reduction in staff-related expenses[109](index=109&type=chunk)[110](index=110&type=chunk) - The company continues to invest in technology, including machine learning and generative AI, to enhance customer experience and operational efficiency, anticipating material expenditures in this area[107](index=107&type=chunk) [General and administrative expenses](index=29&type=section&id=General%20and%20administrative%20expenses) This section outlines general and administrative costs and their changes | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | General and administrative expenses | $14,088 | $18,531 | $28,402 | $38,985 | | General and administrative expenses YoY % change | (24.0)% | | (27.1)% | | | General and administrative expenses as % of net revenue | 5.0 % | 4.7 % | 5.5 % | 5.0 % | - General and administrative expenses decreased by **$4.4 million** for the three months and **$10.6 million** for the six months ended June 30, 2025, primarily due to reductions in staff-related expenses and third-party vendor costs[111](index=111&type=chunk)[112](index=112&type=chunk) [Customer service and merchant fees](index=29&type=section&id=Customer%20service%20and%20merchant%20fees) This section analyzes customer service and merchant fee expenses | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Customer service and merchant fees | $9,331 | $15,006 | $18,688 | $28,949 | | Customer service and merchant fees YoY % change | (37.8)% | | (35.4)% | | | Customer service and merchant fees as % of net revenue | 3.3 % | 3.8 % | 3.6 % | 3.7 % | - Customer service and merchant fees decreased by **$5.7 million** for the three months and **$10.3 million** for the six months ended June 30, 2025, primarily due to decreased order volume and reduced outsourced labor[114](index=114&type=chunk)[115](index=115&type=chunk) [Other income (expense), net](index=30&type=section&id=Other%20income%20(expense),%20net) This section details non-operating income and expenses - The unfavorable change in other income (expense), net, was **$4.3 million** for the three months and **$2.4 million** for the six months ended June 30, 2025, primarily due to a decrease in gains recognized on the sale of intangible assets[116](index=116&type=chunk)[117](index=117&type=chunk) [Income taxes](index=30&type=section&id=Income%20taxes) This section presents the company's income tax provision and effective tax rate | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Provision for income taxes | $287 (in thousands) | $117 (in thousands) | $481 (in thousands) | $446 (in thousands) | | Effective tax rate | (1.5)% | (0.3)% | (0.8)% | (0.4)% | - The effective tax rate for both periods was negative, differing from the statutory federal income tax rate of **21%** primarily due to year-to-date losses on retail operations for which tax benefits are limited[121](index=121&type=chunk) - The company maintains a valuation allowance against its deferred tax assets for the U.S. jurisdiction due to a cumulative loss position over a three-year period from U.S. retail operations[122](index=122&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet short-term and long-term financial obligations and fund operations [Overview](index=31&type=section&id=Overview) This section provides an overview of the company's liquidity position and capital management strategy - The company believes current cash and expected cash flows will be sufficient for operations for at least the next twelve months. It actively manages operating plans and liquidity in response to macroeconomic conditions[125](index=125&type=chunk) - Future capital requirements depend on growth, business strategy execution, and consumer sentiment. The company may seek additional liquidity through credit facilities, debt/equity issuance, or acquisitions[126](index=126&type=chunk)[127](index=127&type=chunk) [Current sources of liquidity](index=31&type=section&id=Current%20sources%20of%20liquidity) This section identifies the company's primary sources of available cash and capital - As of June 30, 2025, principal liquidity sources include **$120.6 million** in cash and cash equivalents and **$23.3 million** in net accounts receivable[128](index=128&type=chunk) - The company has a **$6.5 million** standby letter of credit with BMO Bank N.A. and **$131.4 million** available under its 'at the market' common stock sales program[129](index=129&type=chunk)[130](index=130&type=chunk) [Operating activities](index=32&type=section&id=Operating%20activities) This section analyzes cash flows generated from or used in the company's core business operations - Net cash used in operating activities was **$35.1 million** for the six months ended June 30, 2025, a significant improvement from **$110.5 million** used in the same period of 2024[133](index=133&type=chunk)[134](index=134&type=chunk) [Investing activities](index=32&type=section&id=Investing%20activities) This section details cash flows related to the acquisition and disposal of long-term assets and investments - Net cash outflow from investing activities was **$20.2 million** for the six months ended June 30, 2025, primarily due to purchases of equity securities (**$8.0 million**), disbursement for notes receivable (**$5.2 million**), and purchases of intangible assets (**$5.2 million**)[135](index=135&type=chunk) [Financing activities](index=32&type=section&id=Financing%20activities) This section outlines cash flows from debt, equity, and dividend transactions - Net cash inflow from financing activities was **$16.7 million** for the six months ended June 30, 2025, driven by **$24.2 million** in net proceeds from common stock sales, partially offset by **$6.5 million** in short-term debt payments[137](index=137&type=chunk) [Contractual Obligations and Commitments](index=33&type=section&id=Contractual%20Obligations%20and%20Commitments) This section summarizes the company's future payment obligations under various contracts | Contractual Obligations | Total (in thousands) | Less than 1 year (in thousands) | 1-3 years (in thousands) | 3-5 years (in thousands) | More than 5 years (in thousands) | | :---------------------- | :------------------- | :------------------------------ | :----------------------- | :----------------------- | :----------------------------- | | Operating leases | $8,717 | $1,196 | $2,342 | $2,201 | $2,978 | [Tax contingencies](index=33&type=section&id=Tax%20contingencies) This section discusses potential tax liabilities and their associated uncertainties - As of June 30, 2025, accrued tax contingencies were **$3.8 million**. The timing and ultimate resolution of these matters are uncertain, and changes in tax laws could increase contingencies[140](index=140&type=chunk) [Critical Accounting Policies and Estimates](index=33&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights accounting policies requiring significant judgment and estimation - There have been no material changes to the company's critical accounting policies and estimates compared to those disclosed in its 2024 Annual Report on Form 10-K, except as noted in the summary of significant accounting policies[141](index=141&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=34&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section outlines the company's exposure to various market risks, including interest rate changes, foreign currency fluctuations, and changes in the market values of its securities. It discusses the potential impact of these risks on the company's financial performance and operations [Interest Rate Sensitivity](index=34&type=section&id=Interest%20Rate%20Sensitivity) This section assesses the company's exposure to fluctuations in interest rates and their potential financial impact - The fair value of cash and cash equivalents is not significantly affected by interest rate changes due to their short-term nature. Changes in prevailing interest rates are not expected to materially impact results of operations for the revolving line of credit[144](index=144&type=chunk)[145](index=145&type=chunk) [Foreign Currency Risk](index=34&type=section&id=Foreign%20Currency%20Risk) This section evaluates the company's exposure to risks arising from foreign currency exchange rate movements - The company's net revenue and operating expenses are not currently subject to significant foreign currency risk as most are denominated in U.S. dollars, though exposure could increase with international growth[146](index=146&type=chunk) [Inflation](index=34&type=section&id=Inflation) This section discusses the impact of inflationary pressures on the company's costs and pricing strategies - Inflationary pressures from commodity, shipping, energy, and labor costs affect the business. The company works with partners to limit cost increases passed to customers, but cannot guarantee offsetting higher costs through pricing or efficiency measures[147](index=147&type=chunk) - The effects of inflation on historical results have been immaterial, but future material impacts are not assured[147](index=147&type=chunk) [Investment Risk](index=34&type=section&id=Investment%20Risk) This section outlines risks associated with the company's investment portfolio, including market volatility and valuation complexities - The fair values of equity and debt securities are subject to market volatility and economic conditions. As of June 30, 2025, **$71.6 million** in equity securities were held, with **$9.6 million** in publicly-traded companies and **$14.4 million** in equity securities and **$22.8 million** in debt securities valued using Level 3 inputs[148](index=148&type=chunk) - Valuations of private companies (Level 3 inputs) are complex due to a lack of market data, making sensitivity analysis impracticable[148](index=148&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=35&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section details the evaluation of the company's disclosure controls and procedures and internal control over financial reporting, confirming their effectiveness and noting no material changes during the quarter [Evaluation of Disclosure Controls and Procedures](index=35&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's controls for financial reporting and disclosure - The principal executive and financial officers concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[149](index=149&type=chunk) [Limitations on Disclosure Controls and Procedures](index=35&type=section&id=Limitations%20on%20Disclosure%20Controls%20and%20Procedures) This section acknowledges inherent limitations in any control system, providing reasonable but not absolute assurance - Management acknowledges that any control system provides only reasonable, not absolute, assurance of achieving objectives and may not prevent or detect all errors or fraud[150](index=150&type=chunk) [Changes in Internal Control Over Financial Reporting](index=35&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports on any material changes to the company's internal control over financial reporting during the period - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[151](index=151&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, and other disclosures relevant to the company's operations [ITEM 1. LEGAL PROCEEDINGS](index=36&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section reiterates the company's involvement in various legal proceedings, including consumer protection, employment, and intellectual property matters, and the potential for adverse outcomes to materially affect its business and financial results - The company is subject to litigation that could result in significant damages, equitable remedies, and diversion of management resources, potentially affecting business, financial condition, or results of operations[154](index=154&type=chunk) [Risk Factors](index=36&type=page&id=ITEM%201A.%20RISK%20FACTORS) This section highlights key risks associated with an investment in the company's securities, emphasizing that these risks could materially adversely affect the business, financial condition, and market price of securities. It specifically adds a new risk factor related to tariffs and trade barriers - A new risk factor addresses tariffs, bans, or other measures that increase product prices or limit access to products, which could materially adversely affect the business, financial results, and prospects, especially given the reliance on sourcing from China and other countries[157](index=157&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=37&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section provides details on the company's common stock repurchases during the quarter ended June 30, 2025 | Period | Total Number of Common Shares Purchased | Average Price Paid per Common Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | :------------- | :------------------------------------ | :---------------------------------- | :----------------------------------------------------------------- | | May 1 - 31 | 332,694 | $3.92 | 332,694 | - As of June 30, 2025, approximately **$68.57 million** remained available for future share repurchases under the company's plans or programs[158](index=158&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=37&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section states that there were no defaults upon senior securities during the reporting period [ITEM 4. MINE SAFETY DISCLOSURES](index=37&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This section indicates that mine safety disclosures are not applicable to the company [ITEM 5. OTHER INFORMATION](index=37&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section confirms no disclosure in lieu of Form 8-K, no material changes to director nominee recommendation procedures, and no Rule 10b5-1 trading arrangement adoptions or terminations by directors or officers - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[164](index=164&type=chunk) [ITEM 6. EXHIBITS](index=38&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed as part of the Form 10-Q, including various agreements, certificates, and certifications - Exhibits include the Amended and Restated Term Loan Credit Agreement, Letter Amendment to Subscription Agreement, Amended and Restated Investor Rights Agreement, Asset Purchase Agreement, Amended and Restated Collaboration Agreement, and License Agreement Letter Agreement, all dated May 7, 2025, related to Kirkland's, Inc.[166](index=166&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer (Rule 13a-14(a)/15d-14(a) and Section 1350) are filed or furnished[166](index=166&type=chunk) [SIGNATURES](index=39&type=section&id=SIGNATURES) This section contains the required signatures for the Form 10-Q, confirming its submission on behalf of Beyond, Inc. - The report was signed by Adrianne B. Lee, President and Chief Financial Officer (Principal Financial Officer), on July 29, 2025[170](index=170&type=chunk)[171](index=171&type=chunk)

[Executive Summary & Q2 2025 Performance](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Performance) [Q2 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Results) Beyond, Inc. reported sequential revenue growth and significant profitability gains for Q2 2025, with a narrowed net loss and improved Adjusted EBITDA, reflecting focused execution and disciplined expense management | Metric | Q2 2025 Value | YoY Change | Sequential Change (QoQ) | | :-------------------------------- | :------------ | :--------- | :---------------------- | | Net Revenue | $282 million | -29.1% | +22% | | Gross Profit | $67 million | - | - | | Gross Profit Margin | 23.7% | +360 bps | - | | Sales & Marketing Expense | $38 million | - | - | | Sales & Marketing % of Net Revenue| 13.5% | +320 bps | - | | Technology and G&A Expense | $37 million | -$9 million| - | | Net Loss | $19 million | -55% | - | | Diluted Net Loss per Share | $0.34 | - | - | | Adjusted Diluted Net Loss per Share (non-GAAP) | $0.22 | - | - | | Adjusted EBITDA (non-GAAP) | ($8) million | +78% | - | | Cash, Cash Equivalents, Restricted Cash, and Inventory | $156 million | - | - | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expressed confidence in stabilizing the business and improving profitability, emphasizing a shift towards growth initiatives, disciplined capital deployment, and unlocking value from the blockchain asset portfolio, supported by new regulatory clarity - President and CFO Adrianne Lee noted **substantial progress** in stabilizing the business and delivering **improved profitability**, indicating a move from transformational efforts to executing growth initiatives. The company remains **disciplined on capital deployment, efficiency, growth opportunities, and asset monetization**[2](index=2&type=chunk) - Executive Chairman Marcus Lemonis highlighted a continued focus on **strengthening the core e-commerce retail business** and actively **unlocking value in the blockchain asset portfolio**, citing the GENIUS Act for regulatory clarity and consumer protections for digital assets[2](index=2&type=chunk) - Strategic priorities include **enhancing the digital experience** for value-seeking customers, **unifying the tech stack** across brands, and excitement for the **new small-format Bed Bath & Beyond Home store in Nashville, Tennessee, as a scalable model**[2](index=2&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) [About Beyond, Inc.](index=2&type=section&id=About%20Beyond) Beyond, Inc. is an e-commerce focused retailer based in Murray, Utah, operating an affinity model that includes brands like Bed Bath & Beyond, Overstock, and buybuy BABY, alongside a blockchain asset portfolio, aiming to enhance everyday life through quality, style, and value - Beyond, Inc. (NYSE:BYON) is an **e-commerce focused retailer** with an **affinity model**[8](index=8&type=chunk) - The company owns **Bed Bath & Beyond, Overstock, buybuy BABY**, and other related brands and websites, as well as a **blockchain asset portfolio**[8](index=8&type=chunk) [Investor Relations & Webcast](index=2&type=section&id=Earnings%20Webcast%20and%20Replay%20Information) Beyond, Inc. will host a webcast on July 29, 2025, to discuss Q2 2025 financial results, strategic vision, and business updates, with a replay and updated presentation available on its investor relations website - Beyond will host a **webcast on Tuesday, July 29, 2025, at 8:30 a.m. ET** to discuss **Q2 2025 financial results, strategic vision, key initiatives, and business updates**[6](index=6&type=chunk) - The live webcast and replay will be available at **https://investors.beyond.com**, where an updated presentation was also posted[6](index=6&type=chunk)[7](index=7&type=chunk) - Investor Relations contact information is **ir@beyond.com** and **pr@beyond.com**[9](index=9&type=chunk) [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) The consolidated balance sheets show a decrease in total assets and stockholders' equity for Beyond, Inc. as of June 30, 2025, compared to December 31, 2024, while total liabilities also saw a reduction | Balance Sheet Item | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------- | :--------------------------- | :------------------------------- | | Total Assets | $358,072 | $401,954 | | Total Liabilities | $226,867 | $239,222 | | Total Stockholders' Equity | $131,205 | $162,732 | | Cash and cash equivalents | $120,553 | $159,169 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20(Unaudited)) Beyond, Inc.'s consolidated statements of operations for Q2 2025 show a decrease in net revenue year-over-year, but a significant improvement in operating loss and a narrowed net loss compared to the prior year's quarter | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net Revenue | $282,251 | $398,104 | | Cost of Goods Sold | $215,282 | $317,936 | | Gross Profit | $66,969 | $80,168 | | Total Operating Expenses | $84,849 | $127,169 | | Operating Loss | $(17,880) | $(47,001) | | Net Loss attributable to stockholders of Beyond, Inc. | $(19,313) | $(42,578) | | Diluted Net Loss per Share | $(0.34) | $(0.93) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) For the six months ended June 30, 2025, Beyond, Inc. significantly reduced net cash used in operating activities compared to the prior year, while financing activities provided net cash, leading to a smaller overall decrease in cash and equivalents | Cash Flow Activity | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :----------------- | :------------------------------------------ | :------------------------------------------ | | Net cash used in operating activities | $(35,092) | $(110,502) | | Net cash used in investing activities | $(20,188) | $(3,308) | | Net cash provided by (used in) financing activities | $16,718 | $(2,597) | | Net decrease in cash, cash equivalents, and restricted cash | $(38,562) | $(116,407) | | Cash, cash equivalents, and restricted cash, end of period | $147,531 | $186,342 | [Operational Metrics](index=7&type=section&id=Supplemental%20Operational%20Data) [Key Operating Metrics](index=7&type=section&id=Key%20Operating%20Metrics) Beyond, Inc.'s key operating metrics for Q2 2025 show a decrease in active customers and orders delivered year-over-year, but an increase in LTM net revenue per active customer and average order value, indicating higher value per remaining customer | Metric | Q2 2025 | Q2 2024 | | :-------------------------- | :------ | :------ | | Active customers (in thousands) | 4,356 | 6,221 | | LTM net revenue per active customer | $259 | $247 | | Orders delivered (in thousands) | 1,289 | 1,949 | | Average order value | $219 | $204 | | Orders per active customer | 1.32 | 1.39 | - Active customers represent **unique customers making at least one purchase during the prior twelve-month period**, capturing both new and lapsed customers[19](index=19&type=chunk) - Average order value is calculated as **total net revenue divided by total orders delivered** in a given period[20](index=20&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Adjusted Diluted Net Loss Per Share Reconciliation](index=7&type=section&id=Adjusted%20diluted%20net%20loss%20per%20share) Beyond, Inc. provides adjusted diluted net loss per share as a non-GAAP measure, which excludes income or losses from equity method securities to offer a clearer period-to-period comparison of operating results - Adjusted diluted net loss per share is a **non-GAAP measure** calculated by **excluding income or losses recognized from equity method securities, net of related tax, from net income (loss)**[24](index=24&type=chunk) | Metric | Diluted EPS | Less: equity method loss | Adjusted Diluted EPS | | :------------------------------------------ | :---------- | :----------------------- | :------------------- | | Net loss attributable to stockholders of Beyond, Inc. (in thousands) | $(19,313) | $(6,576) | $(12,737) | | Weighted average shares of common stock outstanding—diluted | 57,503 | 57,503 | 57,503 | | Net loss per share of common stock: Diluted | $(0.34) | $(0.12) | $(0.22) | [Adjusted EBITDA Reconciliation](index=8&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA, a non-GAAP measure, is presented to facilitate operating performance comparisons by excluding non-cash and special items such as depreciation, stock-based compensation, interest, other income/expense, income taxes, and specific special items - Adjusted EBITDA is a **non-GAAP financial measure** calculated as **net income (net loss) before depreciation and amortization, stock-based compensation, interest and other income (expense), provision (benefit) for income taxes, and special items**[25](index=25&type=chunk) | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net Loss | $(19,313) | $(42,578) | | Depreciation and amortization | $4,080 | $4,395 | | Stock-based compensation | $3,386 | $5,259 | | Interest income, net | $(889) | $(2,309) | | Other (income) expense, net | $2,035 | $(2,231) | | Provision for income taxes | $287 | $117 | | Special items | $2,341 | $971 | | Adjusted EBITDA | $(8,073) | $(36,376) | - **Special items for Q2 2025** primarily consisted of **$2,341K in restructuring costs**, including severance and lease termination costs[27](index=27&type=chunk) [Free Cash Flow Reconciliation](index=8&type=section&id=Free%20cash%20flow) Free cash flow, a non-GAAP measure, is provided to evaluate the cash impact of operations, calculated by reducing net cash used in operating activities by expenditures for property and equipment - Free cash flow is a **non-GAAP financial measure** calculated as **net cash provided by or used in operating activities reduced by expenditures for property and equipment**[26](index=26&type=chunk) | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net cash used in operating activities | $(35,092) | $(110,502) | | Expenditures for property and equipment | $(2,994) | $(7,951) | | Free cash flow | $(38,086) | $(118,453) | [Legal Disclosures](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section advises that the press release contains forward-looking statements about future performance and strategy, which are subject to various risks and uncertainties, and actual results may differ materially. The company disclaims any obligation to update these statements - The press release contains **forward-looking statements** regarding **growth, profitability, business strategy, blockchain asset value, improved conversion, marketing, customer retention, planned expense reductions, and future strategic ventures**[10](index=10&type=chunk) - Readers should **not place undue reliance** on these statements, which speak only as of their date, as **actual results could differ materially** due to **known and unknown risks and uncertainties**[10](index=10&type=chunk) - Risks include **difficulties with fulfillment partners, supply chain, competition, macroeconomic changes, cyberattacks, and adverse tax, regulatory, or legal developments**. Additional information is available in the **Company's SEC filings (10-K, 10-Q)**[10](index=10&type=chunk)

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]