Overstock.com(OSTK) - 2025 Q2 - Quarterly Results

Executive Summary & Q2 2025 Performance Q2 2025 Financial Highlights 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 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] - 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] - 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] Company Information About Beyond, Inc. 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] - The company owns Bed Bath & Beyond, Overstock, buybuy BABY, and other related brands and websites, as well as a blockchain asset portfolio[8] Investor Relations & Webcast 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] - The live webcast and replay will be available at https://investors.beyond.com, where an updated presentation was also posted[6][7] - Investor Relations contact information is ir@beyond.com and pr@beyond.com[9] Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets 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 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 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 Key Operating Metrics 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] - Average order value is calculated as total net revenue divided by total orders delivered in a given period[20] Non-GAAP Financial Measures & Reconciliations Adjusted Diluted Net Loss Per Share Reconciliation 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] | 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 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] | 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] Free Cash Flow Reconciliation 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] | 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 Cautionary Note Regarding Forward-Looking Statements 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] - 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] - 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]