Beyond(US:BYON)2025-10-27 20:22Financial 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 three months ended September 30, 2025, was $65,163, slightly down from $65,975 in the prior year, resulting in a gross margin of 25.4%[17]. - The operating loss for the three months ended September 30, 2025, was $12,452, an improvement from a loss of $45,201 in the same period of 2024[17]. - Consolidated net loss for the three months ended September 30, 2025, was $4,521, compared to a net loss of $61,030 for the same period in 2024[20]. - 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]. - Gross profit for the nine months ended September 30, 2025, was $190.3 million, or 24.7% of revenue, a decrease of $30 million, or 14%, from $220.5 million, or 20.2% of revenue, for the same period in 2024[117]. Cash Flow and Liquidity - Net cash used in operating activities decreased to $50,212 for the nine months ended September 30, 2025, compared to $152,625 for the same period in 2024, indicating improved cash flow management[27]. - The company reported a net cash increase of $8,324 for the nine months ended September 30, 2025, contrasting with a net decrease of $161,252 in the same period of 2024[27]. - The company’s cash, cash equivalents, and restricted cash at the end of the period totaled $194,417, up from $141,497 at the end of the same period in 2024[27]. - The company reported a $24.2 million favorable change in other income (expense), net for the three months ended September 30, 2025, primarily due to a decrease in loss recognized from equity method securities[133]. - The company experienced a loss from operating activities of $63.7 million for the nine months ended September 30, 2025[150]. Assets and Liabilities - Total current assets increased to $231,803 as of September 30, 2025, from $227,507 as of December 31, 2024[15]. - Total liabilities decreased to $211,436 as of September 30, 2025, from $239,222 as of December 31, 2024[15]. - The company reported an accumulated deficit of $804,212 as of September 30, 2025, compared to $740,466 as of December 31, 2024[15]. - Total stockholders' equity increased to $202,940 as of September 30, 2025, from $162,732 as of December 31, 2024[15]. - The company has contractual obligations totaling $8.5 million as of September 30, 2025, with $1.3 million due within one year[156]. Stock and Equity - The weighted average shares of common stock outstanding for the three months ended September 30, 2025, was 60,333, compared to 45,771 for the same period in 2024[17]. - The Company issued 8,100 shares of common stock through offerings during the three months ended September 30, 2025[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]. - For the nine months ended September 30, 2025, the Company sold 12,432,021 shares of its common stock, recognizing $101.7 million in proceeds, net of offering costs[72]. - The company could issue up to 6,884,341 shares of common stock related to the Warrant Distribution, representing a 10.0% increase in shares outstanding, which may exert downward pressure on stock price[189]. Expenses and Cost Management - Sales and marketing expenses decreased by $15.7 million, or 30%, to $36.1 million, or 14.0% of revenue for the three months ended September 30, 2025[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 of $4.9 million[103]. - General and administrative expenses decreased by $5.6 million for the three months ended September 30, 2025, mainly due to a $4.4 million reduction in staff-related expenses[104]. - Customer service and merchant fees for the three months ended September 30, 2025, were $8.9 million, a decrease of $3.6 million, or 28.6%, compared to $12.4 million for the same period in 2024[129]. - Technology expenses for the nine months ended September 30, 2025, were $70.6 million, a decrease of $14.6 million, or 17.3%, compared to $84.6 million for the same period in 2024[124]. Corporate Changes and Strategy - The company has undergone a corporate name change from Beyond, Inc. to Bed Bath & Beyond, Inc. and changed its ticker symbol from "BYON" to "BBBY" in August 2025[30]. - The company is actively evaluating opportunities for acquisitions and investments in complementary businesses, which may impact future liquidity[143]. - The company has undergone significant changes, including a name change from Overstock.com, Inc. to Bed Bath & Beyond, Inc., and the acquisition of the Bed Bath & Beyond and Zulily brands, which may lead to customer confusion and increased marketing costs[176]. 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 shown significant volatility, with a range between $3.68 and $12.11 per share in 2025 to date[184]. - The company is subject to risks associated with future offerings that could reduce the market price of its common stock[198]. Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2025, was (5.4)%, compared to (0.3)% for the same period in 2024[138]. - 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 generated by its retail operations[139]. - Accrued tax contingencies amounted to $3.8 million as of September 30, 2025, with potential for additional assessments from tax authorities[157].