Overstock.com(OSTK) - 2025 Q3 - Quarterly Results

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]