Slides
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1 October 27, 2025 3Q 2025 Earnings Call
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Forward-Looking Statements3Q 25 Earnings Call | October 2025 Forward-Looking Statements The information presented herein and any accompanying presentation may contain forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements include all statements other than statements of historical fact, including without limitation forecasts of our growth, path to profitability, plan to reduced fixed expenses, refinement of systems, technology, and data analytics, financial results or performance for the year or any other time period, macroeconomic and market conditions, potential value of our brands and monetization of their intellectual property and systems, our intention to generate capital returns through strategic and financially accretive partnerships and joint ventures, the timing of any of the foregoing, and other factors that will impact our results of operations. You should not place undue reliance on any forward- looking statements, which speak only as of the date they were made. We undertake no obligation to update any forward-looking statements as a result of any new information, future developments, or otherwise. Forward-looking statements are inherently difficult to predict. Accordingly, actual results could differ materially due to a variety of risks, uncertainties, and other important factors, including but not limited to: our dependence on third parties, including our fulfillment partners; our competition; consumer needs, expectations, or trends; our reliance on effective marketing; economic factors including recessions, downturns, inflation, exposure to the housing market, and consumer spending; trade policies or restrictions, including tariffs, and related macroeconomic effects; our changing business model and use of brands such as the Overstock brand, Bed Bath & Beyond brand, buybuy BABY brand, and Kirkland's and Kirkland's Home brand; the changing job market and changes in our leadership team or compensation approach; our reliance on paid and natural search engines; our ability to become profitable or generate positive cash flows; our ability to raise additional capital, obtain financing or monetize significant assets; our dependence on the Internet, our infrastructure and transaction- processing systems; compliance with ever-evolving federal, state, and foreign laws; cyberattacks or data security incidents; legal proceedings to which we are subject; damage to our reputation or brand image; shipping and customer service operations; technological advancements, including artificial intelligence; global conflicts; product safety and quality concerns; product safety, content, and quality; our evolving business model; risks related to our Warrants; our investments in new business strategies, acquisitions, dispositions, partnerships, or other transactions; and regulatory changes or actions related to cryptocurrencies and blockchain technology. More information about risks, uncertainties, and other important factors that could potentially affect our financial results are included in our Form 10-K for the year ended December 31, 2024, filed with the SEC on February 25, 2025, in our Form 10-Q for the quarter ended June 30, 2025, filed with the SEC on July 29, 2025, and in our subsequent filings with the SEC.
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Financial Update
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3Q 2025 Financial Results $257.2 Million -17.4% vs. 3Q 24 Revenue 25.3% +420 bps vs. 3Q 24 Gross Margin Adjusted EBITDA1 -$4.9 Million +$27.0M vs. 3Q 24 Adjusted Diluted EPS2 -$0.19 +$0.77 vs. 3Q 24 Diluted EPS -$0.07 $201.6 Million Ending Cash & Inventory +$45.7M / +29.3% vs. 2Q 25 $32.6 Million -$12.7M / -28.1% vs. 3Q 24 G&A and Tech Expense Excl. Canada: -13.2% vs. 3Q 24 1 Adjusted EBITDA is a non-GAAP financial measure. See reconciliation in appendix. 2 Adjusted Diluted EPS is a non-GAAP financial measure. See reconciliation in appendix. Financial Update3Q 25 Earnings Call | October 2025
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Revenue 3Q 25 Dynamics • Revenue of $257M • -$54M / -17% vs. 3Q 24 • YoY influenced by: • Rationalized channel management and customer acquisition investments • Discontinued Canada operations • QoQ influenced by: • Mixed out of higher AOV Outdoor category Revenue ($M) $0 $100 $200 $300 $400 $500 3Q 23 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 $373 $311 $303 $232 $282 $257 Financial Update3Q 25 Earnings Call | October 2025
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Gross Margin 3Q 25 Dynamics • Gross margin of 25.3% • +420 bps vs. 3Q 24 • Gross margin influenced by: • Optimized freight economics • Improved reverse logistics • Discontinued Canada operations Gross Margin ($M) Gross Margin (%) 22.2% 21.2% 23.0% 25.1% 23.7% 25.3% 0% 5% 10% 15% 20% 25% 30% $0 $50 $100 $150 $200 3Q 23 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 $83 $66 $70 $58 $67 $65 Note: All figures reflect the change in presentation in the income statement for merchant fees and customer service costs in a separate line in operating expenses labeled “Customer service and merchant fees,” whereas previously these expenses were included in cost of goods sold, which impacted gross margin. Financial Update3Q 25 Earnings Call | October 2025
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Sales & Marketing Expense 3Q 25 Dynamics • Sales & Marketing Expense of $36M or 14.0% • -$16M / -260 bps vs. 3Q 24 • Sales & Marketing Expense influenced by: • Rationalized channel management and customer acquisition investments • Continued focus on ROAS guardrails Sales & Marketing Expense ($M) Sales & Marketing Expense (% of Revenue) 15.4% 16.7% 17.3% 13.5% 13.5% 14.0% 0% 5% 10% 15% 20% $0 $50 $100 $150 $200 3Q 23 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 $58 $52 $53 $31 $38 $36 Financial Update3Q 25 Earnings Call | October 2025
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G&A and Tech Expense 3Q 25 Dynamics • G&A and Tech Expense of $33M • -$13M / -28% vs. 3Q 24 • -$4M / -12% vs. 2Q 25 • Achieved commitment of $150M annual G&A and Tech Expense run rate G&A and Tech Expense ($M) $0 $25 $50 $75 3Q 23 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 $53 $45 $48 $41 $37 $33 Financial Update3Q 25 Earnings Call | October 2025
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Adjusted EBITDA 3Q 25 Dynamics • Adj. EBITDA of -$5M • +$27M vs. 3Q 24 • 7th consecutive quarter of narrowing adjusted EBITDA loss Adjusted EBITDA ($M) ($60) ($40) ($20) $0 $20 3Q 23 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 ($24) ($32) ($28) ($13) ($8) ($5) Note: Adjusted EBITDA is a non-GAAP financial measure. See reconciliation in appendix. Financial Update3Q 25 Earnings Call | October 2025
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LTM Orders and Average Order Value 3Q 25 Dynamics • Average order value of $205 • +3% vs. 3Q 24 • Orders delivered (LTM) of 5.4M • -35% / -2.9M vs. 3Q 24 Note: LTM orders delivered represents the total number of orders delivered during the prior twelve-month period. Note: Average order value represents net revenue divided by orders delivered, measured on a quarterly basis. Orders Delivered (LTM) (M) Average Order Value ($) $192 $199 $181 $194 $219 $205 $0 $50 $100 $150 $200 $250 0 5 10 15 20 25 3Q 23 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 7.3 8.3 7.4 6.4 5.7 5.4 Financial Update3Q 25 Earnings Call | October 2025
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Active Customers and Order Frequency 3Q 25 Dynamics • Order frequency of 1.30 • -6% vs. 3Q 24 • Active customers (LTM) of 4.2M • -30% / -2M vs. 3Q 24 Active Customers (LTM) (M) Order per Active Customer (LTM)1.48 1.39 1.37 1.34 1.32 1.30 0.0 0.5 1.0 1.5 0 2 4 6 8 10 12 3Q 23 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4.9 6.0 5.4 4.8 4.4 4.2 Note: Orders per active customer represents the number of orders delivered over a twelve-month period divided by the number of active customers for that same period. Financial Update3Q 25 Earnings Call | October 2025
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Operations Update
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1. Marketing Efficiency Committed Target: 12% 2. Sales Growth 3. Margin Committed Target: 25% 4. Expense Management Updated Target: ~$38M BBBY Consolidated Investor Event Focus Areas: Restoring the Core 1 Orders delivered / Site Visits Increase ROAS Focused ad spend using enriched customer data Maximize Traffic and Improve Conversion Create frictionless site experience and product authority Enhance Margin Lower product costs and effective promotional campaigns $150M Annual G&A and Tech Run-Rate Updated from $165M commitment Optimized structure for the future 12% 12% 15% 18% 18% 17% 17% 17% 14% 14% 14% 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 27% 25% 22% 19% 19% 20% 21% 23% 25% 24% 25% 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 $51M $49M $53M $54M $50M $46M $45M $48M $41M $37M $33M Sales & Marketing as % of Revenue G&A and Tech Expense Gross Margin as % of Revenue Conversion Rate1 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 Operations Update3Q 25 Earnings Call | October 2025
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Appendix
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in thousands, except per share data 9/30/2023 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 Net loss $ (63,049) $ (61,030) $ (81,259) $ (39,912) $ (19,313) $ (4,521) Depreciation and amortization 4,320 4,384 6,323 4,844 4,080 3,879 Stock-based compensation 5,798 6,349 2,871 1,094 3,386 3,522 Interest income, net (3,201) (1,554) (185) (762) (889) (1,186) Other (income) expense, net 38,731 17,194 36,768 17,269 7,489 (6,978) Provision (benefit) for income taxes (13,411) 189 49 194 287 233 Special items (see table below) 6,881 2,555 7,581 4,040 (3,113) 115 Adjusted EBITDA $ (23,931) $ (31,913) $ (27,852) $ (13,233) $ (8,073) $ (4,936) Adjusted EBITDA Margin (6.4%) (10.2%) (9.2%) (5.7%) (2.9%) (1.9%) Special items: Brand integration and related costs 5,248 171 284 — — — (Gains) losses on discrete asset disposals — 1,648 1,737 (336) (5,454) — Special legal charges and other — — 563 — — — Restructuring costs 1,633 736 4,997 4,376 2,341 115 Total Special items $ 6,881 $ 2,555 $ 7,581 $ 4,040 $ (3,113) $ 115 Three months ended Adjusted EBITDA Reconciliation Note: All figures represent results from continuing operations. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures used in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Review our financial statements and publicly filed reports in their entirety and do not rely on any single financial measure. Reconciliation3Q 25 Earnings Call | October 2025
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in thousands, except per share data Numerator: Net loss attributable to stockholders of Bed Bath & Beyond, Inc. (4,521)$ 7,005$ (11,526)$ Denominator: Weighted average shares of common stock outstanding-diluted 60,333 60,333 60,333 Net loss per share of common stock: Diluted (0.07) 0.12 (0.19) Adjusted Diluted EPS Three months ended September 30, 2025 Diluted EPS Less: equity method gain (loss) Adjusted Diluted EPS Reconciliation Reconciliation3Q 25 Earnings Call | October 2025