Slides
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BED BATH & BEYOND NEIGHBORHOOD INTELLIGENCE 2Q 2026 Earnings Call August 4 , 2026
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Forward-Looking Statements2Q 26 Earnings Call | August 2026 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 with out limitation forecasts of our growth, path to profitability, plan to reduced fixed expenses, refinement of systems, technology, and data analytics, financi al results or performance for the year or any other time period, macroeconomic and market conditions, potential value of our brands and monetization of their i ntellectual property and systems, our intention to generate capital returns through strategic and financially accretive partnerships and joint venture s, 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 c ould 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 rec essions, downturns, inflation, exposure to the housing market, and consumer spending; tariffs, bans, or other events that increase the effective price of products or limit our access to products; our changing business model and use of brands such as the Overstock brand, Bed Bath & Beyond brand, buybuy BABY brand, Kirkland's and Kirkland's Home brand, and The Container Store, Elfa, and Closet Works brands; the changing job market and cha nges 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 inf rastructure and transaction- processing systems; compliance with ever-evolving federal, state, and foreign laws; cyberattacks or data security incidents; leg al proceedings to which we are subject; damage to our reputation or brand image; shipping and customer service operations; technological advancements, i ncluding artificial intelligence; global conflicts; product safety and quality concerns; product safety, content, and quality; our evolving busin ess model; risks related to our Warrants; our investments in new business strategies, acquisitions, dispositions, partnerships, or other transactions; regula tory changes or actions related to digital assets, including tokens and blockchain technology; risks associated with the Fathom Merger Agreement or the F9 Brands Merger Agreement not being completed or being terminated in accordance with its terms; and our ability for the combined company to realize the benefits of the TBHC Merger, the TCS Merger, or other pending or contemplated mergers. More information about risks, uncertainties, and other impo rtant factors that could potentially affect our financial results are included in our Form 10 -K for the year ended December 31, 2025, filed with the SEC on February 24, 2026, our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2026, filed with the SEC on April 27, 2026 and in our subse quent filings with the SEC.
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Financial Update 2Q 2026
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2Q 2026 Financial Results1 1 All results include TBHC. 2 Adjusted EBITDA is a non-GAAP financial measure. See reconciliation in appendix. 3 Adjusted Diluted EPS is a non-GAAP financial measure. See reconciliation in appendix. 4 Ending cash & inventory excludes $15M in inventory backing the ABL. Financial Update2Q 26 Earnings Call | August 2026 $361.2 Million +28.0% vs. 2Q 25 Revenue 26.8% +310 bps vs. 2Q 25 Gross Margin Adjusted EBITDA2 -$12.2 Million -$4.1M vs. 2Q 25 Adjusted Diluted EPS3 -$0.53 -$0.31 vs. 2Q 25 Diluted EPS -$0.53 $163.9 Million Ending Cash & Inventory4 +$0.9M / +0.5% vs. 1Q 26 $81.9 Million +$44.6M / +119.4% vs. 2Q 25 G&A and Tech Expense
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Revenue 2Q 26 Dynamics • Revenue of $361M • +$79M / +28% vs. 2Q 25 • Revenue influenced by: • Contribution from TBHC • 2nd consecutive quarter of disciplined sales growth Revenue ($M) $0 $100 $200 $300 $400 $500 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 $282 $257 $273 $248 $361 Financial Update2Q 26 Earnings Call | August 2026
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Gross Margin 2Q 26 Dynamics • Gross margin of 26.8% • +310 bps vs. 2Q 25 • Gross Margin influenced by: • Positive mix shift associated with the TBHC merger Gross Margin ($M) Gross Margin (%) 23.7% 25.3% 24.6% 23.9% 26.8% 0% 5% 10% 15% 20% 25% 30% $0 $50 $100 $150 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 $67 $65 $67 $59 $97 Financial Update2Q 26 Earnings Call | August 2026
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Sales & Marketing Expense 2Q 26 Dynamics • Sales & Marketing Expense of $43M or 11.9% • +$5M / -160 bps vs. 2Q 25 • Sales & Marketing Expense influenced by: • Higher revenue • Disciplined efficiency in paid channels • Improved return in owned channels Sales & Marketing Expense ($M) Sales & Marketing Expense (% of Revenue) 13.5% 14.0% 13.8% 13.0% 11.9% 0% 5% 10% 15% $0 $50 $100 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 $38 $36 $38 $32 $43 Financial Update2Q 26 Earnings Call | August 2026
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G&A and Tech Expense 2Q 26 Dynamics • G&A and Tech Expense of $82M • +$45M / +119% vs. 2Q 25 • +$30M / +80% vs. 2Q 25 excl. one-time costs • G&A and Tech Expense influenced by: • Inclusion of store occupancy expenses (rent, payroll), related to TBHC G&A and Tech Expense ($M) $0 $25 $50 $75 $100 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 $37 $33 $33 $36 $82 Financial Update2Q 26 Earnings Call | August 2026 $311 1 In 1Q 26 we recorded $5.5M in one-time costs that increased G&A and Tech expense. Adjusted G&A and Tech expense in 1Q 26 was $30.6M. In 2Q 26 we recorded $14.8M in one-time costs that increased G&A and Tech expense. Adjusted G&A and Tech expense in 2Q 26 was $67.0M. Adjusted G&A and Tech expense is a non-GAAP financial measure. See reconciliation in appendix. $671
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Adjusted EBITDA 2Q 26 Dynamics • Adj. EBITDA of -$12M • -$4M / -51% vs. 2Q 25 Adjusted EBITDA ($M) ($20) ($15) ($10) ($5) $0 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 ($8) ($5) ($4) ($8) ($12) Note: Adjusted EBITDA is a non-GAAP financial measure. See reconciliation in appendix. Financial Update2Q 26 Earnings Call | August 2026
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LTM Orders and Average Order Value 2Q 26 Dynamics • Average order value of $129 • -41% vs. 2Q 25 • Orders delivered (LTM) of 11.4M • +5.7M / +100% vs. 2Q 25 • +6.3M / +121% vs. 1Q 26 • Orders delivered doubled after the merger with TBHC Note: LTM orders delivered represents the total number of orders delivered during the prior twelve-month period. Note: Average order value represents net revenue divided by orders delivered, measured on a quarterly basis. Orders Delivered (LTM) (M) Average Order Value ($) $219 $205 $193 $205 $50 $100 $150 $200 $250 0 5 10 15 20 2Q 25 3Q 25 4Q 25 1Q 26 $129 2Q 26 5.7 5.4 5.2 5.2 11.4 Financial Update2Q 26 Earnings Call | August 2026 (BBBY/OSTK only) (BBBY/OSTK only) (BBBY/OSTK only) (BBBY/OSTK only) (Includes TBHC)
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Active Customers and Order Frequency 2Q 26 Dynamics • Order frequency of 1.79 • +36% vs. 2Q 25 • Active customers (LTM) of 6.4M • +2.0M / +47% vs. 2Q 25 • +2.4M / +62% vs. 1Q 26 • Highest active customer (LTM) in 16 quarters Active Customers (LTM) (M) Order per Active Customer (LTM) 1.32 1.30 1.30 1.31 1.79 0.0 0.5 1.0 1.5 2.0 0 2 4 6 8 10 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 4.4 4.2 4.0 4.0 6.4 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 Update2Q 26 Earnings Call | August 2026 (BBBY/OSTK only) (BBBY/OSTK only) (BBBY/OSTK only) (BBBY/OSTK only) (Includes TBHC)
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Appendix
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in thousands 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Net loss $ (19,313) $ (4,521) $ (20,875) $ (16,398) $ (39,497) Depreciation and amortization 4,080 3,879 3,475 3,204 7,955 Stock-based compensation 3,386 3,522 2,851 1,533 2,075 Interest income, net (889) (1,186) (2,215) (1,729) (750) Other (income) expense, net 7,489 (6,978) 9,855 (329) (121) Provision for income taxes 287 233 111 249 (2,516) Special items (see table below) (3,113) 115 2,353 5,610 20,682 Adjusted EBITDA $ (8,073) $ (4,936) $ (4,445) $ (7,860) $ (12,172) Net Revenue $ 282,251 $ 257,187 $ 273,430 $ 247,755 $ 361,159 Adjusted EBITDA Margin (2.9%) (1.9%) (1.6%) (3.2%) (3.4%) Special items: Acquisition-related costs $ — $ — $ — $ 4,676 $ 8,667 Restructuring costs 2,341 115 2,353 934 6,266 Gains on discrete asset disposals (5,454) — — — — Store-closure non-cash asset impairments — — — — 5,247 Acquisition-related non-cash purchase-accounting adjustments — — — — 502 Total Special items $ (3,113) $ 115 $ 2,353 $ 5,610 $ 20,682 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. Reconciliation2Q 26 Earnings Call | August 2026
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Adjusted Diluted EPS Reconciliation Reconciliation2Q 26 Earnings Call | August 2026 1 There was no income tax effect related to the adjustments made to calculate non-GAAP adjusted diluted EPS for any of the periods presented. Adjusted G&A and Technology Expense Reconciliation Note: All figures represent results from continuing operations. Adjusted G&A and Technology expense is a non-GAAP financial measure 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. Three months ended June 30, 2026 Diluted EPS Adjusted Diluted EPS Numerator: Net loss attributable to common stockholders $ (39,497) $ (39,497) Denominator: Weighted average shares of common stock outstanding—diluted 74,308 74,308 Net loss per share of common stock: Diluted $ (0.53) $ (0.53) in thousands 3/31/2026 6/30/2026 G&A and Technology Expense $ 36,077 $ 81,862 Restructuring costs — 5,714 Acquisition-related costs 5,497 9,129 Adjusted G&A and Technology Expense $ 30,580 $ 67,019