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Beyond, Inc. Reports Fourth Quarter 2024 Financial Results with Sequential Material Improvements in Key Operating Metrics, Driving Towards our Goal of Profitability

1. Net loss improved 50% with a 43% EBITDA boost YOY. Margin expansion drove results. 2. Overstock ramp-up and SKU/vendor refinement build a profitable foundation. Strategic buy initiatives are highlighted. 3. Q4 revenue declined by 21% while gross margins and cash reserves improved. Cost discipline was emphasized. 4. Future earnings call on Feb 25, 2025 to discuss growth strategy. Long-term profitability focus is evident.

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FAQ

Why Bullish?

The improvements in net loss and EBITDA, fueled by margin expansion and cost discipline, signal effective turnaround strategies. Similar turnarounds in retail sectors have lifted share prices after robust operational improvements were confirmed.

How important is it?

While revenue declined, margin and cash improvements alongside strategic initiatives suggest potential positive shifts. The turnaround efforts are significant, though execution risks remain.

Why Long Term?

The company's strategic marketing, tech innovation, and brand rationalization indicate lasting structural changes rather than a transient effect. Historical shifts in retail, like those seen in similar ecommerce turnarounds, typically require time to fully materialize.

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BBBYOSTK
— 50% improvement in Net Loss and 43% improvement in Adjusted EBITDA year-over-year, driven by exceeding our gross margin expansion and fixed cost reduction goals in our core business — — Continued ramp of our Overstock brand, SKU/vendor refinement, pricing and discounting discipline within Bed Bath & Beyond banner, BuyBuyBaby acquisition and completion of material stake in Kirkland’s Home provides a clear path to our goal of growth and profitability — MURRAY, Utah, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Beyond, Inc. (NYSE:BYON), owner of Bed Bath & Beyond and Overstock, today reported financial results for the fourth quarter and full year ended December 31, 2024. Marcus Lemonis, Executive Chairman of Beyond, commented, “We are exceeding our previously announced targets of margin improvement and fixed cost reductions, improved site experience, and the elimination of poor performing SKUs/vendors, which are all leading to our primary goal of making money. We will continue to make calibrated decisions to reset the base of the company and build a profitable foundation.” Lemonis added, “We are excited by the progress we have made since November 1st and are further encouraged by the sequential improvements that have continued through February. While there is still much work to do, we will continue to make the necessary difficult decisions, leverage technology innovation and utilize our resources and partnerships to create a solid foundation that we believe will deliver profitability and growth.” Adrianne Lee, Chief Administrative and Financial Officer, commented, “Growing revenue is critical to our business, but it cannot come at the detriment of generating cash flow and delivering profitability. It’s vital for the company to re-establish the discipline we expect of profitable commerce, and the sequential improvement in gross margin and reduced fixed costs delivered in the fourth quarter was encouraging.” Lee further added, “Fourth quarter Net loss was driven by almost $50 million of non-cash charges, primarily from non-core business activities, and $6 million of non-recurring items. Adjusted EBITDA loss of $28 million was a 43% improvement year-over year driven by a 380 basis point gross margin expansion, and we ended the year with a healthy cash and restricted cash balance of $186 million.” Fourth Quarter 2024 Results* Orders delivered of 1.7 million, a decrease of 34% year-over-year  Active customers of 5.4 million, a decrease of 4% year-over-year  Total net revenue of $303 million, a decrease of 21.1% year-over-year  Gross profit of $70 million, or 23.0% of total net revenue  Net loss of $81 million  Diluted net loss per share of $1.66; Adjusted diluted net loss per share (non-GAAP) of $0.91  Adjusted EBITDA (non-GAAP) of ($28) million, which represents (9.2)% of net revenue  Cash, cash equivalents, and restricted cash totaled $186 million at the end of the fourth quarter Full Year 2024 Results Total net revenue of $1.4 billion, a decrease of 10.6% year-over-year  Gross profit of $290 million or 20.8% of total net revenue  Net loss of $259 million  Diluted net loss per share of $5.56; Adjusted diluted net loss per share (non-GAAP) of $3.84  Adjusted EBITDA (non-GAAP) of ($144) million, which represents (10.3)% of net revenue *Certain terms, such as orders delivered and active customers, are defined under "Supplemental Operational Data" below. Earnings Webcast and Replay InformationBeyond will host a webcast to discuss its fourth quarter and full year 2024 financial results and its strategic vision, key initiatives, and provide business updates on Tuesday, February 25, 2025, at 8:30 a.m. ET. To access the live webcast, visit https://investors.beyond.com. Questions may be emailed in advance of the call to ir@beyond.com. A replay of the webcast will be available at https://investors.beyond.com shortly after the live event has ended. On February 24, 2025, in connection with the release of financial results, the Company posted an updated presentation in the “Events & Presentation” portion of its investor relations website at https://investors.beyond.com. About BeyondBeyond, Inc. (NYSE:BYON), based in Murray, Utah, is an ecommerce focused affinity company that owns or has ownership interests in various retail brands, offering a comprehensive array of products and services that enable its customers to unlock their homes’ potential through its vast data cooperative. The Company currently owns Bed Bath & Beyond, Overstock, Zulily and other related brands and websites. The Company regularly posts information and updates on its Newsroom and Investor Relations pages on its website, Beyond.com. Contact InformationInvestor Relationsir@beyond.compr@beyond.com Cautionary Note Regarding Forward-Looking StatementsThis press release and webcast to discuss our financial results and strategy may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include all statements other than statements of historical fact, including but not limited to statements regarding our quarterly earnings reporting, forecasts of our growth, business strategy, improved conversion, marketing, and customer retention, planned expense reductions, value and monetization of our intellectual property, future strategic ventures, global loyalty program, improved financial performance, increased shareholder value, and the timing of any of the foregoing. 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. These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of known and unknown risks, uncertainties, and other important factors including but not limited to, difficulties we may have with our fulfillment partners, supply chain, access to products, shipping costs, insurance, competition, macroeconomic changes, attraction/retention of employees, search engine optimization results, and/or payment processors. Other risks and uncertainties include, among others, risks arising from changes to our organizational structure, management, workforce or compensation structure, impacts from changing our company name, impacts from our use of the Overstock, Zulily, and Bed Bath & Beyond brands or the platforms on which they are offered, our ability to generate positive cash flow, impacts from our evolving business practices, including strategic ventures, and expanded product and service offerings, impacts from directly sourced products, any problems with our infrastructure, including re-location or third-party maintenance of our computer and communication hardware, cyberattacks, data loss or data breaches affecting us, adverse tax, regulatory or legal developments, any restrictions on tracking technologies, any failure to effectively utilize technological advancements or protect our intellectual property, negative economic consequences of global conflict, politics including the presidential election, and whether our partnership with Pelion Venture Partners will achieve its objectives. Additional information regarding factors that could materially affect results and the accuracy of the forward-looking statements contained herein may be found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 23, 2024, on Form 10-Q for the quarter ended June 30, 2024, filed with the SEC on July 31, 2024, on Form 10-Q for the quarter ended September 30, 2024, filed with the SEC on October 25, 2024, and in our subsequent filings with the SEC. The Forms 10-K, 10-Q, and our subsequent filings with the SEC identify important factors that could cause our actual results to differ materially from those contained in or contemplated by our projections, estimates and other forward-looking statements.  Beyond, Inc.Consolidated Balance Sheets (Unaudited)(in thousands, except per share data) December 31,2024 December 31,2023Assets   Current assets:   Cash and cash equivalents$159,169  $302,605 Restricted cash 26,924   144 Accounts receivable, net 15,847   19,420 Inventories 11,546   13,040 Prepaids and other current assets 14,021   14,864 Total current assets 227,507   350,073 Property and equipment, net 23,544   27,577 Intangible assets, net 30,246   25,254 Goodwill 6,160   6,160 Equity securities 78,186   155,873 Operating lease right-of-use assets 6,858   3,468 Other long-term assets, net 29,453   12,951 Property and equipment, net held for sale —   54,462 Total assets$401,954  $635,818 Liabilities and Stockholders' Equity   Current liabilities:   Accounts payable$81,939  $106,070 Accrued liabilities 73,614   73,682 Unearned revenue 43,095   49,597 Operating lease liabilities, current 1,342   2,814 Short-term debt, net 24,871   — Current debt, net held for sale —   232 Total current liabilities 224,861   232,395 Operating lease liabilities, non-current 6,452   940 Other long-term liabilities 7,909   9,107 Long-term debt, net held for sale —   34,244 Total liabilities 239,222   276,686 Stockholders' equity:   Preferred stock, $0.0001 par value, authorized shares - 5,000, issued and outstanding - none —   — Common stock, $0.0001 par value, authorized shares - 100,000   Issued shares - 59,560 and 51,770   Outstanding shares - 53,069 and 45,414 5   5 Additional paid-in capital 1,072,869   1,007,649 Accumulated deficit (740,466)  (481,671)Accumulated other comprehensive loss —   (506)Treasury stock at cost - 6,491 and 6,356 (169,676)  (166,345)Total stockholders' equity 162,732   359,132 Total liabilities and stockholders' equity$401,954  $635,818   Beyond, Inc.Consolidated Statements of Operations (Unaudited)(in thousands, except per share data) Three months endedDecember 31, Year endedDecember 31,  2024   2023   2024   2023 Net revenue$303,151  $384,458  $1,394,964  $1,561,122 Cost of goods sold 233,489   310,585   1,104,800   1,195,093 Gross profit 69,662   73,873   290,164   366,029 Operating expenses       Sales and marketing 52,509   70,716   238,564   224,547 Technology 29,988   29,662   114,584   117,154 General and administrative 17,843   24,145   74,399   90,410 Customer service and merchant fees 12,212   13,912   53,586   52,023 Total operating expenses 112,552   138,435   481,133   484,134 Operating loss (42,890)  (64,562)  (190,969)  (118,105)Interest income, net 185   3,188   6,765   12,007 Other expense, net (38,505)  (33,231)  (73,907)  (160,024)Loss before income taxes (81,210)  (94,605)  (258,111)  (266,122)Provision for income taxes 49   66,388   684   41,720 Net loss$(81,259) $(160,993) $(258,795) $(307,842)Net loss per share of common stock:       Basic$(1.66) $(3.55) $(5.56) $(6.81)Diluted$(1.66) $(3.55) $(5.56) $(6.81)Weighted average shares of common stock outstanding:       Basic 49,048   45,360   46,542   45,214 Diluted 49,048   45,360   46,542   45,214   Beyond, Inc.Consolidated Statements of Cash Flows (Unaudited)(in thousands) Year endedDecember 31,  2024   2023 Cash flows from operating activities:   Net loss$(258,795) $(307,842)Adjustments to reconcile net loss to net cash used in operating activities:   Depreciation and amortization 19,062   19,447 Non-cash operating lease cost 3,451   4,737 Stock-based compensation to employees and directors 19,255   23,018 Decrease in deferred tax assets, net 283   41,349 Gain on sale of intangible assets (10,275)  — Gain on disposal of cryptocurrencies —   (6,361)Write-down of assets held for sale 3,385   25,875 Loss from equity method securities 77,687   140,404 Loss on debt securities carried at fair value 2,430   — Other non-cash adjustments (14)  (693)Changes in operating assets and liabilities:   Accounts receivable, net 3,573   (1,727)Inventories 1,494   (6,514)Prepaids and other current assets 1,293   1,889 Other long-term assets, net (2,175)  (757)Accounts payable (24,172)  32,555 Accrued liabilities (31)  10,442 Unearned revenue (6,502)  5,117 Operating lease liabilities (2,819)  (5,094)Other long-term liabilities (1,434)  5,569    Net cash used in operating activities (174,304)  (18,586)Cash flows from investing activities:   Proceeds from the sale of intangible assets 10,275   — Expenditures for property and equipment (14,315)  (19,181)Purchase of intangible assets (6,044)  (25,816)Proceeds from the sale of assets held for sale 51,441   — Disbursement for notes receivable (17,000)  (10,000)Proceeds from the disposal of cryptocurrencies —   9,804 Capital distribution from investment —   4 Other investing activities, net 569   559 Net cash provided by (used in) investing activities 24,926   (44,630)    Continued on the following page Year endedDecember 31,  2024   2023 Cash flows from financing activities:   Payments of taxes withheld upon vesting of employee stock awards (3,331)  (3,799)Proceeds from short-term debt 25,000   — Proceeds from sale of common stock, net of offering costs 42,993   — Payments on long-term debt (34,782)  (3,606)Proceeds from employee stock purchase plan 1,472   1,913 Other financing activities, net 1,370   — Net cash used in financing activities 32,722   (5,492)Net decrease in cash, cash equivalents, and restricted cash (116,656)  (68,708)Cash, cash equivalents, and restricted cash, beginning of period 302,749   371,457 Cash, cash equivalents, and restricted cash, end of period$186,093  $302,749  Supplemental Operational DataWe measure our business using operational metrics, in addition to the financial metrics shown above and the non-GAAP financial measures explained below. We believe these metrics provide investors with additional information regarding our financial results and provide key performance indicators to track our progress. These indicators include changes in customer order patterns and the mix of products purchased by our customers. Active customers represent the total number of unique customers who have made at least one purchase during the prior twelve-month period. This metric captures both the inflow of new customers and the outflow of existing customers who have not made a purchase during the prior twelve-month period. Last twelve months (LTM) net revenue per active customer represents total net revenue in a twelve-month period divided by the total number of active customers for the same twelve-month period. Orders delivered represents the total number of orders delivered in any given period, including orders that may eventually be returned. As we ship a large volume of packages through multiple carriers, actual delivery dates may not always be available, and in those circumstances, we estimate delivery dates based on historical data. Average order value is defined as total net revenue in any given period divided by the total number of orders delivered in that period. Orders per active customer is defined as orders delivered in a twelve-month period divided by active customers for the same twelve-month period. The following table provides our key operating metrics:(in thousands, except for LTM net revenue per active customer, average order value and orders per active customer)  Three months endedDecember 31,  2024   2023 Active customers 5,415   5,612 LTM net revenue per active customer$258  $278 Orders delivered 1,675   2,549 Average order value$181  $151 Orders per active customer 1.37   1.41  Non-GAAP Financial Measures and ReconciliationsWe are providing certain non-GAAP financial measures in this release and related earnings conference call, including adjusted diluted net loss per share, adjusted EBITDA, and free cash flow. We use these non-GAAP measures internally in analyzing our financial results and we believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance and, in the case of free cash flow, our liquidity position, in the same manner as our management and board of directors. We have provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in this earnings release. These non-GAAP financial measures should be used in addition to and in conjunction with the results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Adjusted diluted net loss per share is a non-GAAP financial measure that is calculated as net income (net loss) less the income or losses recognized from our equity method securities, net of related tax. We believe that this adjustment to our net income (net loss) before calculating per share amounts for the current period presented provides a useful comparison between our operating results from period to period. Adjusted EBITDA is a non-GAAP financial measure that is 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. We believe the exclusion of certain benefits and expenses in calculating adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring. Free cash flow is a non-GAAP financial measure that is calculated as net cash provided by or used in operating activities reduced by expenditures for property and equipment. We believe free cash flow is a useful measure to evaluate the cash impact of the operations of the business including purchases of property and equipment which are a necessary component of our ongoing operations. The following tables reflects the reconciliation of adjusted diluted net loss per share to diluted net loss per share (in thousands, except per share data):  Three months endedDecember 31,  2024  Diluted EPS Less: losson debtsecuritiescarried atfair value Less: equitymethod income(loss)1 AdjustedDiluted EPSNumerator:       Net loss$(81,259) $(2,430) $(34,282) $(44,547)        Denominator:       Weighted average shares of common stock outstanding—diluted 49,048   49,048   49,048   49,048         Net loss per share of common stock:       Diluted$(1.66) $(0.05) $(0.70) $(0.91) 1 Inclusive of estimated tax impact    Year endedDecember 31,  2024  Diluted EPS Less: losson debtsecuritiescarried atfair value Less: equitymethod income(loss)1 AdjustedDiluted EPSNumerator:       Net loss$(258,795) $(2,430) $(77,686) $(178,679)        Denominator:       Weighted average shares of common stock outstanding—diluted 46,542   46,542   46,542   46,542         Net loss per share of common stock:       Diluted$(5.56) $(0.05) $(1.67) $(3.84) 1 Inclusive of estimated tax impact The following table reflects the reconciliation of adjusted EBITDA to net loss (in thousands):  Three months endedDecember 31, Year endedDecember 31,  2024   2023   2024   2023 Net loss$(81,259) $(160,993) $(258,795) $(307,842)Depreciation and amortization 6,323   4,626   19,062   19,447 Stock-based compensation 2,871   5,155   19,255   23,018 Interest income, net (185)  (3,188)  (6,765)  (12,007)Other expense, net 38,505   33,231   73,907   160,024 Provision for income taxes 49   66,388   684   41,720 Special items (see table below) 5,844   5,769   8,668   14,347 Adjusted EBITDA$(27,852) $(49,012) $(143,984) $(61,293)        Special items:       Brand integration and related costs$284  $786  $658  $7,120 Restructuring costs1 4,997   4,983   7,447   7,227 Special legal charges and other 563   —   563   —  $5,844  $5,769  $8,668  $14,347  1 Inclusive of certain severance and lease termination costs. The following table reflects the reconciliation of free cash flow to net cash used in operating activities (in thousands):  Year endedDecember 31,  2024   2023 Net cash used in operating activities$(174,304) $(18,586)Expenditures for property and equipment (14,315)  (19,181)Free cash flow$(188,619) $(37,767)

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