Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: BYON Stock Analysis - Beyond (BYON) has shown significant price movement, with an 18.9% increase over the past four weeks, indicating growing investor interest [3] - Over the past 12 weeks, BYON's stock price has surged by 103.9%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - BYON has a high beta of 2.76, suggesting it moves 176% more than the market in either direction, indicating fast-paced momentum [4] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [5] - BYON has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [6] - The stock is currently trading at a Price-to-Sales ratio of 0.46, indicating it is undervalued at 46 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides BYON, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in identifying potential winning stocks [8]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q2 2025 financials show total assets decreased to $358.1 million, a net loss of $19.3 million, and $35.1 million net cash used in operations [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $358.1 million by June 30, 2025, from $402.0 million, primarily due to reduced cash and cash equivalents Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $120,553 | $159,169 | | Total current assets | $195,855 | $227,507 | | Total assets | $358,072 | $401,954 | | **Liabilities & Equity** | | | | Accounts payable | $111,414 | $81,939 | | Total current liabilities | $215,438 | $224,861 | | Total liabilities | $226,867 | $239,222 | | Total stockholders' equity | $131,205 | $162,732 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 net revenue decreased to $282.3 million, yet net loss improved to $19.3 million from $42.6 million in Q2 2024, primarily due to reduced operating expenses Q2 2025 vs Q2 2024 Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net revenue | $282,251 | $398,104 | | Gross profit | $66,969 | $80,168 | | Operating loss | $(17,880) | $(47,001) | | Net loss attributable to stockholders | $(19,313) | $(42,578) | | Diluted net loss per share | $(0.34) | $(0.93) | Six Months 2025 vs 2024 Performance (in thousands, except per share data) | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net revenue | $513,999 | $780,385 | | Gross profit | $125,101 | $154,527 | | Operating loss | $(41,427) | $(104,526) | | Net loss attributable to stockholders | $(59,225) | $(116,506) | | Diluted net loss per share | $(1.07) | $(2.55) | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities for H1 2025 improved to $35.1 million from $110.5 million, with investing activities using $20.2 million and financing providing $16.7 million Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(35,092) | $(110,502) | | Net cash used in investing activities | $(20,188) | $(3,308) | | Net cash provided by (used in) financing activities | $16,718 | $(2,597) | | **Net decrease in cash** | **$(38,562)** | **$(116,407)** | [Notes to Unaudited Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail accounting policies and key events, including brand acquisitions and sales, along with significant stock issuance and repurchase activities - Acquired the buybuy BABY brand and related intellectual property for a total purchase price of **$7.1 million**, allocated to indefinite-lived trade names[43](index=43&type=chunk) - Sold the Zulily brand rights for **$5.0 million**, receiving **$1.25 million** upfront and retaining a **25%** ownership stake in the new entity, Zulily Newco[44](index=44&type=chunk) - Sold certain intellectual property related to Bed Bath & Beyond trademarks in Canada and the UK for **$5.0 million**, recognizing the full amount as a gain[45](index=45&type=chunk) - Sold **4,331,713** shares of common stock through its "at the market" sales agreement, raising **$24.2 million** in net proceeds during the first six months of 2025[62](index=62&type=chunk) - Repurchased **$1.3 million** of its common stock at an average price of **$3.92** per share during Q2 2025, with **$68.6 million** remaining under the current authorization[63](index=63&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2025 revenue decline to decreased orders, with improved gross margin and reduced operating expenses leading to a smaller operating loss [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q2 2025 net revenue fell **29.1%** to **$282.3 million**, with gross margin improving to **23.7%** and operating expenses decreasing, resulting in a lower operating loss of **$17.9 million** Q2 2025 vs Q2 2024 Revenue and Gross Profit (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net revenue | $282,251 | $398,104 | (29.1)% | | Gross profit | $66,969 | $80,168 | (16.5)% | | Gross margin | 23.7% | 20.1% | +360 bps | - The decrease in net revenue was primarily due to a **34%** decrease in orders delivered, partially offset by a **7%** increase in average order value[95](index=95&type=chunk) Operating Expenses as a % of Net Revenue | Expense Category | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales and marketing | 13.5% | 16.7% | | Technology | 8.2% | 6.9% | | General and administrative | 5.0% | 4.7% | | Customer service and merchant fees | 3.3% | 3.8% | [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash and cash equivalents were **$120.6 million**, with **$35.1 million** cash used in operations and **$16.7 million** provided by financing activities, primarily from stock sales - Cash and cash equivalents decreased to **$120.6 million** at June 30, 2025, from **$159.2 million** at December 31, 2024[92](index=92&type=chunk)[128](index=128&type=chunk) - Net cash used in operating activities for the first six months of 2025 was **$35.1 million**[131](index=131&type=chunk)[133](index=133&type=chunk) - Net cash provided by financing activities was **$16.7 million**, primarily due to **$24.2 million** in net proceeds from the sale of common stock, offset by **$6.5 million** in debt payments[131](index=131&type=chunk)[137](index=137&type=chunk) - As of June 30, 2025, the company had **$131.4 million** remaining available under its "at the market" sales program[130](index=130&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates, foreign currency, inflation, and securities values, with investment risk noted in its **$71.6 million** portfolio, particularly Level 3 inputs - The company's exposure to foreign currency risk is not currently significant as most sales and expenses are denominated in U.S. dollars[146](index=146&type=chunk) - The company acknowledges inflationary pressures on costs but believes the effects on historical results have been immaterial[147](index=147&type=chunk) - As of June 30, 2025, the company held **$71.6 million** in equity securities, with **$22.8 million** in debt securities and **$14.4 million** in equity securities valued using complex Level 3 inputs, posing investment risk[148](index=148&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of the period, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[149](index=149&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[151](index=151&type=chunk) [PART II. OTHER INFORMATION](index=36&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is periodically involved in various legal proceedings, the uncertain outcomes of which could materially affect the business, though no specific material proceedings are detailed for the current period - The company is periodically involved in litigation concerning consumer protection, employment, intellectual property, and other commercial matters, the outcomes of which are uncertain and could materially affect the business[154](index=154&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) A key risk factor is that tariffs or trade barriers on products sourced from China could increase prices, reduce consumer demand, and adversely affect financial results - A key risk factor is that tariffs, trade barriers, or other restrictions on products sourced from China and other countries could increase prices, reduce consumer demand, and have a material adverse effect on the business[157](index=157&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased **332,694** shares of common stock at an average price of **$3.92** per share, with **$68.6 million** remaining for future repurchases Common Stock Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value Remaining for Repurchase | | :--- | :--- | :--- | :--- | | April 1 - 30 | — | $— | $69,884,000 | | May 1 - 31 | 332,694 | $3.92 | $68,572,000 | | June 1 - 30 | — | $— | $68,572,000 | [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) During Q2 2025, no director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement - During Q2 2025, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement"[164](index=164&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including various agreements, officer certifications, and financial statements in Inline XBRL format

Financial Data and Key Metrics Changes - Revenue for the quarter was $2.82 billion, showing a 22% increase compared to Q1 2025, although it declined 29% year-over-year [6][36] - Gross margin improved to 23.7%, a 360 basis point increase year-over-year, despite being slightly below the anticipated range [36][38] - Adjusted EBITDA came in at a loss of $8 million, representing a 78% improvement year-over-year [40] - Reported GAAP EPS was a loss of $0.34 per share, while adjusted diluted loss was $0.22, a $0.54 improvement year-over-year [41] Business Line Data and Key Metrics Changes - The patio business showed significant improvement, contributing to an increase in average order value (AOV) [6][7] - Overstock brand has seen consistent improvements, particularly in newly launched categories like luxury handbags and shoes [8][10] - The company is focusing on a higher-end customer base, with a shift towards more affluent demographics [55] Market Data and Key Metrics Changes - The company is experiencing a stabilization in the retail business, with expectations for continued growth in Q3 [11][12] - Cash flow for the quarter was significantly better than Q1, marking the best performing cash flow quarter in several years [12][13] Company Strategy and Development Direction - The company aims to continue tightening SG&A expenses and improve operational efficiencies across all areas of the business [13][14] - A focus on unlocking value from assets like tZERO and GrainChain is a priority, with plans for potential public offerings or other liquidity events [20][24] - The company is exploring the issuance of a contingent value right as a form of dividend to shareholders [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to stabilize cash flow and improve profitability [41][45] - The company is optimistic about the potential for growth in a stabilized housing market, which could positively impact revenue [28][29] - There is a commitment to continue exploring opportunities in the blockchain and crypto space as the core business stabilizes [27] Other Important Information - The company has a remaining $68 million on its share repurchase program and approximately $131 million left on the ATM [46] - A long-term partnership in Canada was established, resulting in a $5 million upfront payment [16] Q&A Session Summary Question: Update on SKU rationalization efforts across Bed Bath and Beyond - The heavy lifting of SKU rationalization is complete, but fine-tuning will continue [50] Question: Confidence in leaning into a more affluent customer for Overstock - Research indicated that the target demographic has a household income over $150,000 and a credit score over 700, leading to increased sales in luxury items [55] Question: Update on tZERO's potential to go public - The company is focused on mutual alignment for value creation and expects to unlock value soon [66] Question: Potential timeline for a GrainChain IPO - Discussions are ongoing, but the focus is on ensuring value creation before any public offering [72]

Financial Performance - Revenue for 2Q 2025 was $282 million[6], a decrease of $116 million or 29% compared to 2Q 2024[6, 10] - Gross margin for 2Q 2025 was 23.7%[6, 15], an increase of 360 bps compared to 2Q 2024[6, 15] - Adjusted EBITDA for 2Q 2025 was -$8 million[6, 26], an improvement of $28 million compared to 2Q 2024[6, 26] - G&A and Tech Expense for 2Q 2025 was $37 million[6, 23], a decrease of $9 million or 19% compared to 2Q 2024[6, 23] Customer & Order Metrics - Orders delivered (LTM) were 5.7 million[33], a decrease of 2.9 million or 33.8% compared to 2Q 2024[30, 31] - Average order value was $219[33], an increase of 7.2% compared to 2Q 2024[33] - Active customers (LTM) were 4.4 million[36], a decrease of 1.9 million or 30% compared to 2Q 2024[36] - Order frequency was 1.32[36], a decrease of 5.4% compared to 2Q 2024[36] Expense Management - The company is targeting a $150 million annual G&A and Tech Expense run rate[23, 40] - Sales & Marketing Expense was $38 million or 13.5% of revenue[17, 18], a decrease of $28 million or 320 bps compared to 2Q 2024[18]

Core Viewpoint - Beyond Inc. reported a second-quarter loss of $0.34 per share, which met analyst expectations [1] - The company achieved net revenue of $282.3 million, surpassing analyst expectations of $249.9 million [1] - Adjusted EBITDA loss for the second quarter was $8.07 million, better than the anticipated loss of $12.6 million [1] - Following the earnings report, Beyond's stock rose by 17% in after-hours trading [1] Financial Performance - Second-quarter loss per share: $0.34, in line with expectations [1] - Net revenue for the second quarter: $282.3 million, exceeding the forecast of $249.9 million [1] - Adjusted EBITDA loss: $8.07 million, compared to the expected loss of $12.6 million [1] - Stock performance: Increased by 17% in after-hours trading [1]

Financial Performance - Q2 2025 revenue reached $282 million, a 22% sequential increase from Q1 2025[1] - Year-over-year net loss narrowed by 55%, with an adjusted EBITDA loss of $8 million, improving by 78%[1] - Gross profit was $67 million, representing 23.7% of net revenue, a 360 basis points improvement year-over-year[5] - Consolidated net loss for the six months ended June 30, 2025, was $59,225, compared to a net loss of $116,506 for the same period in 2024, representing a 49.1% improvement[17] - Adjusted EBITDA for the six months ended June 30, 2025, was $(21,306), an improvement from $(84,219) in the same period of 2024[27] - Free cash flow for the six months ended June 30, 2025, was $(38,086), compared to $(118,453) for the same period in 2024, indicating a significant reduction in cash burn[28] - Net cash used in operating activities for the six months ended June 30, 2025, was $(35,092), down from $(110,502) in 2024, showing a 68.3% decrease[28] - The company reported a net cash decrease of $38,562 for the six months ended June 30, 2025, compared to a decrease of $116,407 in the same period of 2024[17] - The company raised $24,222 from the sale of common stock during the financing activities in the six months ended June 30, 2025[17] Operational Metrics - Active customers decreased to 4,356 in the three months ended June 30, 2025, down from 6,221 in the same period of 2024, indicating a decline of 30%[22] - Last twelve months (LTM) net revenue per active customer increased to $259 in Q2 2025, up from $247 in Q2 2024, reflecting a growth of 4.9%[22] - Total orders delivered in Q2 2025 were 1,289, a decrease of 33.9% from 1,949 orders delivered in Q2 2024[22] - Average order value rose to $219 in Q2 2025, compared to $204 in Q2 2024, marking a 7.4% increase[22] Cost Management - Sales and marketing expenses totaled $38 million, or 13.5% of net revenue, reflecting a 320 basis points improvement year-over-year[5] - Technology and G&A expenses decreased to $37 million from $46 million in 2024, a $9 million improvement year-over-year[5] Strategic Initiatives - The company is focused on enhancing its core e-commerce retail business and unlocking value in its blockchain asset portfolio[2] - A new small-format Bed Bath & Beyond Home store is set to open in Nashville, Tennessee, representing a scalable model for community engagement[2] - The company aims to unify its tech stack across its family of brands to enhance the digital experience for customers[2] - The GENIUS Act provides regulatory clarity and consumer protections for digital assets, which the company views as a significant opportunity[2]

Company Overview - Beyond (BYON) shares increased by 22.5% to $10.84 in the last trading session, with a notable trading volume, and have gained 47% over the past four weeks [1] - The company is benefiting from the resurgence of the Overstock.com brand, a reimagined Bed Bath & Beyond with significant SKU reduction, and the acquisition of buybuy BABY [2] Financial Performance - Beyond is expected to report a quarterly loss of $0.37 per share, reflecting a year-over-year change of +51.3%, with revenues projected at $261.38 million, down 34.3% from the previous year [3] - The consensus EPS estimate for Beyond has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Beyond operates within the Zacks Internet - Commerce industry, where eBay (EBAY) also operates, finishing the last trading session 1.1% higher at $79.03, with a 0.7% return over the past month [4] - eBay's consensus EPS estimate for its upcoming report is $1.3, representing a +10.2% change from the previous year, and it currently holds a Zacks Rank of 2 (Buy) [5]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Beyond (BYON) despite lower revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Beyond is expected to report a quarterly loss of $0.37 per share, reflecting a year-over-year improvement of +51.3%. Revenues are projected to be $261.38 million, down 34.3% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their outlook for the company [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that Beyond has a positive Earnings ESP of +16.78%, suggesting analysts are optimistic about the company's earnings prospects [11]. Historical Performance - In the last reported quarter, Beyond was expected to post a loss of $0.67 per share but actually reported a loss of -$0.42, resulting in a surprise of +37.31%. Over the last four quarters, the company has beaten consensus EPS estimates twice [12][13]. Investment Considerations - While a potential earnings beat could positively influence the stock, other factors may also affect stock performance, making it essential to consider the broader context [14][16].

Group 1 - Beyond (BYON) is a notable stock in the Retail-Wholesale group, currently outperforming its peers with a year-to-date gain of approximately 30% compared to the sector's average gain of 1.8% [4][6] - The Zacks Rank for Beyond is 2 (Buy), indicating a positive outlook, with a 29.9% increase in the consensus estimate for full-year earnings over the past three months [3] - Beyond belongs to the Internet - Commerce industry, which has an average gain of 0.8% this year, further highlighting its strong performance within its specific industry [5] Group 2 - CHOW TAI FOOK (CJEWY) is another stock in the Retail-Wholesale sector that has shown strong performance, with a year-to-date return of 60.8% [4] - The Zacks Rank for CHOW TAI FOOK is 1 (Strong Buy), with a 20.4% increase in the consensus EPS estimate for the current year [5] - The Retail - Jewelry industry, which includes CHOW TAI FOOK, has underperformed with a decline of 18.1% since the beginning of the year, contrasting with the performance of Beyond [6]

Group 1 - The stock of Beyond (BYON) has gained 63.4% over the past four weeks, with a mean price target of $12 indicating an 80.5% upside potential from the current price of $6.65 [1] - The mean estimate consists of six short-term price targets, with the lowest at $5 (24.8% decline) and the highest at $36 (441.4% increase), highlighting a standard deviation of $12.07 which indicates variability among analysts [2] - Analysts show strong agreement on BYON's ability to report better earnings than previously predicted, which supports the view of potential upside [4][11] Group 2 - The Zacks Consensus Estimate for BYON's current year earnings has increased by 29.8% over the last 30 days, with four estimates moving higher and no negative revisions [12] - BYON holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for near-term upside [13] - While price targets can be misleading, the direction implied by the consensus price target for BYON appears to be a good guide for potential price movement [10][13]