Overstock.com(OSTK) - 2025 Q1 - Quarterly Results

Financial Performance - Net revenue for Q1 2025 was $232 million, a decrease of 39.4$58 million, representing 25.1% of net revenue, with a 560 basis points improvement year-over-year[8] - Adjusted EBITDA improved by $35 million year-over-year, resulting in an adjusted EBITDA of ($13) million[8] - Net loss decreased by 46% year-over-year to $40 million, including$17 million of non-core and non-cash expenses[8] - The company reported a diluted net loss per share of $0.74, compared to$1.62 in the previous year[8] - Adjusted diluted net loss per share was $(0.74) in Q1 2025 compared to$(0.32) in Q1 2024[26] - Adjusted EBITDA improved to $(13,233) in Q1 2025 from$(47,843) in Q1 2024, indicating a significant reduction in losses[26] - The company reported a net loss of $(39,912) in Q1 2025, an improvement from$(73,928) in Q1 2024[26] Operational Metrics - Active customers decreased to 4,779 in Q1 2025 from 6,041 in Q1 2024, representing a decline of approximately 20.9%[21] - Total orders delivered in Q1 2025 were 1,196, down 46% from 2,211 in Q1 2024[21] - Average order value increased to $194 in Q1 2025 from$173 in Q1 2024, reflecting an increase of 12.1%[21] - Orders per active customer decreased to 1.34 in Q1 2025 from 1.41 in Q1 2024, a decline of 4.9%[21] Cash Flow and Expenses - Cash, cash equivalents, restricted cash, and inventory totaled $166 million at the end of Q1 2025[8] - Free cash flow was$(52,102) in Q1 2025, compared to $(38,032) in Q1 2024, reflecting an increase in cash outflow[27] - Net cash used in operating activities increased to$(50,921) in Q1 2025 from $(34,610) in Q1 2024[27] - Sales and marketing expenses were$31 million, or 13.5% of net revenue, reflecting a 430 basis points improvement year-over-year[8] - Technology and G&A expenses decreased to $41 million from$50 million in 2024, showing a $9 million improvement year-over-year[8] Strategic Focus - The company expects to transition out of restructuring and into a revenue growth phase within 60 days[1] - The company is focused on margin optimization, SKU rationalization, and fixed cost restructuring to restore financial discipline[2] - The company continues to focus on non-GAAP financial measures to provide a clearer picture of operational performance[22]