Executive Summary

Q2 revenue was $282M, up 22% sequentially vs Q1, but down 29% YoY; gross margin printed 23.7% as patio-led AOV gains drove gross profit dollars despite lower margin mix .
Operating discipline accelerated: Sales & Marketing fell to 13.5% of revenue (320 bps YoY improvement) and Tech+G&A declined $9M YoY; adjusted EBITDA loss narrowed to $8M (78% YoY improvement) and adjusted diluted EPS improved to $(0.22) .
Management reaffirmed margin guardrails (24–26%) and S&M guardrails (13.5–14.75%) and said they are comfortable with Q3 market expectations; expect AOV to normalize lower as patio mix fades, with similar or slightly higher order count .
Strategic catalysts: announced intent to issue a contingent value right (CVR) dividend (tradable on NYSE) on Medici portfolio (ex tZERO and GrainChain), accelerate tZERO value unlock, and build a Bitcoin reserve; plus the first small-format Bed Bath & Beyond Home store in Nashville .

What Went Well and What Went Wrong

What Went Well

Sequential revenue growth and AOV expansion: revenue +22% QoQ to $282M, AOV increased to $219 (from $194 in Q1) due to targeted patio promotions and assortment work; orders delivered rose ~8% QoQ .
Cost discipline and margin improvement: gross margin 23.7% (+360 bps YoY), Sales & Marketing 13.5% of revenue (-320 bps YoY), Tech+G&A down $9M YoY; adjusted EBITDA loss narrowed to $8M .
Management tone on strategy: “Our core ecommerce operations deliver positive cash flow… we will continue to be focused on finding ways to unlock GrainChain value… [and] unlock the value… at tZERO” .

What Went Wrong

Year-over-year decline remains material: revenue down 29.1% YoY as SKU/vendor rationalization and prior resets weighed on volume; active customers fell to 4.356M from 6.221M YoY .
Gross margin slightly below anticipated range due to outdoor/patio mix; management accepted lower margin percentage in exchange for higher gross dollars .
EBITDA still negative: adjusted EBITDA at $(8)M and GAAP diluted EPS at $(0.34), though markedly improved YoY; YTD free cash flow remains negative despite improved operating cash use .

Financial Results

P&L and EPS vs Prior Year and Prior Quarter

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$398.1	$231.7	$282.3
Gross Profit ($USD Millions)	$80.2	$58.1	$67.0
Gross Margin %	20.1% (derived from )	25.1%	23.7%
Sales & Marketing ($USD Millions)	$66.3	$31.3	$38.2
Technology Expense ($USD Millions)	$27.3	$26.7	$23.2
General & Administrative ($USD Millions)	$18.5	$14.3	$14.1
Operating Loss ($USD Millions)	$(47.0)	$(23.5)	$(17.9)
Net Loss ($USD Millions)	$(42.6)	$(39.9)	$(19.3)
GAAP Diluted EPS ($)	$(0.93)	$(0.74)	$(0.34)
Adjusted Diluted EPS ($)	N/A	$(0.42)	$(0.22)
Adjusted EBITDA ($USD Millions)	$(36.4)	$(13.2)	$(8.1)

Notes: Gross margin Q2 2024 derived from gross profit/revenue using cited financials .

Actuals vs S&P Global Consensus

Metric	Q2 2025 Actual	Q2 2025 Consensus	Surprise
Revenue ($USD Millions)	$282.3	Unavailable via S&P Global tool	N/A
GAAP Diluted EPS ($)	$(0.34)	Unavailable via S&P Global tool	N/A
Adjusted Diluted EPS ($)	$(0.22)	Unavailable via S&P Global tool	N/A

S&P Global consensus data was unavailable for BYON via our estimates tool during this session.

KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Active Customers (000s)	5,415	4,779	4,356
LTM Net Revenue per Active Customer ($)	$258	$260	$259
Orders Delivered (000s)	1,675	1,196	1,289
Average Order Value ($)	$181	$194	$219
Orders per Active Customer	1.37	1.34	1.32

Balance Sheet and Cash Flow Highlights

Cash, cash equivalents, restricted cash, and inventory: $156M at Q2 end .
YTD net cash used in operating activities improved to $(35.1)M from $(110.5)M YoY (≈$75M, 68% improvement) .
Free cash flow YTD: $(38.1)M vs $(118.5)M prior year .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Gross Margin % (guardrail)	FY 2025 (annualized)	24–26% guardrail	Maintain 24–26% guardrail; Q2 print below range due to outdoor mix, but discipline continuing	Maintained
Sales & Marketing % of Revenue (guardrail)	FY 2025 (annualized)	13.5–14.75% guardrail	Maintain guardrail; Q2 at 13.5%	Maintained
Q3 Revenue/Orders	Q3 2025	Sequential growth vs Q1 base (company goal)	“Comfortable with market expectations”; similar or slightly higher orders; AOV expected lower as patio fades	Qualitative update
EBITDA/Profit Trajectory	FY 2025–2026	Path to breakeven post restructuring	Investing for growth while targeting breakeven; expects positive revenue growth in 2026 vs 2025	Clarified timeline
Tariff/Margin Impact	2H 2025	Manageable via vendor base	Manufacturers absorbing most tariffs; mix shifting away from China	Maintained/Updated
CVR Dividend	Near-term	N/A	Exploring issuance of CVR dividend (tradable on NYSE), illustrative 10-for-1; record date pending NYSE process	New
Bitcoin Reserve	Near-term/ongoing	N/A	Will build Bitcoin reserve as cash from ops turns positive; accept BTC and hold balance sheet BTC	New
Brick & Mortar Pilot	2H 2025	N/A	First small-format Bed Bath & Beyond Home store in Nashville; low capex (<$100k) conversion	New

Earnings Call Themes & Trends

Topic	Q4 2024 (Prior-2)	Q1 2025 (Prior-1)	Q2 2025 (Current)	Trend
Margin/Cost Discipline	Exceeded targets on margin expansion and fixed cost reduction	Continued gross margin expansion and SG&A reduction; nearing shift to growth	Gross margin 23.7% vs range; discipline maintained; S&M efficiency improved	Improving, disciplined
SKU/Vendor Rationalization	Aggressive cleanup of non-contributory SKUs/vendors	Elimination drove lower revenue but improved profitability foundation	Heavy lifting largely complete; ongoing fine-tuning	Mostly complete
Category Strategy (Patio/Luxury)	Reset foundation, ramping brands	Prepping seasonal categories	Patio executed as case study; launching designer/luxury jewelry/watches on Overstock	Mix shift toward higher AOV
tZERO Value Unlock	Not highlighted	N/A	Pushing for IPO/SPAC/reverse; ROP token conversion path; largest holder; urgency emphasized	Accelerating
GrainChain	Not highlighted	N/A	Strong confidence; ~$60M revenue; considering future marker/IPO timing post transactions	Positive momentum
Bitcoin/Crypto Strategy	Not highlighted	N/A	Resume BTC acceptance/treasury reserve; align with blockchain identity	New initiative
Tariffs/Supply Chain	Broad macro caution	Diversified vendor base	Vendors absorbing tariffs; shift away from China; limited margin pressure expected	Stabilizing
Brick & Mortar Pilot	N/A	N/A	Bed Bath & Beyond Home pilot with Brand House Collective; low capex model	New test

Management Commentary

“Our revenue for the quarter at $2.82 [hundred million] was a nice surprise… we got focused on… the performance of our patio business… prove that we can take a single item and execute.” — Marcus Lemonis .
“Gross margin landed at 23.7%… driven by our focus to exceed our internal sales target on outdoor categories… I expect the team to maintain our margin guardrails.” — Adrianne Lee .
“We are committing… to explore the issuance of a contingent value right… a dividend… tradable… record date to come.” — Marcus Lemonis .
“We… will… unlock the value… [at] tZERO… our expectation… IPO, SPAC, or using the Beyond platform.” — Marcus Lemonis .
“Our shareholders can… expect… to park a certain amount of cash in Bitcoin, a bit of a Bitcoin reserve.” — Marcus Lemonis .

Q&A Highlights

SKU rationalization largely complete; ongoing refinement, with focus on incremental categories (designer, jewelry, apparel) to drive visits .
Overstock strategy targets affluent customers and premium brands; contribution margin stronger due to lower marketing friction; plan to break out revenue by channel in 2026 .
CVR dividend intended to trade on NYSE for accessibility to institutions; purpose is shareholder value, not mechanics-targeting .
GrainChain marker/IPO: management cited ~$60M revenue and potential to create a valuation marker once transaction disclosures are complete .
Tariffs: manufacturers absorbing increases; mix shifting away from China; minimal expected margin pressure near term .
Breakeven path: investing in unified codebase, category tests, and marketing; EBITDA loss includes ~$3M in deliberate investments; cash flow timing aided Q2; growth now prioritized alongside profitability .

Estimates Context

S&P Global consensus for BYON Q2 2025 revenue/EPS was unavailable via our tool, so we cannot quantify beats/misses this quarter.
Given sequential revenue and AOV outperformance, improved cost profile, and management’s comfort with Q3 expectations and margin guardrails, near-term estimate revisions may focus on mix normalization (lower AOV post-patio), stable orders, and maintained S&M ratios .

Key Takeaways for Investors

Sequential demand recovery is tangible: AOV +$25 QoQ and orders +~8% QoQ, with patio category execution proving the on-site, assortment, and promo playbook .
Cost structure reset is largely complete; margin guardrails reaffirmed; EBITDA losses are narrowing with mix-aware growth investments (tech stack, new categories) .
Strategic optionality in blockchain assets (tZERO, GrainChain) and planned CVR dividend could unlock non-core value and catalyze sentiment; watch for concrete steps and timelines .
Near-term: expect Q3 AOV normalization as patio fades, similar/slightly higher orders; marketing efficiency and margin discipline likely to continue .
Medium-term thesis: 2026 positive revenue growth vs 2025, omnichannel pilot (Nashville) with low capex, and Overstock luxury expansion to deepen higher-AOV cohort .
Tariff backdrop manageable via vendor absorption and sourcing diversification away from China, limiting margin risk .
Liquidity and capital allocation: improved YTD operating cash use by ~$75M; intent to build BTC reserve and pursue buybacks opportunistically (remaining authorization ~$68M; ATM ~$131M unused in Q2) .

Citations: All quantitative and qualitative claims are sourced from Beyond, Inc. Q2 2025 8-K press release and financial statements , Q1 2025 8-K , Q4 2024 8-K , Q2 2025 earnings call transcript , and strategic 8-K on Kirkland’s/Brand House Collective .

BEYOND, INC. (BYON)·Q2 2025 Earnings Summary