News Details

NASHVILLE, Tenn.--(BUSINESS WIRE)-- Bed Bath & Beyond, Inc. (NYSE:BBBY), owner of Bed Bath & Beyond, Overstock, buybuy BABY, the Kirkland’s and Kirkland's Home brands, and more recently The Container Store, Elfa, Closet Works, and SFV Services, as well as a blockchain asset portfolio, today reported financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Highlights

Net revenue was $361 million, an increase of 28.0% year-over-year, marking the Company’s second consecutive quarter of year-over-year revenue growth following nineteen quarters of decline. Growth reflects continued strength in the Company’s base online marketplace business, improved assortment, the realization of investments in the customer experience, and the inclusion of The Brand House Collective (owner of the Kirkland’s and Kirkland’s Home brands), which was acquired during the quarter.

Active customers increased to 6.4 million, up 47% year-over-year, and orders delivered increased to 2.8 million, up 117% year-over-year, reflecting growth in the base business and the inclusion of acquired brands. Orders per active customer increased to 1.79 from 1.32 in the prior year period, an increase of 36%.

Gross profit was $97 million, or 26.8% of net revenue.

Sales & Marketing expense was $43 million, or 11.9% of net revenue, an improvement of 160 basis points year-over-year.

Technology and general and administrative expense was $82 million compared to $37 million in the prior year period, reflecting the expansion of the Company's physical retail footprint, including store labor, occupancy, distribution, and other operating costs associated with The Brand House Collective.

Net loss was $39 million, compared to a net loss of $19 million in the prior year period. The current period includes $21 million of special items, primarily acquisition-related costs, restructuring costs, and non-cash store-closure impairments.

Adjusted EBITDA (non-GAAP) was ($12) million, compared to ($8) million in the prior year period.

Cash, cash equivalents, and restricted cash totaled $126 million at quarter end.

Strategic Progress

“Our second quarter results show that the transformation of this business is taking hold,” said Marcus Lemonis, Executive Chairman and Chief Executive Officer. “After eight quarters of meaningful operating improvement, we have now delivered two consecutive quarters of revenue growth following nineteen quarters in the other direction. Two quarters is not a victory and we have no intention of treating it as one, but it is strong support that the direction of this business has changed. We are growing revenue and active customers while continuing to take cost out of the business and operate more efficiently, and that combination matters.”

“Our omnichannel retail brands remain the front door to the customer,” Lemonis continued. “We are seeing better engagement, stronger conversion, and more frequent orders per customer, which we believe tells us the customer is responding to the investments we have made.”

During and following the quarter, the Company continued to assemble the capabilities that support its strategy. The acquisition of The Brand House Collective closed during the quarter, and the acquisition of The Container Store, Elfa, and Closet Works closed on July 8, 2026. The Company also announced definitive agreements to acquire Fathom Holdings Inc. and F9 Brands Inc. in June and July 2026, respectively. As signed transactions close and fold into the Company’s results, the Company expects continued revenue growth in its base online marketplace business, together with growth in total revenue and active customer count, over the coming quarters.

“We are acquiring capabilities and active customers while eliminating infrastructure we no longer need,” Lemonis continued. “As revenue ramps, we believe that over the next twelve months we can remove more than fifty million dollars of annualized cost by bringing our businesses together onto one platform, eliminating non-performing assets, consolidating disciplines and shared resources, improving the cost of our supply chain infrastructure, and eliminating or consolidating duplicative third-party services, software agreements, and locations. We would not call it cost cutting; we would call it finishing the merger.”

Corporate Transformation to Neighborhood Intelligence

In a shareholder letter issued today and available at https://investors.beyond.com, the Company announced that its parent company is becoming Neighborhood Intelligence, that it will begin trading on Nasdaq under the ticker NXH, with its last day of trading on the NYSE on August 14, 2026 and its first day of trading on Nasdaq on August 17, 2026, and that it will relocate its corporate headquarters to Nashville, Tennessee. The letter describes the Company’s organization around three interconnected pillars: Omni-Channel Retail, which helps customers create a home they love; Home Services, which helps them improve, maintain, and protect it; and Home Ownership, which brings together the financial, transactional, and advisory capabilities that support one of life’s most important investments. Together, the pillars are designed to create an ecosystem that serves customers before they purchase a home, while they own it, as they improve it, and when they ultimately decide to sell or transfer it, in support of a single mandate: to make homeownership simpler and more affordable while creating long-term value for shareholders.

The Company’s consumer brands remain at the center of its customer relationships. Neighborhood Intelligence is the intelligence layer that connects them, making each brand smarter, more connected, and more valuable while preserving the unique identity and trust customers already know. The letter also describes the Company’s proprietary agent, Norm™, which the Company is actively building today, with its first customer-facing version planned for later this year.

Earnings Webcast and Replay Information

Bed Bath & Beyond will host a webcast to discuss its second quarter 2026 financial results and its strategic vision, key initiatives, and provide business updates on Tuesday, August 4, 2026, at 4:30 p.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 August 4, 2026, 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 Bed Bath & Beyond

Bed Bath & Beyond, Inc. (NYSE:BBBY) (NASDAQ:NXH expected commencing August 17, 2026) is an omni channel-focused retailer with an affinity model that owns or has ownership interests in various retail brands, offering a comprehensive array of products and services that enable its customers to enhance everyday life through quality, style, and value. The Company currently owns Bed Bath & Beyond, Overstock, buybuy BABY, and Kirkland's and Kirkland's Home, and now SFV Services and The Container Store, as well as other related brands and websites and a blockchain asset portfolio inclusive of tZERO, GrainChain, and other assets. The Company regularly posts information and updates on its Newsroom and Investor Relations pages on its website, bedbathandbeyond.com.

Cautionary Note Regarding Forward-Looking Statements

This 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 and plans for our growth, and demand for our products, revenue improvement, profitability or sustained profitability, anticipated acquisitions, the timing thereof and the expected related synergies, expected change in listing exchange and ticker, expected name change, anticipated cost reductions stemming from acquisitions, new offerings, including Norm, and the expected timing of the launch, and business strategy. 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 due to 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 recessions, downturns, inflation, exposure to the housing market, and consumer spending; trade policies or restrictions, including tariffs, and related macroeconomic effects; our changing business model and use of our brands, such as the Overstock brand, Bed Bath & Beyond brand, buybuy BABY brand, Kirkland’s and Kirkland’s Home brands, SFV Services, and The Container Store; the changing job market and changes to 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 infrastructure; and transaction-processing systems; compliance with ever-evolving federal, state, and foreign laws; cyberattacks or data security incidents; legal proceedings to which we are subject; damage to our reputation or brand image; shipping and customer service; operations; technological advancements, including artificial intelligence; global conflicts; product safety and quality concerns, content and quality; our ever evolving business model; risks related to our Warrants; risks related to our completed merger with TBHC and The Container Store and our proposed merger with Fathom Holdings, Inc.; our investments in new business strategies, acquisitions, dispositions, partnerships, or other transactions; and regulatory changes or actions related to cryptocurrencies and blockchain technology. Additional information regarding risks, uncertainties, and other important 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, 2025, filed with the SEC on February 24, 2026, and in our subsequent filings with the SEC. Forward-looking statements speak only as of the date they are made and, except as may be required under applicable law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Supplemental Operational Data

We 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)

Non-GAAP Financial Measures and Reconciliations

We 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 and the gains on derecognition of loan commitment. We believe that these adjustments to our net income (net loss) before calculating per share amounts provide meaningful supplemental information for investors by excluding items that are not reflective of our core retail operations and that introduce significant volatility into GAAP results. We believe excluding these adjustments enhances the comparability of our financial results across reporting periods and offers greater and supplemental insight into the performance of our core retail operations when presented in conjunction with our GAAP disclosures.

More specifically, the income or loss from equity method securities relates to our blockchain asset portfolio, which includes passive investments in early-stage blockchain technology companies. These investments are ancillary to our retail business and are not part of our strategic or operational planning for the retail segment. Additionally, the market value and performance of these investments are subject to material volatility driven by external factors unrelated to our retail business. Similarly, the gain on derecognition of loan commitment arises from non-operating investments where we do not participate in day-to-day operations, capital allocation, or economically significant decision-making. These gains or losses are all non-cash, and the Company believes their inclusion in GAAP net income (net loss) can, in the absence of additional context, distort the comparability of our operating performance across periods.

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 reflect the reconciliation of diluted net loss per share to adjusted diluted net loss per share (in thousands, except per share data):

The following table reflects the reconciliation of adjusted EBITDA to net loss (in thousands):

The following table reflects the reconciliation of free cash flow to net cash used in operating activities (in thousands):