Beyond, Inc.'s Q2 2025: Unraveling Contradictions on Overstock's Performance, SKU Strategies, and Customer Focus

Overstock's run rate and contribution margin, Bed Bath & Beyond's SKU rationalization, focus on revenue or profitability, strategic customer targeting, SKU rationalization approach are the key contradictions discussed in Beyond, Inc.'s latest 2025Q2 earnings call.



Revenue and Margin Improvements:
- Beyond Inc. reported revenue of $282 million for Q2 2025, a surprise increase from Q1, with a 22% increase quarter-over-quarter but a 29% decline year-over-year.
- This growth was driven by a focus on the patio business and a shift in strategy for the Overstock brand, targeting higher-end customers.

Overstock's Brand Repositioning:
- The Overstock brand showed consistent improvements, contributing positively to the company's financials.
- The rebranding focused on attracting affluent customers, with designer handbags and shoes seeing significant sales, contributing to an increased contribution margin.

Gross Margin and SG&A Reduction:
- Gross margin improved to 23.7%, a 360 basis point increase compared to the same period last year.
- The reduction in SG&A and tech expense by $9 million year-over-year and a 320 basis point improvement in sales and marketing efficiency also played a significant role.

Cash Flow Management:
- Cash flow improved, showing a $75 million, or 68%, year-over-year reduction in cash used in operating activities.
- This improvement was attributed to stabilization of core operations and effective capital deployment, eliminating non-profitable SKUs and improving the site experience.