Neighborhood Intelligence (BBBY) investor relations material

Strategic vision and business model

• Focused on a three-pillar strategy: omnichannel e-commerce, home services, and home ownership, aiming to address pain points across the homeownership lifecycle.

• Recent rebranding to Neighborhood Intelligence reflects a shift toward data-driven, localized, and integrated consumer experiences.

• Emphasis on leveraging intelligence (not just AI) to personalize offerings, aggregate data, and drive operational efficiency.

• Integration of acquired brands (Kirkland's, The Container Store, Elfa, ClosetWorks, SFV) to create a unified retail and services platform.

• Plans to launch a credit union and innovative mortgage products to further expand the homeownership ecosystem.

Financial performance and guidance

• Achieved two consecutive quarters of organic revenue growth, with expectations for a third, driven by margin stabilization and SG&A reductions.

• SG&A reduced by $218 million annually, with further cost cuts targeted, especially in retail operations.

• Q3 revenue guidance set at $505M–$525M, with anticipated margins of 28%–30%, the highest in company history.

• Targeting EBITDA and cash flow positivity by 2027, contingent on inventory investment and continued cost discipline.

• Share count at end of August is 97 million, excluding pending Fathom acquisition and any future ATM usage.

Capital allocation and M&A discipline

• Terminated F9 acquisition due to unmet closing conditions and a disciplined approach to capital deployment.

• No further material acquisitions planned until profitability is achieved, with focus on digesting recent deals.

• ATM facility used sparingly for working capital, primarily to fund inventory, with a strong focus on minimizing dilution.

• Share buyback program remains available for future capital return once profitability is reached.