Neighborhood Intelligence (BBBY) investor relations material

Executive summary

• Q3 revenue rose 98.0% YoY to $509.3M, including $229.0M from 2026 acquisitions; legacy Bed Bath & Beyond revenue grew 9% YoY.

• Gross margin expanded 870 bps to 34.0%, while adjusted EBITDA was -$26.5M and net loss was $26.1M.

• Strategy emphasizes integrating acquired brands, organic growth, cost reductions and profitability rather than further acquisitions.

• Management targets an enterprise-wide positive cash flow inflection by H2 2027, contingent on growth and efficiency gains.

Financial highlights

• Q3 net revenue was $509.3M versus $257.2M; gross profit was $172.9M versus $65.2M.

• Operating loss was $62.1M versus $12.5M; net loss was $26.1M versus $4.5M, and diluted loss per share was $0.28 versus $0.07.

• G&A and technology expense was $164.8M, up $132.2M YoY; excluding $19.9M of one-time costs, adjusted expense was $144.9M.

• Cash, cash equivalents and restricted cash totaled $127.2M at Q3 end, up $0.9M QoQ.

• 9M revenue increased 45.0% YoY to $1.118B; operating loss was $123.2M and net loss was $82.0M.

Outlook and guidance

• FY27 revenue guidepost is $2.0B–$2.1B and gross margin is 33%–34%; the longer-term gross margin objective is 37%.

• FY27 base case models $2.05B revenue, 33.7% gross margin and -$33.0M adjusted EBITDA; modeled G&A savings are $18M.

• Management expects positive cash flow inflection by H2 2027 if mid-single-digit organic growth and improved operating efficiencies are achieved; it estimates ~5% annual organic growth for 3–4 years without a housing recovery.

• More than $50M in annualized SG&A reductions and merger synergies had been achieved YTD; an additional $40M+ in annualized savings opportunities were identified, with synergies expected over 6–9 months.

• Preliminary FY27 framing remains subject to fiscal-year alignment, retail-only scope and SEC reconciliation review.