Neighborhood Intelligence (BBBY) Q2 2026 earnings summary

Executive summary

• Net revenue grew 28% year-over-year to $361.2M in Q2 2026, marking the second consecutive quarter of growth after nineteen quarters of decline, driven by acquisitions such as The Brand House Collective and disciplined sales execution.

• Active customers reached 6.4M, up 47% year-over-year, with order frequency up 36% and orders delivered doubling to 2.8M.

• Corporate transformation includes rebranding to Neighborhood Intelligence, Nasdaq listing under NXH, and headquarters relocation to Nashville.

• Integration of acquired businesses is progressing, with early signs of value creation and operational improvement.

• Multiple acquisitions completed or announced, including The Brand House Collective, The Container Store, Elfa, Closet Works, Fathom Holdings, F9 Brands, and SFV Services.

Financial highlights

• Q2 2026 revenue was $361.2M (+28% year-over-year), with gross margin up 310 bps to 26.8% and gross profit of $97M.

• Adjusted EBITDA was -$12.2M, a $4.1M decline year-over-year; adjusted diluted EPS loss was $0.53.

• Cash, cash equivalents, and restricted cash totaled $126M at quarter end, with ending cash & inventory at $163.9M.

• Technology and G&A expense rose to $82M, up from $37M year-over-year, reflecting expansion and integration costs.

• Net loss widened to $39M from $19M year-over-year, including $21M in special items.

Outlook and guidance

• Q3 revenue expected in the $505–$525M range, with gross margin approaching 30%.

• Management targets $50M in annualized cost reductions over the next 12 months by consolidating operations onto one platform.

• Expects to reach cash generation in 2027, with mid to high single-digit EBITDA margin in a normalized housing market.

• Anticipates $30–$40M in cash deployment for acquisitions, integrations, and contract terminations by year-end.

• Management expects continued revenue and active customer growth as recent acquisitions are integrated.