MURRAY, Utah--(BUSINESS WIRE)-- Bed Bath & Beyond, Inc. has issued the following letter from Marcus Lemonis, executive chairman of Bed Bath & Beyond, saying he will now serve as CEO of BBB and explains the additional products and services Beyond will offer.
He stated that "Beyond” will include providing Beyond Home Products and Services, Beyond Home Operating Systems, Home Transaction Platforms, Beyond Home Financial and Protection Products, Home Renovation and Maintenance Programs.
"I want to make owning, living in, and caring for a home easier, less expensive, and more rewarding for all. We serve both the individual and the physical home, sometimes simultaneously, sometimes independently.," he stated. "I have always felt that home ownership is a bedrock of the American Dream. Whether someone is renting their first apartment, living in student housing, buying their first home, or settling into a forever home, we want Bed Bath & Beyond to be associated with making those journeys more achievable, more affordable, and less overwhelming.
"As we expand outside of purely transactional retail into revenue sources such as home services, home transaction platforms, home staging and improvement, protection and financial tools, we believe we will be able to prosper through housing cyclicality," the letter stated.
OUR NORTH STAR
"Bed Bath and Beyond is becoming the “Everything Home Company,” built around customers and the way life happens. Homes are not static. While the home itself is an anchor asset, fixed to a location and held over long periods, the individual or family attached to that home is constantly evolving. Life stages evolve us, needs and tastes change, risk and priorities alter over time. Real value is created not just by the home itself but by everything that touches it throughout its lifecycle, from furnishing and maintaining to insuring, financing, improving and ultimately moving. Our strategy is built around serving the home as a living platform or operating system and the customer as the evolving holder of that asset. We create loyalty with customers by connecting every part of their home life through technology, making life simpler, more affordable, and securely connected over time with blockchain."
MEASURABLE FINANCIAL PROGRESS: BALANCE SHEET STRENGTH AND CAPITAL DISCIPLINE
"In the last seven quarters we have built a solid foundation. We streamlined operations, monetized unproductive assets, and eliminated unprofitable SKUs and vendors while reducing fixed overhead materially. The Company delivered over the last 20 months sequential improvement in Adjusted EBITDA loss and operating cash flow. In the third quarter of 2025, net loss improved more than 90 percent and Adjusted EBITDA improved more than 80 percent year over year. Year to date as of the third quarter 2025, net loss improved by over $111 million and Adjusted EBITDA improved by over $89 million year over year. Generally, gross margins expanded into the 24–26 percent range. Marketing expense runs at an approximate range of 13-14 percent of revenue. During the year, we eliminated more than $50 million of annualized fixed operating expenses from the business. As we continue to simplify the organization, use scale, and invest in better systems and partnerships, we believe we have a clear path to eliminate an incremental $25 million of expense over the next 12 months mainly through merger synergies. We chose to rebuild the Company on a healthier base, knowing that margin integrity, contribution economics, and customer trust mattered more than headline revenue. That discipline is now visible in the results.
"Over the last year, the Company used the public markets to strengthen its balance sheet, reporting approximately $200 million of cash at the end of the third quarter of 2025. This cash position is not an invitation to spend; it is a responsibility. We are operating with one plan, grounded in the three pillars outlined here. Capital will be deployed with discipline, prioritizing ROI and long-term sustainability of the business."
FROM DISCIPLINE TO DURABLE GROWTH
"With the core business stabilized, profitable growth is now a mandate. The pending Kirkland’s transaction is expected to add approximately $350 million of Net Revenue. As we think about a base revenue of approximately $1.5 billion for 2026, we also see a path to additional accretive acquisitions over time, pursued strategically, tested carefully, and executed to enhance shareholder value. We will pursue acquisitions and investments where we see category gaps, consumer services, business synergies, or natural brand extensions through the next 12 months. We are currently working several opportunities that fit into the pillars I outline below."
DATA, ARTIFICIAL INTELLIGENCE, AND THE HOME DATA FABRIC
"At the center of everything, we are building a unified home data fabric, a connected intelligence layer that links commerce, services, insurance, warranties, financing, home attributes, geographic trends, and customer behavior. AI is the operating layer that activates this fabric, transforming information into decisions, personalization, predictive maintenance, smarter attachment and enhanced financial performance through staffing efficiency, agentic commerce, and marketing productivity. AI drives precision, putting the right product at the right place, at the right time, at the right price.
"This architecture also allows us to support the individual while continuously improving the performance, protection, and value of the home itself, securely, responsibly, and with trust through a proprietary AI embedded Beyond HOME OS™ system. This dynamic data also allows every home-related transaction we touch to be informed by real time data, including where people are moving, average and median home prices, affordability trends, and local supply and demand dynamics. We are building lifetime value based on households, not just customers."
ONE COMPANY. THREE FULLY INTEGRATED PILLARS
PILLAR ONE: OMNICHANNEL RETAIL & COMMERCE – The Relationship Engine
Omnichannel commerce is the primary relationship and frequency engine of Bed Bath & Beyond. Physical Retail and Hospitality are our highest-value point of entry, creating human connection, richer data, and materially higher lifetime value. Customers acquired in stores demonstrate greater loyalty, repeat behavior, and tenure, reinforced by legacy data from Bed Bath & Beyond and buybuy BABY, and early performance at Kirkland’s. We will execute this strategy through a combination of company-owned stores and an asset-light franchise and international licensing model.
"Digital commerce provides reach and scale, while services create the deepest trust and longest-lasting relationships. Our Omnichannel model is designed to move customers toward these higher-value engagements over time. Together, Bed Bath & Beyond, Overstock, buybuy BABY, Kirkland’s, and future commerce platforms form a flywheel, multiple points of entry guiding customers toward deeper, more durable relationships across the Everything Home ecosystem."
PILLAR TWO: DIGITAL, FINANCIAL, INSURANCE & BLOCKCHAIN SERVICES
"Pillar Two is designed to create high margin, recurring revenue that reduces cyclicality while making the home easier to finance, protect, and maintain. This pillar will be largely driven by AI and includes digital and blockchain platforms such as tZERO, with regulatory advantages, licenses, patents, and technology that position it as a market leading infrastructure platform, and GrainChain, which has transitioned from growth at all costs to disciplined, margin focused expansion supported by our additional investment in its existing convertible preferred note. It also includes home warranties, product warranties, property and casualty insurance, umbrella insurance, shipping insurance, home maintenance programs, credit cards, financing tools, and mortgage related solutions. AI enables intelligent underwriting, predictive maintenance, better attachment, and higher lifetime value without chasing volume at the expense of margin."
PILLAR THREE: BEYOND HOME – Beyond Home Platforms & Beyond Home OS
"Pillar Three focuses on the moments that matter most financially in the home lifecycle, when consumers buy, sell, finance or tokenize, renovate, insure, process title, or unlock liquidity from their homes. We are building and investing in capital disciplined, technology-enabled home transaction platforms that guarantee outcomes for consumers while monetizing high-value transactions across both ownership and asset-light models. This pillar also includes targeted investments in modern prefab and modular homebuilders to address the affordable housing opportunity, leveraging trusted design, advanced lead management, and efficient manufacturing. Tying it all together is Beyond Home OS, an AI-powered home operating system that serves as the connective tissue across services, data, and secure transactions, creating a unified, intelligent platform no home-centric company offers today at scale.
"Lastly, none of this is possible without the right team. A relentless focus on a meritocracy culture layered with an intention to develop our people both personally and professionally is how we will operate, recruit, and retain the best talent. I’m always recruiting: Marcus@Beyond.com
"This is not a turnaround story. It is a rebuild into something structurally better. We will not chase growth at the expense of trust. We will not deploy capital without discipline. We will not sacrifice affordability for short term margin. We will not confuse customers with unnecessary complexity. I am personally accountable for its execution."