BED BATH & BEYOND, INC., 10-K filed on 2/24/2026
Annual Report
v3.25.4
Cover - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2025
Feb. 20, 2026
Jun. 30, 2025
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --12-31    
Document Period End Date Dec. 31, 2025    
Document Transition Report false    
Entity File Number 001-41850    
Entity Registrant Name BED BATH & BEYOND, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 87-0634302    
Entity Address, Address Line One 433 W. Ascension Way, 3rd Floor    
Entity Address, City or Town Murray,    
Entity Address, State or Province UT    
Entity Address, Postal Zip Code 84123    
City Area Code 801    
Local Phone Number 947-3100    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction true    
Document Financial Statement Restatement Recovery Analysis [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 0.4
Entity Common Stock, Shares Outstanding   69,009,239  
Documents Incorporated by Reference
Certain information required by Part III of Form 10-K is incorporated by reference to the Registrant's proxy statement for the 2026 Annual Stockholders Meeting, which will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Report relates.
    
Entity Central Index Key 0001130713    
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Common Stock      
Document Information [Line Items]      
Title of 12(b) Security Common Stock, $0.0001 par value per share    
Trading Symbol BBBY    
Security Exchange Name NYSE    
Warrants to Purchase Shares of Common Stock      
Document Information [Line Items]      
Title of 12(b) Security Warrants to Purchase Shares of Common Stock    
Trading Symbol BBBY WS    
Security Exchange Name NYSE    
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Salt Lake City, Utah
Auditor Firm ID 185
v3.25.4
Consolidated Balance Sheets - USD ($)
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 175,295,000 $ 159,169,000
Restricted cash 26,924,000 26,924,000
Accounts receivable, net of allowance for credit losses of $3,377 and $2,236 20,829,000 15,847,000
Inventories 5,162,000 11,546,000
Prepaids and other current assets 11,905,000 14,021,000
Total current assets 240,115,000 227,507,000
Property and equipment, net 13,712,000 23,544,000
Intangible assets, net 45,140,000 30,246,000
Goodwill 6,160,000 6,160,000
Equity securities, including securities measured at fair value of $26,903 and $21,640 66,641,000 78,186,000
Operating lease right-of-use assets 5,156,000 6,858,000
Other long-term assets, net, including securities measured at fair value of $42,394 and $25,799 48,554,000 29,453,000
Total assets 425,478,000 401,954,000
Current liabilities:    
Accounts payable 89,992,000 81,939,000
Accrued liabilities 51,297,000 73,614,000
Unearned revenue 34,429,000 43,095,000
Operating lease liabilities, current 928,000 1,342,000
Short-term debt, net 15,500,000 24,871,000
Total current liabilities 192,146,000 224,861,000
Operating lease liabilities, non-current 5,643,000 6,452,000
Other long-term liabilities, including commitments measured at fair value of $2,766 and $0 9,745,000 7,909,000
Total liabilities 207,534,000 239,222,000
Commitments and Contingencies (Note 14)
Stockholders' equity:    
Preferred stock, $0.0001 par value, authorized shares - 5,000, issued and outstanding - none 0 0
Common stock 8,000 5,000
Additional paid-in capital 1,239,338,000 1,072,869,000
Accumulated deficit (842,711,000) (740,466,000)
Accumulated other comprehensive loss (2,574,000) 0
Treasury stock at cost - 7,495 and 6,491 (176,478,000) (169,676,000)
Equity attributable to stockholders of Bed Bath & Beyond, Inc. 217,583,000 162,732,000
Equity attributable to noncontrolling interests 361,000 0
Total stockholders' equity 217,944,000 162,732,000
Total liabilities and stockholders' equity $ 425,478,000 $ 401,954,000
v3.25.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Allowance for credit losses $ 3,377 $ 2,236
Equity securities, at fair value 26,903 21,640
Debt Securities, Trading and Available-for-Sale 42,394 25,799
Loan commitments, at fair value $ 2,766 $ 0
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 5,000,000 5,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 100,000,000 100,000,000
Common stock, shares issued (in shares) 76,358,000 59,560,000
Common stock, shares outstanding (in shares) 68,863,000 53,069,000
Treasury stock at cost (in shares) 7,495,000 6,491,000
v3.25.4
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Gross Profit [Abstract]      
Net revenue $ 1,044,616 $ 1,394,964 $ 1,561,122
Cost of goods sold 787,094 1,104,800 1,195,093
Gross profit 257,522 290,164 366,029
Operating expenses:      
Sales and marketing 143,356 238,564 224,547
Technology 90,276 114,584 117,154
General and administrative 53,569 74,399 90,410
Customer service and merchant fees 37,324 53,586 52,023
Other operating expense (income), net (5,790) (6,882) 25,875
Total operating expenses 318,735 474,251 510,009
Operating loss (61,213) (184,087) (143,980)
Total interest income, net 5,052 6,765 12,007
Other expense, net (27,635) (80,789) (134,149)
Loss before income taxes (83,796) (258,111) (266,122)
Provision for income taxes 825 684 41,720
Net loss $ (84,621) $ (258,795) $ (307,842)
Net loss per share of common stock:      
Basic (in dollars per share) $ (1.41) $ (5.56) $ (6.81)
Diluted (in dollars per share) $ (1.41) $ (5.56) $ (6.81)
Weighted average shares of common stock outstanding:      
Basic (in shares) 60,130 46,542 45,214
Diluted (in shares) 60,130 46,542 45,214
v3.25.4
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net loss $ (84,621) $ (258,795) $ (307,842)
Unrealized loss on available-for-sale debt securities, net of tax of $0, $0 and $0 (2,574) 0 0
Unrealized gain on cash flow hedges, net of tax of $0, $0 and $0 0 506 16
Other comprehensive income (loss): (2,574) 506 16
Comprehensive loss $ (87,195) $ (258,289) $ (307,826)
v3.25.4
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Unrealized loss on available-for-sale debt securities, tax $ 0 $ 0 $ 0
Unrealized gain on cash flow hedges, tax expense $ 0 $ 0 $ 0
v3.25.4
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Parent
Common stock
Additional paid-in capital
Accumulated deficit
Accumulated other comprehensive loss
Treasury stock
Noncontrolling interest
Beginning balance (in shares) at Dec. 31, 2022     51,102,000          
Increase (Decrease) in Stockholders' Equity                
Common stock issued upon vesting of restricted stock     550,000          
Common stock issued for ESPP purchases     118,000          
Common stock sold through offerings     0          
Other     0          
Ending balance (in shares) at Dec. 31, 2023     51,770,000          
Treasury stock, beginning balance (in shares) at Dec. 31, 2022             6,151,000  
Increase (Decrease) in Stockholders' Equity                
Repurchases of common stock             0  
Tax withholding upon vesting of employee stock awards             205,000  
Treasury stock, ending balance (in shares) at Dec. 31, 2023             6,356,000  
Beginning balance at Dec. 31, 2022     $ 5 $ 982,718 $ (173,829) $ (522) $ (162,546) $ 0
Increase (Decrease) in Stockholders' Equity                
Common stock sold through offerings     0          
Stock-based compensation to employees and directors       23,018        
Common stock issued for ESPP purchases       1,913        
Proceeds from sale of common stock, net of offering costs $ 0     0        
Issuance of warrant dividends 0       0      
Other       0        
Net loss         (307,842)      
Net other comprehensive income (loss) 16         16    
Repurchases of common stock             0  
Tax withholding upon vesting of employee stock awards             (3,799)  
Proceeds from security token offering, net               0
Ending balance at Dec. 31, 2023 $ 359,132 $ 359,132 $ 5 1,007,649 (481,671) (506) $ (166,345) 0
Increase (Decrease) in Stockholders' Equity                
Common stock, shares outstanding (in shares) 45,414,000              
Common stock issued upon vesting of restricted stock     441,000          
Common stock issued for ESPP purchases     119,000          
Common stock sold through offerings     7,002,000          
Other     228,000          
Ending balance (in shares) at Dec. 31, 2024     59,560,000          
Increase (Decrease) in Stockholders' Equity                
Repurchases of common stock             0  
Tax withholding upon vesting of employee stock awards             135,000  
Treasury stock, ending balance (in shares) at Dec. 31, 2024 6,491,000           6,491,000  
Increase (Decrease) in Stockholders' Equity                
Common stock sold through offerings     $ 0          
Stock-based compensation to employees and directors       19,255        
Common stock issued for ESPP purchases       1,472        
Proceeds from sale of common stock, net of offering costs $ 42,993     42,993        
Issuance of warrant dividends 0       0      
Other       1,500        
Net loss         (258,795)      
Net other comprehensive income (loss) 506         506    
Repurchases of common stock             $ 0  
Tax withholding upon vesting of employee stock awards             (3,331)  
Proceeds from security token offering, net               0
Ending balance at Dec. 31, 2024 $ 162,732 162,732 $ 5 1,072,869 (740,466) 0 $ (169,676) 0
Increase (Decrease) in Stockholders' Equity                
Common stock, shares outstanding (in shares) 53,069,000              
Common stock issued upon vesting of restricted stock     366,000          
Common stock issued for ESPP purchases     138,000          
Common stock sold through offerings     16,294,000          
Other     0          
Ending balance (in shares) at Dec. 31, 2025     76,358,000          
Increase (Decrease) in Stockholders' Equity                
Repurchases of common stock             903,000  
Tax withholding upon vesting of employee stock awards             101,000  
Treasury stock, ending balance (in shares) at Dec. 31, 2025 7,495,000           7,495,000  
Increase (Decrease) in Stockholders' Equity                
Common stock sold through offerings     $ 3          
Stock-based compensation to employees and directors       10,853        
Common stock issued for ESPP purchases       683        
Proceeds from sale of common stock, net of offering costs $ 137,312     137,309        
Issuance of warrant dividends 17,624       (17,624)      
Other       0        
Net loss         (84,621)      
Net other comprehensive income (loss) (2,574)         (2,574)    
Repurchases of common stock             $ (6,218)  
Tax withholding upon vesting of employee stock awards             (584)  
Proceeds from security token offering, net               361
Ending balance at Dec. 31, 2025 $ 217,944 $ 217,583 $ 8 $ 1,239,338 $ (842,711) $ (2,574) $ (176,478) $ 361
Increase (Decrease) in Stockholders' Equity                
Common stock, shares outstanding (in shares) 68,863,000              
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net loss $ (84,621) $ (258,795) $ (307,842)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization 16,278 19,062 19,447
Non-cash operating lease cost 1,702 3,451 4,737
Stock-based compensation to employees and directors 10,853 19,255 23,018
Decrease in deferred income taxes, net 473 283 41,349
Gain on sale of intangible assets (5,790) (10,275) 0
Gain on disposal of cryptocurrencies 0 0 6,361
Write-down of assets held for sale 0 3,385 25,875
Loss from equity method securities 28,628 77,687 140,404
(Gain) loss on debt securities carried at fair value (1,439) 2,430 0
Other non-cash adjustments 178 (14) (693)
Changes in operating assets and liabilities:      
Accounts receivable, net (4,982) 3,573 (1,727)
Inventories 6,384 1,494 (6,514)
Prepaids and other current assets 3,491 1,293 1,889
Other long-term assets, net (354) (2,175) (757)
Accounts payable 8,055 (24,172) 32,555
Accrued liabilities (24,325) (31) 10,442
Unearned revenue (8,666) (6,502) 5,117
Operating lease liabilities (1,223) (2,819) (5,094)
Other long-term liabilities (1,343) (1,434) 5,569
Net cash used in operating activities (56,701) (174,304) (18,586)
Cash flows from investing activities:      
Disbursement for notes receivable (24,694) (17,000) (10,000)
Purchase of intangible assets (15,405) (6,044) (25,816)
Purchase of equity securities (8,000) 0 0
Expenditures for property and equipment (7,407) (14,315) (19,181)
Proceeds from the sale of intangible assets 6,250 10,275 0
Proceeds from the sale of assets held for sale 0 51,441 0
Proceeds from the disposal of cryptocurrencies 0 0 9,804
Other investing activities, net 29 569 563
Net cash provided by (used in) investing activities (49,227) 24,926 (44,630)
Cash flows from financing activities:      
Proceeds from sale of common stock, net of offering costs 137,312 42,993 0
Payments on short-term debt (9,500) 0 0
Repurchase of shares (6,218) 0 0
Payments of taxes withheld upon vesting of employee stock awards (584) (3,331) (3,799)
Proceeds under short-term contract financing 0 25,000 0
Payments on long-term debt 0 (34,782) (3,606)
Other financing activities, net 1,044 2,842 1,913
Net cash provided by (used in) financing activities 122,054 32,722 (5,492)
Net increase (decrease) in cash, cash equivalents, and restricted cash 16,126 (116,656) (68,708)
Cash, cash equivalents, and restricted cash, beginning of year 186,093 302,749 371,457
Cash, cash equivalents, and restricted cash, end of year $ 202,219 $ 186,093 $ 302,749
v3.25.4
BASIS OF PRESENTATION
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BASIS OF PRESENTATION
1. BASIS OF PRESENTATION

Business and organization

As used herein, "Bed Bath & Beyond," "the Company," "we," "our" and similar terms include Bed Bath & Beyond, Inc. and its controlled subsidiaries, unless the context indicates otherwise. The Company was formed on May 5, 1997 as D2-Discounts Direct, a limited liability company ("LLC"). On December 30, 1998, the Company reorganized as a C Corporation in the State of Utah and reincorporated in Delaware in May 2002. On October 25, 1999, the Company changed its name to Overstock.com, Inc. and on November 6, 2023, the Company changed its name to Beyond, Inc. On August 18, 2025, the Company changed its name to Bed Bath & Beyond, Inc.

Bed Bath & Beyond, Inc., is an e-commerce-focused retailer with an affinity model that owns or has ownership interests in various brands, offering a comprehensive array of products and services that enable its customers to enhance everyday life through quality, style, and value. We currently own Bed Bath & Beyond, Overstock, and buybuy BABY, among other brands. We strive to curate an exceptional online shopping experience. Our suite of premier online retail brands allow us to offer a comprehensive array of products and add-on services, catering to customers in the United States. Our e-commerce platform, which is also accessible through our mobile apps, includes www.bedbathandbeyond.com and www.overstock.com, and is collectively referred to as the "Website." The Website is targeted at customers seeking a diverse array of top-tier, on-trend products at competitive prices. From furniture, bedding, and bath essentials to patio and outdoor furniture, area rugs, tabletop and cookware, décor, storage, jewelry, watches, and fashion – we offer an extensive range of products at a smart value. In addition to products, we also offer an increasing number of add-on services across our platforms, including warranties, shipping insurance, and installation services.

Basis of presentation
We have prepared the accompanying consolidated financial statements pursuant to generally accepted accounting principles in the United States ("GAAP"). Preparing financial statements requires us to make estimates and assumptions that affect the amounts that are reported in the consolidated financial statements and accompanying disclosures. Although these estimates are based on our best knowledge of current events and actions that we may undertake in the future, our actual results may be different from our estimates. The results of operations presented herein are not necessarily indicative of our results for any future period.
v3.25.4
ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES
2. ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES

Principles of consolidation
 
The accompanying consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany account balances and transactions have been eliminated in consolidation.
 
Use of estimates
 
The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in our consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, receivables valuation, revenue recognition, loyalty program reward point and gift card breakage, sales returns, inventory valuation, asset useful lives, equity and debt securities valuation, income taxes, stock-based compensation, performance-based compensation, self-funded health insurance liabilities, and contingencies. Although these estimates are based on our best knowledge of current events and actions that we may undertake in the future, our accounting of these estimates may change from period to period. To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected.
Revision of previously issued consolidated financial statements

As previously disclosed, during the quarterly period ended September 30, 2025, the Company identified errors in the consolidated statements of operations related to the classification of gains on the sale of intangible assets and write-downs of assets held for sale erroneously being included in Other expense, net instead of in operating expenses. The Company assessed the materiality of changes to prior period consolidated financial statements to address these errors in accordance with SEC Staff Accounting Bulletin No. 99, "Materiality", (ASC Topic 250, Accounting Changes and Error Corrections). Based on this assessment, the Company concluded that these error corrections in its consolidated statements of operations were not material to any previously presented consolidated financial statements. The corrections had no material impact on the consolidated balance sheets, consolidated statements of comprehensive loss, consolidated statements of changes in stockholders' equity, or consolidated statements of cash flows, for any previously presented interim or annual consolidated financial statements.

The financial reporting periods affected by these errors include the Company's previously reported audited consolidated financial statements for the fiscal years ended December 31, 2024 and 2023.

The following table presents the revisions to the consolidated statements of operations for the years ended December 31, 2024 and 2023 (in thousands):
Year ended December 31, 2024Year ended December 31, 2023
As previously reportedAdjustmentAs revisedAs previously reportedAdjustmentAs revised
Operating expenses:
Other operating expense (income), net$— $(6,882)$(6,882)$— $25,875 $25,875 
Total operating expenses481,133 (6,882)474,251 484,134 25,875 510,009 
Operating loss(190,969)6,882 (184,087)(118,105)(25,875)(143,980)
Other expense, net(73,907)(6,882)(80,789)(160,024)25,875 (134,149)
Loss before income taxes(258,111)— (258,111)(266,122)— (266,122)
Net loss(258,795)— (258,795)(307,842)— (307,842)

Supplemental cash flow information

The following table shows supplemental cash flow information (in thousands):
Year Ended December 31,
202520242023
Supplemental disclosures of cash flow information:  
Cash paid during the period:  
Interest paid, net of amounts capitalized$1,098 $1,489 $1,598 
Income taxes (refunded) paid, net(382)(132)556 
Non-cash investing and financing activities:  
Proceeds from sale of intangible assets included in other long-term assets, net3,750 — — 
Notes receivable converted to equity securities7,510 — — 

See also Note 12—Leases for additional supplemental disclosures of cash flow information related to our leases.

Cash equivalents

We classify all highly liquid instruments, including instruments with an original maturity of three months or less at the time of purchase, as cash equivalents.
 
Restricted cash
 
We consider cash that is legally restricted and cash that is held as compensating balances for credit arrangements as restricted cash.
 
Fair value of financial instruments

We account for our assets and liabilities using a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs have created the fair-value hierarchy below. This hierarchy requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value.

•Level 1—Quoted prices for identical instruments in active markets; 
•Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
•Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Our assets that are adjusted to fair value on a recurring basis are cash equivalents and certain equity securities, which fair values are determined using quoted market prices from daily exchange traded markets on the closing price as of the balance sheet date and are classified as Level 1. Our recurring fair value measurements using observable inputs (Level 2) include our debt securities carried at fair value. Our recurring fair value measurements using unobservable inputs (Level 3) include our equity securities under ASC 323 accounted for under the fair value option, available-for-sale debt securities, and our loan commitments. Our other financial instruments, including cash, restricted cash, accounts receivable, accounts payable, accrued liabilities, and debt are carried at cost, which approximates their fair value. Certain assets, including long-lived assets, certain equity securities under ASC 323, goodwill, and other intangible assets, are measured at fair value on a nonrecurring basis; that is, the assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments using fair value measurements with unobservable inputs (Level 3).

Accounts receivable, net
 
Accounts receivable consist primarily of trade amounts due from customers in the United States and uncleared credit card transactions at period end. Accounts receivables are recorded at invoiced amounts and do not bear interest. We maintain an allowance for expected credit losses based upon our business customers' financial condition and payment history, our historical collection experience, and any future expected economic conditions.
 
Inventories
 
Inventories include merchandise acquired for resale and processed returns which are accounted for using a standard costing system which approximates the first-in-first-out ("FIFO") method of accounting and are valued at the lower of cost and net realizable value. Inventory valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, liquidations, and expected recoverable values of each disposition category.

Prepaids and other current assets

Prepaids and other current assets represent expenses paid prior to receipt of the related goods or services, including advertising, license fees, maintenance, packaging, insurance, prepaid inventories, other miscellaneous costs, and cryptocurrencies.
Property and equipment, net
 
Property and equipment are recorded at cost and stated net of depreciation and amortization. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets as follows:
 Life
(years)
Furniture and equipment
5-7
Computer hardware
3-4
Computer software, including internal-use software and website development
2-4
 
Leasehold improvements are amortized over the shorter of the term of the related leases or estimated useful lives.

Included in property and equipment is the capitalized cost of internal-use software and website development, including software used to upgrade and enhance our Website and processes supporting our business. We capitalize costs incurred during the application development stage of internal-use software and amortize these costs over the estimated useful life. Costs incurred related to design or maintenance of internal-use software are expensed as incurred.

Upon sale or retirement of assets, cost and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in our consolidated statements of operations.

Equity securities accounted for under the equity method under ASC 323

At December 31, 2025, we held minority interests in privately held and public entities, Medici Ventures, L.P., tZERO, The Brand House Collective, Inc. (formerly known as Kirkland's Inc.) ("TBHC"), and a newly created entity ("Zulily Newco") upon the sale of the rights in the Zulily brand, accounted for under the equity method under ASC Topic 323, Investments—Equity Method and Joint Ventures ("ASC 323"), which are included in Equity securities in our consolidated balance sheets. We can exercise significant influence, but not control, over these entities through holding more than a 20% voting interest.

We measure our minority interests in TBHC at fair value (based on Level 1 inputs) with changes in fair value recorded in Other expense, net in our consolidated statements of operations. The aggregate fair value of our investment in TBHC was $9.8 million as of December 31, 2025.

Based on the nature of our ownership interests and the extent of our contributed capital, we held a variable interest in Medici Ventures, L.P. and TBHC, both of which meet the definition of variable interest entities; however, we are not the primary beneficiary of these entities for purposes of consolidation as we do not have the power (either explicit or implicit), through voting rights or otherwise, to direct the activities of Medici Ventures, L.P. or TBHC that most significantly impact their economic performance. Our investments in these variable interest entities totaled $49.6 million as of December 31, 2025, representing our maximum exposures to loss.

We record our proportionate share of Medici Ventures, L.P.'s net assets assuming the entity (i) liquidated its net assets at their book values and (ii) distributed the proceeds to the investors based on the distribution waterfall in the investment agreement, which reflects the fair value changes of the underlying investments of the entity, any investor-level adjustments, and any other operating income or losses of the entity, in Other expense, net in our consolidated statements of operations with corresponding adjustments to the carrying value of the asset. If such events or circumstances have occurred that may indicate the fair value of our equity interest is less than its carrying value, we estimate the fair value of our equity interest and recognize an impairment loss equal to the difference between the fair value of the security and its carrying value which is recorded in Other expense, net in our consolidated statements of operations. There is no difference between the carrying amount of our investment in the entity and the amount of underlying equity we have in the entity's net assets.

We have elected to apply the fair value option for valuing our direct minority interests in tZERO as we determined that accounting for our direct minority interests in tZERO under the fair value option would approximate the same valuation approach used by Medici Ventures, L.P. for valuing our indirect interest in tZERO and would be the most meaningful and transparent option for evaluating our continued exposure to the economics of tZERO. We have also elected to apply the fair value option for valuing our interest in Zulily NewCo. The fair value was determined in good faith under our valuation policy and process using generally accepted valuation approaches through the use of a third-party valuation firm. Our assessment includes a review of recent operating results and trends, recent sales/acquisitions of the equity securities, and other publicly available data.
The methods and significant assumptions to estimate the fair value of our direct minority interests in tZERO under the fair value option include using a market approach. The market approach relied upon market transaction valuations of the subject company, adjusted for changes in enterprise value for guideline public companies. Due to the length of time between the last Series B financing round led by the Intercontinental Exchange, the valuation technique used to value our direct interest in tZERO changed to a blended market approach using a transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model and a book value of equity method in the current year, compared to a blended market approach using a transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model and a guideline public company method valuation technique in the prior year. The methods and significant assumptions to estimate the fair value of our minority interest in Zulily Newco under the fair value option include using a market approach based on latest market transaction valuations.

The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of our Level 3 equity securities:
InvestmentFair ValueValuation TechniqueUnobservable InputsInputs
tZERO$15,503 Blended market approach - transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model method and book value of equity methodTerm to liquidity5.0 years
Volatility100%
Percentage change in enterprise value for guideline public companies(53.4)%
Zulily Newco1,572 Market approach - latest transactionsN/AN/A
Total$17,075 

A significant change in the term to liquidity, volatility, or percentage change in enterprise value for guideline public companies inputs could result in a significant change in the fair value measurement.

Leases

We determine if an arrangement is a lease at inception. We account for lease agreements as either operating or finance leases depending on certain defined criteria. Operating leases are recognized in Operating lease right-of-use ("ROU") assets, Operating lease liabilities, current, and Operating lease liabilities, non-current on our consolidated balance sheets. Finance leases are included in Other long-term assets, net, Other current liabilities, and Other long-term liabilities on our consolidated balance sheets. Lease assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. In certain of our lease agreements, we receive rent holidays and other incentives. We recognize lease costs on a straight-line basis over the lease term without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Our lease terms may include options to extend or terminate the lease, and we adjust our measurement of the lease when it is reasonably certain that we will exercise that option. Lease payments used in measurement of the lease liability typically do not include executory costs, such as taxes, insurance, and maintenance, unless those costs can be reasonably estimated at lease commencement. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the life of the lease, without assuming renewal features, if any, are exercised. We do not separate lease and non-lease components for our leases.
 
Treasury stock
 
We account for treasury stock of our common shares under the cost method and include treasury stock as a component of stockholders' equity.
Goodwill

Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment at least annually or when we deem that a triggering event has occurred. When evaluating whether goodwill is impaired, we make a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment determines that it is more likely than not that its fair value is less than its carrying amount, we compare the fair value of the reporting unit to which the goodwill is assigned to its carrying amount. If the carrying amount exceeds its fair value, an impairment loss is recognized in an amount equal to the excess of the carrying amount over the fair value of the reporting unit, not to exceed the carrying amount of the goodwill. We completed our annual goodwill impairment test as of December 31, 2025 by performing a quantitative assessment and concluded that the estimated fair value of the reporting units exceeded their carrying amount. There were no impairments to goodwill recorded during the years ended December 31, 2025, 2024 and 2023 and no other changes to the carrying amount of goodwill during the years ended December 31, 2025 and 2024. Our goodwill balance was $6.2 million as of December 31, 2025 and 2024.

Intangible assets other than goodwill

We capitalize and amortize intangible assets other than goodwill over their estimated useful lives unless such lives are indefinite. Intangible assets other than goodwill acquired separately from third parties are capitalized at cost, including any related direct acquisition costs, while such assets acquired as part of a business combination are capitalized at their acquisition-date fair value. Indefinite-lived intangible assets are tested for impairment annually or more frequently when events or circumstances indicate that the carrying value more likely than not exceeds its fair value. In addition, we routinely evaluate the remaining useful life of intangible assets not being amortized to determine whether events or circumstances continue to support an indefinite useful life, including any legal, regulatory, contractual, competitive, economic, or other factors that may limit their useful lives. Definite-lived intangible assets are amortized using the straight-line method of amortization over their useful lives, with the exception of certain intangibles (such as acquired customer lists) which are amortized using an accelerated method of amortization based on estimated customer attrition rates. These definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable as described below under Impairment of long-lived assets.

Impairment of long-lived assets
 
We review property and equipment, right-of-use assets, and other long-lived assets, including intangible assets other than goodwill, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability is measured by a comparison of the assets' carrying amount to future undiscounted net cash flows the asset group is expected to generate. Cash flow forecasts are based on trends of historical performance and management's estimate of future performance, giving consideration to existing and anticipated competitive and economic conditions. If such asset group is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair values. There were no impairments to long-lived assets recorded during the years ended December 31, 2025, 2024 and 2023.

Available-for-sale debt securities

We record our available-for-sale debt securities at fair value, with unrealized gains and losses recorded to other comprehensive loss in the consolidated statements of comprehensive loss. For available-for-sale debt securities in an unrealized loss position, we determine whether a credit loss exists by considering information about the collectability of the instrument, current market conditions, and economic conditions. Credit losses, if any, are recorded as an allowance through Other expense, net in the consolidated statements of operations.

At December 31, 2025, we have invested $13.0 million in GrainChain, Inc. in the form of convertible promissory notes (the "Notes"). The Notes bear interest at an annual interest rate of 5% and accrued interest is recorded in Interest income, net in our consolidated statements of operations. The Notes have a maturity date of January 3, 2025 at which time the outstanding principal and any unpaid accrued interest will automatically convert into shares of a newly created series of preferred stock issued by GrainChain, Inc. The Notes have not converted and the Company is negotiating an extension of the Notes. The Notes are in an unrealized loss position as of December 31, 2025. The fair value of the Notes, including accrued interest, was $12.0 million and $11.0 million at December 31, 2025 and 2024, respectively, which is included in Other long-term assets, net on our consolidated balance sheets. The aggregate unrealized losses on our Notes was $2.6 million and were due to a recent decrease in profitability and not credit-related events as we expect we will recover our amortized cost basis upon
conversion of the Notes. Accordingly, no allowance for credit losses was recorded on available-for sale debt securities in an unrealized loss position at December 31, 2025 and 2024.

Based on the nature of our indirect ownership interests in GrainChain, Inc. through Medici Ventures, L.P. and the extent of our contributed capital, we held a variable interest in GrainChain, Inc., which meets the definition of a variable interest entity; however, we are not the primary beneficiary of this entity for purposes of consolidation as we do not have the power (either explicit or implicit), through voting rights or otherwise, to direct the activities of GrainChain, Inc. that most significantly impact its economic performance. Our maximum exposure to loss in this variable interest entity totaled $24.4 million as of December 31, 2025, representing our direct and indirect interest in GrainChain, Inc.

In November 2025, the Company purchased, via a participation agreement for par/near par trades, a portion of the loans issued by The Container Store, Inc. pursuant to the Term Loan Credit Agreement, dated as of January 28, 2025, as amended on September 15, 2025 (as amended, the "TCS Credit Agreement"). The aggregate purchase price for the Company's participation in certain loans issued pursuant to the TCS Credit Agreement was $6.5 million. As a result of these transactions, the Company will participate in the rights to the payment of interest and repayment of the loans and any exercise of rights or remedies related thereto. The fair value of the portion of the loans purchased was $6.5 million at December 31, 2025, which is included in Other long-term assets, net on our consolidated balance sheets.

The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of our Level 3 available-for-sale securities:
InvestmentFair ValueValuation TechniqueUnobservable InputsInputs
GrainChain, Inc.$11,955 Market approach - transaction backsolve adjusted for enterprise value changes in guideline public companies with an option pricing model methodTerm to liquidity5.0 years
Volatility50%
Percentage change in enterprise value for guideline public companies(12.2)%
The Container Store, Inc.6,462 Market approach - latest transactionsN/AN/A
Total$18,417 

A significant change in the term to liquidity, volatility, or percentage change in enterprise value for guideline public companies inputs could result in a significant change in the fair value measurement.
Debt securities carried at fair value

On May 7, 2025, the Company entered into an Amended and Restated Term Loan Credit Agreement (the "Amended and Restated Credit Agreement"), which amended and restated the secured Term Loan Credit Agreement ("Existing Credit Agreement") entered on October 21, 2024 and pursuant to which the Company provided The Brand House Collective, Inc. (formerly known as Kirkland's Inc.) ("The Brand House Collective") with an additional term loan in an approximate aggregate original principal amount of $5.2 million (the "Additional Term Loan") and obligations arising under the Existing Credit Agreement in the aggregate amount of $8.5 million were rolled into the Amended and Restated Credit Agreement as obligations thereunder (collectively, the "Notes"). On September 15, 2025, the Company entered into Amendment No. 1 to the Amended and Restated Credit Agreement (such amendment, the "Credit Agreement Amendment" and the Existing Credit Agreement as amended by the Credit Agreement Amendment, the "Amended Credit Agreement"). Pursuant to the terms of the Amended Credit Agreement, new delayed-draw term loan commitments in an aggregate original principal amount of $20.0 million (the "Delayed Draw Term Loan Commitments") were established. On November 24, 2025, the Company entered into Amendment No. 2 to the Amended and Restated Credit Agreement (the "Second Amendment") pursuant to which the Company agreed to increase the Delayed Draw Term Loan Commitments by $10.0 million, to an aggregated principal amount of $30.0 million. Concurrently with the Second Amendment, and as of December 31, 2025, $10.0 million has been drawn under the Delayed Draw Term Loan Commitments (the "Delayed Draw Note"). The Amended Credit Agreement provides the Company the right to convert the outstanding loans (including loans extended in satisfaction of the Delayed Draw Term Loan Commitments) owing under the Amended and Restated Credit Agreement into shares of The Brand House Collective's common stock at a price equal to the closing price on the Nasdaq Stock Market LLC ("Nasdaq") on the day prior to the date on which a conversion election is made, up to a number of shares equal to 19.90% of the outstanding shares of The Brand House Collective's common stock on the date the Amended Credit Agreement was entered into, and up to a greater number of shares subject to Nasdaq shareholder approval rules. Bed Bath & Beyond is restricted from holding greater than 75% of outstanding The Brand House Collective's issued shares for so long as any obligations remain outstanding under The Brand House Collective's credit agreement with its senior lender, Bank of America, N.A. On November 24, 2025, we entered in a Merger Agreement with TBHC pursuant to which, subject to the terms and conditions set forth therein, TBHC will survive the Merger as a wholly owned subsidiary of the Company.

We have elected to present the Notes and Delayed Draw Note at fair value, which totaled $24.0 million and $14.8 million at December 31, 2025 and 2024, respectively. The balance of the Notes is included in Other long-term assets, net on our consolidated balance sheets.

The following table summarizes the valuation techniques and significant inputs used in the fair value measurement of our Level 2 debt securities carried at fair value:

InvestmentFair ValueValuation TechniqueObservable Inputs
The Brand House Collective, Inc.$23,977 Market approachAgreed settlement price in the contracts

Other long-term assets, net

Other long-term assets, net consist primarily of long-term prepaid expenses, deposits, long-term receivables, available-for-sale debt securities, and debt securities carried at fair value.

Noncontrolling interests

In April 2025, the Company's controlled subsidiary, Commercial Strategies, Inc. ("Commercial Strategies"), launched a crowdfunding offering (the "token offering") of the right to acquire a tokenized digital security linked to Overstock intellectual property and eligible for future dividends, if any, from the licensing revenue that Commercial Strategies earns from the Overstock intellectual property. The token offering closed on May 16, 2025, and Commercial Strategies issued the tokenized digital security in the form of Series A Preferred Stock. The holders of the preferred shares will be entitled to receive, out of funds and assets legally available for such purpose, an annual dividend that is derived from the royalty fee paid by Bed Bath & Beyond, Inc. to Commercial Strategies for licensing of the Overstock intellectual property. The holders of the preferred stock have no voting rights. At December 31, 2025, cumulative proceeds from the token offering totaled $467,000, have been classified as a component of noncontrolling interest within the consolidated financial statements. As of December 31, 2025,
Commercial Strategies has incurred $305,000 of offering costs associated with the token offering that are classified as a reduction in proceeds within noncontrolling interest within the consolidated financial statements.

In May 2025, the Company's controlled subsidiary, Zion Peaks, Inc. ("Zion Peaks"), launched a crowdfunding offering (the "token offering") of the right to acquire a tokenized digital security linked to buybuy BABY intellectual property and eligible for future dividends, if any, from the licensing revenue that Zion Peaks earns from the buybuy BABY intellectual property. The token offering closed on August 11, 2025, and Zion Peaks issued the tokenized digital security in the form of Series A Preferred Stock. The holders of the preferred shares will be entitled to receive, out of funds and assets legally available for such purpose, an annual dividend that is derived from the royalty fee paid by Bed Bath & Beyond, Inc. to Zion Peaks for licensing of the buybuy BABY intellectual property. The holders of the preferred stock have no voting rights. At December 31, 2025, cumulative proceeds from the token offering totaled $396,000, have been classified as a component of noncontrolling interest within the consolidated financial statements. As of December 31, 2025, Zion Peaks has incurred $197,000 of offering costs associated with the token offering that are classified as a reduction in proceeds within noncontrolling interest within the consolidated financial statements.

Revenue recognition
 
Revenue is recognized when, or as, control of a promised product or service transfers to a customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring those products or services. Revenue excludes taxes that have been assessed by governmental authorities and that are directly imposed on revenue-producing transactions between the Company and its customers, including sales and use taxes. Revenue recognition is evaluated through the following five-step process:
 
1) identification of the contract with a customer;
2) identification of the performance obligations in the contract;
3) determination of the transaction price;
4) allocation of the transaction price to the performance obligations in the contract; and
5) recognition of revenue when or as a performance obligation is satisfied.

Product Revenue
    
We derive our revenue primarily through our Website but may also derive revenue from sales of merchandise through other channels. Our revenue is derived primarily from merchandise sold at a point in time and shipped to customers. Merchandise sales are fulfilled with inventory sourced through our partners or from our owned inventory. The vast majority of our sales, however, are fulfilled from inventory sourced through our partners.

Revenue is recognized when control of the product passes to the customer, typically at the date of delivery of the merchandise to the customer or the date a service is provided and is recognized in an amount that reflects the expected consideration to be received in exchange for such goods or services. As such, customer orders are recorded as unearned revenue prior to delivery of products or services ordered. As we ship high volumes of packages through multiple carriers, we use estimates to determine which shipments are delivered and, therefore, recognized as revenue at the end of the period. Our delivery date estimates are based on average shipping transit times, which are calculated using the following factors: (i) the type of shipping carrier (as carriers have different in-transit times); (ii) the fulfillment source (either our warehouses, those warehouses we control, or those of our partners); (iii) the delivery destination; and (iv) actual transit time experience, which shows that delivery date is typically one to eight business days from the date of shipment. We review and update our estimates on a quarterly basis based on our actual transit time experience. However, actual shipping times may differ from our estimates.

Generally, we require authorization from credit card or other payment vendors whose services we offer to our customers (such as PayPal, Apple Pay, Klarna), or verification of receipt of payment, before we ship products to consumers or business purchasers. We generally receive payments from our customers before our payments to our suppliers are due. We do not recognize assets associated with costs to obtain or fulfill a contract with a customer.

Shipping and handling is considered a fulfillment activity, as it takes place prior to the customer obtaining control of the merchandise, and fees charged to customers are included in net revenue upon completion of our performance obligation. We present revenue net of sales taxes, discounts, and expected refunds.
Our merchandise sales contracts include terms that could cause variability in the transaction price for items such as discounts, credits, or sales returns. Accordingly, the transaction price for product sales includes estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. At the time of sale, we estimate a sales return liability for the variable consideration based on historical experience, which is recorded within Accrued liabilities in the consolidated balance sheet. We record an allowance for returns based on current period revenues and historical returns experience. We analyze actual historical returns, current economic trends and changes in order volume and acceptance of our products when evaluating the adequacy of the sales returns allowance in any accounting period.

We evaluate the criteria outlined in ASC 606-10-55, Principal versus Agent Considerations, in determining whether it is appropriate to record the gross amount of merchandise sales and related costs or the net amount earned as commissions. When we are the principal in a transaction and control the specific good or service before it is transferred to the customer, revenue is recorded gross; otherwise, revenue is recorded on a net basis. Through contractual terms with our partners, we have the ability to control the promised goods or services and as a result record the majority of our revenue on a gross basis.

Loyalty program

We have a customer membership program called welcome rewards+ for which we sell annual memberships. For welcome rewards+ memberships, we record membership fees as unearned revenue and we recognize revenue ratably over the membership period.

Members earn points which have a reward dollar equivalent for qualifying purchases made on our Bed Bath & Beyond website. As such, the initial transaction price giving rise to the reward dollar is allocated to each separate performance obligation based upon its relative standalone selling price. In determining the stand-alone selling price, we incorporate assumptions about the redemption rates of loyalty points. We recognize revenue for loyalty program reward dollars when customers redeem such rewards as part of a purchase on our Bed Bath & Beyond website.

We record the standalone value of reward dollars earned in unearned revenue at the time the reward dollars are earned. Loyalty program reward dollars expire 30 days after the customer's membership expires. We recognize estimated reward dollar breakage, to which we expect to be entitled, over the expected redemption period in proportion to actual redemptions by customers.

Advertising Revenue

Advertising revenues are derived primarily from sponsored links and display advertisements that are placed on our Website, distributed via email, or sent out as direct mailers. Advertising revenue is recognized in revenue when the advertising services are rendered. Advertising revenues were less than 3% of total net revenues for all periods presented.

Unearned Revenue

When the timing of our provision of goods or services is different from the timing of the payments made by our customers, we recognize a contract liability (customer payment precedes performance).

Customer orders are recorded as unearned revenue when payment is received prior to delivery of products or services ordered. We record amounts received for welcome rewards+ membership fees as unearned revenue and we recognize it ratably over the membership period. We record loyalty program reward dollars earned from purchases as unearned revenue at the time they are earned based upon the relative standalone selling price of the loyalty program reward dollar and we recognize it as revenue in proportion to the estimated pattern of rights exercised by the customer. If reward dollars are not redeemed, we recognize revenue upon expiration. In addition, we sell gift cards and record related unearned revenue at the time of the sale. We sell gift cards without expiration dates and we recognize revenue from a gift card upon redemption of the gift card. The unredeemed portion of our gift cards are recognized in revenue over the expected redemption period based upon the estimated pattern of rights exercised by the customer, if the gift cards are not subject to escheat laws.

Sales returns allowance
 
Revenue is recorded net of estimated returns. We record an allowance for returns based on current period revenues and historical returns experience. We analyze actual historical returns, current economic trends and changes in order volume and acceptance of our products when evaluating the adequacy of the sales returns allowance in any accounting period.
Cost of goods sold
 
Our cost of goods sold includes product costs, warehousing costs, outbound shipping costs, and handling and fulfillment costs, and is recorded in the same period in which related revenues have been recorded.

Advertising expense
 
We expense the costs of producing advertisements the first time the advertising takes place and expense the cost of communicating advertising in the period during which the advertising space or airtime is used. Internet advertising expenses are recognized as incurred based on the terms of the individual agreements, which are generally: 1) a commission for traffic driven to our Website that generates a sale or 2) a referral fee based on the number of clicks on keywords or links to our Website generated during a given period. Advertising expense is included in Sales and marketing expenses in our consolidated statements of operations. Prepaid advertising is included in Prepaids and other current assets in our consolidated balance sheets.

Stock-based compensation
 
We measure compensation expense for our outstanding unvested restricted stock awards at fair value on the date of grant and recognize compensation expense over the service period for awards at the greater of a straight-line basis or on an accelerated schedule when vesting of the share-based awards exceeds a straight-line basis. When an award is forfeited prior to the vesting date, we recognize an adjustment for the previously recognized expense in the period of the forfeiture. See Note 17—Stock-Based Awards.

We use the Black-Scholes option pricing model to determine the fair value of our employee stock purchase plan shares. The determination of the fair value of stock-based payment awards on the date of grant using an option pricing model is affected by our stock price and assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, a risk-free interest rate and any expected dividends.

We use the Monte-Carlo valuation model to determine the fair value of the portion of our performance shares and share options with market conditions. The determination of the fair value of stock-based payment awards on the date of grant using the Monte-Carlo valuation model is affected by our stock price and assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility, a risk-free interest rate, the probability of reaching the stock price performance targets, and a 20-trading-day average stock price. The portion of our performance shares with performance conditions are measured at fair value on the date of grant and the probability of the awards meeting the performance condition is not included in the grant date fair value, but is assessed quarterly for expense recognition. Compensation expense for these awards are recognized using a graded vesting schedule over the requisite service period. To the extent that a market-based vesting award is forfeited following completion of the requisite service period, compensation expense for accounting purposes is not reversed.

Loss contingencies
 
In the normal course of business, we are involved in legal proceedings and other potential loss contingencies. We accrue a liability for such matters when it is probable that a loss has been incurred and the amount, or range of amounts, can be reasonably estimated. When only a range of probable loss can be estimated, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. We expense legal fees as incurred (See Note 14—Commitments and Contingencies).
 
Income taxes
 
Income taxes are accounted for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available
positive and negative evidence, including projected future taxable income, scheduled reversals of our deferred tax liabilities, tax planning strategies, and results of recent operations. Our projections of future taxable income are subject to changes in how we do business, economic outlook, political climate, and other conditions such as supply chain challenges, inflation, rising interest rates, geopolitical events, and other macroeconomic conditions, and judgment is required in determining our ability to use our deferred tax assets.
We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated income statements. Accrued interest and penalties are included within the related tax liability line in our consolidated balance sheets.

Net loss per share

Basic net loss per common share is computed by dividing net loss attributable to common shares by the weighted average number of common shares outstanding during the period.

Diluted net loss per share is computed by dividing net loss attributable to common shares by the weighted average number of common and potential common shares outstanding during the period. Potential common shares, comprising incremental common shares issuable from the employee stock purchase plan, restricted stock awards, and warrants are included in the calculation of diluted net loss per common share to the extent such shares are dilutive.

Warrants

On September 22, 2025, the Company announced that its Board of Directors had declared a warrant dividend distribution (the "Warrant Distribution") to the record holders of the Company's common stock (the "Common Stock"), in the form of warrants to purchase common stock (the "Warrants"). Holders of Common Stock at the close of business on October 2, 2025 (the "Record Date") received one warrant for each ten shares of Common Stock then owned, rounded down to the nearest whole number. The Warrants were distributed to holders of common stock on the terms and conditions described in the Warrant Agreement, dated as of October 7, 2025, between the Company, Computershare, Inc., a Delaware corporation, and its affiliate, Computershare Trust Company, N.A., as Warrant Agent. The Warrants have a cash exercise price of $15.50 per Warrant, and will expire on October 7, 2026, unless the Early Expiration Price Condition (as defined in the Warrant Agreement) is met.

The Company accounts for the Warrants in accordance with the guidance in ASC Topic 815, Derivatives and Hedging ("ASC 815"). Accordingly, the warrants meet all of the requirements for equity classification under ASC 815 and are required to be recorded as a component of equity at the time of issuance. Warrants classified as equity are initially recognized at fair value and are not subsequently remeasured.

Recently adopted accounting standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities to disclose disaggregated information about a reporting entity's effective tax rate reconciliation as well as additional information on income taxes paid. For public entities, ASU 2023-09 is required to be adopted for annual periods beginning after December 15, 2024, with early adoption permitted. The Company adopted the provisions of ASU 2023-09 as of January 1, 2025. The adoption of ASU 2023-09 resulted in additional income tax disclosures in the Company's consolidated financial statements.

Recently issued accounting standards

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires public entities to disclose disaggregated information about certain income statement line items in the notes to the financial statements. For public entities, ASU 2024-03 is required to be adopted for annual periods beginning after December 15, 2026 and for interim periods beginning after December 15, 2027, with early adoption permitted. This ASU will result in us including the additional required disclosures when adopted and does not otherwise have a material impact on the Company's consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40), Targeted Improvements to the Accounting for Internal-Use Software, which clarified and modernizes the accounting for costs related to internal-use software. The amendments in ASU 2025-06 remove all references to project stages throughout Subtopic 350-40 and clarify the threshold entities apply to begin capitalizing costs. ASU 2025-06 is effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. This ASU will result in the Company adopting the new threshold to apply to begin capitalizing costs and does not otherwise have a material impact on the Company's consolidated financial statements.
v3.25.4
FAIR VALUE MEASUREMENT
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT
3. FAIR VALUE MEASUREMENT

The following tables summarize our assets and liabilities measured at fair value on a recurring basis using the following levels of inputs as of December 31, 2025 and 2024, as indicated (in thousands): 
 
Fair Value Measurements at December 31, 2025
 TotalLevel 1Level 2Level 3
Assets:    
Cash equivalents—Money market funds$22,717 $22,717 $— $— 
Equity securities, at fair value26,903 9,828 — 17,075 
Available-for-sale debt securities (1)18,417 — — 18,417 
Debt securities, at fair value (1)23,977 — 23,977 — 
Total assets$92,014 $32,545 $23,977 $35,492 
Liabilities:    
Loan commitments, at fair value (2)$2,766 $— $— $2,766 
Total liabilities$2,766 $— $— $2,766 
 
 
Fair Value Measurements at December 31, 2024
 TotalLevel 1Level 2Level 3
Assets:    
Cash equivalents—Money market funds$21,799 $21,799 $— $— 
Equity securities, at fair value21,640 — — 21,640 
Available-for-sale debt securities (1)10,985 — — 10,985 
Debt securities, at fair value (1)14,814 — — 14,814 
Total assets$69,238 $21,799 $— $47,439 
 ___________________________________________
(1)    Included in Other long-term assets, net in the consolidated balance sheets.
(2)    Included in Other long-term liabilities in the consolidated balance sheets.

The following table provides activity for our Level 3 investments during the periods presented (in thousands):
Amount
Level 3 investments at December 31, 2023
$51,530 
Increase due to purchases of Level 3 investments17,000 
Decrease in fair value of Level 3 investments(21,836)
Accrued interest on Level 3 investments745 
Level 3 investments at December 31, 2024
47,439 
Increase due to purchases of Level 3 investments16,266 
Transfers out of Level 3 investments(20,046)
Decrease in fair value of Level 3 investments(8,711)
Accrued interest, net on Level 3 investments544 
Level 3 investments at December 31, 2025
$35,492 
During the year ended December 31, 2025, there were $12.4 million of debt securities carried at fair value transferred from Level 3 to Level 2 due to significant observable inputs used in determining the fair value of these debt securities. Further, during the year ended December 31, 2025, there were $7.5 million of debt securities carried at fair value transferred from Level 3 to Level 1 due to the conversion of the $8.5 million convertible promissory note in TBHC into shares of TBHC common stock.
The following table provides activity for the Company's Level 3 liabilities (in thousands):
Amount
Level 3 liabilities at December 31, 2024
$— 
Fair value of Level 3 liabilities assumed2,766 
Level 3 liabilities at December 31, 2025
$2,766 
v3.25.4
ACCOUNTS RECEIVABLE, NET
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
ACCOUNTS RECEIVABLE, NET
4. ACCOUNTS RECEIVABLE, NET

Accounts receivable, net consist of the following (in thousands):
 December 31,
 20252024
Credit card receivables, trade$12,334 $9,614 
Accounts receivable, trade8,871 5,282 
Other receivables3,001 3,187 
24,206 18,083 
Less: allowance for credit losses(3,377)(2,236)
Total accounts receivable, net$20,829 $15,847 
v3.25.4
PREPAIDS AND OTHER CURRENT ASSETS
 12 Months Ended
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
PREPAIDS AND OTHER CURRENT ASSETS
5. PREPAIDS AND OTHER CURRENT ASSETS

Prepaids and other current assets consist of the following (in thousands):
 December 31,
 20252024
Prepaid maintenance$7,074 $8,924 
Prepaid other3,343 3,221 
Other current assets1,488 1,876 
Total prepaids and other current assets$11,905 $14,021 
v3.25.4
PROPERTY AND EQUIPMENT, NET
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET
6. PROPERTY AND EQUIPMENT, NET

Property and equipment, net consist of the following (in thousands):
 December 31,
 20252024
Computer hardware and software, including internal-use software and website development$186,022 $202,005 
Furniture and equipment1,630 4,098 
Leasehold improvements1,159 1,466 
188,811 207,569 
Less: accumulated depreciation(175,099)(184,025)
Total property and equipment, net$13,712 $23,544 
Capitalized costs associated with internal-use software and website development, both developed internally and acquired externally, and depreciation of costs for the same periods associated with internal-use software and website development consist of the following (in thousands):

Year ended December 31,
202520242023
Capitalized internal-use software and website development$6,727 $12,517 $11,296 
Depreciation of internal-use software and website development11,389 11,354 7,758 

Depreciation expense is classified within the corresponding operating expense categories in the consolidated statements of operations as follows (in thousands): 
Year ended December 31,
 202520242023
Cost of goods sold$90 $396 $711 
Technology15,055 17,150 14,414 
General and administrative319 464 3,751 
Total depreciation$15,464 $18,010 $18,876 
During the years ended December 31, 2025 and 2024, we retired $22.4 million and $58.6 million, respectively, of fully depreciated property and equipment that were removed from service in 2025 and 2024.
v3.25.4
INTANGIBLE ASSETS, NET
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS, NET
7. INTANGIBLE ASSETS, NET

On January 30, 2025, the Company entered into an Asset Purchase Agreement with BBBY Acquisition Co., LLC ("BBBY") to acquire certain intellectual property related to the buybuy BABY brand and closed the transaction on February 21, 2025. The Company acquired BBBY’s rights in the buybuy BABY brand, assets, information and content related to the associated buybuy BABY website, including trademarks, domain names, data, information, content, and select contractual rights, and goodwill associated with the brand for a total purchase price of $5.0 million which was paid at closing, and the assumption of certain contractual liabilities described therein. The aggregate purchase price, inclusive of contractual liabilities assumed and direct acquisition-related expenses, totaled $7.1 million which has been allocated to trade names, with an indefinite useful life.

On March 17, 2025, the Company entered into an Intellectual Property Asset Purchase Agreement with Lyons Trading Company, the operator of Proozy.com, to sell its rights in the Zulily brand for a total sales price of $5.0 million while retaining a 25% ownership stake in the brand in the form of a newly created entity ("Zulily Newco"). In connection with this transaction, the Company received $1.25 million upfront and will receive the remaining $3.75 million in quarterly installments commencing on April 30, 2026, over the course of five years, which is recorded as a long-term receivable and included in Other long-term assets, net in the consolidated balance sheets. The Company also recognized $1.57 million, which represents its 25% ownership stake in Zulily Newco, and is included in Equity securities in the consolidated balance sheets.

On June 30, 2025, the Company entered into a Trademark and Domain Name Agreement with a large, well-established Canadian retailer to sell certain intellectual property related to the Bed Bath & Beyond trademarks in Canada and the United Kingdom, which was acquired as part of its purchase of the Bed Bath & Beyond brand in June 2023, for a total sales price of $5.0 million, and revenue share payments to be paid to the Company in perpetuity. In July 2025, the Company received the $5.0 million cash proceeds. For the year ended December 31, 2025, the Company recognized the entire $5.0 million as a gain on the sale which is included in Other operating expense (income), net in the consolidated statements of operations.
On May 7, 2025, the Company entered into an Asset Purchase Agreement and on September 15, 2025, entered into an Amendment No. 1 to the Asset Purchase Agreement with The Brand House Collective to acquire certain trademarks and domain names comprised of or containing the element KIRKLAND'S (the "Kirkland's Brand") and certain related marks and brand assets for a total purchase price of $10.0 million. Concurrently, on September 15, 2025, the Company entered into an amendment to the existing trademark license agreement with The Brand House Collective, pursuant to which the Company agreed to license the Kirkland's Brand to The Brand House Collective for use in connection with certain goods and services. The total purchase price was paid at closing on September 15, 2025 concurrently with the assignment of the Kirkland's Brand to the Company. In connection with this transaction, the Company also transferred to The Brand House Collective noncash consideration in the form of Delayed Draw Term Loan Commitments valued at $2.8 million, which has also been included in the acquisition cost. See Note 14—Commitments and Contingencies, for further discussion of the agreement. The aggregate purchase consideration, inclusive of direct acquisition-related costs, totaled $12.9 million which has been allocated to trade names, with an indefinite useful life.

Intangible assets, net consist of the following (in thousands):
December 31,
 20252024
Intangible assets subject to amortization, gross (1)$5,645 $6,239 
Less: accumulated amortization of intangible assets(3,813)(3,145)
Intangible assets subject to amortization, net1,832 3,094 
Intangible assets not subject to amortization43,308 27,152 
Total intangible assets, net$45,140 $30,246 
___________________________________________
(1)    At December 31, 2025, the weighted average remaining useful life for intangible assets subject to amortization, gross was 2.3 years.
v3.25.4
EQUITY SECURITIES
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
EQUITY SECURITIES
8. EQUITY SECURITIES

Equity securities consist of the following (in thousands):
December 31,
20252024
Equity securities accounted for under the equity method under ASC 323$39,738 $56,546 
Equity securities accounted for under the equity method under the fair value option26,903 21,640 
Total equity securities$66,641 $78,186 

The Company's equity securities accounted for under the equity method under ASC 323 include equity securities in which the Company can exercise significant influence, but not control, over these entities through holding more than a 20% voting interest in the entity. During the year ended December 31, 2025, after stockholder approval was obtained from The Brand House Collective's stockholders, the Company funded the additional $8.0 million investment in The Brand House Collective in exchange for The Brand House Collective's common stock and converted the $8.5 million convertible promissory note (plus accrued interest) into shares of The Brand House Collective's common stock. After all transactions, the Company owns approximately 40% of The Brand House Collective's outstanding shares of common stock. In addition, as part of the sale of the Company's rights in the Zulily brand, the Company retained a 25% ownership stake in the brand in the form of a newly created entity, Zulily Newco. See Note 7—Intangible Assets, Net, for further information.

In August 2025, the members of SpeedRoute, LLC, a privately-held entity in which the Company held a minority interest, filed dissolution documents to wind down and dissolve SpeedRoute, LLC. There was no gain or loss recorded on dissolution.
The following table includes our equity securities accounted for under the equity method (ASC 323) and related ownership interest as of December 31, 2025:
Ownership
interest
Medici Ventures, L.P.99%
tZERO Group, Inc.26%
The Brand House Collective, Inc.40%
Zulily Newco25%

The carrying amount of our equity method securities was $66.6 million at December 31, 2025, which is included in Equity securities on our consolidated balance sheets, of which $26.9 million is valued under the fair value option (tZERO, The Brand House Collective, and Zulily Newco). Equity securities in The Brand House Collective are carried at fair value based on Level 1 inputs. The aggregate fair value of the equity securities in The Brand House Collective at December 31, 2025, was $9.8 million. Equity securities in tZERO and Zulily Newco are valued using Level 3 inputs, which represents 18.6% of assets measured at fair value. For our equity method investments, there are no differences in the carrying amount of the assets and liabilities and our maximum exposure to loss, and there is no difference between the carrying amount of our investment in Medici Ventures, L.P. and the amount of underlying equity we have in the entity's net assets.

The following table summarizes the net loss recognized on equity method securities recorded in Other expense, net in our consolidated statements of operations (in thousands):
Year ended December 31,
202520242023
Net loss recognized on our proportionate share of the net assets of our equity method securities$(16,808)$(58,281)$(98,663)
Decrease in fair value of equity method securities held under fair value option(11,820)(19,406)(41,741)

Regulation S-X Rules 4-08(g) and 3-09

In accordance with SEC Rules 4-08(g) and 3-09 of Regulation S-X, we must determine which, if any, of our equity method securities is a "significant subsidiary". Regulation S-X mandates the use of three different tests to determine if any of our equity securities are significant subsidiaries: the investment test, the asset test, and the income test. The table below provides the summarized financial information required by Rule 4-08(g) for those equity method securities in aggregate that have met the significance criteria, using the equity method securities' most recently available year-to-date financial statements (in thousands):
December 31,
Balance Sheet20252024
Assets$326,187 $63,546 
Liabilities(294,398)(17,985)
Equity$(31,789)$(45,561)

Year ended December 31,
Results of Operations202520242023
Revenues$263,572 $12,086 $26,404 
Pre-tax loss(62,771)(20,778)(19,895)
Net loss(62,848)(20,777)(20,169)
Medici Ventures, L.P. was deemed not significant for the year ended December 31, 2025 under Rule 3-09 of Regulation S-X, but was significant for the periods ended September 30, 2024 and 2023, their fiscal year-ends, and as such, in accordance with Rule 3-09 of Regulation S-X, separate financial statements for the periods ended September 30, 2024 and 2023 are being included as Exhibit 99.2 and Exhibit 99.1, respectively, and as such are excluded from the table above. In addition, tZERO was deemed not significant for the years ended December 31, 2025 and 2024, but was significant for the year ended December 31, 2023. In accordance with Rule 3-09 of Regulation S-X, separate audited financial statements for tZERO for the year ended December 31, 2023 is being included as Exhibit 99.3.
v3.25.4
OTHER LONG-TERM ASSETS, NET
 12 Months Ended
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER LONG-TERM ASSETS, NET
9. OTHER LONG-TERM ASSETS, NET

Other long-term assets, net consist of the following (in thousands):
 December 31,
 20252024
Debt securities carried at fair value$23,977 $14,814 
Available-for-sale debt securities18,417 10,985 
Prepaid other, long-term portion2,115 3,242 
Other long-term assets4,045 412 
Total other long-term assets, net$48,554 $29,453 
v3.25.4
ACCRUED LIABILITIES
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
ACCRUED LIABILITIES
10. ACCRUED LIABILITIES

Accrued liabilities consist of the following (in thousands):
 December 31,
 20252024
Accrued marketing expenses$12,189 $27,935 
Accrued compensation and other related costs7,827 8,345 
Allowance for returns7,722 9,526 
Accrued freight6,452 4,962 
Sales and other taxes payable6,121 6,205 
Accounts payable accruals3,879 12,743 
Other accrued expenses7,107 3,898 
Total accrued liabilities$51,297 $73,614 
v3.25.4
BORROWINGS
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
BORROWINGS
11. BORROWINGS

Revolving line of credit

In October 2024, the Company entered into a Loan and Security Agreement (the "Loan Agreement") with BMO Bank N.A. (in such capacity, "BMO"), pursuant to which BMO agrees to lend the Company up to $25.0 million on a one-year revolving line of credit to aid the Company in securing strategic ventures. In connection with the Loan Agreement, BMO issued a revolving line of credit promissory note (the "Revolving Note") and granted a lien on the cash collateral account specified in the Loan Agreement (the "Cash Collateral Account"). The revolving line of credit bears interest on the unpaid principal balance at an annual rate equal to the Secured Overnight Financing Rate, or SOFR rate, for a one-month interest period plus 1.00%, established by the Federal Reserve Bank of New York. The Company is obligated to pay certain commitment fees on undrawn amounts under the Loan Agreement in amounts specified in the Loan Agreement. The Loan Agreement and Revolving Note was originally scheduled to terminate on October 18, 2025, and loans thereunder may be borrowed, repaid, and reborrowed up to such date. In September 2025, the Company and BMO extended the term of the Loan Agreement and Revolving Note for an additional year, and it will now terminate in October 2026.

As of December 31, 2025, the Company had $7.0 million of outstanding standby letter of credits under the Revolving Note. As of December 31, 2025, the outstanding balance on the line of credit was $15.5 million. Our total outstanding debt on the line of credit is included in Short-term debt, net on our consolidated balance sheets.
The Loan Agreement is subject to limited affirmative covenants and negative covenants, including the requirement that the Company maintain cash in the Cash Collateral Account in an amount that is three percent greater than BMO's aggregate commitments under the Loan Agreement. We are in compliance with our debt covenants and continue to monitor our ongoing compliance with our debt covenants.
v3.25.4
LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
LEASES
12. LEASES

We have operating leases for office space and a data center. Our leases have remaining lease terms of two years to seven years, some of which may include options to extend the leases perpetually, and some of which may include options to terminate the leases within one year. Variable lease costs include executory costs, such as taxes, insurance, and maintenance.

The components of lease expense were as follows (in thousands):
Year ended December 31,
202520242023
Operating lease cost$2,074 $3,240 $5,257 
Variable lease cost929 906 1,300 

The following tables provides a summary of other information related to leases (in thousands):
Year ended December 31,
202520242023
Cash payments included in operating cash flows from lease arrangements$1,628 $3,253 $5,500 
Right-of-use assets obtained in exchange for new operating lease liabilities— 7,170 836 

The following table provides a summary of balance sheet information related to leases:
December 31,
20252024
Weighted-average remaining lease term—operating leases6.76 years6.65 years
Weighted-average discount rate—operating leases7 %6 %
    
Maturity of lease liabilities under our non-cancellable operating leases as of December 31, 2025, are as follows (in thousands):
Payments due by period 
2026$1,285 
20271,150 
20281,099 
20291,132 
20301,040 
Thereafter2,457 
Total lease payments 8,163 
Less interest1,592 
Present value of lease liabilities$6,571 
v3.25.4
OTHER LONG-TERM LIABILITIES
 12 Months Ended
Dec. 31, 2025
Other Liabilities Disclosure [Abstract]  
OTHER LONG-TERM LIABILITIES
13. OTHER LONG-TERM LIABILITIES

Other long-term liabilities consist of the following (in thousands):
 December 31,
 20252024
Unearned revenue, long-term portion$2,432 $4,583 
Income taxes payable, long-term portion3,530 3,675 
Other long-term liabilities3,783 (349)
Total other long-term liabilities$9,745 $7,909 
v3.25.4
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
14. COMMITMENTS AND CONTINGENCIES

Legal proceedings and contingencies
 
From time to time, we are involved in litigation concerning consumer protection, employment, intellectual property, claims under the securities laws, and other commercial matters related to the conduct and operation of our business and the sale of products on our Website. In connection with such litigation, we have been in the past and we may be in the future subject to judgments requiring us to pay significant damages or associated costs. In some instances, other parties may have contractual indemnification obligations to us. However, such contractual obligations may prove unenforceable or non-collectible, and if we cannot enforce or collect on indemnification obligations, we may bear the full responsibility for damages, fees, and costs resulting from such litigation. As a result of such litigation, we may also be subject to penalties and equitable remedies that could force us to alter important business practices. Such litigation could be costly and time consuming and could divert or distract our management and key personnel from our business operations. Due to the uncertainty of litigation and depending on the amount and the timing, an unfavorable resolution of some or all of such matters could materially affect our business, results of operations, financial position, or cash flows.

We establish liabilities when a particular contingency is probable and estimable which are included in Accrued liabilities in our consolidated balance sheets. At December 31, 2025 and 2024, our established liabilities were not material.

Delayed Draw Term Loan Commitments

In September 2025, pursuant to the terms of the Amended Credit Agreement, and subsequently amended in November 2025 pursuant to the Second Amendment, the Company extended delayed-draw term loan commitments (the "Delayed Draw Term Loan Commitments") in the aggregate original principal amount of $30.0 million to The Brand House Collective, Inc. Any loans extended pursuant to the Delayed Draw Term Loan Commitments are convertible by the Company into equity of The Brand House Collective, on the terms set forth in, and subject to further conditions specified in the Amended Credit Agreement. The Delayed Draw Term Loan Commitments require the Company to originate a loan at a floating interest rate plus an agreed margin upon request from the borrower, so long as the conditions specified in the Amended Credit Agreement with respect to the origination of such loan are satisfied.
The Delayed Draw Term Loan Commitments had a notional amount of $20.0 million outstanding at December 31, 2025 and zero at December 31, 2024, respectively. We have elected to record the Delayed Draw Term Loan Commitments at fair value. The fair value of the Delayed Draw Term Loan Commitments is a net liability of $2.8 million at December 31, 2025 and zero at December 31, 2024, respectively, and is included in the Other long-term liabilities line of our consolidated balance sheets.
v3.25.4
INDEMNIFICATIONS AND GUARANTEES
 12 Months Ended
Dec. 31, 2025
INDEMNIFICATIONS AND GUARANTEES  
INDEMNIFICATIONS AND GUARANTEES
15. INDEMNIFICATIONS AND GUARANTEES
 
During our normal course of business, we have made certain indemnities, commitments, and guarantees under which we may be required to make payments in relation to certain transactions. These indemnities include, but are not limited to, indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease, the environmental indemnity we entered into in favor of the lenders under our prior loan agreements, customary indemnification arrangements in underwriting agreements and similar agreements, and indemnities to our directors and officers to the maximum extent permitted under the laws of the State of Delaware. The duration of these indemnities, commitments, and guarantees varies, and in certain cases, is indefinite. In addition, the majority of these indemnities, commitments, and guarantees do not provide for any limitation of the maximum potential future payments we could be obligated to make. As such, we are unable to estimate with any reasonableness our potential exposure under these items. We have not recorded any liability for these
indemnities, commitments, and guarantees in the accompanying consolidated balance sheets. We do, however, accrue losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is both probable and reasonably estimable.
v3.25.4
STOCKHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2025
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY
16. STOCKHOLDERS' EQUITY

Common Stock

Each share of common stock has the right to one vote. The holders of common stock are also entitled to receive dividends declared by the Board of Directors out of funds legally available, subject to prior rights of holders of all classes of stock outstanding having priority rights as to dividends.

JonesTrading Sales Agreement

We entered into a Capital on DemandTM Sales Agreement (the "Sales Agreement") dated June 10, 2024 with JonesTrading Institutional Services LLC ("JonesTrading"), under which we conducted and may in the future conduct "at the market" public offerings of our common stock. Under the Sales Agreement, JonesTrading, acting as our sales agent or principal, may offer our common stock in the market on a daily basis or otherwise as we request from time to time. We have no obligation to sell additional shares under the Sales Agreement, but we may do so from time to time. For the year ended December 31, 2025, we sold 16,293,806 shares of our common stock pursuant to the Sales Agreement and have recognized $137.3 million in proceeds, net of $2.8 million of offering costs, including commissions paid to JonesTrading. For the year ended December 31, 2024, we sold 7,002,375 shares of our common stock pursuant to the Sales Agreement and have recognized $43.0 million in proceeds, net of $879,000 of offering costs, including commissions paid to JonesTrading. For the year ended December 31, 2023, we did not sell any shares of our common stock pursuant to the Sales Agreement. As of December 31, 2025, we had $16.0 million remaining available under our "at the market" sales program.

Stock Repurchase Program

On August 17, 2021, we announced that our Board of Directors had approved a stock repurchase program (the "Repurchase Program"), pursuant to which we may, from time to time, purchase shares of our outstanding common stock for an aggregate repurchase price not to exceed $100.0 million at any time through December 31, 2023. On December 21, 2023, we announced that our Board of Directors approved an extension and expansion of the Repurchase Program for an additional two years and expanded the repurchase amount by $50.0 million, for a total repurchase amount of up to $150.0 million of our common stock. The Repurchase Program expired in December 2025.

Repurchases under the Repurchase Program may be effected through open market purchases. The Repurchase Committee designated by the Board of Directors will determine the actual timing, number, and value of any shares repurchased under the Repurchase Program in its discretion using factors including, but not limited to, our stock price and trading volume, general market conditions, and the ongoing assessment of our capital needs. There is no assurance of the number or aggregate price of any shares that we will ultimately repurchase under the Repurchase Program, which may be extended, suspended, or terminated at any time by the Board of Directors.

For the year ended December 31, 2025, we repurchased $6.2 million of our common stock under our stock repurchase program at an average price of $6.87 per share. For the years ended December 31, 2024 and 2023, we did not repurchase any shares of our common stock under the Repurchase Program.

Warrants

On September 22, 2025, the Company announced that its Board of Directors had declared a warrant dividend distribution (the "Warrant Distribution") to the record holders of the Company's common stock (the "Common Stock"), in the form of warrants to purchase common stock (the "Warrants"). Holders of Common Stock at the close of business on October 2, 2025 (the "Record Date") received one warrant for each ten shares of Common Stock then owned, rounded down to the nearest whole number. The Warrants were distributed to holders of common stock on the terms and conditions described in the Warrant Agreement, dated as of October 7, 2025, between the Company, Computershare, Inc., a Delaware corporation, and its affiliate, Computershare Trust Company, N.A., as Warrant Agent. The Warrants have a cash exercise price of $15.50, and will expire on October 7, 2026, unless the Early Expiration Price Condition (as defined in the Warrant Agreement) is met.
For the year ended December 31, 2025, one warrant was exercised. As of December 31, 2025, 6.9 million Warrants remained outstanding.
v3.25.4
STOCK-BASED AWARDS
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED AWARDS
17. STOCK-BASED AWARDS

We have equity incentive and compensatory plans that provide for the grant of stock-based awards, including restricted stock and performance shares, to employees and board members. Those plans include the Company's Amended and Restated 2005 Equity Incentive Plan (the "Plan") and the newly adopted Bed Bath & Beyond, Inc. 2025 Employment Inducement Equity Incentive Plan (the "Inducement Plan") (collectively, the "Plans"). Employee accounting applies to equity incentives and compensation granted by the Company to its own employees. When an award is forfeited prior to the vesting date, we recognize an adjustment for the previously recognized expense in the period of the forfeiture.

Stock-based compensation expense is classified within the corresponding operating expense categories on our consolidated statements of operations as follows (in thousands):
Year ended December 31,
 202520242023
Cost of goods sold$6 $7 $37 
Sales and marketing332 594 796 
Technology1,747 6,263 8,733 
General and administrative8,768 12,391 13,452 
Total stock-based compensation expense$10,853 $19,255 $23,018 

For the year ended December 31, 2025, there was a total $14.8 million of unrecognized compensation cost related to unvested restricted stock units, performance shares, and share options, which is expected to be recognized over a weighted-average period of approximately 2.09 years. At December 31, 2025, 1.1 million shares of stock remained available for future grants under the Plans.

Restricted stock unit awards

The Plans provide for the grant of restricted stock units and other types of equity awards to employees and directors of the Company. The Compensation Committee of the Board of Directors approves grants of restricted stock unit awards to our officers, board members and employees. These restricted stock unit awards generally vest on an annual ratable basis over a period of three to four years. During the year ended December 31, 2025, we granted 1.8 million restricted stock unit awards under the Plan. In addition, during the year ended December 31, 2025, we granted 0.3 million restricted stock unit awards under the Inducement Plan to eligible recipients.

The cost of restricted stock units is determined using the fair value of our common stock on the date of the grant and compensation expense is either recognized on a straight-line basis over the vesting schedule or on an accelerated schedule when vesting of restricted stock awards exceeds a straight-line basis. The cumulative amount of compensation expense recognized at any point in time is at least equal to the portion of the grant date fair value of the award that is vested at that date. 

Performance Shares

During the year ended December 31, 2025, we granted 0.8 million performance-based shares ("PSUs") to our executive management team under the Plan. For the 2025 PSUs granted, each grant of PSUs is eligible to vest based on achieving three performance metrics, with 50% of the grant subject to achievement of an Adjusted EBITDA goal, 25% of the grant subject to a Gross Margin goal, and the remaining 25% of the grant subject to a Contribution Margin goal, with a potential maximum payout of 135% of the "Target" number of PSUs. In addition, during the year ended December 31, 2025, we granted 0.2 million PSUs under the Inducement Plan to eligible recipients. To the extent any of the PSUs become earned based on the Company's achievement of the three aforementioned performance metrics, such earned PSUs will vest as to one-third of the earned PSUs on each of the first, second, and third anniversaries of the grant date, subject to the recipient’s continued service through the vesting date. To be eligible to vest in any tranche of the PSUs, the Company must meet the threshold performance metrics established for the performance period. Expense is recognized as compensation cost based on the fair value on the date of grant over the performance period, taking into account the probability that the Company will satisfy the performance goals.
Stock-based compensation related to the PSUs is included in the stock-based compensation expense table above combined with the expense associated with our restricted stock units, share options, and ESPP. Stock-based compensation related to the PSUs was a credit of $17,000 due to staff-related reductions and $5.9 million for the years ended December 31, 2025 and 2024, respectively.

The following table summarizes restricted stock unit and PSU award activity (in thousands, except fair value data):
 202520242023
 UnitsWeighted
Average
Grant Date
Fair Value		UnitsWeighted
Average
Grant Date
Fair Value		UnitsWeighted
Average
Grant Date
Fair Value
Outstanding—beginning of year1,314 $20.98 984 $29.60 781 $50.17 
Granted at fair value3,035 6.28 1,818 19.73 1,101 20.92 
Vested(366)23.40 (441)35.33 (550)40.27 
Forfeited(946)13.75 (1,047)18.89 (348)31.43 
Outstanding—end of year3,037 $8.21 1,314 $20.98 984 $29.60 

Share Options

During the year ended December 31, 2024, we granted a stock option award with market conditions tied to our common stock price, to purchase 2.3 million shares of our common stock to our Executive Chairman and Chief Executive Officer (the "Share Options"). The Share Options will be eligible to vest in three installments upon the achievement of three separate stock price hurdles during the four-year period following the grant date. The weighted-average grant date fair value per share for the Share Options was $3.37. Stock-based compensation related to the Share Options is included in stock-based compensation expense table above combined with the expense associated with our restricted stock units, PSUs, and ESPP. Stock-based compensation related to the Share Options was $3.3 million and $2.4 million for the years ended December 31, 2025 and 2024, respectively.

The following table summarizes Share Options award activity for the year ended December 31, 2025 (in thousands, except fair value data and remaining contractual term):

 UnitsWeighted
Average
Exercise Price Per Share		Weighted Average Contractual Term Remaining (Years)Aggregate Intrinsic Value
Outstanding—beginning of year2,250 $53.33 
Granted at fair value— — 
Vested— — 
Forfeited— — 
Outstanding—end of year2,250 $53.33 1.36$— 
Vested and expected to vest as of December 31, 2025
2,250 $53.33 1.36$— 
Vested and exercisable as of December 31, 2025
— $— — $— 

Employee Stock Purchase Plan

The 2021 Employee Stock Purchase Plan (the "ESPP") grants our eligible employees a right to purchase shares of our common stock at a discount through payroll deductions of up to 25% of eligible compensation, subject to a cap of $21,250 in any calendar year. The ESPP provides for consecutive 24-month offering periods beginning March 1 and September 1 of each year. Each offering period shall consist of four consecutive six-month purchase periods. The first offering period under the ESPP commenced on September 1, 2021, with the first purchase date occurring on February 28, 2022.
On each purchase date, participating employees will purchase shares of our common stock at a price per share equal to 85% of the lesser of the fair market value of our common stock on (i) the offering date of the offering period or (ii) the purchase date (the "look-back" period). If the stock price of our common stock on any purchase date in an offering period is lower than the stock price on the offering date of that offering period, every participant in the offering will automatically be withdrawn from the offering after the purchase of shares on such purchase date and automatically enrolled in a new offering period commencing immediately subsequent to such purchase date.

The maximum number of shares of common stock that may be issued under the ESPP in aggregate is 3.0 million shares. For the years ended December 31, 2025, 2024, and 2023, 0.1 million shares, 0.1 million shares, and 0.1 million shares, respectively were purchased at an average price per share of $5.32, $12.23, and $16.25, respectively. At December 31, 2025, approximately 2.5 million shares of common stock remained available under the ESPP.

The ESPP is considered a compensatory plan and the fair value of the discount and the look-back period will be estimated using the Black-Scholes option pricing model and expense will be recognized straight-line over the 24-month offering period. We recognized $0.7 million, $1.1 million and $1.7 million in share-based compensation expense related to the ESPP for the years ended December 31, 2025, 2024 and 2023, respectively, which are included in the stock compensation expense table above combined with the expense associated with our restricted stock units, PSUs, and share options.
v3.25.4
EMPLOYEE RETIREMENT PLAN
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
EMPLOYEE RETIREMENT PLAN
18. EMPLOYEE RETIREMENT PLAN

We have a 401(k) defined contribution plan which permits participating employees to defer a portion of their compensation, subject to limitations established by the Internal Revenue Code. During the years ended December 31, 2025, 2024 and 2023, employees who completed 30 days of service and are 18 years of age or older are qualified to participate in the plan on the first of a month following 30 days of service, which matches 100% of the first 6% of each participant's contributions to the plan subject to IRS limits. Matching contributions vest immediately. Participant contributions also vest immediately. Our matching contribution totaled $2.9 million, $4.3 million and $5.0 million for the years ended December 31, 2025, 2024 and 2023, respectively. We made no discretionary contributions to eligible participants for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
REVENUE AND CONTRACT LIABILITY
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE AND CONTRACT LIABILITY
19. REVENUE AND CONTRACT LIABILITY

Unearned revenue
 
Unearned revenue consists of the following (in thousands):
 December 31,
 20252024
Unearned product revenue on undelivered product$11,170 $11,192 
In store credits10,875 11,462 
Loyalty program membership fees and reward points6,429 13,918 
Unearned product revenue on unshipped orders3,911 3,610 
Other2,044 2,913 
Total unearned revenue$34,429 $43,095 
The following table provides information about unearned revenue from contracts with customers, including significant changes in unearned revenue balances during the period (in thousands):
Amount
Unearned revenue at December 31, 2023$49,597 
Increase due to deferral of revenue at period end, net32,802 
Decrease due to beginning contract liabilities recognized as revenue(39,304)
Unearned revenue at December 31, 202443,095 
Increase due to deferral of revenue at period end, net24,725 
Decrease due to beginning contract liabilities recognized as revenue(33,391)
Unearned revenue at December 31, 2025$34,429 

Our total unearned revenue related to outstanding loyalty program rewards was $4.1 million and $11.1 million at December 31, 2025 and 2024, respectively. Breakage income related to loyalty program rewards and gift cards is recognized in Net revenue in our consolidated statements of operations. Breakage included in revenue was $11.1 million, $7.2 million, and $5.1 million for the years ended December 31, 2025, 2024, and 2023, respectively. The timing of revenue recognition of these reward dollars is driven by actual customer activities, such as redemptions and expirations. At December 31, 2025 and 2024, we had an additional $2.4 million and $4.6 million, respectively, of unearned contract revenue classified within Other long-term liabilities on our consolidated balance sheets.

Sales returns allowance
 
The following table provides additions to and deduction from the sales returns allowance, which is included in our Accrued liabilities balance in our consolidated balance sheets (in thousands):
Amount
Allowance for returns at December 31, 2022$10,222 
Additions to the allowance121,939 
Deductions from the allowance(123,510)
Allowance for returns at December 31, 20238,651 
Additions to the allowance105,353 
Deductions from the allowance(104,478)
Allowance for returns at December 31, 20249,526 
Additions to the allowance87,835 
Deductions from the allowance(89,639)
Allowance for returns at December 31, 2025$7,722 
v3.25.4
INTEREST INCOME, NET
 12 Months Ended
Dec. 31, 2025
Banking and Thrift, Interest [Abstract]  
INTEREST INCOME, NET
20. INTEREST INCOME, NET

Interest income, net consisted of the following (in thousands):
 Year ended December 31,
 202520242023
Interest income$6,226 $8,968 $13,769 
Interest expense(1,174)(2,203)(1,762)
Total interest income, net$5,052 $6,765 $12,007 
v3.25.4
OTHER EXPENSE, NET
 12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
OTHER EXPENSE, NET
21. OTHER EXPENSE, NET

Other expense, net consisted of the following (in thousands):
 Year ended December 31,
 202520242023
Loss from equity method securities$(28,628)$(77,687)$(140,404)
Gain (loss) on debt securities carried at fair value1,439 (2,430)— 
Gain on disposal of cryptocurrencies— — 6,361 
Other(446)(672)(106)
Total other expense, net $(27,635)$(80,789)$(134,149)
v3.25.4
INCOME TAXES
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES
22. INCOME TAXES
    
For financial reporting purposes, loss before income taxes includes the following components (in thousands):
 Year ended December 31,
 202520242023
United States loss$(85,491)$(259,395)$(267,058)
Foreign income1,695 1,284 936 
Total loss before income taxes$(83,796)$(258,111)$(266,122)

The provision for income taxes for 2025, 2024 and 2023 consists of the following (in thousands):
 Year ended December 31,
 202520242023
Current:   
Federal$— $— $(55)
State and local50 167 369 
Foreign302 233 58 
Total current352 400 372 
Deferred:   
Federal197 119 37,160 
State and local216 118 4,201 
Foreign60 47 (13)
Total deferred473 284 41,348 
Total income taxes:
Federal197 119 37,105 
State and local266 285 4,570 
Foreign362 280 45 
Total provision for income taxes$825 $684 $41,720 
The provision for income taxes for 2025, 2024 and 2023 differ from the amounts computed by applying the U.S. federal income tax rate of 21% to loss before income taxes for the following reasons (in thousands):
 Year ended December 31,
 202520242023
AmountPercentAmountPercentAmountPercent
U.S. federal income tax benefit at statutory rate$(17,597)21.00 %$(54,203)21.00 %$(55,886)21.00 %
State income tax expense, net of federal benefit (1)411 (0.49)293 (0.11)4,419 (1.66)
Foreign tax effects(31)0.04 112 (0.04)(78)0.03 
Effect of cross-border tax laws316 (0.38)298 (0.12)(736)0.28 
Tax credits
Federal research and development tax credit(815)0.97 (2,071)0.80 (3,245)1.22 
Changes in federal valuation allowance16,510 (19.70)53,962 (20.91)93,855 (35.27)
Nontaxable or nondeductible items
Stock-based compensation expense976 (1.16)684 (0.27)2,405 (0.90)
Non-deductible executive compensation1,323 (1.58)1,286 (0.50)762 (0.29)
Changes in unrecognized tax benefits(549)0.66 54 (0.02)151 (0.06)
Other281 (0.34)269 (0.10)73 (0.03)
Effective income tax rate$825 (0.98)%$684 (0.27)%$41,720 (15.68)%
 ___________________________________________
(1)    State taxes in California, New York, Oregon, and Texas make up a majority (greater than 50 percent) of the tax effect in this category for the current year.
The amounts of cash income taxes paid, net of refunds for 2025, 2024, and 2023 are as follows (in thousands):
 Year ended December 31,
 202520242023
U.S. federal$(300)*$300 
U.S. state and local
California**(383)
Colorado*(29)*
Connecticut*(13)*
Illinois(26)**
Kansas(72)**
Kentucky*12 *
Maine*(10)*
Massachusetts(25)**
Michigan*(36)*
Minnesota*(58)57 
New Hampshire*(15)*
New Jersey*(152)140 
North Carolina**26 
Oregon66 51 72 
Pennsylvania(93)*48 
Texas79 93 139 
Wisconsin*(9)(30)
Other(11)4 128 
Total U.S. state and local(82)(162)197 
Foreign***
Total income taxes paid, net of (refunds)$(382)$(162)$497 
 ___________________________________________
*    The amount of income taxes paid, net of refunds during the year does not meet the five percent disaggregation threshold.
The components of our deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows (in thousands):
 December 31,
 20252024
Deferred tax assets:  
Net operating loss carryforwards$110,222 $73,925 
Basis difference in equity securities50,608 53,335 
Research and development tax credits26,837 26,040 
Capitalized software development10,852 33,064 
Capital loss carryforward9,270 — 
Unearned revenue4,766 7,324 
Accrued expenses3,931 3,325 
Reserves and other2,186 2,270 
Operating lease liabilities1,629 1,902 
Other tax credits and carryforwards262 261 
Gross deferred tax assets220,563 201,446 
Valuation allowance(216,444)(195,742)
Total deferred tax assets4,119 5,704 
Deferred tax liabilities:
Property and equipment, net(1,610)(3,378)
Operating lease right-of-use assets(1,267)(1,664)
Intangible assets(1,598)(487)
Prepaid expenses(310)(368)
Total deferred tax liabilities(4,785)(5,897)
Total deferred tax assets (liabilities), net$(666)$(193)

At December 31, 2025, we have federal net operating loss carryforwards with no expiration date of approximately $438.4 million; the utilization of these net operating loss carryforwards is limited to 80% of taxable income in any given year. We have state net operating loss carryforwards with no expiration date of approximately $139.3 million; the utilization of these net operating loss carryforwards is limited to 80% of taxable income in the state in any given year. We have state net operating loss carryforwards of approximately $225.6 million that expire between 2033 and 2045. We have capital loss carryforwards of approximately $36.5 million that expire between 2027 and 2030.

At December 31, 2025, we have federal research credit carryforwards of approximately $32.1 million that expire between 2031 and 2045. We also have state research credit carryforwards of approximately $9.1 million that expire between 2026 and 2038. Ownership changes under Internal Revenue Code Section 382 could limit the amount of net operating losses or credit carryforwards that can be used in the future.

Each quarter we assess on a jurisdictional basis whether it is more likely than not that our deferred tax assets will be realized under ASC Topic 740. We have no carryback ability, and therefore we must rely on future taxable income, including tax planning strategies and future reversals of taxable temporary differences, to recover our deferred tax assets. We assess available positive and negative evidence to estimate whether we will generate sufficient future taxable income to use our existing deferred tax assets. A significant piece of objective negative evidence evaluated as of December 31, 2025, is our cumulative loss position over a three-year period. Such objective negative evidence limits our ability to consider other more subjective evidence such as our projections for future growth. On the basis of this evaluation we intend to maintain a valuation allowance against our deferred tax assets for the U.S. jurisdiction, not supported by reversals of taxable temporary differences. For the year ended December 31, 2025, the total increase in the valuation allowance was $20.7 million. We intend to continue maintaining a valuation allowance on our net U.S. deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. The amount of the deferred tax asset considered realizable could be adjusted if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for growth. We will continue to monitor the need for a valuation allowance against our deferred tax assets on a quarterly basis.
A reconciliation of the beginning and ending unrecognized tax benefits, excluding interest and penalties, as of December 31, 2025, 2024 and 2023 is as follows (in thousands):
 Year ended December 31,
 202520242023
Beginning balance$15,689 $15,020 $13,488 
Additions for tax positions related to the current year386 1,121 1,258 
Additions (reductions) for tax positions taken in prior years(896)(452)274 
Ending balance$15,179 $15,689 $15,020 

Included in the balance of unrecognized tax benefits as of December 31, 2025, 2024 and 2023, are approximately $15.2 million, $15.7 million, and $15.0 million, respectively, of tax benefits that, if recognized, and the valuation allowance against our net deferred tax assets were released, would affect the effective tax rate.

Accrued interest and penalties on unrecognized tax benefits as of December 31, 2025 and 2024 were $1.5 million and $1.4 million, respectively.

We are subject to taxation in the United States and various state and foreign jurisdictions. Tax years beginning in 2021 are subject to examination by taxing authorities, although net operating loss and credit carryforwards from all years are subject to examinations and adjustments for at least three years following the year in which the attributes are used.

As we repatriate foreign earnings for use in the United States, the distributions will generally be exempt from federal and foreign income taxes but may be subject to certain state taxes. As of December 31, 2025, the cumulative amount of foreign earnings considered permanently reinvested upon which taxes have not been provided, and the corresponding unrecognized deferred tax liability, was not material.
v3.25.4
NET LOSS PER SHARE
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
NET LOSS PER SHARE
23. NET LOSS PER SHARE

The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated (in thousands, except per share data):
 Year ended December 31,
 202520242023
Numerator:
Net loss attributable to common stockholders$(84,621)$(258,795)$(307,842)
Denominator:
Weighted average shares of common shares outstanding—basic60,130 46,542 45,214 
Weighted average shares of common shares outstanding—diluted60,130 46,542 45,214 
Net loss per share of common stock:
Basic$(1.41)$(5.56)$(6.81)
Diluted$(1.41)$(5.56)$(6.81)

The following shares were excluded from the calculation of diluted shares outstanding as their effect would have been anti-dilutive (in thousands):
 Year ended December 31,
 202520242023
Restricted stock units, PSUs, and Share Options2,321 2,647 984 
Employee stock purchase plan222 190 186 
Warrants6,884 — — 
v3.25.4
BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
24. BUSINESS SEGMENTS

The Company currently has one reportable segment, which is its Retail business. The reportable segment is comprised of the Company's Bed Bath & Beyond operating segment and Overstock.com operating segment which primarily sells home goods products to customers. Across each operating segment, the Company offers customers similar products, source from overlapping suppliers, the same customer type, have similar distribution methods, and operate under the same regulatory environment. The Company has determined that each of its operating segments share similar economic characteristics and business activities and are aggregated into a single reportable Retail segment. The Bed Bath & Beyond operating segment includes results from its buybuy BABY brand, which are not material to the business and are not separately reviewed by the Chief Operating Decision Maker. The Retail segment primarily derives revenues from e-commerce sales of home furnishing merchandise through its suite of websites and mobile applications.

The accounting policies of the Retail segment are the same as those described in the summary of significant accounting policies. The Chief Operating Decision Maker (CODM), who is the Company's Principal Executive Officer, assesses performance for the Retail segment and decides how to allocate resources based on Operating Income (loss) that also is reported on the Consolidated Statements of Operations. The measure of segment assets is reported on the Consolidated Balance Sheet as Cash and Cash Equivalents.

The CODM uses Operating Income (Loss) to evaluate income generated from segment resources in deciding whether to reinvest profits into the Retail segment or for other uses, such as to make acquisitions or investments. The CODM also uses Operating Income (Loss) to monitor budget versus actual results. The monitoring of budgeted versus actual results is used in assessing performance of the segment and in establishing bonus metrics.

The following table summarizes the Company's segment revenue, significant segment expenses, other segment items, and segment loss (in thousands):
Year ended December 31,
202520242023
Net revenue
$1,044,616 $1,394,964 $1,561,122 
Less:
Cost of goods sold (as adjusted) (1)
786,884 1,104,341 1,193,877 
Sales and marketing expense (as adjusted) (1)
142,803 237,389 223,672 
Technology expense (as adjusted) (1)
69,004 88,407 90,498 
General and administrative (as adjusted) (1)
39,289 55,225 62,346 
Customer service and merchant fees
37,324 53,586 52,023 
Other segment items (2)
30,525 40,103 82,686 
Operating loss
$(61,213)$(184,087)$(143,980)
 ___________________________________________
(1)    Significant segment expense categories are adjusted to exclude costs related to depreciation and amortization, stock-based compensation, and brand integration and restructuring costs which are included in the Other segment items line.
(2)    Other segment items includes other operating expense (income), net, depreciation and amortization, stock-based compensation, and brand integration and restructuring costs.
v3.25.4
SUBSEQUENT EVENTS
 12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
25. SUBSEQUENT EVENTS

The Container Store, Inc.

In January 2026, we purchased, via an amended participation agreement for par/near par trades, an additional portion of the loans issued by The Container Store, Inc. pursuant to the TCS Credit Agreement. The aggregate purchase price for our additional participation in certain loans issued pursuant to the TCS Credit Agreement was $2.2 million. As a result of these transactions, we will participate in the rights to the payment of interest and repayment of the loans and any exercise of rights or remedies related thereto.
Delayed Draw Term Loan Commitments

In the first quarter of 2026, TBHC drew an additional $15.0 million under the Delayed Draw Term Loan Commitments. There is approximately $5.0 million remaining under the Delayed Draw Term Loan Commitments.

Merger Agreement

On January 8, 2026, the Company filed a registration statement on Form S-4 (the "Registration Statement") with the SEC in connection with the proposed Merger (defined below) with TBHC and was declared effective on January 30, 2026.

On November 24, 2025, the Company by and among the Company, Knight Merger Sub II, Inc., a wholly owned subsidiary of the Company, and TBHC, pursuant to which, subject to the terms and conditions set forth therein, Merger Sub will merge with and into TBHC (the "Merger"), with TBHC surviving such Merger as a wholly owned subsidiary of the Company.

Under the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of common stock, no par value, of TBHC (the “TBHC Common Stock”) issued and outstanding immediately prior to the Effective Time (other than treasury shares and any shares of TBHC Common Stock held directly by the Company or Merger Sub) will be converted into the right to receive 0.1993 shares (the “Exchange Ratio”) of a fully paid and non-assessable share of common stock, par value $0.0001 per share, of the Company (the “Company Common Stock”) and, if applicable, cash in lieu of fractional shares, subject to any applicable withholding.

At the Effective Time, (i) each award of TBHC restricted share units (“TBHC RSU”) that is outstanding as of immediately prior to the Effective Time will automatically fully vest and be converted into the right to receive, without interest and subject to applicable withholding taxes, (A) a number of shares of Company Common Stock equal to the number of shares of TBHC subject to the TBHC RSU multiplied by the Exchange Ratio and (B) if applicable, cash in lieu of fractional shares, and (ii) each option to purchase TBHC Common Stock (“TBHC Option”) that is outstanding as of immediately prior to the Effective Time will be automatically converted into the right to receive, without interest and subject to applicable withholding taxes, (A) a number of shares of Company Common Stock equal to the Net Option Share Amount (as defined in the Merger Agreement) applicable to the TBHC Option multiplied by the Exchange Ratio and (B) if applicable, cash in lieu of fractional shares.

The obligation of TBHC and the Company to consummate the transactions contemplated by the Merger Agreement is subject to the satisfaction or waiver of a number of customary conditions, including: (i) the adoption of the Merger Agreement by TBHC’s shareholders, including the affirmative vote of a majority of the votes cast by Disinterested Shareholders (as defined in the Merger Agreement) at a meeting duly called and held for such purpose; (ii) the Company’s registration statement on Form S-4 to be filed in connection with the Merger having become effective, and the shares of Company Common Stock issuable in the Merger having been approved for listing on the New York Stock Exchange; (iii) at the Company’s election, either (A) the payoff of TBHC’s credit facility with Bank of America, N.A. (the “TBHC ABL”) or (B) the use of commercially reasonable efforts by the Company and TBHC to amend the TBHC ABL in form and substance reasonably acceptable to the Company and TBHC; (iv) the absence of laws or orders restraining the consummation of the Merger; (v) the representations and warranties of TBHC and the Company being true and correct, subject to the materiality standards contained in the Merger Agreement, and TBHC and the Company having complied in all material respects with their respective obligations under the Merger Agreement; and (vi) the absence of any effects that have constituted or resulted in, or would reasonably be expected to constitute or result in, a material adverse effect for TBHC or the Company.

The Merger Agreement contains customary mutual termination rights for TBHC and the Company, including if the Merger is not completed by May 24, 2026 (subject to extension under certain circumstances) (the “Outside Date”), and if the required approval of TBHC’s shareholders is not obtained. The Merger Agreement also contains customary termination rights for the benefit of each party, including (i) if the board of directors of the other party changes its recommendation, (ii) if the board of directors of such party authorizes entry into a definitive agreement relating to a superior proposal and (iii) if the other party breaches its representations, warranties or covenants under the Merger Agreement in a way that would result in a failure of its condition to closing being satisfied (subject to certain procedures and cure periods).

Under the Merger Agreement, TBHC will be required to pay a termination fee to the Company equal to $1,025,300 if the Merger Agreement is terminated in certain circumstances, including if the Merger Agreement is terminated because TBHC’s board of directors has changed its recommendation or if the required approval of TBHC’s shareholders is not obtained.
In the event that the required approval of TBHC’s shareholders is not obtained, TBHC will also reimburse the Company’s expenses in an amount equal to $341,800.

The transaction is expected to close in the second quarter of 2026.
v3.25.4
Schedule II Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II Valuation and Qualifying Accounts
Schedule II
Valuation and Qualifying Accounts
(in thousands)
Balance at
Beginning of
Year		Charged to
Expense		DeductionsBalance at
End of Year
Year ended December 31, 2025    
Deferred tax valuation allowance$195,742 $20,702 $— $216,444 
Allowance for doubtful accounts2,236 1,860 719 3,377 
Year ended December 31, 2024    
Deferred tax valuation allowance$132,105 $63,637 $— $195,742 
Allowance for doubtful accounts1,298 938 — 2,236 
Year ended December 31, 2023    
Deferred tax valuation allowance$21,459 $110,646 $— $132,105 
Allowance for doubtful accounts3,223 (1,925)— 1,298 
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Cybersecurity Risk Management and Strategy

Our company recognizes the critical importance of cybersecurity in our digital operations and has established a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. This program, guided by industry frameworks like the National Institute of Standards and Technology Cybersecurity Framework ("NIST CSF") and overseen by relevant leadership teams, integrates certain security tools and practices into our broader enterprise risk management system. This does not imply that we meet any particular technical standards, specifications, or requirements, only that we use NIST CSF and similar frameworks as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business. Our cybersecurity risk management program forms an integral part of our organization's risk management structure, sharing the same governance, reporting, and assessment practices as other key risk domains, actively involving our Executive team and Board of Directors (the "Board") in its oversight.

Despite our efforts and resource allocation, we acknowledge the challenges posed by the evolving nature of cyber threats and the limitations in fully mitigating these risks. While we are aware of known cybersecurity threats and regularly assess related risks, we have not experienced any cybersecurity incidents, nor determined that such risks have materially affected our operational results and strategic or financial condition. Nevertheless, given the unpredictable nature of cyber threats, we cannot assure that potential future impacts will not have a material impact. See Part I, Item 1A. "Risk Factors" in this Annual Report on Form 10-K.

Key elements of our cybersecurity risk management program include, but are not limited to, the following:
•risk assessments designed to help identify material risks from cybersecurity threats to our critical systems and information;
•a security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity incidents;
•the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security processes, including activities such as vulnerability assessments, penetration testing, and incident response exercises;
•cybersecurity awareness training of our employees, including incident response personnel and senior management;
•a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and
•a third-party risk management process for key service providers based on our assessment of their criticality to our operations and respective risk profile.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] This program, guided by industry frameworks like the National Institute of Standards and Technology Cybersecurity Framework ("NIST CSF") and overseen by relevant leadership teams, integrates certain security tools and practices into our broader enterprise risk management system. This does not imply that we meet any particular technical standards, specifications, or requirements, only that we use NIST CSF and similar frameworks as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business. Our cybersecurity risk management program forms an integral part of our organization's risk management structure, sharing the same governance, reporting, and assessment practices as other key risk domains, actively involving our Executive team and Board of Directors (the "Board") in its oversight.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Cybersecurity Governance

Our Board considers the organization's preparedness for cyber threats as part of its risk oversight function. This involves working to understand our cybersecurity risk profile and reviewing our cybersecurity risk management program. The Board strives to engage in active participation in continuous cybersecurity strategy improvement.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board considers the organization's preparedness for cyber threats as part of its risk oversight function.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
The Audit Committee, designated by the Board as the responsible body for risk management and compliance oversight, endeavors to ensure information flow of risk by regularly reporting its activities to the Board, including those related to cybersecurity. Our cybersecurity program is led by our Chief Information Security Officer (CISO), who has over 20 years of experience in the cybersecurity field, and who is primarily responsible for assessing and managing material risks from cybersecurity threats. Their expertise is supported by industry certifications, regular participation in leading advanced training programs, and advisement roles. The CISO leads a dedicated team of security professionals who provide coverage of critical program capabilities. Our CISO and larger cybersecurity risk management team take steps to stay informed about and monitor efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in our IT environment.
Our CISO provides regular reports to the Audit Committee, senior management, and relevant stakeholders, for the purpose of keeping them informed on evolving cyber threats, ongoing assessments, and any significant findings. This collaborative approach is intended to support informed decision-making, and timely response to potential risks, safeguarding our critical assets and valuable information.
Cybersecurity Risk Role of Management [Text Block]
Our CISO provides regular reports to the Audit Committee, senior management, and relevant stakeholders, for the purpose of keeping them informed on evolving cyber threats, ongoing assessments, and any significant findings. This collaborative approach is intended to support informed decision-making, and timely response to potential risks, safeguarding our critical assets and valuable information.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our cybersecurity program is led by our Chief Information Security Officer (CISO), who has over 20 years of experience in the cybersecurity field, and who is primarily responsible for assessing and managing material risks from cybersecurity threats.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our cybersecurity program is led by our Chief Information Security Officer (CISO), who has over 20 years of experience in the cybersecurity field, and who is primarily responsible for assessing and managing material risks from cybersecurity threats. Their expertise is supported by industry certifications, regular participation in leading advanced training programs, and advisement roles.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The CISO leads a dedicated team of security professionals who provide coverage of critical program capabilities. Our CISO and larger cybersecurity risk management team take steps to stay informed about and monitor efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in our IT environment.
Our CISO provides regular reports to the Audit Committee, senior management, and relevant stakeholders, for the purpose of keeping them informed on evolving cyber threats, ongoing assessments, and any significant findings. This collaborative approach is intended to support informed decision-making, and timely response to potential risks, safeguarding our critical assets and valuable information.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Principles of consolidation
Principles of consolidation
 
The accompanying consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany account balances and transactions have been eliminated in consolidation.
Use of estimates
Use of estimates
 
The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in our consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, receivables valuation, revenue recognition, loyalty program reward point and gift card breakage, sales returns, inventory valuation, asset useful lives, equity and debt securities valuation, income taxes, stock-based compensation, performance-based compensation, self-funded health insurance liabilities, and contingencies. Although these estimates are based on our best knowledge of current events and actions that we may undertake in the future, our accounting of these estimates may change from period to period. To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected.
Change in presentation in the income statement
Revision of previously issued consolidated financial statements

As previously disclosed, during the quarterly period ended September 30, 2025, the Company identified errors in the consolidated statements of operations related to the classification of gains on the sale of intangible assets and write-downs of assets held for sale erroneously being included in Other expense, net instead of in operating expenses. The Company assessed the materiality of changes to prior period consolidated financial statements to address these errors in accordance with SEC Staff Accounting Bulletin No. 99, "Materiality", (ASC Topic 250, Accounting Changes and Error Corrections). Based on this assessment, the Company concluded that these error corrections in its consolidated statements of operations were not material to any previously presented consolidated financial statements. The corrections had no material impact on the consolidated balance sheets, consolidated statements of comprehensive loss, consolidated statements of changes in stockholders' equity, or consolidated statements of cash flows, for any previously presented interim or annual consolidated financial statements.

The financial reporting periods affected by these errors include the Company's previously reported audited consolidated financial statements for the fiscal years ended December 31, 2024 and 2023.

The following table presents the revisions to the consolidated statements of operations for the years ended December 31, 2024 and 2023 (in thousands):
Year ended December 31, 2024Year ended December 31, 2023
As previously reportedAdjustmentAs revisedAs previously reportedAdjustmentAs revised
Operating expenses:
Other operating expense (income), net$— $(6,882)$(6,882)$— $25,875 $25,875 
Total operating expenses481,133 (6,882)474,251 484,134 25,875 510,009 
Operating loss(190,969)6,882 (184,087)(118,105)(25,875)(143,980)
Other expense, net(73,907)(6,882)(80,789)(160,024)25,875 (134,149)
Loss before income taxes(258,111)— (258,111)(266,122)— (266,122)
Net loss(258,795)— (258,795)(307,842)— (307,842)
Cash equivalents
Cash equivalents
We classify all highly liquid instruments, including instruments with an original maturity of three months or less at the time of purchase, as cash equivalents.
Restricted cash
Restricted cash
 
We consider cash that is legally restricted and cash that is held as compensating balances for credit arrangements as restricted cash.
Fair value of financial instruments
Fair value of financial instruments

We account for our assets and liabilities using a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs have created the fair-value hierarchy below. This hierarchy requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value.

•Level 1—Quoted prices for identical instruments in active markets; 
•Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
•Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Our assets that are adjusted to fair value on a recurring basis are cash equivalents and certain equity securities, which fair values are determined using quoted market prices from daily exchange traded markets on the closing price as of the balance sheet date and are classified as Level 1. Our recurring fair value measurements using observable inputs (Level 2) include our debt securities carried at fair value. Our recurring fair value measurements using unobservable inputs (Level 3) include our equity securities under ASC 323 accounted for under the fair value option, available-for-sale debt securities, and our loan commitments. Our other financial instruments, including cash, restricted cash, accounts receivable, accounts payable, accrued liabilities, and debt are carried at cost, which approximates their fair value. Certain assets, including long-lived assets, certain equity securities under ASC 323, goodwill, and other intangible assets, are measured at fair value on a nonrecurring basis; that is, the assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments using fair value measurements with unobservable inputs (Level 3).
Accounts receivable
Accounts receivable, net
 
Accounts receivable consist primarily of trade amounts due from customers in the United States and uncleared credit card transactions at period end. Accounts receivables are recorded at invoiced amounts and do not bear interest.
Allowance for doubtful accounts We maintain an allowance for expected credit losses based upon our business customers' financial condition and payment history, our historical collection experience, and any future expected economic conditions.
Inventories
Inventories
 
Inventories include merchandise acquired for resale and processed returns which are accounted for using a standard costing system which approximates the first-in-first-out ("FIFO") method of accounting and are valued at the lower of cost and net realizable value. Inventory valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, liquidations, and expected recoverable values of each disposition category.
Prepaids and other current assets
Prepaids and other current assets
Prepaids and other current assets represent expenses paid prior to receipt of the related goods or services, including advertising, license fees, maintenance, packaging, insurance, prepaid inventories, other miscellaneous costs, and cryptocurrencies.
Property and equipment, net
Property and equipment, net
 
Property and equipment are recorded at cost and stated net of depreciation and amortization. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets as follows:
 Life
(years)
Furniture and equipment
5-7
Computer hardware
3-4
Computer software, including internal-use software and website development
2-4
 
Leasehold improvements are amortized over the shorter of the term of the related leases or estimated useful lives.

Included in property and equipment is the capitalized cost of internal-use software and website development, including software used to upgrade and enhance our Website and processes supporting our business. We capitalize costs incurred during the application development stage of internal-use software and amortize these costs over the estimated useful life. Costs incurred related to design or maintenance of internal-use software are expensed as incurred.
Upon sale or retirement of assets, cost and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in our consolidated statements of operations.
Equity securities under ASC 323 and Debt securities carried at fair value
Equity securities accounted for under the equity method under ASC 323

At December 31, 2025, we held minority interests in privately held and public entities, Medici Ventures, L.P., tZERO, The Brand House Collective, Inc. (formerly known as Kirkland's Inc.) ("TBHC"), and a newly created entity ("Zulily Newco") upon the sale of the rights in the Zulily brand, accounted for under the equity method under ASC Topic 323, Investments—Equity Method and Joint Ventures ("ASC 323"), which are included in Equity securities in our consolidated balance sheets. We can exercise significant influence, but not control, over these entities through holding more than a 20% voting interest.

We measure our minority interests in TBHC at fair value (based on Level 1 inputs) with changes in fair value recorded in Other expense, net in our consolidated statements of operations. The aggregate fair value of our investment in TBHC was $9.8 million as of December 31, 2025.

Based on the nature of our ownership interests and the extent of our contributed capital, we held a variable interest in Medici Ventures, L.P. and TBHC, both of which meet the definition of variable interest entities; however, we are not the primary beneficiary of these entities for purposes of consolidation as we do not have the power (either explicit or implicit), through voting rights or otherwise, to direct the activities of Medici Ventures, L.P. or TBHC that most significantly impact their economic performance. Our investments in these variable interest entities totaled $49.6 million as of December 31, 2025, representing our maximum exposures to loss.

We record our proportionate share of Medici Ventures, L.P.'s net assets assuming the entity (i) liquidated its net assets at their book values and (ii) distributed the proceeds to the investors based on the distribution waterfall in the investment agreement, which reflects the fair value changes of the underlying investments of the entity, any investor-level adjustments, and any other operating income or losses of the entity, in Other expense, net in our consolidated statements of operations with corresponding adjustments to the carrying value of the asset. If such events or circumstances have occurred that may indicate the fair value of our equity interest is less than its carrying value, we estimate the fair value of our equity interest and recognize an impairment loss equal to the difference between the fair value of the security and its carrying value which is recorded in Other expense, net in our consolidated statements of operations. There is no difference between the carrying amount of our investment in the entity and the amount of underlying equity we have in the entity's net assets.

We have elected to apply the fair value option for valuing our direct minority interests in tZERO as we determined that accounting for our direct minority interests in tZERO under the fair value option would approximate the same valuation approach used by Medici Ventures, L.P. for valuing our indirect interest in tZERO and would be the most meaningful and transparent option for evaluating our continued exposure to the economics of tZERO. We have also elected to apply the fair value option for valuing our interest in Zulily NewCo. The fair value was determined in good faith under our valuation policy and process using generally accepted valuation approaches through the use of a third-party valuation firm. Our assessment includes a review of recent operating results and trends, recent sales/acquisitions of the equity securities, and other publicly available data.
The methods and significant assumptions to estimate the fair value of our direct minority interests in tZERO under the fair value option include using a market approach. The market approach relied upon market transaction valuations of the subject company, adjusted for changes in enterprise value for guideline public companies. Due to the length of time between the last Series B financing round led by the Intercontinental Exchange, the valuation technique used to value our direct interest in tZERO changed to a blended market approach using a transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model and a book value of equity method in the current year, compared to a blended market approach using a transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model and a guideline public company method valuation technique in the prior year. The methods and significant assumptions to estimate the fair value of our minority interest in Zulily Newco under the fair value option include using a market approach based on latest market transaction valuations.

The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of our Level 3 equity securities:
InvestmentFair ValueValuation TechniqueUnobservable InputsInputs
tZERO$15,503 Blended market approach - transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model method and book value of equity methodTerm to liquidity5.0 years
Volatility100%
Percentage change in enterprise value for guideline public companies(53.4)%
Zulily Newco1,572 Market approach - latest transactionsN/AN/A
Total$17,075 

A significant change in the term to liquidity, volatility, or percentage change in enterprise value for guideline public companies inputs could result in a significant change in the fair value measurement.
Debt securities carried at fair value

On May 7, 2025, the Company entered into an Amended and Restated Term Loan Credit Agreement (the "Amended and Restated Credit Agreement"), which amended and restated the secured Term Loan Credit Agreement ("Existing Credit Agreement") entered on October 21, 2024 and pursuant to which the Company provided The Brand House Collective, Inc. (formerly known as Kirkland's Inc.) ("The Brand House Collective") with an additional term loan in an approximate aggregate original principal amount of $5.2 million (the "Additional Term Loan") and obligations arising under the Existing Credit Agreement in the aggregate amount of $8.5 million were rolled into the Amended and Restated Credit Agreement as obligations thereunder (collectively, the "Notes"). On September 15, 2025, the Company entered into Amendment No. 1 to the Amended and Restated Credit Agreement (such amendment, the "Credit Agreement Amendment" and the Existing Credit Agreement as amended by the Credit Agreement Amendment, the "Amended Credit Agreement"). Pursuant to the terms of the Amended Credit Agreement, new delayed-draw term loan commitments in an aggregate original principal amount of $20.0 million (the "Delayed Draw Term Loan Commitments") were established. On November 24, 2025, the Company entered into Amendment No. 2 to the Amended and Restated Credit Agreement (the "Second Amendment") pursuant to which the Company agreed to increase the Delayed Draw Term Loan Commitments by $10.0 million, to an aggregated principal amount of $30.0 million. Concurrently with the Second Amendment, and as of December 31, 2025, $10.0 million has been drawn under the Delayed Draw Term Loan Commitments (the "Delayed Draw Note"). The Amended Credit Agreement provides the Company the right to convert the outstanding loans (including loans extended in satisfaction of the Delayed Draw Term Loan Commitments) owing under the Amended and Restated Credit Agreement into shares of The Brand House Collective's common stock at a price equal to the closing price on the Nasdaq Stock Market LLC ("Nasdaq") on the day prior to the date on which a conversion election is made, up to a number of shares equal to 19.90% of the outstanding shares of The Brand House Collective's common stock on the date the Amended Credit Agreement was entered into, and up to a greater number of shares subject to Nasdaq shareholder approval rules. Bed Bath & Beyond is restricted from holding greater than 75% of outstanding The Brand House Collective's issued shares for so long as any obligations remain outstanding under The Brand House Collective's credit agreement with its senior lender, Bank of America, N.A. On November 24, 2025, we entered in a Merger Agreement with TBHC pursuant to which, subject to the terms and conditions set forth therein, TBHC will survive the Merger as a wholly owned subsidiary of the Company.

We have elected to present the Notes and Delayed Draw Note at fair value, which totaled $24.0 million and $14.8 million at December 31, 2025 and 2024, respectively. The balance of the Notes is included in Other long-term assets, net on our consolidated balance sheets.

The following table summarizes the valuation techniques and significant inputs used in the fair value measurement of our Level 2 debt securities carried at fair value:

InvestmentFair ValueValuation TechniqueObservable Inputs
The Brand House Collective, Inc.$23,977 Market approachAgreed settlement price in the contracts
Leases
Leases
We determine if an arrangement is a lease at inception. We account for lease agreements as either operating or finance leases depending on certain defined criteria. Operating leases are recognized in Operating lease right-of-use ("ROU") assets, Operating lease liabilities, current, and Operating lease liabilities, non-current on our consolidated balance sheets. Finance leases are included in Other long-term assets, net, Other current liabilities, and Other long-term liabilities on our consolidated balance sheets. Lease assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. In certain of our lease agreements, we receive rent holidays and other incentives. We recognize lease costs on a straight-line basis over the lease term without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Our lease terms may include options to extend or terminate the lease, and we adjust our measurement of the lease when it is reasonably certain that we will exercise that option. Lease payments used in measurement of the lease liability typically do not include executory costs, such as taxes, insurance, and maintenance, unless those costs can be reasonably estimated at lease commencement. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the life of the lease, without assuming renewal features, if any, are exercised. We do not separate lease and non-lease components for our leases.
Treasury stock
Treasury stock
 
We account for treasury stock of our common shares under the cost method and include treasury stock as a component of stockholders' equity.
Goodwill
Goodwill

Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment at least annually or when we deem that a triggering event has occurred. When evaluating whether goodwill is impaired, we make a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment determines that it is more likely than not that its fair value is less than its carrying amount, we compare the fair value of the reporting unit to which the goodwill is assigned to its carrying amount. If the carrying amount exceeds its fair value, an impairment loss is recognized in an amount equal to the excess of the carrying amount over the fair value of the reporting unit, not to exceed the carrying amount of the goodwill. We completed our annual goodwill impairment test as of December 31, 2025 by performing a quantitative assessment and concluded that the estimated fair value of the reporting units exceeded their carrying amount. There were no impairments to goodwill recorded during the years ended December 31, 2025, 2024 and 2023 and no other changes to the carrying amount of goodwill during the years ended December 31, 2025 and 2024. Our goodwill balance was $6.2 million as of December 31, 2025 and 2024.
Intangible assets other than goodwill
Intangible assets other than goodwill

We capitalize and amortize intangible assets other than goodwill over their estimated useful lives unless such lives are indefinite. Intangible assets other than goodwill acquired separately from third parties are capitalized at cost, including any related direct acquisition costs, while such assets acquired as part of a business combination are capitalized at their acquisition-date fair value. Indefinite-lived intangible assets are tested for impairment annually or more frequently when events or circumstances indicate that the carrying value more likely than not exceeds its fair value. In addition, we routinely evaluate the remaining useful life of intangible assets not being amortized to determine whether events or circumstances continue to support an indefinite useful life, including any legal, regulatory, contractual, competitive, economic, or other factors that may limit their useful lives. Definite-lived intangible assets are amortized using the straight-line method of amortization over their useful lives, with the exception of certain intangibles (such as acquired customer lists) which are amortized using an accelerated method of amortization based on estimated customer attrition rates. These definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable as described below under Impairment of long-lived assets.
Impairment of long-lived assets
Impairment of long-lived assets
 
We review property and equipment, right-of-use assets, and other long-lived assets, including intangible assets other than goodwill, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability is measured by a comparison of the assets' carrying amount to future undiscounted net cash flows the asset group is expected to generate. Cash flow forecasts are based on trends of historical performance and management's estimate of future performance, giving consideration to existing and anticipated competitive and economic conditions. If such asset group is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair values. There were no impairments to long-lived assets recorded during the years ended December 31, 2025, 2024 and 2023.
Available-for-sale debt securities
Available-for-sale debt securities

We record our available-for-sale debt securities at fair value, with unrealized gains and losses recorded to other comprehensive loss in the consolidated statements of comprehensive loss. For available-for-sale debt securities in an unrealized loss position, we determine whether a credit loss exists by considering information about the collectability of the instrument, current market conditions, and economic conditions. Credit losses, if any, are recorded as an allowance through Other expense, net in the consolidated statements of operations.

At December 31, 2025, we have invested $13.0 million in GrainChain, Inc. in the form of convertible promissory notes (the "Notes"). The Notes bear interest at an annual interest rate of 5% and accrued interest is recorded in Interest income, net in our consolidated statements of operations. The Notes have a maturity date of January 3, 2025 at which time the outstanding principal and any unpaid accrued interest will automatically convert into shares of a newly created series of preferred stock issued by GrainChain, Inc. The Notes have not converted and the Company is negotiating an extension of the Notes. The Notes are in an unrealized loss position as of December 31, 2025. The fair value of the Notes, including accrued interest, was $12.0 million and $11.0 million at December 31, 2025 and 2024, respectively, which is included in Other long-term assets, net on our consolidated balance sheets. The aggregate unrealized losses on our Notes was $2.6 million and were due to a recent decrease in profitability and not credit-related events as we expect we will recover our amortized cost basis upon
conversion of the Notes. Accordingly, no allowance for credit losses was recorded on available-for sale debt securities in an unrealized loss position at December 31, 2025 and 2024.

Based on the nature of our indirect ownership interests in GrainChain, Inc. through Medici Ventures, L.P. and the extent of our contributed capital, we held a variable interest in GrainChain, Inc., which meets the definition of a variable interest entity; however, we are not the primary beneficiary of this entity for purposes of consolidation as we do not have the power (either explicit or implicit), through voting rights or otherwise, to direct the activities of GrainChain, Inc. that most significantly impact its economic performance. Our maximum exposure to loss in this variable interest entity totaled $24.4 million as of December 31, 2025, representing our direct and indirect interest in GrainChain, Inc.

In November 2025, the Company purchased, via a participation agreement for par/near par trades, a portion of the loans issued by The Container Store, Inc. pursuant to the Term Loan Credit Agreement, dated as of January 28, 2025, as amended on September 15, 2025 (as amended, the "TCS Credit Agreement"). The aggregate purchase price for the Company's participation in certain loans issued pursuant to the TCS Credit Agreement was $6.5 million. As a result of these transactions, the Company will participate in the rights to the payment of interest and repayment of the loans and any exercise of rights or remedies related thereto. The fair value of the portion of the loans purchased was $6.5 million at December 31, 2025, which is included in Other long-term assets, net on our consolidated balance sheets.

The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of our Level 3 available-for-sale securities:
InvestmentFair ValueValuation TechniqueUnobservable InputsInputs
GrainChain, Inc.$11,955 Market approach - transaction backsolve adjusted for enterprise value changes in guideline public companies with an option pricing model methodTerm to liquidity5.0 years
Volatility50%
Percentage change in enterprise value for guideline public companies(12.2)%
The Container Store, Inc.6,462 Market approach - latest transactionsN/AN/A
Total$18,417 

A significant change in the term to liquidity, volatility, or percentage change in enterprise value for guideline public companies inputs could result in a significant change in the fair value measurement.
Other long-term assets, net
Other long-term assets, net
Other long-term assets, net consist primarily of long-term prepaid expenses, deposits, long-term receivables, available-for-sale debt securities, and debt securities carried at fair value
Noncontrolling interests
Noncontrolling interests

In April 2025, the Company's controlled subsidiary, Commercial Strategies, Inc. ("Commercial Strategies"), launched a crowdfunding offering (the "token offering") of the right to acquire a tokenized digital security linked to Overstock intellectual property and eligible for future dividends, if any, from the licensing revenue that Commercial Strategies earns from the Overstock intellectual property. The token offering closed on May 16, 2025, and Commercial Strategies issued the tokenized digital security in the form of Series A Preferred Stock. The holders of the preferred shares will be entitled to receive, out of funds and assets legally available for such purpose, an annual dividend that is derived from the royalty fee paid by Bed Bath & Beyond, Inc. to Commercial Strategies for licensing of the Overstock intellectual property. The holders of the preferred stock have no voting rights. At December 31, 2025, cumulative proceeds from the token offering totaled $467,000, have been classified as a component of noncontrolling interest within the consolidated financial statements. As of December 31, 2025,
Commercial Strategies has incurred $305,000 of offering costs associated with the token offering that are classified as a reduction in proceeds within noncontrolling interest within the consolidated financial statements.
In May 2025, the Company's controlled subsidiary, Zion Peaks, Inc. ("Zion Peaks"), launched a crowdfunding offering (the "token offering") of the right to acquire a tokenized digital security linked to buybuy BABY intellectual property and eligible for future dividends, if any, from the licensing revenue that Zion Peaks earns from the buybuy BABY intellectual property. The token offering closed on August 11, 2025, and Zion Peaks issued the tokenized digital security in the form of Series A Preferred Stock. The holders of the preferred shares will be entitled to receive, out of funds and assets legally available for such purpose, an annual dividend that is derived from the royalty fee paid by Bed Bath & Beyond, Inc. to Zion Peaks for licensing of the buybuy BABY intellectual property. The holders of the preferred stock have no voting rights. At December 31, 2025, cumulative proceeds from the token offering totaled $396,000, have been classified as a component of noncontrolling interest within the consolidated financial statements. As of December 31, 2025, Zion Peaks has incurred $197,000 of offering costs associated with the token offering that are classified as a reduction in proceeds within noncontrolling interest within the consolidated financial statements.
Revenue recognition
Revenue recognition
 
Revenue is recognized when, or as, control of a promised product or service transfers to a customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring those products or services. Revenue excludes taxes that have been assessed by governmental authorities and that are directly imposed on revenue-producing transactions between the Company and its customers, including sales and use taxes. Revenue recognition is evaluated through the following five-step process:
 
1) identification of the contract with a customer;
2) identification of the performance obligations in the contract;
3) determination of the transaction price;
4) allocation of the transaction price to the performance obligations in the contract; and
5) recognition of revenue when or as a performance obligation is satisfied.

Product Revenue
    
We derive our revenue primarily through our Website but may also derive revenue from sales of merchandise through other channels. Our revenue is derived primarily from merchandise sold at a point in time and shipped to customers. Merchandise sales are fulfilled with inventory sourced through our partners or from our owned inventory. The vast majority of our sales, however, are fulfilled from inventory sourced through our partners.

Revenue is recognized when control of the product passes to the customer, typically at the date of delivery of the merchandise to the customer or the date a service is provided and is recognized in an amount that reflects the expected consideration to be received in exchange for such goods or services. As such, customer orders are recorded as unearned revenue prior to delivery of products or services ordered. As we ship high volumes of packages through multiple carriers, we use estimates to determine which shipments are delivered and, therefore, recognized as revenue at the end of the period. Our delivery date estimates are based on average shipping transit times, which are calculated using the following factors: (i) the type of shipping carrier (as carriers have different in-transit times); (ii) the fulfillment source (either our warehouses, those warehouses we control, or those of our partners); (iii) the delivery destination; and (iv) actual transit time experience, which shows that delivery date is typically one to eight business days from the date of shipment. We review and update our estimates on a quarterly basis based on our actual transit time experience. However, actual shipping times may differ from our estimates.

Generally, we require authorization from credit card or other payment vendors whose services we offer to our customers (such as PayPal, Apple Pay, Klarna), or verification of receipt of payment, before we ship products to consumers or business purchasers. We generally receive payments from our customers before our payments to our suppliers are due. We do not recognize assets associated with costs to obtain or fulfill a contract with a customer.

Shipping and handling is considered a fulfillment activity, as it takes place prior to the customer obtaining control of the merchandise, and fees charged to customers are included in net revenue upon completion of our performance obligation. We present revenue net of sales taxes, discounts, and expected refunds.
Our merchandise sales contracts include terms that could cause variability in the transaction price for items such as discounts, credits, or sales returns. Accordingly, the transaction price for product sales includes estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. At the time of sale, we estimate a sales return liability for the variable consideration based on historical experience, which is recorded within Accrued liabilities in the consolidated balance sheet. We record an allowance for returns based on current period revenues and historical returns experience. We analyze actual historical returns, current economic trends and changes in order volume and acceptance of our products when evaluating the adequacy of the sales returns allowance in any accounting period.

We evaluate the criteria outlined in ASC 606-10-55, Principal versus Agent Considerations, in determining whether it is appropriate to record the gross amount of merchandise sales and related costs or the net amount earned as commissions. When we are the principal in a transaction and control the specific good or service before it is transferred to the customer, revenue is recorded gross; otherwise, revenue is recorded on a net basis. Through contractual terms with our partners, we have the ability to control the promised goods or services and as a result record the majority of our revenue on a gross basis.

Loyalty program

We have a customer membership program called welcome rewards+ for which we sell annual memberships. For welcome rewards+ memberships, we record membership fees as unearned revenue and we recognize revenue ratably over the membership period.

Members earn points which have a reward dollar equivalent for qualifying purchases made on our Bed Bath & Beyond website. As such, the initial transaction price giving rise to the reward dollar is allocated to each separate performance obligation based upon its relative standalone selling price. In determining the stand-alone selling price, we incorporate assumptions about the redemption rates of loyalty points. We recognize revenue for loyalty program reward dollars when customers redeem such rewards as part of a purchase on our Bed Bath & Beyond website.

We record the standalone value of reward dollars earned in unearned revenue at the time the reward dollars are earned. Loyalty program reward dollars expire 30 days after the customer's membership expires. We recognize estimated reward dollar breakage, to which we expect to be entitled, over the expected redemption period in proportion to actual redemptions by customers.

Advertising Revenue

Advertising revenues are derived primarily from sponsored links and display advertisements that are placed on our Website, distributed via email, or sent out as direct mailers. Advertising revenue is recognized in revenue when the advertising services are rendered. Advertising revenues were less than 3% of total net revenues for all periods presented.

Unearned Revenue

When the timing of our provision of goods or services is different from the timing of the payments made by our customers, we recognize a contract liability (customer payment precedes performance).

Customer orders are recorded as unearned revenue when payment is received prior to delivery of products or services ordered. We record amounts received for welcome rewards+ membership fees as unearned revenue and we recognize it ratably over the membership period. We record loyalty program reward dollars earned from purchases as unearned revenue at the time they are earned based upon the relative standalone selling price of the loyalty program reward dollar and we recognize it as revenue in proportion to the estimated pattern of rights exercised by the customer. If reward dollars are not redeemed, we recognize revenue upon expiration. In addition, we sell gift cards and record related unearned revenue at the time of the sale. We sell gift cards without expiration dates and we recognize revenue from a gift card upon redemption of the gift card. The unredeemed portion of our gift cards are recognized in revenue over the expected redemption period based upon the estimated pattern of rights exercised by the customer, if the gift cards are not subject to escheat laws.

Sales returns allowance
 
Revenue is recorded net of estimated returns. We record an allowance for returns based on current period revenues and historical returns experience. We analyze actual historical returns, current economic trends and changes in order volume and acceptance of our products when evaluating the adequacy of the sales returns allowance in any accounting period.
Cost of goods sold
Cost of goods sold
 
Our cost of goods sold includes product costs, warehousing costs, outbound shipping costs, and handling and fulfillment costs, and is recorded in the same period in which related revenues have been recorded.
Advertising expense
Advertising expense
 
We expense the costs of producing advertisements the first time the advertising takes place and expense the cost of communicating advertising in the period during which the advertising space or airtime is used. Internet advertising expenses are recognized as incurred based on the terms of the individual agreements, which are generally: 1) a commission for traffic driven to our Website that generates a sale or 2) a referral fee based on the number of clicks on keywords or links to our Website generated during a given period. Advertising expense is included in Sales and marketing expenses in our consolidated statements of operations. Prepaid advertising is included in Prepaids and other current assets in our consolidated balance sheets.
Stock-based compensation
Stock-based compensation
 
We measure compensation expense for our outstanding unvested restricted stock awards at fair value on the date of grant and recognize compensation expense over the service period for awards at the greater of a straight-line basis or on an accelerated schedule when vesting of the share-based awards exceeds a straight-line basis. When an award is forfeited prior to the vesting date, we recognize an adjustment for the previously recognized expense in the period of the forfeiture. See Note 17—Stock-Based Awards.

We use the Black-Scholes option pricing model to determine the fair value of our employee stock purchase plan shares. The determination of the fair value of stock-based payment awards on the date of grant using an option pricing model is affected by our stock price and assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, a risk-free interest rate and any expected dividends.

We use the Monte-Carlo valuation model to determine the fair value of the portion of our performance shares and share options with market conditions. The determination of the fair value of stock-based payment awards on the date of grant using the Monte-Carlo valuation model is affected by our stock price and assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility, a risk-free interest rate, the probability of reaching the stock price performance targets, and a 20-trading-day average stock price. The portion of our performance shares with performance conditions are measured at fair value on the date of grant and the probability of the awards meeting the performance condition is not included in the grant date fair value, but is assessed quarterly for expense recognition. Compensation expense for these awards are recognized using a graded vesting schedule over the requisite service period. To the extent that a market-based vesting award is forfeited following completion of the requisite service period, compensation expense for accounting purposes is not reversed.
Loss contingencies
Loss contingencies
 
In the normal course of business, we are involved in legal proceedings and other potential loss contingencies. We accrue a liability for such matters when it is probable that a loss has been incurred and the amount, or range of amounts, can be reasonably estimated. When only a range of probable loss can be estimated, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. We expense legal fees as incurred (See Note 14—Commitments and Contingencies).
Income taxes
Income taxes
 
Income taxes are accounted for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available
positive and negative evidence, including projected future taxable income, scheduled reversals of our deferred tax liabilities, tax planning strategies, and results of recent operations. Our projections of future taxable income are subject to changes in how we do business, economic outlook, political climate, and other conditions such as supply chain challenges, inflation, rising interest rates, geopolitical events, and other macroeconomic conditions, and judgment is required in determining our ability to use our deferred tax assets.
We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated income statements. Accrued interest and penalties are included within the related tax liability line in our consolidated balance sheets.
Net income (loss) per share
Net loss per share

Basic net loss per common share is computed by dividing net loss attributable to common shares by the weighted average number of common shares outstanding during the period.
Diluted net loss per share is computed by dividing net loss attributable to common shares by the weighted average number of common and potential common shares outstanding during the period. Potential common shares, comprising incremental common shares issuable from the employee stock purchase plan, restricted stock awards, and warrants are included in the calculation of diluted net loss per common share to the extent such shares are dilutive.
Warrants, Policy
Warrants

On September 22, 2025, the Company announced that its Board of Directors had declared a warrant dividend distribution (the "Warrant Distribution") to the record holders of the Company's common stock (the "Common Stock"), in the form of warrants to purchase common stock (the "Warrants"). Holders of Common Stock at the close of business on October 2, 2025 (the "Record Date") received one warrant for each ten shares of Common Stock then owned, rounded down to the nearest whole number. The Warrants were distributed to holders of common stock on the terms and conditions described in the Warrant Agreement, dated as of October 7, 2025, between the Company, Computershare, Inc., a Delaware corporation, and its affiliate, Computershare Trust Company, N.A., as Warrant Agent. The Warrants have a cash exercise price of $15.50 per Warrant, and will expire on October 7, 2026, unless the Early Expiration Price Condition (as defined in the Warrant Agreement) is met.

The Company accounts for the Warrants in accordance with the guidance in ASC Topic 815, Derivatives and Hedging ("ASC 815"). Accordingly, the warrants meet all of the requirements for equity classification under ASC 815 and are required to be recorded as a component of equity at the time of issuance. Warrants classified as equity are initially recognized at fair value and are not subsequently remeasured.
New accounting pronouncements
Recently adopted accounting standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities to disclose disaggregated information about a reporting entity's effective tax rate reconciliation as well as additional information on income taxes paid. For public entities, ASU 2023-09 is required to be adopted for annual periods beginning after December 15, 2024, with early adoption permitted. The Company adopted the provisions of ASU 2023-09 as of January 1, 2025. The adoption of ASU 2023-09 resulted in additional income tax disclosures in the Company's consolidated financial statements.

Recently issued accounting standards

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires public entities to disclose disaggregated information about certain income statement line items in the notes to the financial statements. For public entities, ASU 2024-03 is required to be adopted for annual periods beginning after December 15, 2026 and for interim periods beginning after December 15, 2027, with early adoption permitted. This ASU will result in us including the additional required disclosures when adopted and does not otherwise have a material impact on the Company's consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40), Targeted Improvements to the Accounting for Internal-Use Software, which clarified and modernizes the accounting for costs related to internal-use software. The amendments in ASU 2025-06 remove all references to project stages throughout Subtopic 350-40 and clarify the threshold entities apply to begin capitalizing costs. ASU 2025-06 is effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. This ASU will result in the Company adopting the new threshold to apply to begin capitalizing costs and does not otherwise have a material impact on the Company's consolidated financial statements.
v3.25.4
ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Error Corrections and Prior Period Adjustments
The following table presents the revisions to the consolidated statements of operations for the years ended December 31, 2024 and 2023 (in thousands):
Year ended December 31, 2024Year ended December 31, 2023
As previously reportedAdjustmentAs revisedAs previously reportedAdjustmentAs revised
Operating expenses:
Other operating expense (income), net$— $(6,882)$(6,882)$— $25,875 $25,875 
Total operating expenses481,133 (6,882)474,251 484,134 25,875 510,009 
Operating loss(190,969)6,882 (184,087)(118,105)(25,875)(143,980)
Other expense, net(73,907)(6,882)(80,789)(160,024)25,875 (134,149)
Loss before income taxes(258,111)— (258,111)(266,122)— (266,122)
Net loss(258,795)— (258,795)(307,842)— (307,842)
Schedule of supplemental cash flow information
The following table shows supplemental cash flow information (in thousands):
Year Ended December 31,
202520242023
Supplemental disclosures of cash flow information:  
Cash paid during the period:  
Interest paid, net of amounts capitalized$1,098 $1,489 $1,598 
Income taxes (refunded) paid, net(382)(132)556 
Non-cash investing and financing activities:  
Proceeds from sale of intangible assets included in other long-term assets, net3,750 — — 
Notes receivable converted to equity securities7,510 — — 
The amounts of cash income taxes paid, net of refunds for 2025, 2024, and 2023 are as follows (in thousands):
 Year ended December 31,
 202520242023
U.S. federal$(300)*$300 
U.S. state and local
California**(383)
Colorado*(29)*
Connecticut*(13)*
Illinois(26)**
Kansas(72)**
Kentucky*12 *
Maine*(10)*
Massachusetts(25)**
Michigan*(36)*
Minnesota*(58)57 
New Hampshire*(15)*
New Jersey*(152)140 
North Carolina**26 
Oregon66 51 72 
Pennsylvania(93)*48 
Texas79 93 139 
Wisconsin*(9)(30)
Other(11)4 128 
Total U.S. state and local(82)(162)197 
Foreign***
Total income taxes paid, net of (refunds)$(382)$(162)$497 
 ___________________________________________
*    The amount of income taxes paid, net of refunds during the year does not meet the five percent disaggregation threshold.
Schedule of estimated useful lives of the fixed assets Property and equipment are depreciated using the straight-line method over the estimated useful lives of the related assets as follows:
 Life
(years)
Furniture and equipment
5-7
Computer hardware
3-4
Computer software, including internal-use software and website development
2-4
Schedule of valuation techniques and unobservable inputs
The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of our Level 3 equity securities:
InvestmentFair ValueValuation TechniqueUnobservable InputsInputs
tZERO$15,503 Blended market approach - transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model method and book value of equity methodTerm to liquidity5.0 years
Volatility100%
Percentage change in enterprise value for guideline public companies(53.4)%
Zulily Newco1,572 Market approach - latest transactionsN/AN/A
Total$17,075 
The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of our Level 3 available-for-sale securities:
InvestmentFair ValueValuation TechniqueUnobservable InputsInputs
GrainChain, Inc.$11,955 Market approach - transaction backsolve adjusted for enterprise value changes in guideline public companies with an option pricing model methodTerm to liquidity5.0 years
Volatility50%
Percentage change in enterprise value for guideline public companies(12.2)%
The Container Store, Inc.6,462 Market approach - latest transactionsN/AN/A
Total$18,417 
The following table summarizes the valuation techniques and significant inputs used in the fair value measurement of our Level 2 debt securities carried at fair value:

InvestmentFair ValueValuation TechniqueObservable Inputs
The Brand House Collective, Inc.$23,977 Market approachAgreed settlement price in the contracts
v3.25.4
FAIR VALUE MEASUREMENT (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of fair value of financial instruments using levels of inputs
The following tables summarize our assets and liabilities measured at fair value on a recurring basis using the following levels of inputs as of December 31, 2025 and 2024, as indicated (in thousands): 
 
Fair Value Measurements at December 31, 2025
 TotalLevel 1Level 2Level 3
Assets:    
Cash equivalents—Money market funds$22,717 $22,717 $— $— 
Equity securities, at fair value26,903 9,828 — 17,075 
Available-for-sale debt securities (1)18,417 — — 18,417 
Debt securities, at fair value (1)23,977 — 23,977 — 
Total assets$92,014 $32,545 $23,977 $35,492 
Liabilities:    
Loan commitments, at fair value (2)$2,766 $— $— $2,766 
Total liabilities$2,766 $— $— $2,766 
 
 
Fair Value Measurements at December 31, 2024
 TotalLevel 1Level 2Level 3
Assets:    
Cash equivalents—Money market funds$21,799 $21,799 $— $— 
Equity securities, at fair value21,640 — — 21,640 
Available-for-sale debt securities (1)10,985 — — 10,985 
Debt securities, at fair value (1)14,814 — — 14,814 
Total assets$69,238 $21,799 $— $47,439 
 ___________________________________________
(1)    Included in Other long-term assets, net in the consolidated balance sheets.
(2)    Included in Other long-term liabilities in the consolidated balance sheets.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following table provides activity for our Level 3 investments during the periods presented (in thousands):
Amount
Level 3 investments at December 31, 2023
$51,530 
Increase due to purchases of Level 3 investments17,000 
Decrease in fair value of Level 3 investments(21,836)
Accrued interest on Level 3 investments745 
Level 3 investments at December 31, 2024
47,439 
Increase due to purchases of Level 3 investments16,266 
Transfers out of Level 3 investments(20,046)
Decrease in fair value of Level 3 investments(8,711)
Accrued interest, net on Level 3 investments544 
Level 3 investments at December 31, 2025
$35,492 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following table provides activity for the Company's Level 3 liabilities (in thousands):
Amount
Level 3 liabilities at December 31, 2024
$— 
Fair value of Level 3 liabilities assumed2,766 
Level 3 liabilities at December 31, 2025
$2,766 
v3.25.4
ACCOUNTS RECEIVABLE, NET (Tables)
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Schedule of accounts receivable
Accounts receivable, net consist of the following (in thousands):
 December 31,
 20252024
Credit card receivables, trade$12,334 $9,614 
Accounts receivable, trade8,871 5,282 
Other receivables3,001 3,187 
24,206 18,083 
Less: allowance for credit losses(3,377)(2,236)
Total accounts receivable, net$20,829 $15,847 
v3.25.4
PREPAIDS AND OTHER CURRENT ASSETS (Tables)
 12 Months Ended
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of prepaid and other assets
Prepaids and other current assets consist of the following (in thousands):
 December 31,
 20252024
Prepaid maintenance$7,074 $8,924 
Prepaid other3,343 3,221 
Other current assets1,488 1,876 
Total prepaids and other current assets$11,905 $14,021 
v3.25.4
PROPERTY AND EQUIPMENT, NET (Tables)
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of fixed assets
Property and equipment, net consist of the following (in thousands):
 December 31,
 20252024
Computer hardware and software, including internal-use software and website development$186,022 $202,005 
Furniture and equipment1,630 4,098 
Leasehold improvements1,159 1,466 
188,811 207,569 
Less: accumulated depreciation(175,099)(184,025)
Total property and equipment, net$13,712 $23,544 
Schedule of Capitalized Computer Software
Capitalized costs associated with internal-use software and website development, both developed internally and acquired externally, and depreciation of costs for the same periods associated with internal-use software and website development consist of the following (in thousands):

Year ended December 31,
202520242023
Capitalized internal-use software and website development$6,727 $12,517 $11,296 
Depreciation of internal-use software and website development11,389 11,354 7,758 
Schedule of depreciation and amortization expense which is classified within the corresponding operating expense categories on the consolidated statements of income
Depreciation expense is classified within the corresponding operating expense categories in the consolidated statements of operations as follows (in thousands): 
Year ended December 31,
 202520242023
Cost of goods sold$90 $396 $711 
Technology15,055 17,150 14,414 
General and administrative319 464 3,751 
Total depreciation$15,464 $18,010 $18,876 
v3.25.4
INTANGIBLE ASSETS, NET (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Indefinite-Lived Intangible Assets
Intangible assets, net consist of the following (in thousands):
December 31,
 20252024
Intangible assets subject to amortization, gross (1)$5,645 $6,239 
Less: accumulated amortization of intangible assets(3,813)(3,145)
Intangible assets subject to amortization, net1,832 3,094 
Intangible assets not subject to amortization43,308 27,152 
Total intangible assets, net$45,140 $30,246 
___________________________________________
(1)    At December 31, 2025, the weighted average remaining useful life for intangible assets subject to amortization, gross was 2.3 years.
Schedule of intangible assets
Intangible assets, net consist of the following (in thousands):
December 31,
 20252024
Intangible assets subject to amortization, gross (1)$5,645 $6,239 
Less: accumulated amortization of intangible assets(3,813)(3,145)
Intangible assets subject to amortization, net1,832 3,094 
Intangible assets not subject to amortization43,308 27,152 
Total intangible assets, net$45,140 $30,246 
___________________________________________
(1)    At December 31, 2025, the weighted average remaining useful life for intangible assets subject to amortization, gross was 2.3 years.
v3.25.4
EQUITY SECURITIES (Tables)
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Equity securities
Equity securities consist of the following (in thousands):
December 31,
20252024
Equity securities accounted for under the equity method under ASC 323$39,738 $56,546 
Equity securities accounted for under the equity method under the fair value option26,903 21,640 
Total equity securities$66,641 $78,186 
Equity Security Ownership Interest
The following table includes our equity securities accounted for under the equity method (ASC 323) and related ownership interest as of December 31, 2025:
Ownership
interest
Medici Ventures, L.P.99%
tZERO Group, Inc.26%
The Brand House Collective, Inc.40%
Zulily Newco25%
Equity method investments
The following table summarizes the net loss recognized on equity method securities recorded in Other expense, net in our consolidated statements of operations (in thousands):
Year ended December 31,
202520242023
Net loss recognized on our proportionate share of the net assets of our equity method securities$(16,808)$(58,281)$(98,663)
Decrease in fair value of equity method securities held under fair value option(11,820)(19,406)(41,741)
Equity Method Investments, Summarized Financial Information The table below provides the summarized financial information required by Rule 4-08(g) for those equity method securities in aggregate that have met the significance criteria, using the equity method securities' most recently available year-to-date financial statements (in thousands):
December 31,
Balance Sheet20252024
Assets$326,187 $63,546 
Liabilities(294,398)(17,985)
Equity$(31,789)$(45,561)

Year ended December 31,
Results of Operations202520242023
Revenues$263,572 $12,086 $26,404 
Pre-tax loss(62,771)(20,778)(19,895)
Net loss(62,848)(20,777)(20,169)
v3.25.4
OTHER LONG-TERM ASSETS, NET (Tables)
 12 Months Ended
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of other long-term assets
Other long-term assets, net consist of the following (in thousands):
 December 31,
 20252024
Debt securities carried at fair value$23,977 $14,814 
Available-for-sale debt securities18,417 10,985 
Prepaid other, long-term portion2,115 3,242 
Other long-term assets4,045 412 
Total other long-term assets, net$48,554 $29,453 
v3.25.4
ACCRUED LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Schedule of accrued liabilities
Accrued liabilities consist of the following (in thousands):
 December 31,
 20252024
Accrued marketing expenses$12,189 $27,935 
Accrued compensation and other related costs7,827 8,345 
Allowance for returns7,722 9,526 
Accrued freight6,452 4,962 
Sales and other taxes payable6,121 6,205 
Accounts payable accruals3,879 12,743 
Other accrued expenses7,107 3,898 
Total accrued liabilities$51,297 $73,614 
v3.25.4
LEASES (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Lease, Cost
The components of lease expense were as follows (in thousands):
Year ended December 31,
202520242023
Operating lease cost$2,074 $3,240 $5,257 
Variable lease cost929 906 1,300 
Other Lease Information
The following tables provides a summary of other information related to leases (in thousands):
Year ended December 31,
202520242023
Cash payments included in operating cash flows from lease arrangements$1,628 $3,253 $5,500 
Right-of-use assets obtained in exchange for new operating lease liabilities— 7,170 836 
Leases, Additional Financial Information
The following table provides a summary of balance sheet information related to leases:
December 31,
20252024
Weighted-average remaining lease term—operating leases6.76 years6.65 years
Weighted-average discount rate—operating leases7 %6 %
Lessee, Operating Lease, Liability, Maturity
Maturity of lease liabilities under our non-cancellable operating leases as of December 31, 2025, are as follows (in thousands):
Payments due by period 
2026$1,285 
20271,150 
20281,099 
20291,132 
20301,040 
Thereafter2,457 
Total lease payments 8,163 
Less interest1,592 
Present value of lease liabilities$6,571 
v3.25.4
OTHER LONG_TERM LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2025
Other Liabilities Disclosure [Abstract]  
Schedule of Other Noncurrent Liabilities
Other long-term liabilities consist of the following (in thousands):
 December 31,
 20252024
Unearned revenue, long-term portion$2,432 $4,583 
Income taxes payable, long-term portion3,530 3,675 
Other long-term liabilities3,783 (349)
Total other long-term liabilities$9,745 $7,909 
v3.25.4
STOCK-BASED AWARDS (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Share-based Payment Arrangement, Expensed and Capitalized, Amount
Stock-based compensation expense is classified within the corresponding operating expense categories on our consolidated statements of operations as follows (in thousands):
Year ended December 31,
 202520242023
Cost of goods sold$6 $7 $37 
Sales and marketing332 594 796 
Technology1,747 6,263 8,733 
General and administrative8,768 12,391 13,452 
Total stock-based compensation expense$10,853 $19,255 $23,018 
Summary of restricted stock award activity
The following table summarizes restricted stock unit and PSU award activity (in thousands, except fair value data):
 202520242023
 UnitsWeighted
Average
Grant Date
Fair Value		UnitsWeighted
Average
Grant Date
Fair Value		UnitsWeighted
Average
Grant Date
Fair Value
Outstanding—beginning of year1,314 $20.98 984 $29.60 781 $50.17 
Granted at fair value3,035 6.28 1,818 19.73 1,101 20.92 
Vested(366)23.40 (441)35.33 (550)40.27 
Forfeited(946)13.75 (1,047)18.89 (348)31.43 
Outstanding—end of year3,037 $8.21 1,314 $20.98 984 $29.60 
Schedule of Stock Option Activity
The following table summarizes Share Options award activity for the year ended December 31, 2025 (in thousands, except fair value data and remaining contractual term):

 UnitsWeighted
Average
Exercise Price Per Share		Weighted Average Contractual Term Remaining (Years)Aggregate Intrinsic Value
Outstanding—beginning of year2,250 $53.33 
Granted at fair value— — 
Vested— — 
Forfeited— — 
Outstanding—end of year2,250 $53.33 1.36$— 
Vested and expected to vest as of December 31, 2025
2,250 $53.33 1.36$— 
Vested and exercisable as of December 31, 2025
— $— — $— 
v3.25.4
REVENUE AND CONTRACT LIABILITY (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of deferred revenue
Unearned revenue consists of the following (in thousands):
 December 31,
 20252024
Unearned product revenue on undelivered product$11,170 $11,192 
In store credits10,875 11,462 
Loyalty program membership fees and reward points6,429 13,918 
Unearned product revenue on unshipped orders3,911 3,610 
Other2,044 2,913 
Total unearned revenue$34,429 $43,095 
Schedule of deferred revenues
The following table provides information about unearned revenue from contracts with customers, including significant changes in unearned revenue balances during the period (in thousands):
Amount
Unearned revenue at December 31, 2023$49,597 
Increase due to deferral of revenue at period end, net32,802 
Decrease due to beginning contract liabilities recognized as revenue(39,304)
Unearned revenue at December 31, 202443,095 
Increase due to deferral of revenue at period end, net24,725 
Decrease due to beginning contract liabilities recognized as revenue(33,391)
Unearned revenue at December 31, 2025$34,429 
Schedule of sales returns allowance
The following table provides additions to and deduction from the sales returns allowance, which is included in our Accrued liabilities balance in our consolidated balance sheets (in thousands):
Amount
Allowance for returns at December 31, 2022$10,222 
Additions to the allowance121,939 
Deductions from the allowance(123,510)
Allowance for returns at December 31, 20238,651 
Additions to the allowance105,353 
Deductions from the allowance(104,478)
Allowance for returns at December 31, 20249,526 
Additions to the allowance87,835 
Deductions from the allowance(89,639)
Allowance for returns at December 31, 2025$7,722 
v3.25.4
INTEREST INCOME, NET (Tables)
 12 Months Ended
Dec. 31, 2025
Banking and Thrift, Interest [Abstract]  
Interest Income and Interest Expense Disclosure
Interest income, net consisted of the following (in thousands):
 Year ended December 31,
 202520242023
Interest income$6,226 $8,968 $13,769 
Interest expense(1,174)(2,203)(1,762)
Total interest income, net$5,052 $6,765 $12,007 
v3.25.4
OTHER EXPENSE, NET (Tables)
 12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
Schedule of other income, net
Other expense, net consisted of the following (in thousands):
 Year ended December 31,
 202520242023
Loss from equity method securities$(28,628)$(77,687)$(140,404)
Gain (loss) on debt securities carried at fair value1,439 (2,430)— 
Gain on disposal of cryptocurrencies— — 6,361 
Other(446)(672)(106)
Total other expense, net $(27,635)$(80,789)$(134,149)
v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of income before income taxes
For financial reporting purposes, loss before income taxes includes the following components (in thousands):
 Year ended December 31,
 202520242023
United States loss$(85,491)$(259,395)$(267,058)
Foreign income1,695 1,284 936 
Total loss before income taxes$(83,796)$(258,111)$(266,122)
Schedule of provision (benefit) for income taxes
The provision for income taxes for 2025, 2024 and 2023 consists of the following (in thousands):
 Year ended December 31,
 202520242023
Current:   
Federal$— $— $(55)
State and local50 167 369 
Foreign302 233 58 
Total current352 400 372 
Deferred:   
Federal197 119 37,160 
State and local216 118 4,201 
Foreign60 47 (13)
Total deferred473 284 41,348 
Total income taxes:
Federal197 119 37,105 
State and local266 285 4,570 
Foreign362 280 45 
Total provision for income taxes$825 $684 $41,720 
Schedule of difference in income tax provision from amount computed by applying U.S. federal income tax rate of 35% to loss before income taxes
The provision for income taxes for 2025, 2024 and 2023 differ from the amounts computed by applying the U.S. federal income tax rate of 21% to loss before income taxes for the following reasons (in thousands):
 Year ended December 31,
 202520242023
AmountPercentAmountPercentAmountPercent
U.S. federal income tax benefit at statutory rate$(17,597)21.00 %$(54,203)21.00 %$(55,886)21.00 %
State income tax expense, net of federal benefit (1)411 (0.49)293 (0.11)4,419 (1.66)
Foreign tax effects(31)0.04 112 (0.04)(78)0.03 
Effect of cross-border tax laws316 (0.38)298 (0.12)(736)0.28 
Tax credits
Federal research and development tax credit(815)0.97 (2,071)0.80 (3,245)1.22 
Changes in federal valuation allowance16,510 (19.70)53,962 (20.91)93,855 (35.27)
Nontaxable or nondeductible items
Stock-based compensation expense976 (1.16)684 (0.27)2,405 (0.90)
Non-deductible executive compensation1,323 (1.58)1,286 (0.50)762 (0.29)
Changes in unrecognized tax benefits(549)0.66 54 (0.02)151 (0.06)
Other281 (0.34)269 (0.10)73 (0.03)
Effective income tax rate$825 (0.98)%$684 (0.27)%$41,720 (15.68)%
 ___________________________________________
(1)    State taxes in California, New York, Oregon, and Texas make up a majority (greater than 50 percent) of the tax effect in this category for the current year.
Schedule of supplemental cash flow information
The following table shows supplemental cash flow information (in thousands):
Year Ended December 31,
202520242023
Supplemental disclosures of cash flow information:  
Cash paid during the period:  
Interest paid, net of amounts capitalized$1,098 $1,489 $1,598 
Income taxes (refunded) paid, net(382)(132)556 
Non-cash investing and financing activities:  
Proceeds from sale of intangible assets included in other long-term assets, net3,750 — — 
Notes receivable converted to equity securities7,510 — — 
The amounts of cash income taxes paid, net of refunds for 2025, 2024, and 2023 are as follows (in thousands):
 Year ended December 31,
 202520242023
U.S. federal$(300)*$300 
U.S. state and local
California**(383)
Colorado*(29)*
Connecticut*(13)*
Illinois(26)**
Kansas(72)**
Kentucky*12 *
Maine*(10)*
Massachusetts(25)**
Michigan*(36)*
Minnesota*(58)57 
New Hampshire*(15)*
New Jersey*(152)140 
North Carolina**26 
Oregon66 51 72 
Pennsylvania(93)*48 
Texas79 93 139 
Wisconsin*(9)(30)
Other(11)4 128 
Total U.S. state and local(82)(162)197 
Foreign***
Total income taxes paid, net of (refunds)$(382)$(162)$497 
 ___________________________________________
*    The amount of income taxes paid, net of refunds during the year does not meet the five percent disaggregation threshold.
Schedule of components of deferred tax assets and liabilities
The components of our deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows (in thousands):
 December 31,
 20252024
Deferred tax assets:  
Net operating loss carryforwards$110,222 $73,925 
Basis difference in equity securities50,608 53,335 
Research and development tax credits26,837 26,040 
Capitalized software development10,852 33,064 
Capital loss carryforward9,270 — 
Unearned revenue4,766 7,324 
Accrued expenses3,931 3,325 
Reserves and other2,186 2,270 
Operating lease liabilities1,629 1,902 
Other tax credits and carryforwards262 261 
Gross deferred tax assets220,563 201,446 
Valuation allowance(216,444)(195,742)
Total deferred tax assets4,119 5,704 
Deferred tax liabilities:
Property and equipment, net(1,610)(3,378)
Operating lease right-of-use assets(1,267)(1,664)
Intangible assets(1,598)(487)
Prepaid expenses(310)(368)
Total deferred tax liabilities(4,785)(5,897)
Total deferred tax assets (liabilities), net$(666)$(193)
Schedule of reconciliation of beginning and ending tax contingencies, excluding interest and penalties
A reconciliation of the beginning and ending unrecognized tax benefits, excluding interest and penalties, as of December 31, 2025, 2024 and 2023 is as follows (in thousands):
 Year ended December 31,
 202520242023
Beginning balance$15,689 $15,020 $13,488 
Additions for tax positions related to the current year386 1,121 1,258 
Additions (reductions) for tax positions taken in prior years(896)(452)274 
Ending balance$15,179 $15,689 $15,020 
v3.25.4
NET LOSS PER SHARE (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated (in thousands, except per share data):
 Year ended December 31,
 202520242023
Numerator:
Net loss attributable to common stockholders$(84,621)$(258,795)$(307,842)
Denominator:
Weighted average shares of common shares outstanding—basic60,130 46,542 45,214 
Weighted average shares of common shares outstanding—diluted60,130 46,542 45,214 
Net loss per share of common stock:
Basic$(1.41)$(5.56)$(6.81)
Diluted$(1.41)$(5.56)$(6.81)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following shares were excluded from the calculation of diluted shares outstanding as their effect would have been anti-dilutive (in thousands):
 Year ended December 31,
 202520242023
Restricted stock units, PSUs, and Share Options2,321 2,647 984 
Employee stock purchase plan222 190 186 
Warrants6,884 — — 
v3.25.4
BUSINESS SEGMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following table summarizes the Company's segment revenue, significant segment expenses, other segment items, and segment loss (in thousands):
Year ended December 31,
202520242023
Net revenue
$1,044,616 $1,394,964 $1,561,122 
Less:
Cost of goods sold (as adjusted) (1)
786,884 1,104,341 1,193,877 
Sales and marketing expense (as adjusted) (1)
142,803 237,389 223,672 
Technology expense (as adjusted) (1)
69,004 88,407 90,498 
General and administrative (as adjusted) (1)
39,289 55,225 62,346 
Customer service and merchant fees
37,324 53,586 52,023 
Other segment items (2)
30,525 40,103 82,686 
Operating loss
$(61,213)$(184,087)$(143,980)
 ___________________________________________
(1)    Significant segment expense categories are adjusted to exclude costs related to depreciation and amortization, stock-based compensation, and brand integration and restructuring costs which are included in the Other segment items line.
(2)    Other segment items includes other operating expense (income), net, depreciation and amortization, stock-based compensation, and brand integration and restructuring costs.
v3.25.4
ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES - Change In Presentation In The Income Statement (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Error Corrections and Prior Period Adjustments Restatement [Line Items]      
Other operating expense (income), net $ (5,790) $ (6,882) $ 25,875
Total operating expenses 318,735 474,251 510,009
Operating loss (61,213) (184,087) (143,980)
Other expense, net (27,635) (80,789) (134,149)
Loss before income taxes (83,796) (258,111) (266,122)
Net loss $ (84,621) (258,795) (307,842)
As previously reported      
Error Corrections and Prior Period Adjustments Restatement [Line Items]      
Other operating expense (income), net   0 0
Total operating expenses   481,133 484,134
Operating loss   (190,969) (118,105)
Other expense, net   (73,907) (160,024)
Loss before income taxes   (258,111) (266,122)
Net loss   (258,795) (307,842)
Adjustment      
Error Corrections and Prior Period Adjustments Restatement [Line Items]      
Other operating expense (income), net   (6,882) 25,875
Total operating expenses   (6,882) 25,875
Operating loss   6,882 (25,875)
Other expense, net   (6,882) 25,875
Loss before income taxes   0 0
Net loss   $ 0 $ 0
v3.25.4
ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Supplemental disclosures of cash flow information:      
Interest paid, net of amounts capitalized $ 1,098 $ 1,489 $ 1,598
Income taxes (refunded) paid, net (382) (132) 556
Non-cash investing and financing activities:      
Proceeds from sale of intangible assets included in other long-term assets, net 3,750 0 0
Notes receivable converted to equity securities $ 7,510 $ 0 $ 0
v3.25.4
ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES - Property and Equipment, Net (Details)
Dec. 31, 2025
Furniture and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 5 years
Furniture and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 7 years
Computer hardware | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Computer hardware | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 4 years
Computer software, including internal-use software and website development | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 2 years
Computer software, including internal-use software and website development | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 4 years
v3.25.4
ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES - Narrative (Details) - USD ($)
 12 Months Ended
Nov. 24, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Feb. 24, 2026
Oct. 02, 2025
May 07, 2025
Accounting Policies [Line Items]              
Equity method investments   $ 39,738,000 $ 56,546,000        
Goodwill impairment   0 0 $ 0      
Amount of impairment to carrying amount of regulatory assets   0 0        
Goodwill   6,160,000 6,160,000        
Impairments of long-lived assets   0 0 $ 0      
Unrealized Gain (Loss) on Debt Instrument, Net   2,600,000          
Available-for-sale debt securities   18,417,000 10,985,000        
Debt securities, at fair value   $ 23,977,000 $ 14,814,000        
Product delivery period from date of shipment, minimum   1 day          
Product delivery period from date of shipment, maximum   8 days          
Loyalty program expiration period   30 days          
Advertising revenue as a percentage of total revenue   3.00% 3.00% 3.00%      
Number of shares called by each warrant           10  
Warrant, exercise price (in dollars per share)           $ 15.50  
Commercial Strategies              
Accounting Policies [Line Items]              
Noncontrolling Interest, Cumulative Proceeds From Token Offering   $ 467,000          
Stock Issuance Costs Incurred   305,000          
Zion Peaks, Inc.              
Accounting Policies [Line Items]              
Noncontrolling Interest, Cumulative Proceeds From Token Offering   396,000          
Stock Issuance Costs Incurred   197,000          
GrainChain, Inc. Convertible Promissory Note Due 2025 | Convertible Debt              
Accounting Policies [Line Items]              
Debt instrument, face amount   $ 13,000,000.0          
Interest rate   5.00%          
Long-term debt, gross   $ 12,000,000.0 $ 11,000,000.0        
Delayed Draw Term Loan Commitments | Line of Credit              
Accounting Policies [Line Items]              
Maximum borrowing capacity $ 30,000,000.0 30,000,000.0         $ 20,000,000.0
Line of Credit Facility, Increase (Decrease), Net $ 10,000,000.0            
Line of Credit, Current   10,000,000.0          
Delayed Draw Term Loan Commitments | Line of Credit | Subsequent Event              
Accounting Policies [Line Items]              
Maximum borrowing capacity         $ 15,000,000.0    
Additional Term Loan | Secured Debt              
Accounting Policies [Line Items]              
Debt instrument, face amount             $ 5,200,000
Debt, percentage of outstanding common shares             19.90%
Debt Instrument, Covenant, Percent Of Outstanding Shares, Maximum             75.00%
Amended and Restated Credit Agreement | Secured Debt              
Accounting Policies [Line Items]              
Debt instrument, face amount             $ 8,500,000
The Container Store, Inc.              
Accounting Policies [Line Items]              
Available-for-sale debt securities   6,500,000          
Medici Ventures, L.P. and TBHC | Variable Interest Entity, Not Primary Beneficiary              
Accounting Policies [Line Items]              
Maximum exposure to loss   49,600,000          
GrainChain, Inc. | Variable Interest Entity, Not Primary Beneficiary              
Accounting Policies [Line Items]              
Maximum exposure to loss   $ 24,400,000          
The Brand House Collective, Inc.              
Accounting Policies [Line Items]              
Equity method investment, ownership percentage   40.00%          
Equity method investments   $ 9,800,000          
Minimum | Medici Ventures, L.P., tZERO, and SpeedRoute, LLC              
Accounting Policies [Line Items]              
Equity method investment, ownership percentage   20.00%          
v3.25.4
ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES - Valuation Technique And Significant Unobservable Inputs Of Equity Securities (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
yr
Dec. 31, 2024
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Equity securities, at fair value $ 26,903 $ 21,640
Available-for-sale debt securities 18,417 10,985
Debt securities, at fair value 23,977 14,814
Fair Value, Recurring    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Equity securities, at fair value 26,900  
Level 3    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Equity securities, at fair value 17,075 21,640
Available-for-sale debt securities 18,417 10,985
Debt securities, at fair value 0 14,814
Level 3 | Fair Value, Recurring    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Equity securities, at fair value 17,075  
Available-for-sale debt securities 18,417  
Level 2    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Equity securities, at fair value 0 0
Available-for-sale debt securities 0 0
Debt securities, at fair value 23,977 $ 0
tZERO | Level 3 | Fair Value, Recurring | Term to liquidity | Blended market approach - transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model method and book value of equity method    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Equity securities, at fair value $ 15,503  
Inputs | yr 5  
tZERO | Level 3 | Fair Value, Recurring | Volatility | Blended market approach - transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model method and book value of equity method    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Inputs | yr 1  
tZERO | Level 3 | Fair Value, Recurring | Percentage change in enterprise value for guideline public companies | Blended market approach - transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model method and book value of equity method    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Inputs | yr (0.534)  
Zulily Newco | Level 3 | Fair Value, Recurring | Market approach    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Equity securities, at fair value $ 1,572  
GrainChain, Inc. | Level 3 | Fair Value, Recurring | Term to liquidity | Blended market approach - transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model method and book value of equity method    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Available-for-sale debt securities $ 11,955  
Inputs | yr 5  
GrainChain, Inc. | Level 3 | Fair Value, Recurring | Volatility | Blended market approach - transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model method and book value of equity method    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Inputs | yr 0.50  
GrainChain, Inc. | Level 3 | Fair Value, Recurring | Percentage change in enterprise value for guideline public companies | Blended market approach - transaction backsolve adjusted for enterprise value changes in guideline public companies, with an option pricing model method and book value of equity method    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Inputs | yr (0.122)  
The Container Store, Inc. | Level 3 | Fair Value, Recurring | Market approach    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Available-for-sale debt securities $ 6,462  
The Brand House Collective, Inc. | Level 2 | Market approach    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Debt securities, at fair value $ 23,977  
v3.25.4
FAIR VALUE MEASUREMENT - Assets and Liabilities Measured At Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Assets:    
Cash equivalents—Money market funds $ 22,717 $ 21,799
Equity securities, at fair value 26,903 21,640
Available-for-sale debt securities 18,417 10,985
Debt securities, at fair value 23,977 14,814
Total assets 92,014 69,238
Liabilities:    
Loan commitments, at fair value 2,766 0
Total liabilities 2,766  
Level 1    
Assets:    
Cash equivalents—Money market funds 22,717 21,799
Equity securities, at fair value 9,828 0
Available-for-sale debt securities 0 0
Debt securities, at fair value 0 0
Total assets 32,545 21,799
Liabilities:    
Loan commitments, at fair value 0  
Total liabilities 0  
Level 2    
Assets:    
Cash equivalents—Money market funds 0 0
Equity securities, at fair value 0 0
Available-for-sale debt securities 0 0
Debt securities, at fair value 23,977 0
Total assets 23,977 0
Liabilities:    
Loan commitments, at fair value 0  
Total liabilities 0  
Level 3    
Assets:    
Cash equivalents—Money market funds 0 0
Equity securities, at fair value 17,075 21,640
Available-for-sale debt securities 18,417 10,985
Debt securities, at fair value 0 14,814
Total assets 35,492 $ 47,439
Liabilities:    
Loan commitments, at fair value 2,766  
Total liabilities $ 2,766  
v3.25.4
FAIR VALUE MEASUREMENT - Level 3 Rollforward (Details) - Level 3 - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Level 3 investment, beginning of year $ 47,439 $ 51,530
Increase due to purchases of Level 3 investments $ 16,266 $ 17,000
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Other expense, net Other expense, net
Transfers out of Level 3 investments $ (20,046)  
Increase (decrease) in fair value of Level 3 investments (8,711) $ (21,836)
Accrued interest, net on Level 3 investments 544 745
Level 3 investment, end of year 35,492 47,439
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Level 3 liabilities at December 31, 2024 0  
Fair value of Level 3 liabilities assumed 2,766  
Level 3 liabilities at December 31, 2025 $ 2,766 $ 0
v3.25.4
FAIR VALUE MEASUREMENT - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
The Brand House Collective, Inc.  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Debt conversion, converted amount $ 8.5
Level 2 | Debt Securities  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Transfers out of Level 3 investments 12.4
Level 1 | Debt Securities  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Transfers out of Level 3 investments $ 7.5
v3.25.4
ACCOUNTS RECEIVABLE, NET (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
ACCOUNTS RECEIVABLE    
Accounts receivable, gross $ 24,206 $ 18,083
Less: allowance for credit losses (3,377) (2,236)
Accounts receivable, net 20,829 15,847
Credit card receivables    
ACCOUNTS RECEIVABLE    
Accounts receivable, gross 12,334 9,614
Accounts receivable, trade    
ACCOUNTS RECEIVABLE    
Accounts receivable, gross 8,871 5,282
Other receivables    
ACCOUNTS RECEIVABLE    
Accounts receivable, gross $ 3,001 $ 3,187
v3.25.4
PREPAIDS AND OTHER CURRENT ASSETS (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid maintenance $ 7,074 $ 8,924
Prepaid other 3,343 3,221
Other current assets 1,488 1,876
Total prepaids and other current assets $ 11,905 $ 14,021
v3.25.4
PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Fixed assets, gross $ 188,811 $ 207,569  
Less: accumulated depreciation (175,099) (184,025)  
Total property and equipment, net 13,712 23,544  
Depreciation of property and equipment 15,464 18,010 $ 18,876
Cost of goods sold — retail      
Property, Plant and Equipment [Line Items]      
Depreciation of property and equipment 90 396 711
Technology      
Property, Plant and Equipment [Line Items]      
Depreciation of property and equipment 15,055 17,150 14,414
General and administrative      
Property, Plant and Equipment [Line Items]      
Depreciation of property and equipment 319 464 3,751
Computer hardware and software, including internal-use software and website development      
Property, Plant and Equipment [Line Items]      
Fixed assets, gross 186,022 202,005  
Furniture and equipment      
Property, Plant and Equipment [Line Items]      
Fixed assets, gross 1,630 4,098  
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Fixed assets, gross 1,159 1,466  
Software Development      
Property, Plant and Equipment [Line Items]      
Capitalized costs 6,727 12,517 11,296
Amortization of capitalized costs $ 11,389 $ 11,354 $ 7,758
v3.25.4
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Abstract]    
Asset retirement obligation $ 22.4 $ 58.6
v3.25.4
INTANGIBLE ASSETS, NET - Narrattive (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Sep. 15, 2025
Mar. 17, 2025
Feb. 21, 2025
Jul. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2025
Finite-Lived Intangible Assets [Line Items]                
Proceeds from the sale of intangible assets         $ 6,250 $ 10,275 $ 0  
Equity method investments         $ 39,738 $ 56,546    
Zulily Newco                
Finite-Lived Intangible Assets [Line Items]                
Equity method investment, ownership percentage   25.00%     25.00%      
Equity method investments   $ 1,570            
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Lyons Trading Company, Assets                
Finite-Lived Intangible Assets [Line Items]                
Discontinued operations, consideration   5,000            
Proceeds from the sale of intangible assets   1,250            
Disposal, consideration receivable   $ 3,750            
Disposal, consideration receivable, installment period   5 years            
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Bed Bath & Beyond Trademark Assets                
Finite-Lived Intangible Assets [Line Items]                
Discontinued operations, consideration               $ 5,000
Proceeds from the sale of intangible assets       $ 5,000        
Gain on disposal         $ 5,000      
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration]         Other Operating Income (Expense), Net      
Buy Buy Baby Assets                
Finite-Lived Intangible Assets [Line Items]                
Asset acquisition, consideration transferred     $ 5,000          
Buy Buy Baby Assets | Trade Names                
Finite-Lived Intangible Assets [Line Items]                
Indefinite-Lived Intangible Assets Acquired     $ 7,100          
Kirkland's Brand Assets                
Finite-Lived Intangible Assets [Line Items]                
Asset acquisition, consideration transferred $ 10,000              
Asset acquisition, noncash consideration 2,800              
Kirkland's Brand Assets | Trade Names                
Finite-Lived Intangible Assets [Line Items]                
Indefinite-Lived Intangible Assets Acquired $ 12,900              
v3.25.4
INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
Total intangible assets, gross $ 5,645 $ 6,239
Less: accumulated amortization of intangible assets (3,813) (3,145)
Total intangible assets, net 1,832 3,094
Intangible assets not subject to amortization 43,308 27,152
Intangible assets, net $ 45,140 $ 30,246
Intangible asset, useful life 2 years 3 months 18 days  
v3.25.4
EQUITY SECURITIES - Summary of Equity Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]    
Equity securities accounted for under the equity method under ASC 323 $ 39,738 $ 56,546
Equity securities accounted for under the equity method under the fair value option 26,903 21,640
Total equity securities $ 66,641 $ 78,186
v3.25.4
EQUITY SECURITIES - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Mar. 17, 2025
Schedule of Equity Method Investments [Line Items]        
Purchase of equity securities $ 8,000 $ 0 $ 0  
Total equity securities 66,641 78,186    
Equity securities, at fair value 26,903 21,640    
Equity method investments 39,738 56,546    
The Brand House Collective, Inc.        
Schedule of Equity Method Investments [Line Items]        
Purchase of equity securities 8,000      
Debt conversion, converted amount $ 8,500      
Equity method investment, ownership percentage 40.00%      
Equity method investments $ 9,800      
Zulily Newco        
Schedule of Equity Method Investments [Line Items]        
Equity method investment, ownership percentage 25.00%     25.00%
Equity method investments       $ 1,570
Level 3        
Schedule of Equity Method Investments [Line Items]        
Equity securities, at fair value $ 17,075 $ 21,640    
Assets | Investments, Fair Value Concentration Risk [Member] | Level 3        
Schedule of Equity Method Investments [Line Items]        
Concentration risk, percentage (in percent) 18.60%      
Fair Value, Recurring        
Schedule of Equity Method Investments [Line Items]        
Equity securities, at fair value $ 26,900      
Fair Value, Recurring | Level 3        
Schedule of Equity Method Investments [Line Items]        
Equity securities, at fair value $ 17,075      
v3.25.4
EQUITY SECURITIES - Equity Securities Accounted Under Equity Method (ASC 323) And Ownership Interest (Details)
 12 Months Ended
Dec. 31, 2025
Mar. 17, 2025
The Brand House Collective, Inc.    
Schedule of Equity Method Investments [Line Items]    
Equity method investment, ownership percentage 40.00%  
Zulily Newco    
Schedule of Equity Method Investments [Line Items]    
Equity method investment, ownership percentage 25.00% 25.00%
Beyond, Inc. | Medici Ventures, L.P.    
Schedule of Equity Method Investments [Line Items]    
Limited liability company or limited partnership, members or limited partner, ownership interest (in percent) 99.00%  
Beyond, Inc. | tZERO    
Schedule of Equity Method Investments [Line Items]    
Equity method investment, ownership percentage 26.00%  
v3.25.4
EQUITY SECURITIES - Net Gain (Loss) Recognized On Equity Method Securities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]      
Net loss recognized on our proportionate share of the net assets of our equity method securities $ (16,808) $ (58,281) $ (98,663)
Decrease in fair value of equity method securities held under fair value option $ (11,820) $ (19,406) $ (41,741)
v3.25.4
EQUITY SECURITIES - Summarized Financial Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Balance Sheet      
Assets $ 425,478 $ 401,954  
Liabilities (207,534) (239,222)  
Total stockholders' equity 217,944 162,732 $ 359,132
Results of Operations      
Net loss (84,621) (258,795) (307,842)
Equity Method Investment, Nonconsolidated Investee or Group of Investees      
Balance Sheet      
Assets 326,187 63,546  
Liabilities (294,398) (17,985)  
Total stockholders' equity (31,789) (45,561)  
Results of Operations      
Revenues 263,572 12,086 26,404
Pre-tax loss (62,771) (20,778) (19,895)
Net loss $ (62,848) $ (20,777) $ (20,169)
v3.25.4
OTHER LONG-TERM ASSETS, NET (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Debt securities carried at fair value $ 23,977 $ 14,814
Available-for-sale debt securities 18,417 10,985
Prepaid other, long-term portion 2,115 3,242
Other long-term assets 4,045 412
Total other long-term assets, net $ 48,554 $ 29,453
v3.25.4
ACCRUED LIABILITIES (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]        
Accrued marketing expenses $ 12,189 $ 27,935    
Accrued compensation and other related costs 7,827 8,345    
Allowance for returns 7,722 9,526 $ 8,651 $ 10,222
Accrued freight 6,452 4,962    
Sales and other taxes payable 6,121 6,205    
Accounts payable accruals 3,879 12,743    
Other accrued expenses 7,107 3,898    
Total accrued liabilities $ 51,297 $ 73,614    
v3.25.4
BORROWINGS (Details) - BMO Loan And Security Agreement - Line of Credit - Revolving Credit Facility - USD ($)
 1 Months Ended
Oct. 31, 2024
Dec. 31, 2025
Debt Instrument [Line Items]    
Maximum borrowing capacity $ 25,000,000.0  
Debt term 1 year  
Interest period 1 month  
Basis spread on variable rate 1.00%  
Letters of credit outstanding   $ 7,000,000.0
Line of Credit, Current   $ 15,500,000
v3.25.4
LEASES - Narrative (Details)
Dec. 31, 2025
Minimum  
Lessee, Lease, Description [Line Items]  
Remaining lease term 2 years
Maximum  
Lessee, Lease, Description [Line Items]  
Remaining lease term 7 years
v3.25.4
LEASES - Components of Lease Cost and Other Operating Lease Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Lease, Cost [Abstract]      
Operating lease cost $ 2,074 $ 3,240 $ 5,257
Variable lease cost 929 906 1,300
Cash payments included in operating cash flows from lease arrangements 1,628 3,253 5,500
Right-of-use assets obtained in exchange for new operating lease liabilities $ 0 $ 7,170 $ 836
Weighted-average remaining lease term—operating leases 6 years 9 months 3 days 6 years 7 months 24 days  
Weighted-average discount rate—operating leases 7.00% 6.00%  
v3.25.4
LEASES - Operating Lease Maturities and Future Minimum Payments (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]  
2026 $ 1,285
2027 1,150
2028 1,099
2029 1,132
2030 1,040
Thereafter 2,457
Total lease payments 8,163
Less interest 1,592
Present value of lease liabilities $ 6,571
v3.25.4
OTHER LONG-TERM LIABILITIES (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Other Liabilities Disclosure [Abstract]    
Unearned revenue, long-term portion $ 2,432 $ 4,583
Income taxes payable, long-term portion 3,530 3,675
Other long-term liabilities 3,783 (349)
Total other long-term liabilities $ 9,745 $ 7,909
v3.25.4
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Nov. 24, 2025
May 07, 2025
Dec. 31, 2024
Loss Contingencies [Line Items]        
Loan commitments, at fair value $ 2,766     $ 0
Delayed Draw Term Loan Commitments | Line of Credit        
Loss Contingencies [Line Items]        
Maximum borrowing capacity 30,000 $ 30,000 $ 20,000  
Remaining borrowing capacity $ 20,000     $ 0
v3.25.4
STOCKHOLDERS' EQUITY - Common Stock (Details)
Dec. 31, 2025
vote
Equity [Abstract]  
Common stock, votes per share (in vote) 1
v3.25.4
STOCKHOLDERS' EQUITY - JonesTrading Sales Agreement (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Class of Stock [Line Items]    
Sale of stock, number of shares issued in transaction 16,293,806 7,002,375
Consideration received on transaction $ 137,300 $ 43,000
stock issuance costs 2,800 $ 879
Jones Trading Institutional Services LLC | Common Stock | At The Market Sales Program    
Class of Stock [Line Items]    
Sale of stock, amount available $ 16,000  
v3.25.4
STOCKHOLDERS' EQUITY - Stock Repurchase Program (Details) - USD ($)
 12 Months Ended
Dec. 21, 2023
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Aug. 17, 2021
Class of Stock [Line Items]          
Stock repurchase program, authorized amount $ 150,000,000.0       $ 100,000,000.0
Stock repurchase program, period in force (in years)   2 years      
Stock repurchase program, increase to authorized amount $ 50,000,000.0        
Common Stock          
Class of Stock [Line Items]          
Repurchase of shares   $ 6,200,000 $ 0 $ 0  
Average price per share of shares repurchased (in dollars per share)   $ 6.87      
v3.25.4
STOCKHOLDERS' EQUITY - Warrants (Details) - $ / shares
 12 Months Ended
Dec. 31, 2025
Oct. 02, 2025
Equity [Abstract]    
Number of shares called by each warrant   10
Warrant, exercise price (in dollars per share)   $ 15.50
Warrants exercised (in shares) 1  
Warrants outstanding (in shares) 6,900,000  
v3.25.4
STOCK-BASED AWARDS - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 10,853 $ 19,255 $ 23,018
Cost of goods sold      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 6 7 37
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 332 594 796
Technology      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 1,747 6,263 8,733
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 8,768 $ 12,391 $ 13,452
v3.25.4
STOCK-BASED AWARDS - Additional Information (Details)
 12 Months Ended
May 13, 2021
USD ($)
shares
Dec. 31, 2025
USD ($)
performance_metric
installment
priceHurdle
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
Stock-Based Awards        
Granted at fair value (in shares)   3,035,000 1,818,000 1,101,000
Granted at fair value (in shares)   0 2,300,000  
Exercise price (in dollars per share) | $ / shares   $ 0    
Maximum employee subscription rate 25.00%      
Monetary cap | $ $ 21,250      
Offering period 24 months      
Purchase period 6 months      
Purchase price percentage 85.00%      
Number of shares authorized 3,000,000.0      
Vested (in dollars per share) | $ / shares   $ 3.37    
Restricted Stock, Performance Shares, and Share Options        
Stock-Based Awards        
Cost not yet recognized | $   $ 14,800,000    
Cost not yet recognized, period of recognition   2 years 1 month 2 days    
Number of shares available for future grants   1,100,000    
Restricted Stock Units (RSUs) | Amended and Restated 2005 Equity Incentive Plan        
Stock-Based Awards        
Granted at fair value (in shares)   1,800,000    
Restricted Stock Units (RSUs) | Inducement Plan        
Stock-Based Awards        
Granted at fair value (in shares)   300,000    
Restricted Stock Awards | Minimum        
Stock-Based Awards        
Award vesting period (in years)   3 years    
Restricted Stock Awards | Maximum        
Stock-Based Awards        
Award vesting period (in years)   4 years    
Performance Shares        
Stock-Based Awards        
Share-based compensation expense | $   $ (17,000) $ 5,900,000  
Share-Based Compensation Arrangement by Share-Based Payment Award, Number Of Performance Metrics | performance_metric   3    
Share-Based Compensation Arrangement by Share-Based Payment Award, Performance Metrics, Adjusted EBITDA Performance Multiplier   50.00%    
Share-Based Compensation Arrangement by Share-Based Payment Award, Performance Metrics, Gross Margin Performance Multiplier   25.00%    
Share-Based Compensation Arrangement by Share-Based Payment Award, Performance Metrics, Contribution Margin Performance Multiplier   25.00%    
Share-Based Compensation Arrangement by Share-Based Payment Award, Performance Metrics, Maximum Payout, Percent of Target PSUs   135.00%    
Performance Shares | Amended and Restated 2005 Equity Incentive Plan        
Stock-Based Awards        
Granted at fair value (in shares)   800,000    
Performance Shares | Inducement Plan        
Stock-Based Awards        
Granted at fair value (in shares)   200,000    
Stock Options        
Stock-Based Awards        
Award vesting period (in years)   4 years    
Number of installments | installment   3    
Number of stock price hurdles | priceHurdle   3    
Share-based compensation expense | $   $ 3,300,000 2,400,000  
Employee stock purchase plan        
Stock-Based Awards        
Number of shares available for future grants   2,500,000    
Share-based compensation expense | $   $ 700,000 $ 1,100,000 $ 1,700,000
Common stock issued for ESPP purchases   100,000 100,000 100,000
Stock purchase plans, average price per share (in dollars per share) | $ / shares   $ 5.32 $ 12.23 $ 16.25
v3.25.4
STOCK-BASED AWARDS - Restricted Stock Activity (Details) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Units      
Outstanding-beginning of year (in shares) 1,314 984 781
Granted at fair value (in shares) 3,035 1,818 1,101
Vested (in shares) (366) (441) (550)
Forfeited (in shares) (946) (1,047) (348)
Outstanding-end of period (in shares) 3,037 1,314 984
Weighted Average Grant Date Fair Value      
Outstanding-beginning of year (in dollars per share) $ 20.98 $ 29.60 $ 50.17
Granted at fair value (in dollars per share) 6.28 19.73 20.92
Vested (in dollars per share) 23.40 35.33 40.27
Forfeited (in dollars per share) 13.75 18.89 31.43
Outstanding-end of period (in dollars per share) $ 8.21 $ 20.98 $ 29.60
v3.25.4
STOCK-BASED AWARDS - Stock Option Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Units    
Outstanding-beginning of year (in shares) 2,250  
Granted at fair value (in shares) 0 2,300
Vested (in shares) 0  
Forfeited (in shares) 0  
Outstanding-end of period (in shares) 2,250 2,250
Vested and expected to vest (in shares) 2,250  
Vested and exercisable (in shares) 0  
Weighted Average Exercise Price Per Share    
Outstanding, beginning of year (in shares) $ 53.33  
Granted at fair value (in dollars per share) 0  
Vested (in dollars per share) 0  
Forfeited (in dollars per share) 0  
Outstanding, end of year (in shares) 53.33 $ 53.33
Vested and expected to vest (in dollars per share) 53.33  
Exercise price (in dollars per share) $ 0  
Additional Disclosures    
Outstanding, weighted average contractual term remaining 1 year 4 months 9 days  
Vested and expected to vest, weighted average contractual term remaining 1 year 4 months 9 days  
Outstanding, intrinsic value $ 0  
Vested and expected to vest, intrinsic value 0  
Vested and exercisable, intrinsic value $ 0  
v3.25.4
EMPLOYEE RETIREMENT PLAN (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Minimum period of service to qualify to participate in 401(k) defined contribution plan 30 days    
Eligible age to participate in 401(k) defined contribution plan 18 years    
Employer match of first 6% of participant's contributions (as a percent) 100.00%    
Percentage of participant's' gross pay for which the employer contributes a matching contribution 6.00%    
Matching contributions made by the company $ 2,900,000 $ 4,300,000 $ 5,000,000.0
Discretionary contributions $ 0 $ 0 $ 0
v3.25.4
REVENUE AND CONTRACT LIABILITY - Unearned Revenue (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Contract with Customer, Liability [Line Items]    
Total unearned revenue $ 34,429 $ 43,095
Loyalty program membership fees and reward points    
Contract with Customer, Liability [Line Items]    
Total unearned revenue 6,429 13,918
In store credits    
Contract with Customer, Liability [Line Items]    
Total unearned revenue 10,875 11,462
Unearned product revenue on undelivered product    
Contract with Customer, Liability [Line Items]    
Total unearned revenue 11,170 11,192
Unearned product revenue on unshipped orders    
Contract with Customer, Liability [Line Items]    
Total unearned revenue 3,911 3,610
Other    
Contract with Customer, Liability [Line Items]    
Total unearned revenue $ 2,044 $ 2,913
v3.25.4
REVENUE AND CONTRACT LIABILITY - Deferred Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Unearned revenue, beginning balance $ 43,095 $ 49,597
Increase (Decrease) in Contract with Customer, Liability 24,725 32,802
Contract with Customer, Liability, Revenue Recognized (33,391) (39,304)
Unearned revenue, ending balance $ 34,429 $ 43,095
v3.25.4
REVENUE AND CONTRACT LIABILITY - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Unearned revenue $ 34,429 $ 43,095  
Gift card and Club-O rewards breakage 11,100 7,200 $ 5,100
Unearned contract revenue 2,400 4,600  
Club O Reward Points      
Disaggregation of Revenue [Line Items]      
Unearned revenue $ 4,100 $ 11,100  
v3.25.4
REVENUE AND CONTRACT LIABILITY - Sales Returns Allowance (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]      
Allowance for returns, beginning of period $ 9,526 $ 8,651 $ 10,222
Additions to the allowance 87,835 105,353 121,939
Deductions from the allowance (89,639) (104,478) (123,510)
Allowance for returns, end of period $ 7,722 $ 9,526 $ 8,651
v3.25.4
INTEREST INCOME, NET (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Banking and Thrift, Interest [Abstract]      
Interest income $ 6,226 $ 8,968 $ 13,769
Interest expense (1,174) (2,203) (1,762)
Total interest income, net $ 5,052 $ 6,765 $ 12,007
v3.25.4
OTHER EXPENSE, NET (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Income and Expenses [Abstract]      
Loss from equity method securities $ (28,628) $ (77,687) $ (140,404)
Gain (loss) on debt securities carried at fair value 1,439 (2,430) 0
Gain on disposal of cryptocurrencies 0 0 6,361
Other (446) (672) (106)
Other expense, net $ (27,635) $ (80,789) $ (134,149)
v3.25.4
INCOME TAXES - Income Before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
United States loss $ (85,491) $ (259,395) $ (267,058)
Foreign income 1,695 1,284 936
Loss before income taxes $ (83,796) $ (258,111) $ (266,122)
v3.25.4
INCOME TAXES - Provision (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current:      
Federal $ 0 $ 0 $ (55)
State and local 50 167 369
Foreign 302 233 58
Total current 352 400 372
Deferred:      
Federal 197 119 37,160
State and local 216 118 4,201
Foreign 60 47 (13)
Total deferred 473 284 41,348
Federal 197 119 37,105
State and local 266 285 4,570
Foreign 362 280 45
Total provision for income taxes $ 825 $ 684 $ 41,720
v3.25.4
INCOME TAXES - Effective Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S. federal income tax benefit at statutory rate $ (17,597) $ (54,203) $ (55,886)
State income tax expense, net of federal benefit 411 293 4,419
Foreign tax effects (31) 112 (78)
Effect of cross-border tax laws 316 298 (736)
Federal research and development tax credit (815) (2,071) (3,245)
Changes in federal valuation allowance 16,510 53,962 93,855
Stock-based compensation expense 976 684 2,405
Non-deductible executive compensation 1,323 1,286 762
Changes in unrecognized tax benefits (549) 54 151
Other 281 269 73
Total provision for income taxes $ 825 $ 684 $ 41,720
Percent      
U.S. federal income tax benefit at statutory rate 21.00% 21.00% 21.00%
State income tax expense, net of federal benefit (0.49%) (0.11%) (1.66%)
Foreign tax effects 0.04% (0.04%) 0.03%
Effect of cross-border tax laws (0.38%) (0.12%) 0.28%
Federal research and development tax credit 0.97% 0.80% 1.22%
Changes in federal valuation allowance (19.70%) (20.91%) (35.27%)
Stock-based compensation expense (1.16%) (0.27%) (0.90%)
Non-deductible executive compensation (1.58%) (0.50%) (0.29%)
Changes in unrecognized tax benefits 0.66% (0.02%) (0.06%)
Other (0.34%) (0.10%) (0.03%)
Effective income tax rate (0.98%) (0.27%) (15.68%)
v3.25.4
INCOME TAXES - Schedule of Income Taxes Paid, Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
U.S. federal $ (300)   $ 300
Income Tax Paid, State and Local, after Refund Received (82) $ (162) 197
Total income taxes paid, net of (refunds)   (162) 497
Income taxes (refunded) paid, net (382) (132) 556
California      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received     (383)
Colorado      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received   (29)  
Connecticut      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received   (13)  
Illinois      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received (26)    
Kansas      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received (72)    
Kentucky      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received   12  
Maine      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received   (10)  
Massachusetts      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received (25)    
Michigan      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received   (36)  
Minnesota      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received   (58) 57
New Hampshire      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received   (15)  
New Jersey      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received   (152) 140
North Carolina      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received     26
Oregon      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received 66 51 72
Pennsylvania      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received (93)   48
Texas      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received 79 93 139
Wisconsin      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received   (9) (30)
Other      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Income Tax Paid, State and Local, after Refund Received $ (11) $ 4 $ 128
v3.25.4
INCOME TAXES - Deferred Tax Assets And Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Net operating loss carryforwards $ 110,222 $ 73,925
Basis difference in equity securities 50,608 53,335
Research and development tax credits 26,837 26,040
Capitalized software development 10,852 33,064
Capital loss carryforward 9,270 0
Unearned revenue 4,766 7,324
Accrued expenses 3,931 3,325
Reserves and other 2,186 2,270
Operating lease liabilities 1,629 1,902
Other tax credits and carryforwards 262 261
Gross deferred tax assets 220,563 201,446
Valuation allowance (216,444) (195,742)
Total deferred tax assets 4,119 5,704
Deferred tax liabilities:    
Property and equipment, net (1,610) (3,378)
Operating lease right-of-use assets (1,267) (1,664)
Intangible assets (1,598) (487)
Prepaid expenses (310) (368)
Total deferred tax liabilities (4,785) (5,897)
Total deferred tax liabilities $ (666) $ (193)
v3.25.4
INCOME TAXES - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Contingency [Line Items]      
Capital loss carryforward $ 9,270 $ 0  
Increase (decrease) in valuation allowance 20,700    
Unrecognized tax benefits that would impact effective tax rate 15,200 15,700 $ 15,000
Interest and penalties accrued on tax contingencies 1,500 $ 1,400  
Capital Loss Carryforward      
Income Tax Contingency [Line Items]      
Operating loss carryforwards 36,500    
Federal      
Income Tax Contingency [Line Items]      
Operating loss carryforwards, not subject to expiration 438,400    
Federal | Research Tax Credit Carryforward      
Income Tax Contingency [Line Items]      
Tax credit carryforward 32,100    
U.S. state and local      
Income Tax Contingency [Line Items]      
Operating loss carryforwards, not subject to expiration 139,300    
Operating loss carryforwards, subject to expiration 225,600    
U.S. state and local | Research Tax Credit Carryforward      
Income Tax Contingency [Line Items]      
Tax credit carryforward $ 9,100    
v3.25.4
INCOME TAXES - Reconciliation of Tax Contingencies (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reconciliation of beginning and ending tax contingencies, excluding interest and penalties      
Beginning balance $ 15,689 $ 15,020 $ 13,488
Additions for tax positions related to the current year 386 1,121 1,258
Additions (reductions) for tax positions taken in prior years (896) (452) 274
Ending balance $ 15,179 $ 15,689 $ 15,020
v3.25.4
NET LOSS PER SHARE - Income & Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Net loss attributable to common stockholders $ (84,621) $ (258,795) $ (307,842)
Weighted average shares of common shares outstanding—basic (in dollars per share) 60,130 46,542 45,214
Weighted average shares of common shares outstanding—diluted (in dollars per share) 60,130 46,542 45,214
Basic (in dollars per share) $ (1.41) $ (5.56) $ (6.81)
Diluted (in dollars per share) $ (1.41) $ (5.56) $ (6.81)
v3.25.4
NET LOSS PER SHARE - Schedule of Antidilutive Securities (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restricted stock units, PSUs, and Share Options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 2,321 2,647 984
Employee stock purchase plan      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 222 190 186
Warrants      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 6,884 0 0
v3.25.4
BUSINESS SEGMENTS - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
segment
Segment Reporting [Abstract]  
Number of reportable segments 1
v3.25.4
BUSINESS SEGMENTS - Summary of Segment Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Net revenue $ 1,044,616 $ 1,394,964 $ 1,561,122
Cost of goods sold 787,094 1,104,800 1,195,093
Sales and marketing 143,356 238,564 224,547
Technology 90,276 114,584 117,154
General and administrative 53,569 74,399 90,410
Customer service and merchant fees 37,324 53,586 52,023
Operating loss (61,213) (184,087) (143,980)
Reportable Segment      
Segment Reporting Information [Line Items]      
Net revenue 1,044,616 1,394,964 1,561,122
Cost of goods sold 786,884 1,104,341 1,193,877
Sales and marketing 142,803 237,389 223,672
Technology 69,004 88,407 90,498
General and administrative 39,289 55,225 62,346
Customer service and merchant fees 37,324 53,586 52,023
Other segment items 30,525 40,103 82,686
Operating loss $ (61,213) $ (184,087) $ (143,980)
v3.25.4
SUBSEQUENT EVENTS (Details)
Jan. 09, 2026
USD ($)
Feb. 24, 2026
USD ($)
Jan. 30, 2026
USD ($)
$ / shares
Dec. 31, 2025
USD ($)
$ / shares
Nov. 24, 2025
USD ($)
May 07, 2025
USD ($)
Dec. 31, 2024
USD ($)
$ / shares
Subsequent Event [Line Items]              
Common stock, par value (in dollars per share) | $ / shares       $ 0.0001     $ 0.0001
Subsequent Event              
Subsequent Event [Line Items]              
Payments to acquire loans receivable $ 2,200,000            
Subsequent Event | TBHC Inc              
Subsequent Event [Line Items]              
Business combination, expected exchange ratio     0.1993        
Common stock, par value (in dollars per share) | $ / shares     $ 0.0001        
Termination fee     $ 1,025,300        
Expense reimbursement amount     $ 341,800        
Line of Credit | Delayed Draw Term Loan Commitments              
Subsequent Event [Line Items]              
Maximum borrowing capacity       $ 30,000,000.0 $ 30,000,000.0 $ 20,000,000.0  
Remaining borrowing capacity       $ 20,000,000.0     $ 0
Line of Credit | Subsequent Event | Delayed Draw Term Loan Commitments              
Subsequent Event [Line Items]              
Maximum borrowing capacity   $ 15,000,000.0          
Remaining borrowing capacity   $ 5,000,000.0          
v3.25.4
Schedule II Valuation and Qualifying Accounts (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Deferred tax valuation allowance      
Valuation and Qualifying Accounts      
Balance at Beginning of Year $ 195,742 $ 132,105 $ 21,459
Charged to Expense 20,702 63,637 110,646
Deductions 0 0 0
Balance at End of Year 216,444 195,742 132,105
Allowance for doubtful accounts      
Valuation and Qualifying Accounts      
Balance at Beginning of Year 2,236 1,298 3,223
Charged to Expense 1,860 938 (1,925)
Deductions 719 0 0
Balance at End of Year $ 3,377 $ 2,236 $ 1,298