Mattukdec92025
$NXH NXH reported Thursday after the close.
Revenue hit five hundred nine million dollars, up ninety-eight percent year over year. That jump came almost entirely from the Kirkland’s, SFV Services, and Container Store acquisitions closing in the back half of the year. Core e-commerce, the legacy Overstock and Bed Bath and Beyond digital business, grew about nine percent, the best in nineteen quarters, with Overstock alone up seventy-five percent to an annualized run rate above three hundred million. Bed Bath and Beyond core revenue rose twenty-three million on a seven point four percent lift in average order value.
Gross margin printed thirty-four percent, up eight hundred seventy basis points, helped by a fourteen million dollar purchase-price accounting benefit on acquired inventory. Adjusted EBITDA was a twenty-six million dollar loss, down twenty-one million year over year, and adjusted diluted EPS was a loss of twenty-eight cents against a forty-eight cent loss expected, so a fourteen cent beat. GAAP net loss was also twenty-six million, though that included a twenty-one million non-cash gain on convertible notes and an eighteen million tax benefit. Active customers doubled to nine million with over a hundred million in the database and little overlap. Orders delivered hit four million, up two hundred seventeen percent. Cash stood at one hundred twenty-seven million, inventory at two hundred twenty-eight million with one hundred ten million of equity net of asset-based lending, and twenty-six million of owned real estate sits free and clear.
On expectations, management guided Q4 revenue up roughly five percent sequentially. For full year twenty twenty-seven they see consolidated revenue of two billion to two point one billion including about five percent organic growth, with gross margin of thirty-three to thirty-four percent and a stated path to thirty-seven through better sourcing, assortment discipline, and higher-margin home services. They’ve already cut over fifty million in annualized SG&A and identified another forty million through supply chain consolidation, organizational redundancy removal, and store fleet optimization, with full synergy benefits expected over six to nine months. Eleven Container Store locations close by year-end, thirty-nine four-wall-negative Kirkland’s locations exit in early twenty twenty-seven at average lease costs of fifty-five to sixty thousand dollars each, and a second distribution center in Aberdeen, Maryland is shutting with inventory shifting to Dallas. Seventy-five stores are being restocked with traditional Bed Bath and Beyond assortments, signage complete in early twenty twenty-seven. Elfa and SFV installation services run at sixty percent margins. Lemonis said the legacy e-commerce business has now hit two milestones, sustained revenue growth and adjusted EBITDA neutrality, and if they deliver mid-single-digit organic growth plus efficiency gains, they expect an enterprise-wide positive cash flow inflection in the second half of twenty twenty-seven. Incremental contribution margin is framed at thirty percent on every additional hundred million of organic revenue.
I bought 9500 shares of nxh at 1.69 per share .
This is an extremely high risk investment .
It is a retail and digital retailer combination of several failing and bankrupt entities put together ( bed bath beyond. , overstocked , Kirkland , container store ) run by Marcus ( the profit. T v show guy ) .
He invested six million of his money in business . Its market cap compared to revenue is extremely low and the chance to turn this around in my mind is about 40% . 17% of shares are short .
I will monitor the company over the future quarters and I see the possibility of making 5x on my investment within three years and losing half my investment if he fails to turn it around .
If you follow me into this I suggest mommore than 10,000 shares at this level and prefer you buy 1000 shares at most as this is an extremely high risk of a turn around due to the nature of retail customer tastes trends and their ability to spend . On the positive side he has over 100 million former customer names to promote too .
The next 24 months he will continue to consolidate , closing stores create format create identity ( which I see as extremely difficult climb ) and cut expenses while increasing profit margin .
Very difficult challenge .
On the plus side is websre buying burglars than management paid for stock so great upside .
Analyst price targets is 8.
Bless all good luck to all
rPM Nov 6 2026. Nxh 1.69
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