byon-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-41850

BED BATH & BEYOND, INC.

(Exact name of registrant as specified in its charter)


Delaware		87-0634302
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)
433 W. Ascension Way, 3rd Floor
Murray,	Utah	84123
(Address of principal executive offices)		(Zip Code)

(801) 947-3100

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.0001 par value

BBBY

New York Stock Exchange

Warrants to Purchase Shares of Common Stock

BBBY WS

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

73,938,495 shares of the registrant's common stock, par value $0.0001, were outstanding on April 24, 2026.

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BED BATH & BEYOND, INC.

TABLE OF CONTENTS TO QUARTERLY REPORT ON FORM 10-Q

For the Quarterly Period Ended March 31, 2026


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	5
	Consolidated Balance Sheets	5
	Consolidated Statements of Operations	7

	Consolidated Statements of Changes in Stockholders' Equity	8
	Consolidated Statements of Cash Flows	9
	Notes to Unaudited Consolidated Financial Statements	10

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36

Item 4.	Controls and Procedures	37

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	38

Item 1A.	Risk Factors	38

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45

Item 3.	Defaults Upon Senior Securities	45

Item 4.	Mine Safety Disclosures	45

Item 5.	Other Information	45

Item 6.	Exhibits	46

Signatures		47

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SPECIAL CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q and the information incorporated herein by reference, and our other public documents and statements our officers and representatives may make from time to time, contain forward-looking statements within the meaning of the federal securities laws. These statements are intended to be covered by the safe harbor provisions of these laws. You can find many of these statements by looking for words such as "may," "would," "could," "should," "will," "expect," "anticipate," "predict," "project," "potential," "continue," "contemplate," "seek," "assume," "believe," "intend," "plan," "forecast," "goal," "estimate," or other similar terms or expressions or the negative of these terms or expressions, although not all forward-looking statements contain these identifying terms or expressions.

These forward-looking statements involve known and unknown risks and uncertainties and relate to future events or our future financial or operating performance. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry and business, and on management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, you are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to assumptions, risks, uncertainties, and other important factors that are difficult to predict, and that actual results and outcomes may be materially different from the results, performance, achievements, or outcomes expressed or implied by any of our forward-looking statements for a variety of reasons, including among others:

•We depend on third-party companies to perform functions critical to our business, and any failure or increased cost on their part could have a material adverse effect on our business.

•We face intense competition and may not be able to compete successfully against existing or future competitors.

•We may not timely identify or effectively respond to consumer needs, expectations or trends, which could adversely affect our relationship with our customers, the demand for our products and services, and our market share.

•Our business depends on effective marketing, including marketing via email, search engine marketing, influencer marketing, and social media marketing. Our competitors have and may continue to cause us to increase our marketing costs and decrease certain other types of marketing, and have and may continue to outspend us on marketing or be more efficient in their spend.

•Economic factors, including recessions, other economic downturns, inflation, our exposure to the U.S. housing market, and decreases in consumer spending, have affected and could continue to adversely affect us.

•Tariffs, bans, or other measures or events that increase the effective price of products or limit our ability to access products we or our suppliers, fulfillment partners, or other third parties that import or export could have a material adverse effect on our business.

•Our changing business model and use of the Bed Bath & Beyond brand, Overstock brand, buybuy BABY brand, Kirkland's and Kirkland's Home brand, Beyond brand, and other brands of ours, could negatively impact our business.

•The changing job market, the changes in our leadership team, the change in our compensation approach, changing job structures, or any inability to attract, retain and engage key personnel could affect our ability to successfully grow our business.

•We rely upon paid and natural search engines to rank our product offerings, and our financial results may suffer if we are unable to maintain our prior rankings in natural searches.

•If we are not profitable and/or are unable to generate sufficient positive cash flow from operations, our ability to continue in business will depend on our ability to raise additional capital, obtain financing or monetize significant assets, and we may be unable to do so.

•Our business depends on the Internet, our infrastructure and transaction-processing systems, and catastrophic events could adversely affect our operating results.

•Compliance with ever-evolving federal, state, and foreign laws and other requirements relating to the handling of information about individuals necessitates significant expenditure and resources, and any failure by us, our vendors or our business partners to comply may result in significant liability, negative publicity, and/or an erosion of trust, which could materially adversely affect our business, results of operations, and financial condition.

•If we or our third-party providers experience cyberattacks or data security incidents, there may be damage to our brand and reputation, material financial penalties, and legal liability, which would materially adversely affect our business, results of operations, and financial condition.

•Failure to comply with, or changes in, laws, regulations and enforcement activities may adversely affect the products, services and markets in which we operate.

•From time to time we are subject to various legal proceedings which could adversely affect our business, financial condition or results of operations.

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•Damage to our reputation or brand image could adversely affect our sales and results of operations.

•If we do not successfully optimize and operate our fulfillment center or customer service operations, our business could be harmed.

•If we fail to effectively utilize technological advancements, including in artificial intelligence, our business and financial performance could be negatively impacted.

•Global conflict could negatively impact our business, results of operations, and financial condition.

•Product safety and quality concerns could have a material adverse impact on our revenue and profitability.

•We depend on our suppliers' and fulfillment partners' representations regarding product safety, content and quality, product compliance with various laws and regulations, including registration and/or reporting obligations, and for proper labeling of products.

•We have an evolving business model, which increases the complexity of our business.

•Exercising the Warrants is a risky investment and those who exercise their Warrants may not be able to recover the value of their investment in the common stock received upon such exercise. Warrant holders could sustain a total loss of the exercise price of any Warrants that they exercise.

•Investment in new business strategies, acquisitions, dispositions, partnerships, or other transactions could disrupt our ongoing business, present risks not originally contemplated and materially adversely affect our business, reputation, results of operations and financial condition.

•Regulatory changes or actions may alter the nature of an investment in us or restrict the use of digital assets, including tokens or blockchain technology in a manner that adversely affects our business, prospects and operations.

•The merger with The Container Store Holdings, LLC may not be completed and the TCS Merger Agreement (as defined herein) may be terminated in accordance with its terms.

•Combining our business with that of The Brand House Collective, Inc. ("TBHC") (and if the TCS Merger is completed, that of TCS) may be more difficult, costly or time-consuming than expected and the combined company may fail to realize the anticipated benefits of the merger with TBHC (and, if completed, the TCS Merger), which may adversely affect the combined company's business results and negatively affect the value of the combined company's common stock.

In evaluating all forward-looking statements, you should specifically consider the risks outlined above and in this report and our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 24, 2026, especially under the headings "Special Cautionary Note Regarding Forward-Looking Statements," "Summary of Risk Factors," "Risk Factors," "Legal Proceedings," and "Management's Discussion and Analysis of Financial Condition and Results of Operations." These factors may cause our actual results and outcomes to differ materially from those contemplated by any forward-looking statement. Although we believe that our expectations reflected in the forward-looking statements are reasonable, we cannot guarantee or offer any assurance of future results, levels of activity, performance or achievements or other future events. Our forward-looking statements contained in this report speak only as of the date of this report and, except as required by law, we undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this report or any changes in our expectations or any change in any events, conditions or circumstances on which any of our forward-looking statements are based.

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)


Bed Bath & Beyond, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except per share data)
	March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	135,829	$	175,295
Restricted cash	26,673		26,924

Accounts receivable, net of allowance for credit losses of $2,752 and $3,377	24,005		20,829

Inventories	496		5,162
Prepaids and other current assets	9,713		11,905
Total current assets	196,716		240,115
Property and equipment, net	12,586		13,712

Intangible assets, net	45,079		45,140
Goodwill	6,160		6,160
Equity securities, including securities measured at fair value of $25,382 and $26,903	64,236		66,641
Operating lease right-of-use assets	4,937		5,156
Other long-term assets, net, including securities measured at fair value of $68,943 and $42,394	74,740		48,554

Total assets	$	404,454	$	425,478
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	91,532	$	89,992
Accrued liabilities	47,480		51,297
Unearned revenue	34,639		34,429
Operating lease liabilities, current	946		928
Short-term debt, net	15,500		15,500

Total current liabilities	190,097		192,146

Operating lease liabilities, non-current	5,404		5,643
Other long-term liabilities, including commitments measured at fair value of $0 and $2,766	6,500		9,745

Total liabilities	$	202,001	$	207,534
Commitments and contingencies (Note 9)

Continued on the following page See accompanying notes to unaudited consolidated financial statements.

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Bed Bath & Beyond, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except per share data)
	March 31, 2026		December 31, 2025
Stockholders' equity:
Preferred stock, $0.0001 par value, authorized shares - 5,000, issued and outstanding - none	$	—	$	—


Common stock, $0.0001 par value, authorized shares - 100,000
Issued shares - 77,045 and 76,358
Outstanding shares - 69,355 and 68,863	8		8
Additional paid-in capital	1,241,225		1,239,338
Accumulated deficit	(859,109)		(842,711)
Accumulated other comprehensive loss	(2,574)		(2,574)
Treasury stock at cost - 7,690 and 7,495	(177,458)		(176,478)
Equity attributable to stockholders of Bed Bath & Beyond, Inc.	202,092		217,583
Equity attributable to noncontrolling interests	361		361
Total stockholders' equity	202,453		217,944
Total liabilities and stockholders' equity	$	404,454	$	425,478

See accompanying notes to unaudited consolidated financial statements.

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Bed Bath & Beyond, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)


	Three months ended March 31,
	2026		2025
Net revenue	$	247,755	$	231,748
Cost of goods sold	188,557		173,616
Gross profit	59,198		58,132
Operating expenses
Sales and marketing	32,310		31,290
Technology	21,214		26,718
General and administrative	14,863		14,314
Customer service and merchant fees	9,018		9,357
Other operating income, net	—		(336)
Total operating expenses	77,405		81,343
Operating loss	(18,207)		(23,211)
Interest income, net	1,729		762
Other income (expense), net	329		(17,269)
Loss before income taxes	(16,149)		(39,718)
Provision for income taxes	249		194


Net loss	$	(16,398)	$	(39,912)
Net loss per share of common stock:

Basic	$	(0.24)	$	(0.74)


Diluted	$	(0.24)	$	(0.74)

Weighted average shares of common stock outstanding:
Basic	69,049		53,661
Diluted	69,049		53,661

See accompanying notes to unaudited consolidated financial statements.

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Bed Bath & Beyond, Inc. Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (in thousands)
	Three months ended March 31,
	2026		2025
Equity attributable to stockholders of Bed Bath & Beyond, Inc.
Shares of common stock issued
Balance at beginning of period	76,358		59,560
Common stock issued upon vesting of restricted stock	620		275
Common stock issued for ESPP purchases	67		91


Common stock sold through offerings	—		3,487

Balance at end of period	77,045		63,413
Shares of treasury stock
Balance at beginning of period	7,495		6,491


Tax withholding upon vesting of employee stock awards	195		90

Balance at end of period	7,690		6,581
Total shares of common stock outstanding	69,355		56,832
Common stock
Balance at beginning of period	$	8	$	5

Common stock sold through offerings	—		1
Balance at end of period	$	8	$	6























Additional paid-in capital
Balance at beginning of period	$	1,239,338	$	1,072,869
Stock-based compensation to employees and directors	1,533		1,094
Common stock issued for ESPP purchases	354		509

Common stock sold through offerings, net	—		19,471





Balance at end of period	$	1,241,225	$	1,093,943
Accumulated deficit
Balance at beginning of period	$	(842,711)	$	(740,466)

Net loss	(16,398)		(39,912)



Balance at end of period	$	(859,109)	$	(780,378)




Accumulated other comprehensive loss



Balance at beginning and end of period	$	(2,574)	$	—
Treasury stock
Balance at beginning of period	$	(176,478)	$	(169,676)

Tax withholding upon vesting of employee stock awards	(980)		(527)


Balance at end of period	$	(177,458)	$	(170,203)
Total equity attributable to stockholders of Bed Bath & Beyond, Inc.	$	202,092	$	143,368





Equity attributable to noncontrolling interests









Total equity attributable to noncontrolling interests	$	361	$	—

Total stockholders' equity	$	202,453	$	143,368

See accompanying notes to unaudited consolidated financial statements.

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Bed Bath & Beyond, Inc. Consolidated Statements of Cash Flows (Unaudited) (in thousands)
	Three months ended March 31,
	2026		2025
Cash flows from operating activities:
Net loss	$	(16,398)	$	(39,912)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,204		4,844


Non-cash operating lease cost	219		727
Stock-based compensation to employees and directors	1,533		1,094









Loss from equity method securities	2,405		17,073





Other non-cash adjustments	(3,055)		(136)
Changes in operating assets and liabilities:
Accounts receivable, net	(3,176)		(2,225)
Inventories	4,666		(13,042)
Prepaids and other current assets	2,518		2,167
Other long-term assets, net	22		(125)
Accounts payable	640		(4,087)
Accrued liabilities	(3,810)		(14,302)
Unearned revenue	210		(2,288)
Operating lease liabilities	(221)		(662)
Other long-term liabilities	(553)		(47)


Net cash used in operating activities	(11,796)		(50,921)
Cash flows from investing activities:
Disbursement for notes receivable	(26,168)		—
Expenditures for property and equipment	(1,027)		(1,181)


Purchase of intangible assets	(100)		(5,214)



Purchase of equity securities	—		(8,000)
Proceeds from the sale of intangible assets	—		1,250



Net cash used in investing activities	(27,295)		(13,145)




Cash flows from financing activities:

Proceeds from sale of common stock, net of offering costs	—		19,472











Payments of taxes withheld upon vesting of employee stock awards	(980)		(527)

Other financing activities, net	354		509


Net cash (used in) provided by financing activities	(626)		19,454
Net decrease in cash, cash equivalents, and restricted cash	(39,717)		(44,612)
Cash, cash equivalents, and restricted cash, beginning of period	202,219		186,093


Cash, cash equivalents, and restricted cash, end of period	$	162,502	$	141,481

See accompanying notes to unaudited consolidated financial statements.

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Bed Bath & Beyond, Inc.

Notes to Unaudited Consolidated Financial Statements

1. DESCRIPTION OF BUSINESS

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. The Company currently owns Bed Bath & Beyond, Overstock, buybuy BABY, and now the Kirkland's and Kirkland's Home brands, as well as other related brands and websites and a blockchain asset portfolio inclusive of tZERO, GrainChain, and other assets.

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.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The Company has prepared the accompanying unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP") have been omitted in accordance with the rules and regulations of the SEC. These financial statements should be read in conjunction with the audited annual consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes to the Company's significant accounting policies disclosed in Note 2—Accounting Policies and Supplemental Disclosures, included in Part II, Item 8, Financial Statements and Supplementary Data, of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, except as disclosed below.

The accompanying unaudited consolidated financial statements include the Company's accounts and the accounts of the Company's wholly-owned subsidiaries and other subsidiaries for which the Company exercises control, and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the Company's opinion, necessary for a fair presentation of results for the interim periods presented. All intercompany account balances and transactions have been eliminated in consolidation. The results of operations for the three months ended March 31, 2026, are not necessarily indicative of the results to be expected for any future period or the full fiscal year, due to seasonality and other factors.

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 the Company's 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 the Company's best knowledge of current events and actions that the Company may undertake in the future, the accounting of these estimates may change from period to period. To the extent there are differences between these estimates and actual results, the Company's consolidated financial statements may be materially affected.

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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 "First Amendment"). Pursuant to the terms of the First Amendment, 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 (such amendment, the "Second Amendment" and the Amended and Restated Credit Agreement, as amended by the First Amendment and the Second Amendment, the "Amended Credit Agreement") 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. As of March 31, 2026, an aggregate of $30.0 million had been drawn under the Delayed Draw Term Loan Commitments (the "Delayed Draw Notes").

In connection with the TBHC Merger (as defined below), The Brand House Collective's senior lender, Bank of America, N.A. entered into a consent to the TBHC Merger (the "BoA Consent"). The terms of the BoA Consent render inapplicable the previously-disclosed (i) limitations on the Company's ownership of The Brand House Collective stock and (ii) Amended Credit Agreement provisions whereby the Company may convert into equity the obligations owing to the Company pursuant to the Notes.

The Company has elected to present the Notes and Delayed Draw Notes at fair value, which totaled $44.2 million and $24.0 million at March 31, 2026 and December 31, 2025, respectively. The balance of the Notes and Delayed Draw Notes are included in Other long-term assets, net on the Company's consolidated balance sheets.

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.

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.

As a result of these transactions in the second and third quarters of 2025, the Company recognized the amounts of contributions attributable to the noncontrolling interests on the Company's consolidated balance sheets. At March 31, 2026 and December 31, 2025, the Company's equity attributable to noncontrolling interests totaled $0.4 million for both periods presented. For the three months ended March 31, 2026 and 2025, there was no activity attributable to noncontrolling interests.

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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 the Company 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.

3. FAIR VALUE MEASUREMENT

The following tables summarize the Company's assets and liabilities measured at fair value on a recurring basis using the following levels of inputs (in thousands):


	Fair Value Measurements at March 31, 2026
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents—Money market funds	$	22,920	$	22,920	$	—	$	—
Equity securities, at fair value	25,382		8,307		—		17,075
Available-for-sale debt securities (1)	24,786		—		—		24,786
Debt securities, at fair value (1)	44,157		—		44,157		—

Total assets	$	117,245	$	31,227	$	44,157	$	41,861


	Fair Value Measurements at December 31, 2025
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents—Money market funds	$	22,717	$	22,717	$	—	$	—
Equity securities, at fair value	26,903		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

___________________________________________

(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.

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The following table provides activity for the Company's Level 3 investments (in thousands):


	Amount
Level 3 investments at December 31, 2024	$	47,439
Increase due to purchases of Level 3 investments	16,266
Transfers out of Level 3 investments	(20,046)
Decrease in fair value of Level 3 investments	(8,711)
Accrued interest on Level 3 investments	544
Level 3 investments at December 31, 2025	35,492
Increase due to purchases of Level 3 investments	6,168


Accrued interest, net on Level 3 investments	201
Level 3 investments at March 31, 2026	$	41,861

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 assumed	2,766
Level 3 liabilities at December 31, 2025	2,766
Derecognition of Level 3 liabilities assumed	(2,766)
Level 3 liabilities at March 31, 2026	$	—

During the three months ended March 31, 2026, an additional $20.0 million was drawn under the Delayed Draw Term Loan Commitments, which resulted in the derecognition of the loan commitment as all available balance had been drawn.

4. PROPERTY AND EQUIPMENT, NET

Property and equipment, net consist of the following (in thousands):


	March 31, 2026		December 31, 2025
Computer hardware and software, including internal-use software and website development	$	187,407	$	186,022


Furniture and equipment

SEC Form 10-Q filed by Bed Bath & Beyond Inc.