11:38 AM EDT, 07/30/2024 (MT Newswires) -- Beyond's (BYON) Q2 financial results indicated improvement as the company works on its brand "rejuvenation," Wedbush Securities said Tuesday.

The company reported late Monday that its Q2 net revenue fell to $398.1 million from $422.2 million a year earlier. The result topped Wedbush's $385 million view, it said.

The brokerage expects negative EBITDA margins throughout this year as the company focuses on rebranding and investment in customer acquisition and retention, Wedbush analysts Michael Pachter, Alicia Reese and Brandon Barron said in a note to clients.

"We think Beyond can return to positive EBITDA as soon as next year with a rapid acceleration of active customers as Overstock.com is rejuvenated and as Zulily launches, with order value rising, all while management maintains expenses discipline," the analysts said.

Wedbush reiterated its outperform rating on the Beyond stock.

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