Piper Sandler has cut its price target for Beyond Inc (NYSE:BBYY) shares to $8 from $10 and left its recommendation at Neutral, citing lingering uncertainty about how the company will combine and scale its three strategic business areas. The firm signaled that while certain internal measures show progress, valuation assumptions warranted downward revision.
Operational signals
In its note, Piper Sandler acknowledged sequential improvement in Beyond’s core business during the fourth quarter, but that progress came against a backdrop of a 10% year-over-year revenue decline for the period. The research team pointed to internal efforts such as SKU consolidation as evidence that management initiatives are beginning to take hold.
Market position and recent performance
Shares of the company, which were cited in the research note as trading at $5.07, have fallen 47% over the past six months and were approximately 60% below their 52-week high of $12.65 at the time the update was published. An InvestingPro tip referenced in the report indicates that analysts expect sales to decline in the current year, a view consistent with the company’s own framing of 2025 as a trough year.
Management outlook
Beyond’s management has characterized 2025 as a trough and outlined a goal of returning to topline growth in 2026. The company’s target for 2026 is low-single-digit to mid-single-digit percentage organic revenue growth, and management expects year-over-year improvement in adjusted EBITDA, which stood at a negative $30.7 million in 2025.
Three-pillar strategy and valuation change
The company has described a three-pillar framework consisting of retail, home-related financial services, and renovation and installation services, all intended to be connected via a single customer loyalty program. Piper Sandler reduced its valuation multiple assumption to 0.3 times 2027 estimated sales from a prior 0.4 times, explicitly pointing to uncertainty about the execution and integration of those three pillars as the rationale for the cut.
Quarterly results and margin trends
Beyond reported fourth-quarter 2025 results on February 23, 2026, showing a 10% year-over-year revenue decline. The company said that excluding the impact of discontinuing its Canadian operations, the revenue decline narrows to 6%. It reported a diluted loss per share of $0.30, an improvement from the prior year’s loss. Gross margin expanded by 160 basis points to 24.6% despite the top-line decline. The company’s updates and these metrics were noted by analysts, though the research highlighted that no specific analyst upgrades or downgrades were indicated in response.
Implications for investors
Piper Sandler’s adjustment reflects a more cautious valuation stance driven by integration risk, even as certain operational metrics and margin improvements point to progress. The firm’s Neutral rating suggests analysts see both upside and downside as the company attempts to translate internal initiatives into consistent revenue growth and improved profitability.
Key points
- Piper Sandler trims Beyond Inc price target to $8 from $10 and maintains Neutral.
- Q4 revenue fell 10% year-over-year; excluding discontinued Canadian operations decline is 6%.
- Management calls 2025 a trough and expects organic revenue growth in 2026 along with adjusted EBITDA improvement.
Risks and uncertainties
- Execution and integration risk tied to the three-pillar strategy - failure to integrate retail, financial services, and renovation services could impede the assumed recovery.
- Top-line pressure in the near term as analysts and management anticipate sales declines in the current year, which affects revenue-sensitive retail and home-related services sectors.
- Ongoing negative adjusted EBITDA in 2025 (negative $30.7 million) underscores profitability risk until management achieves the targeted improvements.