#1Ooverstock. Q2 2019 Earnings Call#2Forward-Looking Statements The information presented herein may contain forward-looking statements. Such forward-looking statements include all statements other than statements of historical fact, including forecasts of trends. You should not place undue reliance on any forward-looking statements, which speak only as of the date they were made. We undertake no obligation to update any forward-looking statements as a result of any new information, future developments or otherwise. Forward-looking statements are inherently difficult to predict. Accordingly, actual results could differ materially for a variety of reasons, including, but not limited to, the amount and timing of our capital expenditures, results of our ongoing review of strategic initiatives including any decision regarding whether to sell our e-commerce business, initiatives to improve the performance of our retail business, adverse tax, regulatory or legal developments, competition, and any inability to achieve and/or maintain profitability, generate positive cash flow from operations, raise capital, or borrow funds on acceptable terms. Other risks and uncertainties include, among others, the inherent risks associated with the businesses that Medici Ventures and tZERO are pursuing, including whether tZERO's joint venture with Box Digital Markets, LLC will be able to achieve its objectives, the regulatory, technical, operational and other obstacles tZERO faces in each of its initiatives, the effects of key business personnel moving from our retail business to our Medici Ventures and tZERO businesses or otherwise leaving, our continually evolving business model, difficulties we may have with our infrastructure, our fulfillment partners or our payment processors, including cyber-attacks or data breaches affecting us or any of them, and difficulties we may have with our search engine optimization results. More information about factors that could potentially affect our financial results is included in our Form 10-K for the year ended December 31, 2018, which was filed with the Securities and Exchange Commission on March 18, 2019, in our Form 10-Q for the quarter ended March 31, 2019, which was filed with the Securities and Exchange Commission on May 9, 2019, and in our subsequent filings with the Securities and Exchange Commission. The Form 10-K, and our subsequent filings with the Securities and Exchange Commission identify important factors that could cause our actual results to differ materially from those contained in or contemplated by our projections, estimates and other forward-looking statements. overstock. 2#3Agenda 1. Medici Ventures A. tZERO B. Other Medici Keiretsu Companies 2. Retail 3. Q&A overstock. 3#4D overstock. MEDICI VENTURES A Blockchain Technology Stack for Civilization A MEDICI VENTURES#5Identity MINDS NETKI FinClusive overstock. A MEDICI VENTURES Banking & Land Titling Currency 派立 MEDICI LAND GOVERNANCE bitt PEERNOVA spera ripio BANKORUS Capital Markets tZERO symbiont CHAINSTONE LABS Supply Chain 回 Vinsent GRAN CHAIN FACTOM Voting Voatz Votem S SettleMint A 5 MEDICI VENTURES#6Identity MINDS NETKI FinClusive overstock. Land Titling 派 A MEDICI LAND GOVERNANCE MEDICI VENTURES Banking & Currency T bitt PEERNOVA spera ripio BANKORUS Capital Markets tZERO symbiont CHAINSTONE LABS Supply Chain 回 Vinsent GRAN CHAIN FACTOM Voting Voatz Votem S SettleMint A 6 MEDICI VENTURES#7overstock. tZERO The Next Generation of Capital Markets#8Key Milestones Achieved in 2019 1/24: PRO Securities ATS (operated by tZERO subsidiary) enables resales of TZROP by accredited investors with Dinosaur Financial acting as introducing broker-dealer 1/1: Awarded patent for order system that can integrate with legacy Wall Street systems 1/10: Broker-dealer partner, Dinosaur Financial (powered by tZERO tech) begins onboarding investors overstock. 5/30: Boston Security Token Exchange (BSTX) JV filed rulebook with SEC for first regulated security token exchange 5/3: Announced LOI to tokenize commercial real- estate with Emaar, a $10B real-estate development firm 4/15: Launched tokenization technology as a service, supporting tokenization of existing cap tables/securities 5/27: Finalized agreement with 3rd party token issuance platform, Securitize 7/9: Announced LOI to tokenize major motion picture, Atari, produced by Leonardo DiCaprio's production company 6/26: Formalized agreement with Electronic Transaction Clearing as the second digital subscriber to the PRO Securities ATS 6/14: Filed new member application for proprietary retail broker-dealer subsidiary 6/27: Launched Crypto App on iOS Pro Securities ATS added second token (OSTKO) 7/30: Overstock Declares Dividend of One Digital Share for Every Ten Shares Held 7/25: Launched Crypto App on Android 8 8/12: Expected to permit tZERO tokens to trade among non- accredited investors 8/6: Awarded patent for technology enabling traditional trading systems to be anchored into public blockchains tZERO#9Security Token Ecosystem Issuers overstock. Tokenization Technology 3rd Party Brokerage DINOSAUR Token Trading Technology PRO Securities ATS Investors IN PROGRESS 3rd Party Brokerage ETC IN PROGRESS BSTX Under Regulatory Review IN PROGRESS Other 3rd Party Brokerages IN PROGRESS Retail Brokerage Investors 9 tZERO#10Company Priorities 1. Onboard Quality Tokens 2. Enhance Liquidity 3. DLRs 2.0: Security Lending Solution 4. Boston Security Token Exchange (BSTX) overstock. 10 tZERO#111. Onboard Quality Tokens a. OSTKO as Second Security Token Trading on Platform - 6/27 ✓ b. Announced Plans to Tokenize Major Motion Picture (Atari) - 7/9 ✓ c. Ongoing Discussions with Potential New Issuers - In Progress overstock. 11 tZERO#122. Enhance Liquidity a. Filed for tZERO Retail Broker-Dealer - 6/14 ✓ b. Launched tZERO Crypto App - 6/27 ✓ c. Announced OSTKO Dividend - 7/30 ✓ d. TZROP Freely Tradable by Non-Accredited Investors - 8/12 e. Integrating Additional Broker-Dealers - Ongoing overstock. 12 tZERO#133 & 4. Other Initiatives 3. DLRs 2.0: Security Lending Solution a. Launch Market Data Feed - 8/2 ✓ b. Integrate Order Management System - October 4. Boston Security Token Exchange (BSTX) - 2019 overstock. 13 tZERO#14New Additions to Leadership overstock. Brooke Navarro Head of Issuance ▪ 10+ years of experience ■ MBA, Columbia Business School BS, The George Washington University Mike Mougias Head of Investor Relations ▪ 10+ years of experience ■ BA, Sacred Heart University 0 Alex Sotiropoulos Head of Communications ▪ 5+ years of experience ▪ BA, Kenyon College 14 tZERO#15Strategic Investments Makara GSR overstock. 15 tZERO#16Identity MINDS NETKI FinClusive overstock. Land Titling A MEDICI LAND GOVERNANCE MEDICI VENTURES Banking & Currency T bitt PEERNOVA spera ripio BANKORUS Capital Markets tZERO symbiont CHAINSTONE LABS Supply Chain 回 Vinsent GRAN CHAIN FACTOM Voting Voatz Votem ← SettleMint A 16 MEDICI VENTURES#17MEDICI LAND GOVERNANCE Overstock.com's blockchain subsidiary signs MOU with Lusaka city to develop land governance platform :: Fri, 24 May 2019, 04:06 am UTC overstock. Overstock Subsidiary to Aid Liberia with Blockchain Development Reung Time: 2 minutes by Aishwaryawan on June 11, 2019 Bocken VB BTCMANAGER In a press release issued on June 10, 2019, Overstock.com announced that its blockchain subsidiary, Medici Land Governance (MLG) had inked a Memorandum of Understanding (MoU) with Liberia's Ministry of Finance and Development Planning. BLOCKCHAIN June 17, 2019 Daily Hodl Staff Overstock Reports First Blockchain- Registered Land in the US in Wyoming Wyoming's Teton County is the first in the US to register land titles on a blockchain-based platform, according to an announcement from Overstock.com. The e-commerce retailer says its blockchain subsidiary Medici Land Governance (MLG) has recorded land records that include warranty deeds, mortgages, release of liens, and other similar documents on its blockchain- based platform. A 17 MEDICI VENTURES#18bitt Blockchain Fintech Firm Bitt Digital Finally Gets Approval from Barbados Central Bank By Lillian Peter July 16, 2019 bitt After an 8-month long review, Bitt Digital Inc. has finally exited the rigorous Regulatory Sandbox of the Central Bank of Barbados and the Financial Services Commission. The process was successfully completed on July 5, 2019, making the company the first to achieve this almost insurmountable feat. overstock. Bitt Digital, Part of Overstock's Medici Ventures, Becomes First Company to Exit Central Bank of Barbados Sand box July 15, 2019 @ 10:42 am By JD Alois Bitt Digital Inc., a portfolio company of Overstock's (NASDAQ:OSTK) Medici Ventures, has become the first company to successfully complete the regulatory sandbox by the Central Bank of Barbados and the Financial Services Commission. Medici Ventures invested $4 million in Bitt in early 2016. The investment came shortly after Bitt's launch of a digitized Barbadian Dollar. A 18 MEDICI VENTURES#19✔Voatz COMPUTERWORLD UNITED STATES - NEWS ANALYSIS Utah County to pilot blockchain-based mobile voting By Lucas Mearian Senior Reporter, Computerworld | 23 JULY 2019 10:46 PT A large Utah county is testing mobile absentee voting for military members and dependents living overseas, but some experts say online voting endangers the very democracy the U.S. military is supposed to protect. fin loverstock. ✔✔Voatz Anonymous User Verification Status: Deferred Get fully verified to vote in all events HAVE INSIDER VENTS Q > coindesk Blockchain 101 Technology Markets Business Data & Research Events VOTE Utah County to Offer Blockchain Voting App in Municipal Elections Daniel Palmer ⒸULI 23, 2019 at 11:00 UTC Updated Jul 23, 2019 at 11:09 UTC NEWS Utah County is to pilot the mobile voting app from Voatz in its municipal primary election in August. According to a press release on Tuesday, the county will offer the blockchain-based voting service to active-duty military, their eligible dependents and overseas voters. The pilot is a collaboration between the Utah County Elections Division, Voatz, Tusk Philanthropies and the National Cybersecurity Center. 19 A MEDICI VENTURES#20Identity MINDS NETKI FinClusive overstock. Land Titling 派 A MEDICI LAND GOVERNANCE MEDICI VENTURES Banking & Currency T bitt PEERNOVA spera ripio BANKORUS Capital Markets tZERO symbiont CHAINSTONE LABS Supply Chain 回 Vinsent GRAN CHAIN FACTOM Voting Voatz Votem S SettleMint A 20 MEDICI VENTURES#21overstock. Oloverstock. Retail TM wwwwww 21#22Quarterly Retail Adjusted EBITDA Millions $10 $0 ($10) ($20) ($30) ($40) ($50) ($60) overstock. ($20) ($24) T ($50) Q1 2018 Q2 2018 * Q3 2018 ($17) Q4 2018 ($8) ($2) Q1 2019 ($2) 100% Allocation* 70% Allocation* $2 Q2 2019 22 Refers to the allocation of Shared Service costs (Finance, Legal, HR, Administration, etc.). Prior periods reflect a 100% allocation to Retail. Retail Adjusted EBITDA is a non-GAAP financial measure. See Reconciliation in Appendix#23Home Furnishings: A $301B Fragmented Market U.S. Market Share of Home Furnishings Retail 11% Walmart 7% יזוֹי 6% 6% 4% loverstock. Source: At Home. "Sales Share of Homewares and Home Furnishings Stores in The United States in 2017." Statista, Statista Inc., 27 Mar 2019 65% Others 23#24Home Furnishings: A $301B Fragmented Market loverstock. Source: eMarketer, Inc., 2018 Online Penetration 19% Furniture & home furnishings $57B Online Home Furnishings Market 24#25loverstock. Source: eMarketer, Inc., 2018 Books music & video Computer & consumer electronics Toys & hobby Office equipment & supplies Other categories Apparel accessories Furniture & home furnishings Health personal care & beauty Auto & parts Food & beverage 2% 4% 9% 19% 24% 23% 27% 28% $57B Online Home Furnishings Market 35% 45% Online Penetration Home Furnishings: A $301B Fragmented Market 25#26Home Furnishings: A $301B Fragmented Market U.S. Market Share of $301B Home Furnishings Retail¹ 11% Walmart 7% Target 6% TJ Maxx/HomeGoods/Marshalls 6% loverstock. 2 eMarketer, Inc., 2018 2) Bed Bath & Beyond 4% Amazon 65% Others 45% Books music & video 35% Computer & consumer electronics 28% Toys & hobby Online Penetration² 27% Office equipment & supplies 24% Other categories Sources: 1) At Home. "Sales Share of Homewares and Home Furnishings Stores in The United States in 2017." Statista, Statista Inc., 27 Mar 2019 23% Apparel & accessories 19% Furniture & home furnishings $57B Online Home Furnishings Market 9% Health personal care & beauty 4% Auto & parts 2% Food & beverage 26#27Playing to Our Strengths ■ ■ Home Retail Market Segmentation overstock. ■ Produced Six Major Customer Segments Segmented on: ■ AL ■ overstock. ■ Savvy Shoppers Reluctant Refreshers Shopping Behaviors Decorating and Shopping Attitudes Demographics Spending Focusing Where Overstock Has the Right to Win Combined Market Spend of 40% Deal Driven & Low Hassle Over-Indexed Shopping at Overstock ■ ■ ■ 27#28Playing to Our Strengths overstock. AL ■ Shared Characteristics of Savvy Shoppers / Reluctant Refreshers ■ overstock. I Savvy Shoppers Reluctant Refreshers Want a Great Deal on Quality Items Seek Balance in Function, Style, Ease, and Price Want a Beautiful, Comfortable Home Delight in Achieving their Decorating Vision 28#29Expanding Our Advantage Build a Personal Relationship with Each Customer ■ ▪ World-Class Data Platform and CRM Industry-Leading Content Dynamic Templating ▪ Machine Learning Dream Homes for All overstock. ■ Create 'Smart' Value for our Customers ■ Quality Assortment and On-Site Experience ▪ Build Confidence in Value Streamlining Promotions ▪ Hassle-Free Shipping ■ Deliver an Easy, Seamless Shopping Journey ■ Easy Returns Simplified Product Discovery 29#30Build a Personal Relationship with Each Customer 0 28 Day Repeat Customer % Average overstock. || YOY +2.7% Q2 2018 Q2 2019 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Jan-19 Private Label GMS % of Total Feb-19 May-19 Jun-19 30#31Create 'Smart' Value for Our Customers SEO Top 3 Keywords (All Categories) 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 O 0 Q1 2015 Q2 2015 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Q3 2015 overstock. Q4 2015 Q1 2016 Q2 2016 Source: SEMrush Net Returns Cost % Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 |||| Q1 2018 Q2 2018 Q3 2018 tul Q4 2018 Q1 2019 Q2 2019 Millions $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 9.25 9.00 8.75 8.50 8.25 8.00 Projected Quarterly Outbound Cost Savings Q3 2019 Q4 2019 Q1 2020 Q2 2017 Q2 2020 Customer Perceived Price Advantage vs. Other Retailers Q2 2018 Source: Bizrate Q3 2020 Q4 2020 YOY +0.7% Q2 2019 31#32Deliver an Easy, Seamless Shopping Journey % of Products Viewed with ≤ 2 Days Delivery Messaging 0 Time to Interactive (TTI) Rendering 2018 Q1 2019 Desktop Mobile Source: Internal Page Performance Tool Q2 2019 overstock. 25% 20% 15% 10% 5% 0% 6-Jan 20-Jan 3-Feb 17-Feb 3-Mar 17-Mar- 31-Mar 14-Apr 28-Apr 12-May 26-May 9-Jun 23-Jun 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% NPS (Point of Sale) % || Q2 2018 YOY +6% Source: Bizrate Q2 2019 32#33Q2 2019 Initiatives✔ COMPLETE overstock. 1. Expanded Site Monetization via New AdTech ✓ 2. Rebalanced Freight Contracts ✓ 3. Machine Learning Integrations Expanded ✓ [ 40%] 4. Focus on our Target Audience ✓ 33#34Q3 2019 Initiatives IN PROGRESS Build a Personal Relationship with Each Customer ■ Increase Volume of 3D Content Expand Private Label Program Integrate CRM Pipeline overstock. Create 'Smart' Value for our Customers ▪ Reduce Return Friction Complete Freight Lane Implementation ■ ■ ■ Deliver an Easy, Seamless Shopping Journey Expand 2-Day Shipping Rate Accelerate Growth in our Mobile Apps 34#35Q2 2019 Financial Results: Retail Revenue $367.5 Million 23% decrease vs. Q2 2018 Contribution¹ $38.5 Million vs. ($3.3) million in Q2 2018 overstock. Gross Profit $72.5 Million 20% decrease vs. Q2 2018 Contribution Margin1¹ 10.5% vs. (0.7%) in Q2 2018 Gross Margin 19.7% vs. 18.9% in Q2 2018 djusted EBITDA1 $1.6 Million Includes 70% allocation of Shared Service costs 35 1 Retail Contribution, Contribution Margin, and Adjusted EBITDA are non-GAAP financial measures. See Reconciliations in Appendix#36Millions We Continue Through the Transition $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Q4 2018 Monthly Average overstock. Q1 2019 Monthly Average Q2 2019 Monthly Average Retail Contribution (Actual) Retail Contribution (Current Outlook) Q4 2019 Outlooked Monthly Average 36 Retail Tech and G&A Expenses (Actual)* Retail Tech and G&A Expenses (Current Outlook)* * Retail Tech and G&A Expenses excluding depreciation, amortization, stock compensation, and 30% (Medici/other allocation) of Inc. costs.#37Millions $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Q4 2018 Monthly Average Overstock overstock. Q1 2019 Monthly Average Retail Contribution (Actual) Retail Contribution (Current Outlook) Q2 2019 Monthly Average Q4 2019 Outlooked Monthly Average Retail Tech and G&A Expenses (Actual)* Retail Tech and G&A Expenses (Current Outlook)* * Retail Tech and G&A Expenses excluding depreciation, amortization, stock compensation, and 30% (Medici/other allocation) of Inc. costs. Millions $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2012 2013 The Competition 2014 2015 2016 2017 2018 Selling, Operations, Technology, G&A Gross Profit less Customer Service, Merchant Fees, and Advertising Q2 2019 TTM 37 Source: Wayfair 10-Ks and 10-Qs#38Quarterly Retail Contribution Millions $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 ($5) ($10) overstock. $18 Q1 2018 ($3) Q2 2018 $30 $33 HM Q3 2018 $39 Q4 2018 Q1 2019 $39 $42M Increase Q2 2019 38 Retail Contribution is a non-GAAP financial measure. See Reconciliation in Appendix#39Annual Retail Contribution Millions $250 $200 $150 $100 $50 $- overstock. $196 ||||| 2016 $172 2014 $184 2015 $159 2017 $78 2018 Adjusted EBITDA Equivalent of $17.5M* $167 2019 Current Outlook 39 * Adjusted EBITDA includes $42M allocation of Shared Service costs (Finance, Legal, HR, Administration, etc.). Retail Contribution is a non-GAAP financial measure. See Reconciliations in Appendix#40Summary and Q&A - Technological Disruption tZERO ● ● Executing against strategic roadmap OSTKO dividend driving adoption for tZERO platform Key Milestones Achieved in 2019 Bosto A overstock. Tw ZERO Security Token Ecosystem Jovestek Taination TICITREAZY Scion Thong Todisskay B Medici Keiretsu companies focused on getting product in production ● Medici Ventures focused on GaaS product Eroiemar ZERO erity MINDS NETKI Land Ti A MEDICI VENTURES Bang A 11 bitt ZERO how sporbliant spero ripio Das Marke C Supply DIME hon/ OVER votem MEDICI Retail First positive adjusted EBITDA since Q2 2017 ● JOVESTEL ● Adjusted EBITDA to accelerate in 2H 2019 Quarterly Retail Adjusted EBITDA ייוי D Submit questions to [email protected] We Continue Through the Transition oestek E 40#41overstock. Appendix#42Q2 2019 Financial Results: OSTK Total Revenue $373.7 Million 23% decrease vs. Q2 2018 Sales & Marketing Expense $34.6 Million 63% decrease vs. Q2 2018 overstock. Gross Profit $73.9 Million 19% decrease vs. Q2 2018 Contribution¹ $39.3 Million vs. ($2.7) million in Q2 2018 Adjusted EBITDA1 ($13.1) Million vs. ($62.8) million in Q2 2018 Ending Cash $121.3 Million vs. $119.6 million at March 31, 2019 42 1 Adjusted EBITDA and Contribution are non-GAAP financial measures. See Reconciliations in Appendix#43Adjusted EBITDA Reconciliation overstock. Adjusted EBITDA Retail tZERO Other Adjusted EBITDA Less: Special items (see table below) Less: Depreciation and amortization Less: Stock-based compensation Less: Interest (income) expense, net Less: Other (income) expense, net Less: Provision (benefit) for income taxes Net loss Special items: Impairments on intangible assets Loss on disposal of business Cryptocurrency impairments and gains on sale, net Severance Special legal expenses* Total Special Items $ $ $ Jun-2019 1,581 (8,729) (5,995) (13,143) 7,464 5,171 (525) 2,995 (622) (27,626) $ Mar-2019 (276) (2,460) $ (16,856) (13,207) (7,995) (7,256) (3,401) (23,662) (27,513) 1,757 9,565 6,614 8,664 3,985 2,702 6,272 878 (42,892) $ 1,757 1,757 $ Three months ended $ Dec-2018 (563) Sep-2018 6,000 3,565 (20,160) (4,056) (2,588) (26,804) 10,783 7,999 2,246 (282) 1,999 1,848 (1,939) (141) (47,941) $ (49,257) 10,783 9,565 $ 10,783 Jun-2018 (50,149) $ (24,372) (9,577) (4,382) (3,118) (1,836) (62,844) (30,590) (6,816) 9,870 7,535 7,499 2,973 6,435 330 9 (277) (54,456) (225) (368) (27) (65,916) $ (6,816) $ Mar-2018 (6,816) $ 7,259 1,600 1,011 9,870 43 *Special legal expenses include charges associated with our Delaware gift card escheatment matter and legal fees associated with pursuing our strategic alternatives. Adjusted EBITDA is a non-GAAP financial measure used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. You should review our financial statements and publicly-filed reports in their entirety and not rely on any single financial measure.#44Annual Contribution Reconciliation Total net revenue Cost of goods sold Gross profit Less: Sales and marketing expense Plus: Club O Rewards and gift card breakage (included in Other expense, net)* Contribution Contribution margin Total net revenue Cost of goods sold Gross profit Less: Sales and marketing expense Plus: Club O Rewards and gift card breakage (included in Other expense, net) Contribution Contribution margin overstock. Retail $ 1,800,187 $ 21,405 1,452,195 15,489 5,916 4,492 347,992 269,987 $ 78,005 4.3% $ 2018 tZERO & Other 5,911 184,417 11.1% $ Retail $ 1,655,908 $ 1,353,184 302,724 124,218 2015 tZERO & Other 1,930 1,424 6.7% $ 1,930 250 1,680 87.0% Total $ 1,821,592 1,467,684 353,908 274,479 $ 79,429 4.4% Total $1,657,838 1,353,184 304,654 124,468 5,911 $ 186,097 11.2% Year ended, December 31 Retail $ 1,728,104 92,558 335,546 179,549 Year ended, December 31 $ 2,742 158,739 9.2% Retail 1,497,103 1,218,044 279,059 109,461 2,439 172,037 11.5% 2017 tZERO & Other $ 16,652 11,647 5,005 1,040 $ 3,965 23.8% 2014 tZERO & Other Total $ 1,744,756 1,404,205 340,551 180,589 2,742 $ 162,704 9.3% Total $ 1,497,103 1,218,044 279,059 109,461 $ 2,439 172,037 11.5% Retail $ 1,784,782 1,458,411 326,371 147,368 16,808 $ 195,811 11.0% 2016 tZERO & Other $ 15,181 10,203 4,978 528 $ 4,450 29.3% Total $ 1,799,963 1,468,614 331,349 147,896 $ 16,808 200,261 11.1% 44 *Effective January 1, 2018, we made a change in accounting principle to present Club O Rewards and gift card breakage in Partner and other revenue instead of Other expense, net on our consolidated statements of operations. This change impacts the presentation of Total net revenue, Gross profit and Other expense, net, but does not impact the calculation of contribution. Contribution and contribution margin are non-GAAP financial measures used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. You should review our financial statements and publicly-filed reports in their entirety and not rely on any single financial measure.#45Quarterly Contribution Reconciliation Total net revenue Cost of goods sold Gross profit Less: Sales and marketing expense Contribution Contribution margin Total net revenue Cost of goods sold Gross profit Less: Sales and marketing expense Contribution Contribution margin overstock. $ $ $ $ Retail 367,475 294,984 Jun-19 tZERO & Other $ 72,491 33,947 38,544 $ 10.5% Retail 435,775 350,651 85,124 55,182 29,942 6.9% 6,234 4,826 1,408 613 795 12.8% Sep-18 tZERO & Other $ 4,805 3,213 1,592 130 1,462 30.4% $ $ $ Total 373,709 $ 299,810 73,899 34,560 39,339 10.5% Total $ 440,580 353,864 86,716 55,312 31,404 7.1% $ $ Three months ended Mar-19 tZERO & Other Retail 362,625 290,640 71,985 32,933 39,052 $ 10.8% Retail 477,683 387,252 90,431 93,747 (3,316) (0.7%) 5,104 3,965 1,139 544 595 11.7% $ $ Three months ended Jun-18 tZERO & Other 5,450 4,138 1,312 669 643 11.8% $ Total 367,729 294,605 73,124 33,477 39,647 10.8% Total $ 483,133 391,390 91,743 94,416 (2,673) (0.6%) $ Retail $ 446,733 366,712 80,021 47,142 32,879 $ 7.4% $ $ $ Dec-18 $ tZERO & Other 5,815 4,256 1,559 395 1,164 20.0% Retail 439,996 347,580 92,416 73,917 $ 18,499 $ 4.2% $ Mar-18 tZERO & Other $ 5,335 $ 3,882 1,453 3,297 (1,844) (34.6%) $ Total 452,548 370,968 81,580 47,537 34,043 7.5% Total 445,331 351,462 93,869 77,214 16,655 3.7% 45 Contribution and contribution margin are non-GAAP financial measures used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. You should review our financial statements and publicly-filed reports in their entirety and not rely on any single financial measure.#46overstock.