#1overstock Q2 2015 Financial Results TM Sales#2Safe Harbor 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. These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including the amount and timing of our capital expenditures, the mix of products we sell, the results of legal proceedings and claims and the amounts we spend relating to them, the extent to which we owe income taxes, competition, fluctuations in operating results, any inability to raise capital if needed on acceptable terms, our efforts to expand both domestically and internationally, risks of inventory management and seasonality. Other risks and uncertainties include, among others, risks related to new products and services we may offer, and difficulties with our infrastructure, our expectations regarding the benefits and risks of the credit facility we recently entered into for the purpose of, among other things, financing our construction of an office campus to serve as our corporate headquarters, our fulfillment partners or our payment processors, including cyber-attacks or data breaches affecting us or any of them. More information about factors that could potentially affect our financial results is included in our Annual Report on Form 10-K for the year ended Dec. 31, 2014, which was filed with the Securities and Exchange Commission on March 12, 2015 and our Form 10-Q for the quarter ended March 31, 2015 which was filed with the Securities and Exchange Commission on April 29, 2015. These and our other subsequent filings. with the Securities and Exchange Commission identify important factors that could cause our actual results to differ materially from those contained in our projections, estimates and other forward-looking statements. Oloverstock TM 2#3Q2 2015 Results Revenue $388.0 Million (17% increase vs. Q2 2014) Contribution Dollars* $45.6 Million (17% increase vs. Q2 2014) Pre-Tax Income $3.3 Million (vs. $2.3 million in Q2 2014) Gross Profit Dollars $73.7 Million (18% increase vs. Q2 2014) Oloverstock Contribution Margin* 11.7% (vs. 11.8% in Q2 2014) Net Income** $1.7 Million (vs. $1.9 million in Q2 2014) * Non-GAAP ** Net Income refers to Net Income attributable to stockholders of Overstock.com, Inc. Gross Margin 19.0% (vs. 18.8% in Q2 2014) Tech and G&A Expense $43.5 Million (17% increase vs. Q2 2014) TTM Operating Cash Flow $62.3 Million (vs. $50.8 million in Q2 2014) 3#4Quarterly Revenue Growth ($,000) 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 293,204 22% Q2-13 Oloverstock TM Q3-13 Q4-13 Q1-14 Revenue ($) 332,545 13% Q2-14 Q3-14 Q4-14 Revenue growth (yoy) Q1-15 388,013 17% Q2-15 40% 35% 30% 25% 20% 15% 10% 5% 0% 4#5Quarterly Gross Profit Growth ($,000) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 57,839 34% Q2-13 Oloverstock TM Q3-13 Q4-13 Q1-14 Gross profit ($) 62,625 8% Q2-14 Q3-14 Q4-14 Gross profit growth (yoy) Q1-15 73,657 18% Q2-15 60% 50% 40% 30% 20% 10% 0% 81 5#6Quarterly Contribution and Growth* ($,000) 50,000 40,000 30,000 20,000 10,000 0 -10,000 38,631 30% NU Q2-13 Q3-13 Oloverstock Q4-13 Contribution ($) Q1-14 *Non-GAAP: Contribution dollars = Gross profit less Sales & Marketing expense. 39,082 1% Q2-14 Q4-14 Contribution growth (yoy) Q3-14 Q1-15 45,570 17% Q2-15 50% 40% 30% 20% 10% 0% -10% 6#7Quarterly Gross Margin and Contribution Margin 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 19.7% 13.2% Q2-13 19.6% Oloverstock 12.2% Q3-13 18.0% Q2-14 Marketing: 7.1% 10.2% 18.8% Q4-13 11.9% Q1-14 Gross margin * Non-GAAP: Contribution margin = Gross margin less Sales & Marketing percentage. 18.8% 11.8% Q2-14 19.0% 11.8% 18.2% Q2-15 Marketing: 7.2% 10.3% Q3-14 Contribution margin Q4-14 18.9% 11.9% Q1-15 * 19.0% 11.7% Q2-15 7#8Contribution Margin vs. Wayfair.com* 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% 13.2% 6.0% Q2-13 Ooverstock 12.2% TM 5.1% Q3-13 10.2% 4.3% Q4-13 11.9% -1.8% Q1-14 Overstock contribution margin 11.8% 0.2% Q2-14 11.8% 0.5% Q3-14 10.3% -3.2% Q4-14 11.9% 1.3% Q1-15 Wayfair contribution margin 11.7% *Non-GAAP *Overstock.com Contribution Margin = Gross profit less Sales & Marketing, divided by Total net revenue. *Wayfair.com Contribution Margin = Gross profit less Customer service and merchant fees, Advertising, and Merchandising, marketing and sales, divided by Total net revenue. Q2-15 8#9Technology and G&A Expenses $s and % of Revenue ($,000) 60,000 50,000 40,000 30,000 20,000 10,000 11.8% 34,505 Q2-13 Oloverstock TM Q3-13 G&A $6.3M Q4-13 Q1-14 Legal Case Judgments 11.2% 37,289 Q2-14 Q3-14 Technology $4.6 M Q4-14 Q1-15 11.2% 43,488 G&A and Tech (% of revenue) Q2-15 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 9#10Quarterly Pre-Tax Income ($,000) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 4,010 Q2-13 Oloverstock Q3-13 Q4-13 Q1-14 2,342 Q2-14 Q3-14 Q4-14 Q1-15 3,275 Q2-15 10#11Operating and Free Cash Flow (TTM) ($,000) 90,000 o 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 61,607 46,325 Q2-13 Q3-13 TM 50,825 Q4-13 Q1-14 ■Cash flow from operations (TTM) 26,975 * Q2-14 Q4-14 Free cash flow* (TTM) Q3-14 * Non-GAAP: Free Cash Flow = Cash Flow from Operations less Expenditures for Fixed Assets. ** $10M decrease in Free Cash Flow from Q2 2014 to Q2 2015 is primarily related to capital expenditures for the company's future headquarters. Oloverstock Q1-15 62,266 16,960** Q2-15 11#12GAAP TTM Inventory Turns and GMROI 60.0 50.0 40.0 30.0 20.0 10.0 0.0 43.0 988% Q2-13 Oloverstock Q3-13 TM Q4-13 Q1-14 TTM Inventory Turns TTM COGS / Average Inventory TTM GMROI = TTM Gross Margin % * TTM Revenue / Average Inventory TTM Inventory turns 49.9 1152% Q2-14 Q3-14 Q4-14 TTM GMROI Q1-15 50.3 1159% Q2-15 2000% 1800% 1600% 1400% 1200% 1000% 800% 600% 400% 200% 0% 12#13Unique Customers and Cost Per Customer (#,000) 3,000 2,500 2,000 1,500 1,000 500 $12.53 1,533 Q2-13 Oloverstock TM Q4-13 Q3-13 Unique customers Q1-14 $14.79 1,591 Q3-14 Q4-14 Marketing $ / unique customers (cost per customer) Q2-14 Q1-15 $16.03 1,752 Q2-15 $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 13#14New Customers (#,000) 1,400 1,200 1,000 800 600 400 200 0 736 Q2-13 Oloverstock Q3-13 Q4-13 Q1-14 760 Q2-14 Q3-14 Q4-14 Q1-15 805 Q2-15 14#15Customer Orders and Average Order Size (#,000) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 $167 1,952 Q2-13 Oloverstock TM Q3-13 Q4-13 Customer orders Q1-14 $177 2,126 Q2-14 Q3-14 Q4-14 Average order size Q1-15 $185 2,436 Q2-15 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 15#16Gross Profit per Transaction. $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 $29.63 Q2-13 Oloverstock TM Q3-13 Q4-13 $29.45 Q1-14 |||||| Q4-14 Q2-14 Q3-14 $30.24 Q1-15 Q2-15 16#17Corporate Employees 1,200 1,000 800 600 400 200 0 780 Q2-13 Oloverstock TM Q3-13 Q4-13 Q1-14 937 Q2-14 Q3-14 Q4-14 Q1-15 1,048 Q2-15 17#18New Corporate Campus. • Broke ground on "Peace Coliseum" on October 10, 2014 - Construction well underway - Move in: August 2016 • Total campus cost (land, buildings, parking, landscaping, equipment, furniture, etc.) of $90 million (after tax incentives of approximately $10M) ● Financing Terms: $46M real estate loan, 4.6% interest rate (swapped), 9 year term - We fund first $38M (includes $11M land purchase) before first draw (October 2015) - Annual debt service of $3.2M vs. $6.2M estimated average rent if we renewed existing HQ (for 2/3 the space and no ownership) – Also provides $10M working capital revolving loan Estimated 26% savings in cost per square foot - Annual operating costs - New campus vs. current headquarters Oloverstock TM EROTIRU ALELUIDE LUBLURUL 18#19New Corporate Campus. Oloverstock TM Ney Never 19#20New Corporate Campus. Benefits & Features - - Total office space increase from 207,000 to 310,000 square feet - Unifies office colleagues in one HQ - Central location in Salt Lake Valley - Great access to public transportation (Lite Rail) Consolidates data centers into one location - Amenities - child care, health clinic, fitness center with yoga studio - Access to healthy food - cafeteria, juice bar, greenhouse - View Glass - enhances comfort and connection to outdoors Park-like outdoor settings - Ample meeting and social spaces - Unique and thought-provoking design -LEED gold - environmentally responsible Oloverstock TM 20#21New Corporate Campus. Oloverstock TM Island DAVIS Warehouse ("Castle") 201 Magna West Valley City LE Peace Coliseum 80 Kearns West Bountiful Bountiful Taylorsville 154 Woods Cross 215 D West Jordan D O 15 Bluffdale Bennion 0 Val Verda O North Salt Lake CornerYINIC Salt Lake City South (186) Salt Lake Millcreek 215 UTAH Murray Holladay S A L T 15 Jordan 0 O Union 0 Sandy "South Jordan Riverton O Draper 0 LAKE ottonwood gnts Granite Alpine Highland East Canyon Reservoir MORGAN 80 Current Headquarters Mount Baldy Dee R 21#22Medici Update tø Crypto-Capitalism: Here's the Good News Patrick M.Byrne, PhD Oloverstock TM August 4, 2015 22#23Dr. Alan Greenspan, October 23, 2008 ALAN GREENSPAN Former Chairman Federal Reserve Board, 1987-2006 Thursday C-SPAN There are additional regulatory changes that this breakdown of the central pillar of competitive markets requires in order to return to stability, particularly in the areas of fraud, settlement, and securitization.#24D a Actual Share DTCC Cede & Co. 0 DO DO Share Entitlement#25BUSINESS INSIDER REUTERS Merrill Lynch pays $11 million to settle short sale violations SARAH N. LYNCH, REUTERS Jun. 1, 2015, 2:48 PM A 152 Fuzzy Property Rights REUTERS EDITION: U.S. REUTERS SIGN IN REGISTER Bloomberg HOME QUICK NEWS OPINION MARKET DATA PERSONAL FINANCE TECH POLITICS SUSTAI AUGUST 27, 2010 12:00 AM ET Naked Short Sales Hint Fraud in Bringing Down Lehman (Update1) f in Search Reuters Personal Finance | Wed May 13, 2015 10:45am EDT Related: MONEY, REGULATORY NEWS, BREAKINGVIEWS FINRA fines Morgan Stanley $2 million for short-selling violations npr KUER 90.1 news arts & life music programs Our Company Professional Anywhere Log in DOW 17,433 135.91-0.77% NASDAQ 5,043-4532 UPDATED Dow tumbles in wake of China s 7:04 P.M. ET 1:02 PM. ET What to expect from Twitter's earnings 12:56 PM. ET UPDATED How to turn your home into a ca NEWS VIEWER MARKETS INVESTING TRADING DECK PERSONAL FINANCE RETIREMENT ECONOMY REAL ESTATE M MarketWatch in 8+ # LATEST NEWS CAPITOL REPORT GET EMAIL ALERTS In Lehman's last days, Merrill Lynch may have allowed illegal bets against firm Published: June 2, 2015 1:53 p.m. ET planet money THE ECONOMY EXPLAINED How Wall Street Made The Mortgage Crisis Worse#26Economic Warfare Vulnerabilities UNITED STATES OF AMERICA EVGENY BURYAKOV, a/k/a "Zhenya," IGOR SPORYSHEV, and VICTOR PODOBNYY, Defendants. : : : : SEALED COMPLAINT Violations of 18 U.S.C. SS 371, 951, & 2 COUNTY OF OFFENSE: NEW YORK 40. Approximately 20 minutes later, IGOR SPORYSHEV, the defendant, called EVGENY BURYAKOV, a/k/a "Zhenya," the defendant, and the following conversation, which was intercepted by the FBI, occurred: EB: Well, I thought about it. I don't know whether it will work for you but you can ask about ETF. . . . E-T-F. E, exchange. IS: Yes, got it. EB: How they are used, the mechanisms of use for destabilization of the markets.#27The Original Sin of Wall Street Net Settlement#28National Market System O#29tØ Overview Products News Contact Explorer $ tØ The Trade is the Settlement How It Works Market Data The invention of cryptographically-protected, distributed ledgers ushered in a true Cryptorevolution. tØ applies the security and efficiency of this new technology to the world of finance, making transactions more equitable, transparent and accessible to all market participants.#30tØ Transaction and settlement are reunited (Lachai) • Transparent ● ● No frictional costs Eliminates market rigging • Tested • On track for regulatory approval Stock#31And now for the really good news... Assured Token" "Preborrow Buy S/D Either QTY shares Negotiable Limit price Bids S/D Qty Price GTD ΤΟ 41,400 2.116 No TO 20,000 2.0 No E 300 1.75 No MKT G... NNN ETSY.TO Prints Previous Close: $2.18 Today's Volume: 176,400 TIF Minimum Qty 100 DFTR 100 100 100 DAY Min. S/D Qty 100 E 100 100 > EEE hh:mm (24h) < Price 2.2 50.000 25,000 2.6 72,400 2.8 1 Offers GTD NNN No No No CNNN Sell AON G... DFTR 100 100 100 Mir 100 100 100#32Key Innovations Loyalty Club O Silver launched Oloverstock TM 6 Supplier Oasis Supplier Oasis user interface launched International China operations launched WA Farmers Market Medici Crypto-bond launched Over 40% of U.S. now covered with Local Home Delivery 32#33Oloverstock TM Questions? 33#34867 f Oloverstock Follow Us On You Tube 8+ TM W