Beyond Meat(BYND) - 2025 Q2 - Quarterly Results

Q2 2025 Financial and Operational Overview This section provides an overview of Beyond Meat's financial performance and strategic responses for the second quarter of 2025 Second Quarter 2025 Financial Highlights Beyond Meat reported a 19.6% decline in Q2 2025 net revenues to $75.0 million, with gross margin contracting to 11.5% and operating loss widening to $38.8 million | Financial Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net Revenues | $75.0 million | $93.2 million | -19.6% | | Gross Profit | $8.6 million | $13.7 million | -37.2% | | Gross Margin | 11.5% | 14.7% | -3.2 p.p. | | Loss from Operations | $(38.8) million | $(33.9) million | +14.5% | | Net Loss | $(33.2) million | $(34.5) million | -3.8% | | Net Loss per Share | $(0.43) | $(0.53) | +18.9% | | Adjusted EBITDA | $(26.0) million | $(23.0) million | +13.0% | - Financial results were negatively impacted by several one-off expenses, including $1.7 million related to the cessation of operations in China, $4.5 million in non-routine SG&A, and $2.5 million in legal expenses, totaling $9.2 million in aggregate charges affecting net loss[3][4] Management Commentary and Strategic Actions Management attributed disappointing Q2 results to category softness, accelerating transformation through cost reduction, core product focus, and margin expansion initiatives - CEO Ethan Brown cited "ongoing softness in the plant-based meat category, particularly in the U.S. retail channel and certain international foodservice markets" as the primary reason for the disappointing results[4] - The company is accelerating its transformation activities, including: - Aggressively reducing operating expenses - Prioritizing distribution of core product lines - Investing in margin expansion initiatives[4] Reduction-in-Force Beyond Meat initiated a Reduction-in-Force affecting approximately 44 North American employees (6% of global workforce), expecting $0.8M-$1.3M in one-time charges and $5.5M-$7.0M in annual savings - The company approved a plan to reduce its North American workforce by approximately 44 employees, representing about 6% of its total global workforce[5] | RIF Financial Impact | Estimated Amount | | :--- | :--- | | One-time Cash Charges | $0.8M - $1.3M | | Expected Annual Cash Savings | $5.0M - $6.0M | | Expected Annual Non-Cash Savings | $0.5M - $1.0M | Appointment of interim Chief Transformation Officer John Boken, a Partner at AlixPartners with over 35 years of restructuring experience, was appointed interim Chief Transformation Officer to lead turnaround efforts - John Boken, a Partner at AlixPartners with over 35 years of restructuring experience, was appointed as the company's interim Chief Transformation Officer[9] Detailed Financial Performance Revenue declined across most channels due to lower volumes, gross margin eroded from higher costs, operating loss widened, and the balance sheet shows $117.3 million cash against $1.2 billion debt Net Revenues Analysis Q2 net revenues decreased 19.6% to $75.0 million due to an 18.9% volume drop, with significant declines in U.S. retail and international foodservice | Net Revenues by Channel (Q2 2025) | Amount (in thousands) | Change (YoY) | | :--- | :--- | :--- | | U.S. Retail | $32,909 | -26.7% | | U.S. Foodservice | $11,055 | +6.8% | | International Retail | $15,867 | -9.8% | | International Foodservice | $15,127 | -25.8% | | Total Net Revenues | $74,958 | -19.6% | | Volume of Products Sold (Q2 2025) | Volume (in thousands of lbs) | Change (YoY) | | :--- | :--- | :--- | | U.S. Retail | 6,136 | -24.2% | | U.S. Foodservice | 1,809 | +2.3% | | International Retail | 3,410 | -13.1% | | International Foodservice | 4,635 | -21.6% | | Total Volume | 15,990 | -18.9% | Profitability Analysis Gross profit declined to $8.6 million (11.5% margin) due to China operations cessation and lower volume, widening operating loss to $38.8 million, though net loss slightly narrowed - Gross margin decreased to 11.5% from 14.7% YoY, negatively impacted by $1.7 million in expenses related to the cessation of operations in China and increased cost of goods sold per pound[18] - Operating expenses were roughly flat at $47.4 million, but included $7.5 million in special charges for non-routine SG&A, legal fees, and lease termination costs[19][20] - Net loss improved to $33.2 million from $34.5 million YoY, primarily due to a $5.7 million gain in 'Total other income, net', largely from foreign currency transactions[21][22] Balance Sheet and Cash Flow As of June 28, 2025, the company held $117.3 million in cash against $1.2 billion in debt, with net cash used in operating activities increasing to $59.4 million year-to-date | Key Metric (as of June 28, 2025) | Amount | | :--- | :--- | | Cash and Cash Equivalents (incl. restricted) | $117.3 million | | Total Outstanding Debt | $1.2 billion | | Net Cash Used in Operating Activities (YTD) | $(59.4) million | | Capital Expenditures (YTD) | $6.4 million | 2025 Outlook Citing high uncertainty, the company is not providing full-year 2025 guidance but expects Q3 net revenues between $68 million and $73 million - The company is not providing full-year guidance for 2025, citing an "elevated level of uncertainty within its operating environment"[25] - For the third quarter of 2025, net revenues are expected to be between $68 million and $73 million[25] Consolidated Financial Statements (Unaudited) This section presents the unaudited condensed consolidated statements of operations, balance sheets, and cash flows for the specified periods Condensed Consolidated Statements of Operations For Q2 2025, net revenues were $75.0 million, gross profit $8.6 million, loss from operations $38.8 million, and net loss $33.2 million, with a $0.43 net loss per share | (In thousands, except per share data) | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | | :--- | :--- | :--- | | Net revenues | $74,958 | $93,185 | | Gross profit | $8,591 | $13,717 | | Loss from operations | $(38,832) | $(33,931) | | Net loss | $(33,162) | $(34,479) | | Net loss per share | $(0.43) | $(0.53) | Condensed Consolidated Balance Sheets As of June 28, 2025, total assets were $687.8 million against $1.37 billion in liabilities, including $1.14 billion in convertible senior notes, resulting in a $680.9 million stockholders' deficit | (In thousands) | June 28, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $103,497 | $131,913 | | Inventory | $110,868 | $113,444 | | Total current assets | $293,215 | $286,456 | | Total assets | $687,821 | $678,146 | | Liabilities and Stockholders' Deficit | | | | Total current liabilities | $90,187 | $61,453 | | Convertible senior notes, net | $1,143,443 | $1,141,476 | | Total liabilities | $1,368,764 | $1,279,354 | | Total stockholders' deficit | $(680,943) | $(601,208) | Condensed Consolidated Statements of Cash Flows For the first six months of 2025, net cash used in operating activities increased to $59.4 million, while financing activities provided $33.6 million, leading to a $31.8 million decrease in cash | (In thousands) | Six Months Ended June 28, 2025 | Six Months Ended June 29, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(59,355) | $(47,814) | | Net cash (used in) provided by investing activities | $(6,075) | $1,169 | | Net cash provided by (used in) financing activities | $33,640 | $(1,048) | | Net decrease in cash, cash equivalents and restricted cash | $(31,790) | $(47,693) | Non-GAAP Financial Measures Reconciliation This section provides reconciliations of GAAP financial measures to non-GAAP measures, offering insights into the company's operational performance Reconciliation of GAAP to Non-GAAP Measures The company reconciles GAAP to non-GAAP measures, reporting Q2 2025 Adjusted Loss from Operations of $36.6 million and an Adjusted EBITDA loss of $26.0 million after various adjustments Reconciliation of Loss from Operations to Adjusted Loss from Operations (Q2 2025) | (in thousands) | Amount | | :--- | :--- | | Loss from operations, as reported | $(38,832) | | Non-cash charges related to China operations | $1,739 | | Costs related to partial lease termination | $499 | | Adjusted loss from operations | $(36,594) | Reconciliation of Net Loss to Adjusted EBITDA (Q2 2025) | (in thousands) | Amount | | :--- | :--- | | Net loss, as reported | $(33,162) | | Interest expense | $2,002 | | Depreciation and amortization expense | $6,530 | | Share-based compensation expense | $4,304 | | Non-cash charges related to China operations | $1,739 | | Costs related to partial lease termination | $275 | | Other, net | $(7,731) | | Adjusted EBITDA | $(26,043) |