Beyond Meat® Reports First Quarter 2025 Financial Results

Core Insights - Beyond Meat reported a net revenue decline of 9.1% year-over-year, totaling $68.7 million for Q1 2025, primarily due to an 11.2% decrease in product volume sold, despite a 2.4% increase in net revenue per pound [7][8][19] - The company announced a new $100 million senior secured financing from an affiliate of the Ahimsa Foundation to strengthen its balance sheet [4][5] - The management is focusing on cost-saving initiatives to achieve EBITDA-positive operations by the end of 2026 [4] Financial Performance - Net revenues decreased from $75.6 million in Q1 2024 to $68.7 million in Q1 2025, a drop of 9.1% [7][8] - Gross profit was a loss of $1.1 million, with a gross margin of -1.5%, compared to a gross profit of $3.7 million and a margin of 4.9% in the previous year [7][19] - Loss from operations increased to $56.2 million, or -81.8% operating margin, compared to a loss of $53.5 million and -70.7% margin in the year-ago period [7][16] Revenue Breakdown - U.S. retail channel net revenues fell by 15.4% to $31.4 million, driven by a 23.2% decrease in volume sold [9][13] - U.S. foodservice channel net revenues decreased by 23.5% to $9.4 million, primarily due to a 22.0% drop in volume sold [10][13] - International retail channel revenues slightly increased by 0.8% to $12.7 million, while international foodservice revenues rose by 12.1% to $15.3 million [11][12] Operating Expenses and Losses - Total operating expenses were $55.1 million, down from $57.1 million in the previous year, mainly due to reduced general and administrative expenses [15] - Adjusted EBITDA loss was $42.3 million, or -61.6% of net revenues, compared to a loss of $32.9 million, or -43.5% of net revenues, in the prior year [20] - Net loss for Q1 2025 was $52.9 million, or $0.69 per share, compared to a net loss of $54.4 million, or $0.84 per share, in Q1 2024 [19][36] Financing and Cash Flow - The company had cash and cash equivalents of $115.8 million and total outstanding debt of $1.1 billion as of March 29, 2025 [21] - Net cash used in operating activities was $26.1 million, down from $31.8 million in the year-ago period [21] - The company is evaluating potential transactions to address existing convertible notes prior to their maturity in 2027 [6][22] Future Outlook - Due to uncertainty in the operating environment, the company has withdrawn its previous full-year 2025 outlook and now expects Q2 2025 net revenues to be in the range of $80 million to $85 million [23]