Financial Data and Key Metrics Changes - Net revenue for Q2 2025 was $75 million, down 19.6% from $93.2 million in the same period last year, primarily due to an 18.9% decrease in volume sold and a 0.9% decrease in net revenue per pound [25][26] - Gross margin decreased to 11.5% in Q2 2025 from 14.7% a year ago, impacted by reduced volume and unfavorable product mix [17][32] - Net loss for Q2 2025 was $33.2 million, or a loss of $0.43 per share, compared to a net loss of $34.5 million, or a loss of $0.53 per share, in the prior year [34] Business Line Data and Key Metrics Changes - U.S. Retail channel net revenues decreased 26.7% to $32.9 million, driven by a 24.2% decrease in volume sold and a 3.2% decrease in net revenue per pound [27] - U.S. Foodservice net revenues increased 6.8% to $11.1 million, primarily due to a 4.4% increase in net revenue per pound and a 2.3% increase in volume sold [30] - International Retail channel net revenues decreased 9.8% to $15.9 million, driven by a 13.1% decrease in volume sold, partially offset by a 3.9% increase in net revenue per pound [31] Market Data and Key Metrics Changes - The U.S. Retail channel faced significant challenges due to higher pricing compared to animal protein, negative narratives surrounding plant-based products, and reduced distribution points [12][13] - International Foodservice experienced a decline due to lapping significant promotional activity from the previous year and macroeconomic conditions affecting customer demand [16][60] Company Strategy and Development Direction - The company is focusing on a fundamental reset to stabilize the business and achieve EBITDA positive operations by 2026, including significant expense reductions and gross margin expansion [6][20] - Plans to deepen distribution of core products in U.S. Retail and reposition the brand to emphasize "Beyond" as the primary identifier, expanding beyond animal protein replication [9][10] - The appointment of an interim Chief Transformation Officer aims to enhance operational efficiency and reduce costs [6][79] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q2 results, citing ongoing softness in the plant-based meat category and the need for a reset [5][21] - The company believes current challenges are transient and anticipates that consumer trends will eventually shift back in favor of plant-based products [22][63] - Future product offerings, such as Beyond Ground, are expected to capture consumer interest by emphasizing nutritional benefits rather than replicating animal protein [50][65] Other Important Information - Adjusted EBITDA loss was $26 million, or -34.7% of net revenues, compared to a loss of $23 million, or -24.7% of net revenues, in the prior year [35] - Cash and cash equivalents were $117.3 million, with total outstanding debt of approximately $1.2 billion as of June 28, 2025 [35] Q&A Session Summary Question: What measures will be taken to scale up the top line while reducing expenses? - Management highlighted the need to stabilize the U.S. Retail business and build brand blocks in key retailers to improve distribution and sales velocity [42][49] Question: What has changed in the international foodservice channel? - Management noted a softening in the international foodservice sector due to macroeconomic conditions and shifting animal protein prices, affecting customer menus [59][60] Question: How will the company address the issue of lapsed consumers? - Management emphasized the importance of stabilizing the business and addressing misinformation while focusing on the nutritional benefits of their products to attract flexitarian consumers [61][63]

Financial Data and Key Metrics Changes - For the full year 2024, the company generated $326.5 million in net revenues, down 4.9% compared to 2023, but the rate of decline slowed significantly compared to previous years [11][12] - Gross margin for the full year reached 12.8%, while COGS per pound was $4.07, approximately $0.40 or 9% lower than 2023 [12][13] - In Q4 2024, net revenues increased 4% year-over-year to $76.7 million, with gross margin improving to 13.1% [15][27] Business Line Data and Key Metrics Changes - U.S. retail net revenues increased 5.7% to $33.9 million in Q4 2024, driven by a 10.6% increase in net revenue per pound, despite a 4.5% decrease in volume sold [28] - U.S. foodservice net revenues decreased 2.1% to $10.5 million, primarily due to an 11% decrease in volume sold [30] - International retail net revenues decreased 1.7% to $13.1 million, while international foodservice net revenues increased 9.2% to $19.3 million [31][32] Market Data and Key Metrics Changes - In France, 68% of the population is reducing meat consumption, and 27% regularly incorporates plant-based alternatives [17] - The company launched Beyond Steak in retail in France, expanding its presence in the EU market [17] - The introduction of new products in various European markets, such as Smash Burgers at Tesco UK, indicates growth opportunities [18] Company Strategy and Development Direction - The company aims to achieve EBITDA positive operations by the end of 2026, focusing on four key goals for 2025: comparable year-over-year net revenues, improving gross margin to approximately 20%, further reducing operating expenses, and strengthening the balance sheet [19][20][25] - The company plans to stabilize and optimize internal production processes while making targeted investments in equipment and automation to support gross margin expansion [22][88] - The strategic focus includes expanding health-related products and marketing, as well as regaining distribution in key channels [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted that the past year marked an important inflection point, with two consecutive quarters of year-over-year net revenue growth after a prolonged decline [8] - The company remains optimistic about the long-term trends in plant-based meat consumption, despite current market challenges [60][71] - Management emphasized the importance of educating consumers about the benefits of plant-based products to counteract misinformation [70][126] Other Important Information - The company reduced operating expenses by over $50 million in 2024, contributing to a nearly $100 million year-over-year improvement in adjusted EBITDA [11][14] - Cash and cash equivalents totaled $145.6 million as of December 31, 2024, with total outstanding debt at $1.1 billion [38] - The company generated net proceeds of approximately $46.7 million through its ATM program in Q4 2024 to support business investments [39] Q&A Session Summary Question: Consumer perception and market dynamics - Management noted that the increase in U.S. retail prices did not significantly impact volume sold, indicating a positive consumer response to clean and simple product offerings [49][50] Question: Impact of China operations suspension - Management clarified that the conservative revenue guidance accounts for the suspension of operations in China, emphasizing a focus on achieving EBITDA positive goals [52][55] Question: Core consumer demographics - The company is increasingly targeting health-oriented consumers, with a strong interest in their products despite challenges from misinformation [58][61] Question: Gross margin outlook for 2025 - Management expressed confidence in achieving gross margin improvements through stabilized production processes and incremental investments [78][88] Question: Sales momentum and distribution gains - Management indicated that while Q1 guidance is conservative, positive trends are expected to continue throughout the year [99][102] Question: Price parity with animal meat - The company has achieved price parity in specific product lines and continues to pursue this goal, particularly in foodservice [112][114] Question: Growth rates in Europe vs. U.S. - Management noted that Europe shows varied growth rates, with consumers more motivated by climate concerns, while the U.S. market faces challenges [118][120]