Core Insights - Beyond Meat reported Q2 2025 earnings with GAAP revenue of $75.0 million, falling short of analyst estimates of $81.8 million and down 19.6% year-over-year [1][2] - The company experienced a non-GAAP adjusted EPS loss of $0.40 per share, slightly worse than the expected loss of $0.38, but an improvement from a $0.53 loss in the prior year [1][2] - Management withdrew full-year guidance due to ongoing market volatility, providing only a narrow revenue outlook for the next quarter [1][9] Financial Performance - Revenue for Q2 2025 was $75.0 million, down from $93.2 million in Q2 2024, representing a 19.6% decline [2] - Gross margin decreased to 11.5% from 14.7% year-over-year, reflecting increased costs and declining sales volume [2][7] - Net loss for the quarter was $33.2 million, a slight improvement from a loss of $34.5 million in the same quarter last year [2] Market Dynamics - U.S. retail revenue fell by 26.7%, attributed to weak category demand and fewer distribution points, with volumes down 24.2% [5] - International retail revenue decreased by 9.8%, and international foodservice net revenues dropped by 25.8%, primarily due to reduced burger sales [6] - U.S. foodservice revenue increased by 6.8%, driven by higher sales of ground beef substitutes and dinner sausage products [6] Operational Challenges - The company faced deteriorating margins, with operating margin declining to negative 51.8% and adjusted EBITDA losses widening to $26.0 million [7] - Non-routine charges, including $1.7 million related to China operations and $4.5 million in legal costs, impacted financial results [7] - A workforce reduction of 44 jobs was implemented, expected to save $5.0–6.0 million in annual cash compensation but incurring upfront restructuring costs [7] Strategic Focus - Beyond Meat continues to invest in R&D for product innovation, including the Beyond IV platform and new product launches like Beyond Chicken Pieces [4][8] - The company aims to expand retail distribution and foodservice partnerships while maintaining competitive pricing amidst market pressures [4] - Brand-building campaigns focused on health benefits have not yet translated into increased demand, reflecting ongoing softness in the plant-based meat category [9] Future Outlook - Management provided a narrow revenue guidance range of $68–73 million for the next quarter, indicating expectations for continued declines [9] - The long-term goal remains to achieve EBITDA break-even by the end of 2026, but challenges include persistent demand weakness and falling volumes [9] - The company's liquidity is under pressure, with cash and equivalents at $117.3 million and net cash used in operations increasing to $59.4 million for the first half of FY2025 [10]

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]

Core Insights - Beyond Meat reported disappointing financial results for Q2 2025, primarily due to ongoing softness in the plant-based meat category, particularly in the U.S. retail channel and certain international foodservice markets [3][9][24] - The company is implementing cost-reduction measures, including a workforce reduction of approximately 44 employees, representing about 6% of its total global workforce, to strengthen its financial profile [4][6] - Net revenues decreased by 19.6% year-over-year to $75.0 million, driven by an 18.9% decrease in product volume sold and a 0.9% decrease in net revenue per pound [7][9][10] Financial Performance - Gross profit for Q2 2025 was $8.6 million, with a gross margin of 11.5%, down from $13.7 million and 14.7% in the previous year [7][19] - Loss from operations was $38.8 million, compared to a loss of $33.9 million in the same period last year, reflecting increased operational challenges [7][19] - Net loss was $33.2 million, or $0.43 per share, an improvement from a net loss of $34.5 million, or $0.53 per share, in the prior year [20][21] Revenue Breakdown - U.S. retail channel net revenues fell by 26.7% to $32.9 million, primarily due to a 24.2% decrease in volume sold [10][14] - U.S. foodservice channel net revenues increased by 6.8% to $11.1 million, driven by a 4.4% increase in net revenue per pound [11][14] - International retail channel net revenues decreased by 9.8% to $15.9 million, while international foodservice channel revenues dropped by 25.8% to $15.1 million [12][13] Cost Management Initiatives - The company anticipates one-time cash charges of approximately $0.8 million to $1.3 million related to the workforce reduction, with expected savings of $5.0 million to $6.0 million in cash compensation expenses over the next twelve months [5][6] - Operating expenses were $47.4 million, slightly down from $47.6 million in the previous year, with reductions in marketing and selling expenses [17][18] Future Outlook - Beyond Meat is not providing full-year guidance due to uncertainty in the operating environment but expects Q3 2025 net revenues to be in the range of $68 million to $73 million [24][23] - The company is focusing on strengthening its balance sheet and pursuing margin expansion initiatives despite the challenging market conditions [3][22]

Market Trends - Europe is becoming a promising market for plant-based meat producers [1] - The US market is experiencing declining interest in plant-based meat [1]