Core Insights - Oatly Group AB (OTLY) reported fourth-quarter 2025 results with both revenue and net loss showing year-over-year improvement, indicating a potential turnaround phase for the company [1][3] - The company's revenue exceeded the Zacks Consensus Estimate, while the net loss was wider than expected, reflecting ongoing challenges in certain markets [1][3] Financial Performance - Total revenues reached $233.8 million, surpassing the Zacks Consensus Estimate of $217 million, marking a 9.1% increase year over year on a reported basis and 4.3% on a constant-currency basis [4] - The company reported a quarterly loss of 61 cents per share, which was wider than the expected loss of 54 cents but significantly improved from a loss of $3.05 in the same quarter last year [3] - Gross profit improved by 31.1% year over year to $80.8 million, with gross margin expanding 579 basis points to 34.5% due to supply-chain efficiencies and favorable product mix [6] Regional Performance - Europe & International revenues increased by 23.3% year over year to $133.7 million, exceeding the Zacks Consensus Estimate of $123.6 million, driven by a 13.9% volume growth [9] - North America revenues decreased by 8.8% year over year to $64.4 million, falling short of the Zacks Consensus Estimate, primarily due to reduced sales to a major foodservice customer [12] - Greater China revenues saw a slight increase of 1.1% year over year to $35.7 million, surpassing expectations, although a decline was noted on a constant-currency basis [16][17] Cost and Investment Insights - Research and development expenses rose by 35.5% year over year to $5.1 million, reflecting costs related to product launches and currency exchange impacts [7] - Selling, general, and administrative expenses increased by 2.3% to $83.9 million, driven by higher distribution costs and currency exchange headwinds [7] Future Outlook - Oatly expects revenue growth of 3-5% for 2026, with adjusted EBITDA projected between $25 million and $35 million, despite anticipated headwinds in North America [10][23] - The company is conducting a strategic review of its Greater China business, expected to conclude by 2026 [21] Financial Health - As of the end of the quarter, Oatly had cash and cash equivalents of $64.3 million and total outstanding debt of $523 million [18] - Free cash flow improved to an outflow of $39 million for the 12 months ended December 31, 2025, compared to an outflow of $155.6 million in the prior year [20]