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]