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]

Financial Data and Key Metrics Changes - In Q1 2025, net revenues decreased by 9.1% to $68.7 million compared to $75.6 million in the same period last year, primarily due to an 11.2% decrease in volume sold, partially offset by a 2.4% increase in net revenue per pound [18][19] - Gross profit was a loss of $1.1 million, resulting in a gross margin of negative 1.5%, compared to a gross profit of $3.7 million and a gross margin of 4.9% in the prior year [25][26] - Net loss was $52.9 million in Q1 2025, compared to a net loss of $54.4 million in the same period last year, with net loss per share at $0.69 compared to $0.84 [28][29] Business Line Data and Key Metrics Changes - U.S. Retail channel net revenues decreased by 15.4% to $31.4 million, driven by a 23.2% decrease in volume sold, partially offset by a 10% increase in net revenue per pound [20][21] - U.S. Foodservice net revenues decreased by 23.5% to $9.4 million, primarily due to a 22% decrease in volume sold and a 2% decrease in net revenue per pound [23] - International retail channel net revenues increased by 0.8% to $12.7 million, driven by a 10.3% increase in net revenue per pound, despite an 8.6% decrease in volume sold [24] Market Data and Key Metrics Changes - Consumption data indicated a progressive weakening in U.S. retail takeaway during Q1 2025, contributing to weaker shipments than expected [21] - International foodservice channel net revenues increased by 12.1% to $15.3 million, primarily due to a 13.5% increase in volume sold [25] Company Strategy and Development Direction - The company aims to achieve EBITDA positive on a run rate basis by the end of 2026, focusing on reducing operational expenses and optimizing manufacturing towards margin objectives [10][32] - A new marketing campaign, "Real People, Real Results," is being launched to improve consumer perception and drive demand for plant-based products [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q1 2025 was disappointing due to worsening category and macroeconomic conditions impacting top-line recovery [5][6] - The company has withdrawn its full-year guidance due to elevated uncertainty in the operating environment, limiting revised outlook to Q2 net revenue expectations of $80 million to $85 million [32][66] Other Important Information - The company closed a financing facility providing up to $100 million in new senior secured debt, which will help support strategic priorities and liquidity [16][30] - The company is focusing on dispelling misinformation about its products and enhancing consumer understanding of the benefits of plant-based diets [13][41] Q&A Session Questions and Answers Question: What potential initiatives could be taken to stabilize the top line in the U.S. market? - Management indicated that restoring distribution lost due to product transitions and improving consumer perception through marketing efforts are key initiatives [37][39] Question: Can more details be shared about the financing agreement of the $100 million? - The financing facility has an initial term of approximately five years with an interest rate of 12% for drawdowns, increasing to 17.5% after the maturity date [45][46] Question: What is the outlook regarding tariffs and demand uncertainty? - Management noted that while there are discussions around tariffs, the direct impact on the business is considered minimal, but consumer confidence remains a concern [68][70]

Financial Data and Key Metrics Changes - In Q1 2025, net revenues decreased by 9.1% to $68.7 million compared to $75.6 million in the same period last year, primarily driven by an 11.2% decrease in volume sold, partially offset by a 2.4% increase in net revenue per pound [19][20] - Gross profit was a loss of $1.1 million, resulting in a gross margin of negative 1.5%, compared to a gross profit of $3.7 million and a gross margin of 4.9% in the prior year [27][28] - Net loss was $52.9 million in Q1 2025, compared to a net loss of $54.4 million in the same quarter last year, with net loss per share improving from $0.84 to $0.69 [30][31] Business Line Data and Key Metrics Changes - U.S. Retail channel net revenues decreased by 15.4% to $31.4 million, driven by a 23.2% decrease in volume sold, partially offset by a 10% increase in net revenue per pound [21][22] - U.S. Foodservice net revenues decreased by 23.5% to $9.4 million, primarily due to a 22% decrease in volume sold and a 2% decrease in net revenue per pound [25] - International retail channel net revenues increased by 0.8% to $12.7 million, driven by a 10.3% increase in net revenue per pound, despite an 8.6% decrease in volume sold [26] Market Data and Key Metrics Changes - Consumption data indicated a progressive weakening in U.S. retail takeaway during Q1 2025, contributing to weaker shipments than expected [22][23] - International foodservice channel net revenues increased by 12.1% to $15.3 million, primarily due to a 13.5% increase in volume sold [27] Company Strategy and Development Direction - The company aims to achieve EBITDA positive on a run rate basis by the end of 2026, focusing on reducing operational expenses and optimizing manufacturing towards margin objectives [11][34] - A new marketing campaign, "Real People, Real Results," is being launched to improve consumer perception and drive demand for plant-based products [16][17] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q1 2025 due to worsening category and macroeconomic conditions, impacting top-line recovery [5][6] - The company has withdrawn its full-year guidance due to elevated uncertainty in the operating environment, limiting revised outlook to Q2 net revenue expectations of $80 million to $85 million [34][70] Other Important Information - The company closed a financing facility providing up to $100 million in new senior secured debt, aimed at enhancing liquidity and supporting strategic priorities [17][32] - Operating expenses in Q1 2025 were $55.1 million, a decrease from $57.1 million in the previous year, including $7.2 million in transient expenses [29][30] Q&A Session Summary Question: What initiatives could be taken to stabilize the top line in the U.S. market? - Management highlighted the importance of restoring distribution lost due to product transitions in retail and emphasized the need to improve consumer perception through effective messaging and marketing campaigns [39][42] Question: Can you provide more details on the financing agreement? - The financing facility has an initial term of approximately 4.75 years, with interest accruing at 12% initially and 17.5% thereafter, payable in kind [47][49] Question: What is the outlook regarding tariffs and demand uncertainty? - Management indicated that while there are discussions around tariffs, the direct impact on the business is minimal, but consumer confidence remains a concern that could affect demand [72][74] Question: What is the expected run rate for SG&A in the coming quarters? - Management noted that extraordinary items in Q1 would not repeat, and they expect a normalization of legal expenses, with ongoing impacts from the suspension of operations in China [76][86]