Beyond Meat — Q2 2026 Earnings Summary

Financial Performance

• Net revenues were $68.8 million, a decrease of 8.2% year-over-year compared to $75.0 million.
• Gross profit was $5.9 million, representing an 8.5% gross margin, down from $7.9 million (10.6% margin) in the prior year period.
• Gross profit included $1.6 million in expenses related to the cessation of operational activities in China, compared to $1.7 million in the prior year.
• Loss from operations was $30.8 million (-44.8% operating margin), an improvement from a $37.5 million loss (-50.0% margin) in the prior year.
• Net income was $16.4 million, compared to a net loss of $(31.8) million in the prior year.
• Net income per share (basic) was $0.03, compared to a loss of $(0.42) per share in the prior year; diluted loss per share was $(0.06) compared to $(0.42).
• The increase in net income was primarily driven by a $57.7 million non-cash gain on debt extinguishment related to conversions of 2030 Notes.
• Adjusted EBITDA was a loss of $27.7 million (-40.2% of net revenues), compared to a loss of $24.7 million (-33.0% of net revenues) in the prior year.
• Operating expenses were $36.7 million, down from $45.4 million in the prior year.
• Total other income, net, was $47.2 million, compared to $5.7 million in the prior year.
• Cash and cash equivalents (including restricted cash) were $186.1 million as of June 27, 2026.
• Total outstanding carrying value of debt, net of discount, was $323.8 million as of June 27, 2026.
• Net cash used in operating activities was $23.2 million for the six months ended June 27, 2026, compared to $58.0 million in the prior year.
• Capital expenditures totaled $4.0 million for the six months ended June 27, 2026, compared to $6.4 million in the prior year.

Guidance and Future Outlook

• For the third quarter of 2026, net revenues are expected to be approximately $60 million to $65 million.
• Management noted an elevated level of uncertainty and volatility within the operating environment.

Business Segments and Product Lines

• U.S. retail net revenues decreased 9.9% to $29.6 million, driven by a 5.7% volume decrease and 4.5% decrease in net revenue per pound.
• U.S. foodservice net revenues decreased 27.6% to $8.0 million, driven by a 27.4% volume decrease.
• International retail net revenues increased 16.5% to $18.5 million, driven by an 8.2% volume increase and 7.7% increase in net revenue per pound.
• International foodservice net revenues decreased 16.0% to $12.7 million, driven by a 20.4% volume decrease.
• Total volume of products sold decreased 9.5% year-over-year.
• Highlights included growth in international retail and the U.S. retail debut of Beyond Steak Filet.
• The company launched Beyond Immerse, described as the first output of its expanded aperture to pursue adjacent categories.
• The company is repositioning around "Beyond The Plant Protein Company" to pursue faster-growing adjacent categories.

Market and Competitive Landscape

• Weak category demand and reduced points of distribution impacted U.S. foodservice and retail channels.
• Lower sales of burger and chicken products to Quick Service Restaurant ("QSR") customers in the international foodservice channel contributed to volume declines.
• Net revenue per pound increased 1.3% overall, driven by product sales mix changes and favorable foreign currency exchange rates, partially offset by higher trade discounts.
• International retail price increases and favorable foreign currency exchange rates contributed to higher net revenue per pound in that channel.

Risks and Challenges

• The company faces ongoing uncertainty and volatility in its operating environment.
• Risks include prolonged weakening demand in the plant-based meat category, high inflation, high interest rates, and potential recession.
• Significant debt obligations and liquidity risks remain, including the ability to repay, refinance, or equitize outstanding notes.
• The company no longer satisfies eligibility requirements for Form S-3 and cannot access its ATM Program.
• Risks associated with the strategic repositioning include brand dilution, failure to achieve consumer acceptance of new categories, and diversion of resources.
• Potential for further inventory write-downs, impairment charges, and asset write-offs due to excess or obsolete inventory.
• Risks related to the cessation of operational activities in China in 2025, including non-cash charges and reclassification of foreign currency losses.
• Potential for additional dilution from the conversion of 2030 Notes or exercise of warrants.
• Risks related to maintaining effective internal control over financial reporting and potential need to restate financial statements.
• Risks associated with supply chain disruptions, labor shortages, and geopolitical instability.

Management Commentary and Tone

• CEO Ethan Brown stated that Q2 results represent "directional progress," citing sequential improvements in net revenues, gross margin, and operating expenses.
• Brown noted that the top line "comfortably exceeded the high end of our guidance."
• Management emphasized efforts to stabilize the plant-based meat business and build upon the core while repositioning for adjacent categories.
• The tone indicates a focus on executing a plan to deliver plant protein to a broadening group of consumers.

Other Key Points

• A $11.0 million credit was recorded in operating expenses reflecting the settlement of arbitration proceedings related to a contractual dispute with a former co-manufacturer.
• Incremental share-based compensation expense of $4.7 million was recorded related to the convertible debt exchange.
• A $57.7 million non-cash gain on debt extinguishment was recognized due to conversions of a portion of the Company's 2030 Notes.
• The company corrected previously issued interim financial statements for 2025 relating to inventory valuation and debt issuance costs, which were deemed immaterial.
• The company is executing a Global Operations Review initiated in 2023, including the exit of select product lines and optimization of manufacturing capacity.
• The company hosts a conference call to discuss results on August 5, 2026.