Beyond Meat — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total net revenues were $64.5 million, a decrease of 8.1% year-over-year compared to $70.2 million.
• Gross profit was $12.4 million, representing a gross margin of 19.3%, compared to $5.2 million (7.4% margin) in the prior year period.
• Loss from operations was $93.0 million (operating margin of -144.1%), compared to $98.1 million (-139.7% margin) in the prior year.
• Net loss was $82.8 million, compared to $97.0 million in the prior year period.
• Net loss per share (basic and diluted) was $(4.32), compared to $(37.96) in the prior year.
• Adjusted EBITDA was a loss of $24.6 million (-38.1% of revenue), compared to a loss of $33.5 million (-47.7% of revenue) in the prior year.
• Operating expenses were $105.4 million, including $57.1 million in non-cash impairment charges and $20.8 million in accelerated rent expense.
• Net cash used in operating activities for the nine months ended September 26, 2026, was $37.3 million, compared to $101.2 million in the prior year period.
• Capital expenditures totaled $5.5 million for the nine months ended September 26, 2026, compared to $9.3 million in the prior year.

Guidance and Future Outlook:

• For the fourth quarter of 2026, total net revenues are expected to be approximately $54 million to $59 million.
• Management noted an elevated level of uncertainty and volatility within the operating environment.

Business Segments and Product Lines:

• U.S. retail channel net revenues decreased 13.2% to $24.8 million, driven by a 20.8% volume decrease.
• U.S. foodservice channel net revenues decreased 9.7% to $9.5 million, driven by a 12.6% volume decrease.
• International retail channel net revenues increased 13.3% to $17.9 million, driven by a 17.4% volume increase, led by European markets.
• International foodservice channel net revenues decreased 19.4% to $12.4 million, driven by a 17.5% volume decrease.
• Total volume of products sold decreased 10.9% year-over-year.
• Total net revenue per pound increased 3.2% year-over-year.
• The company is pursuing stabilization of U.S. revenues and aggressive enterprise-wide cost reduction, including actions to reduce long-term lease obligations.

Market and Competitive Landscape:

• The company faces weak category demand in the U.S. foodservice and retail channels.
• Reduced points of distribution contributed to revenue declines in U.S. channels.
• Lower sales of burger products to Quick Service Restaurant (QSR) customers in the international foodservice channel impacted results.
• The company continues to expand into adjacent product categories including powders, bars, beverages, and center-of-plate offerings.

Risks and Challenges:

• Significant non-cash charges included $57.1 million in impairment of long-lived assets and $20.8 million in accelerated rent expense related to the El Segundo Campus Headquarters.
• The company faces risks related to its indebtedness, including the 2027 Notes maturing on March 15, 2027, and the 2030 Notes.
• The company no longer satisfies eligibility requirements for Form S-3 and cannot access its at-the-market offering program.
• Potential dilution to stockholders exists due to the Exchange Offer and potential future exchanges of Notes for equity.
• The company identified errors in previously issued financial statements for 2025 regarding inventory valuation, debt issuance costs, and impairment of long-lived assets, which were corrected retroactively.

Management Commentary and Tone:

• CEO Ethan Brown stated that third-quarter results represent "measurable progress," citing revenue at the high end of guidance, the highest gross margin in five years, narrowed Adjusted EBITDA loss, and reduced cash usage year-over-year.
• Brown highlighted the international retail channel registering a third consecutive quarter of growth.
• Management emphasized taking the right steps to stabilize U.S. revenues and drive cost reduction.

Other Key Points:

• On September 23, 2026, the Company exchanged $15.0 million in aggregate principal amount of its 2027 Notes for approximately 1.55 million shares of common stock, leaving $14.5 million outstanding.
• Cash and cash equivalents balance, including restricted cash, was $169.3 million as of September 26, 2026.
• Total outstanding carrying value of debt, net of debt discount, was $313.9 million as of September 26, 2026.
• A credit of $21.8 million was recorded reflecting a reduction in a litigation-related accrual.
• The company recorded $5.5 million in incremental share-based compensation expense related to the 2027 Notes exchange offer.
• The press release includes retroactive adjustments for a 1-for-30 reverse stock split effective August 13, 2026.