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    BYND
    Earnings call· Jun 2026(Q2 FY26)

    BEYOND MEAT Q2 FY26 earnings call BYND

    Aug 5, 2026 Source

    Executive summary

    Beyond Meat Q2 FY26 — Sequential Progress Amidst Turnaround Efforts

    Beyond Meat reported sequential progress in Q2 FY26, with revenue exceeding guidance and improved gross margin, driven by operational efficiencies and cost reductions. The company is executing a turnaround strategy focused on international growth, expanding into functional nutrition categories, and further optimizing unit economics, while navigating persistent U.S. market pressures and misinformation campaigns.

    Highlights

    5

    • Net revenues of $68.8 million exceeded the high end of guidance ($60M-$65M).

    • Net revenue decline improved to 8.2% YoY, from 15.3% in Q1 FY26 and 19.7% in Q4 FY25.

    • Gross margin improved to 8.5%, up 5 points from Q1 FY26 and 6 points from Q4 FY25.

    • Operating expenses decreased 19% YoY to $36.7 million.

    • Cash use (excluding financing) fell 44% YoY to approximately $18 million.

    Concerns

    5

    • Net revenues decreased 8.2% YoY to $68.8 million.

    • Gross margin of 8.5% was down from 10.6% in the prior year period.

    • Adjusted EBITDA loss widened to $27.7 million (-40.2% of net revenues) from $24.7 million (-33% of net revenues) in the prior year.

    • Core plant-based meat business continues to face pressure in U.S. retail and foodservice, and global foodservice.

    • Volume of products sold decreased 9.5% YoY, primarily due to lower sales to QSR customers and weak category demand.

    Guidance & targets

    1
    CategoryTargetConfidence
    Net revenues
    $60 million to $65 million
    high materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    U.S. Retail
    Decrease primarily due to persistent category softness and reduced points of distribution. Some distribution losses were transitory due to packaging transitions. Net revenue per pound impacted by higher trade discounts and lower price realization.
    Volume of products sold: -5.7% YoYNet revenue per pound: -4.5% YoY
    		$29.6M-9.9%——
    U.S. Foodservice
    Negatively impacted by distribution losses, primarily among smaller independent operators, and general category softness. Higher trade discounts and lower price realization offset favorable product sales mix.
    Volume of products sold: -27.4% YoYNet revenue per pound: slightly unfavorable YoY
    		$8.0M-27.6%——
    International Retail
    Benefited from higher sales of burger and chicken products in European markets and increased sales of ground beef products in Canada. Net revenue per pound increased due to price increases in certain geographies and favorable FX rates, partially offset by higher trade discounts.
    Volume of products sold: 8.2% YoYNet revenue per pound: 7.7% YoY
    		$18.5M16.5%——
    International Foodservice
    Decrease mainly reflects lower sales of burger and chicken products to certain QSR customers in Europe and Canada. Net revenue per pound increased due to favorable FX rates and lower trade discounts.
    Volume of products sold: -20.4% YoYNet revenue per pound: 5.5% YoY
    		$12.7M-16.0%——

    Operational metrics

    17
    Gross profit
    $5.9Mvs $7.9M in Q2 FY25
    Q2 FY26

    Gross profit included $1.6 million in expenses related to the cessation of China operations, compared to $1.7 million in the year ago period.

    Operating expenses
    $36.7M-19% YoY, -15% sequential
    Q2 FY26

    Operating expenses included $4.7M in share-based compensation, $0.5M non-routine SG&A, $0.5M amortization for lease termination, and a credit of $11M from arbitration settlement.

    Loss from operations
    $30.8Mvs $37.5M in Q2 FY25
    Q2 FY26

    Improved from prior year.

    Total other income net
    $47.2Mvs $5.7M in Q2 FY25
    Q2 FY26

    Significant increase primarily reflecting a non-cash gain on debt extinguishment, partially offset by reduced other income, increased interest expense, and remeasurement loss of derivative liability.

    Adjusted EBITDA
    -$27.7Mvs -$24.7M in Q2 FY25
    Q2 FY26

    Adjusted EBITDA loss widened compared to the prior year period.

    Cash and cash equivalents
    $186.1M
    as of June 27, 2026

    Includes restricted cash.

    Total outstanding carrying value of debt
    $323.8M
    as of June 27, 2026

    Includes the total undiscounted future cash flows of the new 2030 notes recorded at the completion of the convertible debt exchange.

    Net cash used in operating activities
    $23.2Mvs $58M in year ago period
    6 months ended June 27, 2026

    Significant improvement in cash consumption.

    Capital expenditures
    $4.0Mvs $6.4M in year ago period
    6 months ended June 27, 2026

    Reduced capital expenditures.

    Net cash used in financing activities
    $6.6Mvs $32.3M provided in year ago period
    6 months ended June 27, 2026

    Compared to net cash provided by financing activities in the year ago period, which included a partial draw on the delayed draw term loan.

    Cash consumption (excluding financing activities)
    $18M-44% YoY, -$14M less YoY
    Q2 FY26

    Meaningful improvement versus year ago levels, reflecting savings from transformation program and effective inventory management.

    Production network consolidation
    —
    Q2 FY26

    Consolidated production network and finishing trials on new continuous line at Columbia, Missouri facility, absorbing outsourced volume and improving conversion costs.

    Material cost reduction
    —
    Q2 FY26

    Reduced certain material costs through contract renegotiation, with further savings in progress through RFPs, secondary sourcing, and formulation adjustments.

    Warehousing and logistics optimization
    —
    Q2 FY26

    Consolidated warehouses and lowered logistics expense, offsetting volatility in transportation costs.

    Product line rationalization
    —
    Q2 FY26

    Exited less profitable product lines.

    Volume of products sold
    -9.5%YoY
    Q2 FY26

    Primarily driven by lower sales of burger and chicken products to certain QSR customers in international foodservice and by weak category demand and reduced points of distribution in U.S. retail and foodservice.

    Net revenue per pound
    1.4%YoY
    Q2 FY26

    Increased primarily driven by changes in product sales mix and favorable changes in foreign currency exchange rates, partially offset by higher trade discounts.

    Industry KPIs

    5
    MetricValueDetails
    Gross margin8.5%%
    Organic net revenue growth-8.2%%
    Adjusted EPS operating income$0.03USD
    Elasticity consumer response commentary—
    Category growth benchmark channel shift data—

    Product announcements

    4
    ProductTypeDetails
    Beyond Steak Filetlaunch
    Beyond Chicken Pieces Spicy Buffalolaunch
    Beyond Breakfast Sausage (links and patties)launch
    Beyond Immerselaunch

    Capital programs

    1
    Continuous production linefinishing trials

    Benefit: Improved conversion costs, absorbing volume previously outsourced

    Finishing trials on the new continuous line at the Columbia, Missouri, facility. Expected to contribute to volume and improve conversion.

    Risks & headwinds

    5
    U.S. market pressure and misinformationOngoing

    Net revenues in U.S. retail down 9.9% YoY, U.S. foodservice down 27.6% YoY.

    Mitigation: Leaning into product health, working with health institutions, 'Don't Believe the Cropaganda' campaign, targeted shopper marketing, new product innovations.

    Lower volume and underabsorption of overheadOngoing

    Volume of products sold decreased 9.5% YoY.

    Mitigation: Addressing through growth programs, facilities planning, optimizing production system, and increasing throughput.

    Persistent category softness and reduced distributionOngoing

    U.S. retail volume down 5.7% YoY, U.S. foodservice volume down 27.4% YoY.

    Mitigation: Bringing new center-of-the-plate protein to market, strengthening brand blocks in frozen retail, and expanding into adjacent categories.

    Increased material costs and manufacturing expensesQ2 FY26

    Negatively impacted gross profit and gross margin.

    Mitigation: Reduced certain material costs through contract renegotiation, RFPs, secondary sourcing, formulation adjustments, and optimizing production system.

    Impact of China operations cessationQ2 FY26 (last quarter to carry this drag)

    $1.6 million in expenses, >2 points of margin drag.

    Mitigation: This is the last quarter to carry this specific drag.

    What to watch in Q3 FY26

    5

    Net revenue growth rate

    Q3 FY26
    Current-8.2% YoY
    TargetImprovement towards positive growth

    Why it matters

    Indicates progress on the core business stabilization and growth initiatives, especially in Europe and Canada.

    I'll start with our second quarter results, then turn to how we're executing our turnaround across 3 pillars. Beginning with net revenues, we came in at $68.8 million, roughly $4 million above the high end of our $60 million to $65 million guidance range. This figure headlines a quarter of sequential progress, even if it is slower than we would like. Specifically, net revenues were down 8.2% year-over-year, an improvement from year-over-year declines of 15.3% in Q1 2026 and 19.7% in Q4 2025.

    Q&A highlights

    3

    Why is there a significant difference in consumer acceptance and demand for plant-based products between Europe and the U.S.?

    In Europe, the company faces less intense misinformation campaigns from the incumbent industry compared to the U.S. Additionally, European consumers more readily link food choices to climate concerns, which is a stronger driver there due to policy and observed climate impacts.

    “I think what we're seeing and we're beginning to see this in a sustained level, in Europe, we do not face the same very significant campaigns and misinformation that we do here in the U.S. from the incumbent industry.”

    asked by Benjamin Theurer · answered by Ethan Brown

    2 min read6 chapters

    Detailed Narrative

    01

    U.S. Market Challenges and Mitigation

    The U.S. core plant-based meat business continues to face pressure in retail and foodservice channels, attributed to weak category demand, reduced points of distribution, and persistent misinformation campaigns regarding product health. The company is countering this with educational campaigns like 'Don't Believe the Cropaganda' and targeted shopper marketing, alongside new product introductions like Beyond Steak Filet and Beyond Chicken Pieces Spicy Buffalo.

    02

    International Growth Engines

    Europe and Canada are identified as clear near-term growth engines, with retail sales up double digits year-over-year in both markets. Performance in Germany and the U.K. is cautiously encouraging, and the company plans to invest further in these regions, including bringing innovation to consumers. This growth partially offsets U.S. declines.

    03

    Operational Efficiency and Margin Improvement

    The company is making progress on operational efficiency, consolidating its production network, finishing trials on a new continuous line in Columbia, Missouri, and reducing material costs through renegotiations and RFPs. Warehousing has been consolidated, logistics expenses lowered, and less profitable product lines exited. These efforts contributed to an 8.5% gross margin, despite a drag from accelerated depreciation related to China operations.

    04

    Strategic Pivot to Functional Nutrition

    Beyond Meat is broadening its focus from plant-based meat to 'nutrition as Beyond, the plant protein company,' entering faster-growing adjacent markets. The first product under this strategy is Beyond Immerse, a functional beverage with 20g protein, 5-7g fiber, antioxidants, and electrolytes, targeting the functional drink market. This strategy leverages the company's expertise in plant biology and formulation.

    05

    Cash Flow and Expense Management

    The company demonstrated significant improvement in cash management, with cash use (excluding financing activities) falling 44% YoY to $18 million. Operating expenses decreased 19% YoY to $36.7 million, reflecting ongoing focus on SG&A and transformation efforts to position the business for sustainable operations and cash flow positivity.

    06

    Leadership and Board Changes

    The company announced the hiring of Brijesh Krishnaswamy as COO, replacing an interim Transformation Officer, to help drive growth in Europe and stabilize the U.S. business. CEO Ethan Brown is also returning to the Board, signaling a renewed focus on operational execution and the turnaround strategy.

    AI-generated summary of the company’s earnings call. Not investment advice.