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BEYOND MEAT, INC. (BYND)·Q1 2025 Earnings Summary

Executive Summary

  • Beyond Meat’s Q1 2025 reset momentum: revenue fell to $68.7m with gross margin turning negative as U.S. retail distribution transitions and macro/category softness weighed; management withdrew FY25 guidance and guided Q2 revenue to $80–$85m, reframing focus on margin/OpEx discipline and liquidity .
  • Results were below S&P Global consensus: revenue and EPS missed, and EBITDA loss widened vs expectations, driven by lower volumes, mix, start-up inefficiencies in Devault, and a $5.2m extraordinary COGS charge; OpEx also included $7.2m transient items .
  • Liquidity backstop secured: a delayed-draw senior secured facility up to $100m (12% PIK, higher post-2030, with warrants up to 12.5% depending on draws) adds flexibility as the company evaluates options for 2027 converts; cash ended Q1 at $115.8m; total debt ~$1.1b .
  • Medium-term target intact: management reiterated a run-rate EBITDA-positive goal by year-end 2026, prioritizing margin expansion, reduced OpEx, and stabilizing core product velocities as distribution is restored and seasonality helps in Q2–Q3 .

What Went Well and What Went Wrong

What Went Well

  • International Foodservice resilience: international foodservice revenue grew 12.1% YoY to $15.3m, aided by increased chicken sales to a large QSR customer .
  • Strategic financing secured: closed a new up-to-$100m senior secured delayed-draw facility (12% PIK, step-up post-2030) with potential warrants up to 12.5% of shares outstanding, bolstering liquidity while management pursues balance sheet strengthening .
  • Clear focus on profitability path: reiterated “EBITDA positive on a run rate basis by year-end 2026,” with intensified efforts to cut baseline OpEx, optimize production footprint, and rebuild core distribution; “we take this deviation from a recovery extremely seriously” .

What Went Wrong

  • U.S. volumes and margin deteriorated: net revenues dropped 9.1% YoY to $68.7m; gross margin fell to -1.5% on lower absorption, mix shift, Devault ramp inefficiencies, and a $5.2m extraordinary COGS charge tied to strategic inventory reduction and China suspension .
  • U.S. retail disruption: moving products from refrigerated to frozen caused availability gaps across Q1; management expects to gain back much, though not all, lost distribution across the year, but velocities slowed amid macro/category softness .
  • Transient OpEx pressure: total OpEx $55.1m included $7.2m non-routine items (legal arbitration, added inventory provisions, and China suspension costs), masking underlying expense progress; adjusted EBITDA loss widened .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Net Revenues ($USD Millions)$81.0 $76.7 $68.7
Gross Margin %17.7% 13.1% -1.5%
Net Loss per Share ($)-$0.41 -$0.65 -$0.69
Adjusted EBITDA ($USD Millions)-$19.8 -$26.0 -$42.3

Segment/channel revenue and YoY:

  • Management YoY figures reflect changes vs year-ago quarter.
ChannelQ4 2024 Revenue ($m)YoY %Q1 2025 Revenue ($m)YoY %
U.S. Retail$33.9 +5.7% $31.4 -15.4%
U.S. Foodservice$10.5 -2.1% $9.4 -23.5%
International Retail$13.1 -1.7% $12.7 +0.8%
International Foodservice$19.3 +9.2% $15.3 +12.1%

KPIs (Q1 2025):

  • Cash & equivalents (incl. restricted): $115.8m; Total debt ~$1.1b; Net cash used in operating activities: $26.1m; Capex: $4.5m .
  • Extraordinary items: ~$5.2m COGS and $7.2m OpEx non-routine charges weighed on profitability .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net RevenuesFY 2025$320m–$335m Withdrawn Withdrawn
Gross MarginFY 2025~20% Withdrawn Withdrawn
Operating ExpensesFY 2025$160m–$180m Withdrawn Withdrawn
Capital ExpendituresFY 2025$15m–$20m Not reiterated Withdrawn
Net RevenuesQ2 2025N/A$80m–$85m New quarterly outlook

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current (Q1 2025)Trend
Supply chain/production footprintNetwork consolidation lowered COGS; margin reached 17.7% Gross margin 13.1%; continued consolidation/efficiency Start-up inefficiencies at Devault, low absorption hurt Q1 margin; improvements expected as volumes recover Near-term setback; medium-term improving
U.S. retail distributionBuilding back distribution; category softness noted Retail adds and resets ongoing Large retailers’ move to frozen disrupted Q1 availability; rebuild expected through year Worsened in Q1; recover through 2025
Pricing/trade & elasticityHigher net price realization; moderated trade Price/mix supported gross margin Prior pricing aided per-pound net revenue; mix and volumes pressured margins Mixed: pricing holding, mix/volume negative
Macro/tariffsNAFY25 outlook set amid uncertainty Macro softness, low consumer confidence; direct tariff impact seen as minimal Macro headwinds persist
China operationsNAPlan to suspend ops; non-cash charges expected China suspension costs hit COGS/OpEx; accelerated depreciation through 2026 Restructuring impact ongoing
Product/health positioningBeyond IV, Sun Sausage; health endorsements Continued validation Marketing push (“Planting Change”; “Real People, Real Results”); Kroger launch of Beyond Chicken Pieces Expanding health/marketing narrative
Balance sheet/liquidityPlanned ATM, restructure in 2025 Cash $145.6m, debt ~$1.1b New $100m delayed-draw debt facility with warrants Liquidity flexibility improved, cost of capital high

Management Commentary

  • “The First Quarter of 2025 was clearly a disappointing one… category and macroeconomic conditions… impacted our top line recovery and reverberated throughout our P&L.”
  • “Our overarching goal remains the same, EBITDA positive on a run rate basis by year-end 2026.”
  • On disruption: “Retailers transitioned plant-based meat from the refrigerated to the frozen aisle… led to an interruption in availability of some of our core products throughout Q1 2025.”
  • On margin headwinds: “Lower-than-anticipated sales volumes… change in product mix… delays and lower-than-planned line throughput… [and] a particularly large inventory provision” drove negative margin .
  • On liquidity: “Closed on a financing facility providing up to $100 million in new senior secured debt… warrants… up to 12.5%” .
  • Guidance stance: “Withdraw our previous full year guidance… limiting our revised outlook to Q2: $80–$85 million net revenues” .

Q&A Highlights

  • Distribution gap magnitude: Management estimates “about 70%” of Q1 U.S. retail declines were explained by distribution gaps from the refrigerated-to-frozen resets; rebuilding distribution through the year, with velocity still the harder challenge .
  • Financing detail: 12% PIK interest (step-up to 17.5% after initial maturity), delayed-draw to 2030 with potential extension, plus warrants tied to draw amounts; intended to add flexibility while pursuing broader balance sheet actions .
  • Macro/tariffs: Direct tariff impact seen as relatively minimal; macro uncertainty and skittish consumer behavior weigh more on category demand and flexitarian purchasing .
  • OpEx normalization: ~$7m extraordinary OpEx in Q1 (legal arbitration, inventory provisions, China) unlikely to repeat at same level; China-related accelerated depreciation to run through 2026 .
  • U.S. foodservice: Team build-out largely complete; strategy shifts toward smaller national accounts with improving pipeline, though broader headwinds persist .

Estimates Context

  • S&P Global consensus vs actuals (Q1 2025): revenue $75.68m* vs actual $68.73m (miss); EPS -$0.47* vs actual about -$0.67* (miss); EBITDA -$22.13m* vs actual -$40.6m* (miss) .
  • Implications: Magnitude of the miss reflects volume/mix pressures, startup inefficiencies, and extraordinary charges, suggesting near-term estimate cuts to revenues, margins, and EBITDA until distribution recovers and operational efficiencies flow through .
MetricConsensus (Q1 2025)Actual (Q1 2025)
Revenue ($USD)$75,682,200*$68,731,000
Primary EPS-$0.4742*-$0.67*
EBITDA ($USD)-$22,130,830*-$40,600,000*

Values with asterisks (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term: Expect volatile quarters as U.S. retail distribution is rebuilt post-aisle transition; watch Q2 revenue ($80–$85m) as an early signal of seasonal and distribution recovery .
  • Margin path: Gross margin should improve as volumes normalize, core products rebound, and Devault throughput stabilizes; track extraordinary COGS/OpEx normalization and mix shift back to core .
  • Liquidity runway: The $100m delayed-draw facility adds flexibility, but capital is expensive (PIK, warrants); watch actions on 2027 converts and possible equity or refinancing .
  • Category/macro risk: Weak plant-based category velocities and cautious consumers are headwinds; management’s health-forward product/marketing push (“Real People, Real Results”) aims to re-engage trial and repeat .
  • Execution priorities: Stabilize top line, expand gross margin, and hold down OpEx to achieve run-rate EBITDA positive by end-2026—monitor QoQ progress on these three levers .
  • International diversification: International foodservice growth remains a relative bright spot; any further QSR traction can cushion U.S. softness .

Supporting Context and Documents

  • Q1 2025 earnings call transcript (net revenue, margin drivers, OpEx, Q2 guide, financing) .
  • Financing press release (terms, warrants; liquidity rationale) .
  • Q1 2025 8-K (loan & warrant agreements; exhibits references) .
  • Prior quarters for trend: Q4 2024 press release/8-K (revenue $76.7m; GM 13.1%; FY25 guidance) ; Q3 2024 call (revenue $81m; GM 17.7%; positive pricing/margin commentary) .
  • Product launch: Beyond Chicken Pieces at Kroger (portfolio/health positioning) .