Executive Summary

Q2 2025 net revenues fell 19.6% to $75.0M, missing S&P Global consensus of $83.7M; gross margin compressed to 11.5% (consensus 14.6%), and Primary EPS was -$0.40 vs. -$0.39 expected, reflecting category softness and lower international QSR burger sales . Values retrieved from S&P Global.*
Management announced a 6% North America workforce reduction and appointed an interim Chief Transformation Officer from AlixPartners to accelerate enterprise-wide cost cuts and margin initiatives .
Guidance narrowed: Q3 2025 net revenues expected at $68–$73M; full-year guidance limited/withdrawn vs prior framework issued in February (FY revenue $320–$335M; GM ~20%; OpEx $160–$180M; capex $15–$20M) .
Stock narrative drivers: lowered near-term revenue outlook, margin pressure, restructuring/cost actions, balance sheet focus (FX gains lifted other income to $5.7M) .

What Went Well and What Went Wrong

What Went Well

U.S. foodservice net revenues rose 6.8% YoY on improved mix and pricing (+4.4% net revenue/lb; +2.3% volume), supported by ground beef and dinner sausage .
Total other income swung positive to $5.7M (from a $0.6M expense YoY), mainly on realized/unrealized FX gains, partially offsetting operating losses .
Management accelerated transformation: “We are responding by accelerating our transformation activities... reducing operating expenses... investing in margin expansion initiatives across core products,” and expanding AlixPartners partnership with an interim CTO .

What Went Wrong

Net revenues declined 19.6% YoY to $75.0M; U.S. retail fell 26.7% on -24.2% volume and higher trade discounts; international foodservice down 25.8% on lower QSR burger sales .
Gross margin slipped to 11.5% (from 14.7% YoY), with lower fixed-cost absorption amid reduced volume and $1.7M in China cessation expenses embedded in COGS .
Operating loss widened to -$38.8M; OpEx included $4.5M non-routine SG&A, $2.5M arbitration-related legal costs, and $0.5M headquarters lease termination costs .

Financial Results

Headline metrics: prior year, prior quarter, current, and consensus

Metric	Q2 2024	Q1 2025	Q2 2025	Consensus (Q2 2025)
Revenue ($USD Millions)	$93.2	$68.7*	$75.0	$83.7*
Diluted EPS - Continuing Ops ($)	—	-0.69*	-0.38*	—
Net Loss per Share ($)	-0.53	—	-0.43	—
Gross Margin %	14.7%	0.63%*	11.5%	14.6%*
Operating Loss ($USD Millions)	-$33.9	—	-$38.8	—
EBITDA ($USD Millions)	—	-$40.6*	-$24.9*	-$19.3*

Note: Q2 2025 revenue reported as $74.958M; table rounded. Values retrieved from S&P Global.*

Segment net revenues (YoY comparison)

Segment	Q2 2024 ($M)	Q2 2025 ($M)	YoY Change
U.S. Retail	$44.9	$32.9	-26.7%
U.S. Foodservice	$10.4	$11.1	+6.8%
International Retail	$17.6	$15.9	-9.8%
International Foodservice	$20.4	$15.1	-25.8%
Total Net Revenues	$93.2	$75.0	-19.6%

KPI: Volume of products sold (000 lbs)

Channel	Q2 2024	Q2 2025	YoY Change
U.S. Retail	8,099	6,136	-24.2%
U.S. Foodservice	1,768	1,809	+2.3%
International Retail	3,926	3,410	-13.1%
International Foodservice	5,912	4,635	-21.6%
Total Volume	19,705	15,990	-18.9%

Balance sheet snapshot

Metric	Q4 2024	Q2 2025
Cash and Equivalents + Restricted ($M)	$145.6	$117.3
Total Debt ($B)	$1.10	$1.20

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenues	Q3 2025	—	$68–$73M	New limited Q/Q guide
Full-year Revenue	FY 2025	$320–$335M	Not providing full-year guidance	Withdrawn/limited
Gross Margin	FY 2025	~20%	Not provided	Withdrawn/limited
Operating Expenses	FY 2025	$160–$180M	Not provided	Withdrawn/limited
Capital Expenditures	FY 2025	$15–$20M	Not provided	Withdrawn/limited

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Cost reduction and transformation	FY25 plan to reduce OpEx; pursue EBITDA-positive run-rate by end of 2026	Interim CTO appointed; deeper OpEx cuts; RIF in NA (6% of workforce)	Acceleration
Gross margin expansion	Target ~20% FY25; long-term >30%	GM 11.5%; fixed-cost absorption drag; China cessation costs	Pressure near-term
U.S. retail distribution and pricing	Shrinking shelf space; price increases in 2024	Delays in new distribution/promotions; building brand blocks in frozen; price headwinds vs animal proteins	Rebuild in progress
International foodservice/QSR	Growth in chicken with EU QSR in Q4	Pauses/discontinuations of burger items; lower volumes; expect softness	Softening
China operations	Suspension approved Feb 24, 2025	Cessation-related COGS and OpEx charges ($1.7M COGS; total $9.2M)	Exit-related costs
Balance sheet actions	ATM raise in Q4; delayed draw term loan in Q1	Strengthen balance sheet; FX gains drove other income	Continued focus
Brand/product positioning	Beyond IV, Beyond Sun Sausage; taste improvements	Repositioning to “Beyond” brand; Beyond Ground test with high protein/low sat fat; taste claims	Strategic pivot

Management Commentary

Ethan Brown (CEO): “We are disappointed with our second quarter results… We are responding by accelerating our transformation activities… prioritizing increased distribution of our core product lines; and investing in margin expansion initiatives” .
Ethan Brown: “We intend to increasingly use Beyond as the primary branded identifier… widen our aperture beyond animal protein replicates… Beyond Ground… met with considerable enthusiasm” .
Lubi Kutua (CFO): “Gross profit and gross margin in Q2 included $1.7 million in expenses related to the suspension of our operational activities in China… underlying manufacturing costs are improving” .
Ethan Brown: “Delays in anticipated new distribution and major promotions… dislocations from the move… refrigerated to the frozen aisle” .
Ethan Brown: “We are continuing to intently focus on strengthening our balance sheet to address our 2027 convertible note maturity” .

Q&A Highlights

Path to EBITDA-positive: Management reiterated target of EBITDA-positive run-rate by 2H 2026; focus on reducing OpEx and improving gross margin while stabilizing top line .
Top-line stabilization levers: Build consolidated brand blocks in frozen aisles, regain lost distribution, emphasize macronutrient advantages (high protein, low sat fat/calories), offer value packs; address pricing premium vs animal protein .
Cash burn and liquidity: Underlying cash use lower excluding non-routine payments (class action, advisors, retention); initial $40M draw on delayed-draw facility; continued balance sheet strengthening .
International QSR softness: Lapping promotions; pauses/discontinuations in certain markets; anticipate continued pressure near term .
CTO priorities: Fit operational footprint to current revenue environment; accelerate margin work given poor overhead absorption at lower volumes; holistic operational efficiency .

Estimates Context

Metric	Consensus (Q2 2025)	Actual (Q2 2025)	Outcome
Revenue ($USD)	$83.7M*	$75.0M	Miss
Primary EPS ($)	-0.39*	-0.40*	Slight miss
Gross Margin (%)	14.62%*	11.5%	Miss
EBITDA ($USD)	-$19.3M*	-$24.9M*	Worse than expected

Values retrieved from S&P Global.*

Estimates likely need to drift lower near term given Q3 revenue guide ($68–$73M) and persistent category softness; margin expectations should reflect fixed-cost absorption and China exit costs .

Key Takeaways for Investors

Near-term revenue headwinds persist; Q3 guide ($68–$73M) signals further sequential pressure vs Q2, supporting a cautious stance on top-line recovery .
Margin trajectory remains challenged until volume stabilizes and transformation actions (portfolio optimization, manufacturing cost reductions) fully flow through; watch GM vs 20% FY target previously outlined but now withdrawn .
Transformation catalysts (interim CTO, RIF, lease actions) are proactive and should compress OpEx run-rate; monitor realized savings ($5–$6M cash comp over 12 months) and arbitration/legal cost normalization .
Distribution strategy in U.S. retail (brand blocks in frozen, regained placements) and pricing/value tactics will be key to improving velocities; evidence of sustained distribution wins could re-rate the top-line outlook .
International foodservice recovery depends on QSR menu dynamics; continued softness keeps risk elevated; watch for new permanent menu items and reduced reliance on burger SKUs .
Balance sheet: cash at $117.3M and ~$1.2B total debt; FX gains helped Q2 other income; continued financing actions (delayed-draw facility, potential note restructuring) are critical to liquidity runway .
Trading lens: Given estimate misses and lowered visibility, rallies may fade absent distribution announcements or margin surprises; downside risk tied to category demand and QSR exposure; upside optionality from brand repositioning (“Beyond”) and new product tests (Beyond Ground) .

Sources

Q2 2025 8-K and Press Release: results, segments, margins, RIF, CTO, Q3 guide .
Q2 2025 Earnings Call Transcript: management remarks and Q&A .
Q4 2024 8-K and Press Release: prior guidance and strategic priorities .
Q1 2025 8-K: loan/term facility context .