Executive Summary

Net revenues were $70.2M (-13.3% YoY), gross margin fell to 10.3%, and GAAP EPS was -$1.44; adjusted EBITDA was -$21.6M. Drivers: lower volume (-10.3%), higher trade discounts, adverse mix, and a $77.4M non-cash impairment to long-lived assets .
Versus Wall Street consensus (S&P Global): revenue modestly beat ($70.2M vs $69.8M*), while adjusted EPS missed (-$0.47 vs -$0.43*). Guidance for Q4 net revenues was set at $60–$65M*, implying sequential decline .
Balance sheet reset: 97.4% of 2027 converts exchanged into new 2030 notes and equity; ~$148.7M raised via ATM post-quarter, materially reducing leverage and extending maturities (management cited ~75% leverage reduction) .
Stock reaction catalysts: dilution from exchange/ATM, impairment charge, Q4 revenue guide downshift, and management’s margin expansion program/continuous lines commentary .

What Went Well and What Went Wrong

What Went Well
- Balance sheet deleveraging and liquidity: “reduced debt levels by approximately $900 million… and added substantial liquidity” via ATM, supporting turnaround runway .
- International foodservice growth: net revenues +2.3% YoY to $15.3M, volume +4.4% (partially offset by lower burger sales), supported by chicken product sales to a QSR customer .
- Operational improvements: conversion and logistics costs improved YoY; plans to install continuous production lines to lift margins (targeting 30%+ over time) .
What Went Wrong
- US retail weakness: revenue -18.4% YoY to $28.5M on reduced points of distribution and higher trade discounts; US foodservice -27.3% YoY .
- Gross margin compression to 10.3% (vs 17.7% LY) on lower volumes, higher materials costs, inventory provision, and elevated trade discounts .
- Large impairment and non-routine costs: $77.4M long-lived asset impairment plus arbitration/legal and partial HQ lease termination costs weighed on operating loss (-$112.3M) and net loss (-$110.7M) .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$68.7*	$75.0	$70.2
GAAP Diluted EPS ($)	-$0.69*	-$0.43	-$1.44
Gross Margin (%)	—	11.5%	10.3%
Net Loss ($USD Millions)	-$52.9*	-$33.2	-$110.7
Operating Loss ($USD Millions)	—	-$38.8	-$112.3
Adjusted EBITDA ($USD Millions)	—	-$26.0	-$21.6

Values marked * retrieved from S&P Global.

Segment revenues (YoY comparison):

Channel Net Revenues ($USD Thousands)	Q3 2024	Q3 2025
U.S. Retail	34,969	28,537
U.S. Foodservice	14,478	10,524
International Retail	16,565	15,810
International Foodservice	14,994	15,347
Total	81,006	70,218

KPIs (volume sold, pounds):

Volume (thousands of pounds)	Q3 2024	Q3 2025
U.S. Retail	6,727	5,878
U.S. Foodservice	2,271	1,655
International Retail	3,576	3,128
International Foodservice	4,144	4,328
Total	16,718	14,989

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenues	Q3 2025	$68–$73M (Aug 6)	Reported $70.2M	In-line
Net Revenues	Q4 2025	—	$60–$65M	Initiated

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2025)	Trend
Balance sheet actions	Q1: New $100M delayed-draw term loan; warrants; liquidity planning . Q2: Preparing for exchange/bolster balance sheet .	Exchange of 2027 notes (~97% tendered), new 2030 notes + ~318M new shares; ~$148.7M ATM proceeds ; CEO: ~75% leverage reduction .	Significantly progressed
Margin expansion	Q2: Cost cuts, AlixPartners CTO appointment; margin initiatives	Continuous lines to lift margins; conversion/logistics cost gains; 30%+ margin aspiration	Improving focus
Category demand softness	Q2 weakness in U.S., certain international QSR	Continued softness, reduced U.S. distribution, higher trade discounts	Persistent headwind
Distribution strategy	Q2: prioritize core lines, reset shelves	Rebuild U.S. retail presence; consolidate brand blocks in frozen aisle; Walmart expansion (2,000+ stores)	Rebuilding
China operations	Q2/Q3: suspension and cessation; non-cash charges	$1.7M COGS charges; charge expected to retire over time	Charges subsiding
Legal/arbitration	Q2: incremental legal expenses	Interim arbitration award favorable; non-routine legal spend	Resolving

Management Commentary

“We reduced debt levels by approximately $900 million… and added substantial liquidity… reset our balance sheet” (Ethan Brown, CEO) .
“Gross margin landed at 10.3%… down from 17.7%… lower volumes, less favorable mix, and higher trade promotion spending” .
“We are pursuing additional investments… continuous production line… RFP work to drive competition and lower pricing… committed to laddering margins back to 30% plus” (Lubi Kutua, CFO) .
“We are building back distribution in U.S. retail… consolidate our brand where possible into brand blocks… Walmart expansion” (CEO) .

Q&A Highlights

Margin path: CEO cited lower top-line causing poor overhead absorption and mix pressure; continuous lines and RFP savings expected to improve margins through 2026, aiming for 30%+ gross margin over time .
Cash/liquidity update: CFO pointed to ATM proceeds post-Q3 and transaction fees; reiterated focus on achieving EBITDA-positive operations and lowering cash burn as non-recurring expenses subside .
Tone: Management emphasized urgency, transformation discipline, and optimism tied to reset balance sheet and margin initiatives .

Estimates Context

Metric	Q3 2025 Consensus	Q3 2025 Actual	Surprise
Revenue ($USD Millions)	$69.8*	$70.2*	+$0.4*
Primary EPS (Adjusted) ($)	-$0.43*	-$0.47*	-$0.04*

Values retrieved from S&P Global.

Interpretation: BYND modestly beat revenue while missing adjusted EPS. Low estimate counts (EPS 4; revenue 2) reflect constrained coverage and higher dispersion risk*.

Key Takeaways for Investors

Q3 print was mixed: revenue in-line to slight beat, but margin compression and a large impairment drove a steep GAAP loss; adjusted EBITDA improved sequentially but remains negative .
Near-term demand remains soft and U.S. retail distribution challenges persist; Q4 revenue guide ($60–$65M) signals sequential decline and continued category headwinds .
Strategic positives: substantially delevered and extended maturity profile; ATM bolstered liquidity, reducing near-term solvency risk—at the cost of dilution .
Margin expansion roadmap (continuous lines, procurement RFPs, portfolio optimization) is the primary medium-term lever; watch for evidence of conversion/logistics savings and material costs relief in 2026 .
International foodservice resilience and targeted health-focused channels (institutions/restaurant chains) can offset U.S. softness at the margin .
Risk monitor: trade discount intensity, distribution losses at QSRs, lingering non-routine expenses, and price/mix dynamics that suppress margins .
Trading setup: dilution/impairment could cap near-term upside; catalysts include execution on margin initiatives, distribution rebuilds (e.g., Walmart rollout), and signs of category stabilization .