Executive Summary

Q2 2024 revenue fell to $7.63 million from $12.87 million YoY; adjusted EBITDA loss improved modestly to $(9.9) million; EPS was $(0.19) versus $(0.38) in Q2 2023 .
The miss was driven by a Starbucks converter reallocation causing channel inventory digestion (estimated ~$1 million impact in Q3) and continued PLA weakness tied to Ukraine-related demand losses; PHA volume mix rose to 81% of product revenue .
Guidance was lowered: 2024 adjusted EBITDA from $(22)-$(32) million to $(30)-$(35) million; year-end liquidity was reduced from $25–$30 million to $15–$20 million; CapEx unchanged at $8–$10 million .
Strategic catalysts: ramp of a 20 million lbs/yr cutlery award (plus 3 million lbs wrappers) into mid-2025, positive EBITDA targeted in Q2 2025 with ~$15 million annual run-rate exiting 2025, and progress toward DOE loan conditional commitment; deleveraging aided by a warrant dividend enabling note-for-equity exchanges ($6.1 million notes retired) .

What Went Well and What Went Wrong

What Went Well

PHA mix strengthened to 81% of product revenue (vs. 69% last year), supporting the strategic transition to higher-value PHA; management expects continued ramp through 2024 .
Operational discipline: company implemented ~$7 million annualized cost reductions in late Q2; total annualized reductions since early 2022 now exceed $20 million .
Strategic momentum with QSRs: first commercial cutlery orders received; ramp to full run-rate mid-2025; trials ongoing for straws, lids, and coated paper containers with large QSRs; “We are confident in achieving full capacity utilization of our Kentucky facility over the next several quarters” .

What Went Wrong

Starbucks converter reallocation created excess channel inventory, reducing PHA revenue by ~$2.5 million YoY in Q2 and expected to cut Q3 revenue by ~$1 million; impact likely abates by Q4 .
PLA revenue fell $2.4 million YoY given customers impacted by the Ukraine conflict; management does not expect previous volumes to return .
Liquidity outlook tightened: year-end liquidity guidance lowered to $15–$20 million, highlighting continued cash discipline needs ahead of DOE loan progress and production ramp .

Financial Results

Consolidated Revenue and EPS (chronological order: oldest → newest)

Metric	Q4 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$10.9	$10.2	$7.63
Diluted EPS ($USD)	N/A	N/A	$(0.19)

Notes: Q4 2023 and Q1 2024 EPS not disclosed in documents read; Q2 2024 EPS per 10-Q .

Margins and Profitability

Metric	Q2 2023	Q2 2024
Gross Margin %	(51.1)%	(90.5)%
Adjusted EBITDA ($USD Millions)	$(10.2)	$(9.9)

Product Mix and Components (Q2 2024)

Metric	Q2 2024
Product Revenue ($USD Millions)	$7.25
Services Revenue ($USD Millions)	$0.38
PHA Resin Sales ($USD Millions)	$5.9
PLA Resin Sales ($USD Millions)	$1.4
PHA % of Product Revenue	81%

Balance Sheet and Liquidity (Q2 2024)

Metric	Q2 2024
Cash and Cash Equivalents ($USD Millions)	$40.3
Restricted Cash ($USD Millions)	$14.2
Total Debt ($USD Millions)	$422.8
Net Loss ($USD Millions)	$(22.7)

Actual vs External Consensus (non-SPGI)

Metric	External Consensus	Actual
EPS ($USD)	$(0.23) to $(0.24)	$(0.19)
Revenue ($USD Millions)	~$9.27	$7.63

SPGI/Capital IQ consensus was unavailable for DNMR due to a coverage mapping gap; comparisons above use external sources, not S&P Global .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA ($USD Millions)	FY 2024	$(22) to $(32)	$(30) to $(35)	Lowered
CapEx ($USD Millions)	FY 2024	$8 to $10	$8 to $10	Maintained
Year-end Liquidity ($USD Millions; Unrestricted Cash + Revolver Availability)	FY 2024	$25 to $30	$15 to $20	Lowered

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2023, Q1 2024)	Current Period (Q2 2024)	Trend
QSR ramp (cutlery, wrappers, straws, lids, coated containers)	20M lbs cutlery award + 3M lbs wrappers; first shipments expected Q2–Q3; full run-rate by Q2’25 ; strong pipeline with 85 customers in material selection	First commercial cutlery orders received; ramp to mid-2025 full run-rate; trials expanding to lids/coated containers for large QSR	Positive ramp continuing
Starbucks straw converter reallocation	Warned Q1 about inventory adjustments; ~$0.5M Q1 impact; anticipated ~$2M Q2 impact	~$2.5M YoY PHA hit in Q2; ~$1M expected impact in Q3; largely behind by Q4; retained 100% of Starbucks straw resin business across converters	Temporary headwind, easing
DOE loan program	“Final stages” and targeting conditional offer in Q3/Q4	“Final stages” and aiming to complete before year-end	Near-term catalyst
Cost actions and liquidity	2023 OpEx down ~$14.4M YoY; 2024 plan to reduce ~ $4M; revolver added ($20M)	~$7M annualized savings implemented end-Q2; total >$20M since early 2022; year-end liquidity guidance reduced	Ongoing discipline
Feedstock (canola)	Prices trending to mid-$0.60/lb by YE 2024	Continued trajectory to ~$0.60–$0.61 in Q1’25	Cost tailwind
Rinnovo/catalytic program	Pilot plant expanded; multi-year commercialization path; co-location initiatives	Catalytic operations paused to conserve cash; ~$1.5M annual savings; inventory sufficient to continue customer trials	Near-term pause, long-term optionality
Deleveraging via warrants	N/A in Q4; proposed in Q1	Warrant dividend launched (DNMRW); $6.1M convertible notes retired via warrant exercise; OTC trading active	Positive balance sheet action

Management Commentary

“We are confident in achieving full capacity utilization of our Kentucky facility over the next several quarters and then further scaling up additional product capacity… We expect to cross over to positive EBITDA in the second quarter of 2025 and also expect to exit 2025 at a run rate approaching $15 million of EBITDA annually” — Stephen Croskrey (prepared remarks) .
“PHA revenues during the second quarter made up 81% of product revenue… PLA-based resin sales decreased $2.4 million compared to prior year due to lost customer orders from the impact of the Ukraine conflict” — Michael Hajost (CFO) .
“Another large QSR is trialing our Nodax-based biodegradable straws in several states. We expect a larger commercial launch in late 2024 or early 2025… With this same QSR, we are also making progress on lids and coated paper containers under a joint development agreement” — Stephen Croskrey .
“We expect the [Starbucks inventory] issue to be largely behind us by the fourth quarter… we continue to retain 100% of the Nodax-based straw resin business with Starbucks” — Stephen Croskrey .

Q&A Highlights

Guidance reset drivers: Lowered FY adjusted EBITDA range primarily due to Starbucks inventory digestion; “it’s mostly the impact of the Starbucks inventory adjustment” .
Catalytic program pause: Expected ~$1.5 million annual savings while retaining key staff to restart when needed; sufficient inventory to continue trials .
Capacity bridge: Exploring tolling and licensing to bridge between Kentucky full utilization and greenfield timing given demand forecasts .
DOE timing: Teams focused on getting it done before year-end; viewed as near-term priority .

Estimates Context

S&P Global (Capital IQ) Wall Street consensus was unavailable for DNMR due to a CIQ mapping gap; therefore SPGI comparisons could not be provided.
External sources indicated consensus EPS of approximately $(0.23) to $(0.24) and revenue of ~$9.27 million for Q2 2024; DNMR reported EPS of $(0.19) and revenue of $7.63 million, implying an EPS beat and revenue miss versus these external figures .

Other Relevant Q2 2024 Press Releases

Earnings press release (Business Wire): “Danimer Scientific Announces Second Quarter 2024 Results” summarizing revenue decline and components .
Release date announcement for Q2 results (Business Wire): logistics and webcast access .
Warrant dividend completion (Business Wire): enabling note-for-equity exercises (context for deleveraging) .

Key Takeaways for Investors

Near-term revenue headwinds are transitory and largely tied to Starbucks channel inventory; management expects normalization by Q4, with PHA mix continuing to strengthen and QSR ramps supporting 2025 EBITDA inflection .
FY24 guidance reductions reflect conservative posture on revenue timing and liquidity; CapEx restraint intact; watch Q3 for confirmation that inventory digestion impact is ~$(1) million and easing thereafter .
The warrant dividend structure is actively facilitating deleveraging ($6.1 million retired to-date) with potential to reduce cash interest burden; monitor additional note exchanges and any NYSE listing compliance updates .
DOE loan conditional commitment before year-end would be a material de-risking event for greenfield financing and scale; timing remains a significant stock catalyst .
Cost tailwinds (canola) and operational efficiencies should support margin progress as volumes ramp and fixed costs are better absorbed; continued cost actions enhance liquidity runway .
Execution risk remains: large-scale customer ramps, greenfield financing, and sector demand cyclicality; however, commercial validation at major QSRs and rising PHA share underpin the medium-term thesis .

Appendix: Prior Two Quarters Context

Q1 2024: Revenue $10.2 million; adjusted EBITDA loss $(8.7) million; PHA up 64% YoY, PHA 82% of product sales; warned on Starbucks inventory impact .
Q4 2023: Revenue $10.9 million; adjusted EBITDA loss $(10.7) million; reiterated cutlery ramp and DOE loan timeline; detailed OpEx reduction trajectory .

Source Documents Used

Q2 2024 earnings call transcript (full): .
Q2 2024 10-Q (full): financial statements, MD&A, liquidity, legal and risks .
Q1 2024 earnings call transcript (full): .
Q4 2023 earnings call transcript (full): .
Business Wire Q2 2024 results press release: .
Business Wire release date announcement: .
External consensus references (non-SPGI): .

SPGI/Capital IQ consensus estimates were unavailable for DNMR due to a coverage mapping gap; values provided above that reference SPGI are unavailable for this quarter.

Danimer Scientific, Inc. (DNMR)·Q2 2024 Earnings Summary