Executive Summary

Q1 2024 was an operationally improved but liquidity-constrained quarter: net sales were $4.6M (down ~1% YoY), gross profit rose to $1.2M (22.1% GM vs. 20.7% LY), OpEx fell 22.7% YoY, and adjusted EBITDA loss improved to ($2.3M), the company’s best quarter on this measure to date .
Management reiterated FY 2024 net sales guidance of $24M–$30M; they flagged beef cost volatility but cited early Q2 relief and continued mitigation levers. The packaging transition and quality upgrades are driving markedly higher retail velocities and should support distribution gains through 2024 .
Near-term overhang: liquidity. Cash was ~$0.4M at quarter-end; management extended/raised convertible bridge notes but explicitly said existing facilities cannot fully fund the working capital ramp needed for growth. Additional capital (e.g., further convertible notes) is likely, with a focus on minimizing dilution .
Stock reaction catalysts: sustained velocity outperformance and new wins (e.g., Vacadillos rotation at Costco Southeast) versus the funding path to support inventory/working capital for a step-up in shipments; any concrete financing update would likely be a key narrative driver .

What Went Well and What Went Wrong

What Went Well
- Retail velocity meaningfully accelerated post packaging refresh: Stryve brand velocity up 24.7% (24 weeks), 35.7% (12 weeks), and 51% (4 weeks) in SPINS through March 24; packaging transition a little over halfway complete on shelves .
- Unit economics/margins improved despite higher beef costs: gross margin rose to 22.1% (from 20.7%) on mix, manufacturing efficiencies, and cost control .
- Distribution momentum: regained a Vacadillos rotation at Costco Southeast; early velocities are “very strong,” underpinning confidence in broader expansion opportunities .
What Went Wrong
- Liquidity remains tight: quarter-end cash ~$0.4M; the company needs third‑party capital to fund the working capital ramp aligned with velocity-driven growth and distribution resets .
- Sales growth modest this quarter: net sales $4.6M, down ~1% YoY, in part due to choosing not to repeat a temporary display program from the prior year and the transition/quality reset pacing shipments vs. consumption .
- Beef cost volatility persists; while early Q2 saw some relief, management still expects variability and is prepared to respond as needed .

Financial Results

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue (Net Sales, $M)	$4.2	$2.9	$4.6
Gross Profit ($M)	$0.6	($0.1)	$1.2
Gross Margin (%)	13.3%	—	22.1%
Net Loss ($M)	($4.8)	($5.3)	($3.9)
Adjusted EBITDA ($M)	($2.5)	($3.4)	($2.3)

Notes: “—” indicates not disclosed as a percentage in cited documents.

Actual vs. Consensus (S&P Global)

Metric	Q1 2024 Actual	S&P Global Consensus	Surprise
Revenue ($M)	$4.6	N/A	N/A
EPS	N/A	N/A	N/A

S&P Global consensus estimates were unavailable for SNAX via our connector this quarter; therefore, we cannot quantify a beat/miss versus consensus.

KPIs

KPI	Q3 2023	Q4 2023	Q1 2024
Stryve brand retail velocity (SPINS)	Packaging redesign underway; initial velocity increases at select retailers	12-week total brand velocities +12.5%; Stryve brand +31.7% YoY (12w) and +39.3% (4w) through Feb 25	Stryve brand velocity +24.7% (24w), +35.7% (12w), +51% (4w) through Mar 24; packaging transition a bit over half complete on shelf
Costco (Vacadillos)	Momentum building; distribution conversations referenced	—	Regained rotation at Costco Southeast; early velocities strong
Operating expenses trend	$4.2M (Q3’23)	$4.2M op loss; OpEx not broken out in release	$4.0M (down 22.7% YoY)
Cash and liquidity	Liquidity actions included ATM usage; line access expanded	LOC renewal to Mar-2026; bridge notes extended; ATM terminated	~$0.4M cash; additional convertible notes closed; more capital likely needed for working capital ramp

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales	FY 2024	$24M – $30M (issued Apr 1, 2024)	$24M – $30M (reiterated on Q1 call)	Maintained
Adjusted EBITDA	Q4 2024	Breakeven at high end of sales range (commentary Apr 1)	No update provided on Q1 call	—

Management also reiterated expectations for gross margin improvement with scale and cost discipline, noting commodity (beef) volatility but early Q2 relief; no numeric margin guidance bands were provided .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2023, Q4 2023)	Current Period (Q1 2024)	Trend
Packaging/brand refresh driving velocity	Packaging redesign and quality improvements; early gains in unit velocity; momentum in distribution wins	Stryve brand velocity +24.7% (24w), +35.7% (12w), +51% (4w); rollout ~50%+ complete	Improving
Beef/input costs	Beef cost increases mitigated by inventory strategy (Q3’23)	Higher beef vs LY but GM improved; seeing early Q2 relief; ready to respond	Still volatile, mitigated
Liquidity/financing	ATM usage; tapped line; disciplined capex (Q3’23)	Cash ~$0.4M; convertible bridge notes raised; existing facilities insufficient for full ramp; will seek additional capital	Funding need persists
Distribution expansion	Building pipeline; new wins anticipated (Q3’23)	Vacadillos rotation regained at Costco Southeast; strong early velocities; broader expansion targeted	Positive
Operational excellence	Cost takeout; productivity; margin potential at scale (high 30s/low 40s discussed)	OpEx down 22.7% YoY; adjusted EBITDA loss improved 35.2% YoY	Improving

Management Commentary

CEO on retail momentum and packaging: “Retail sales velocity for the Stryve brand… up 24.7% (24 weeks), 35.7% (12 weeks) and… 51% (4 weeks)… transition to the new packaging is a little over halfway complete… critical role in our ability to secure additional distribution.”
CFO on profitability progress: “Gross margin of 22.1% vs. 20.7% LY… Operating expenses… down 22.7%… Adjusted EBITDA loss… best quarter ever at $2.3M vs. $3.5M LY… transformation efforts are working.”
CFO on liquidity: “Cash… approximately $0.4M… closed $1.6M in convertible bridge notes… existing line of credit… provided ability to manage day-to-day operations in the near term,” while acknowledging tight liquidity and need to strengthen the balance sheet .
CEO on distribution: “We have regained a rotation for the Vacadillos brand at Costco Southeast… early indicators are positive, demonstrated by… strong velocities.”

Q&A Highlights

Costco/club strategy: Vacadillos rotation at Costco Southeast designed with proper unit economics to be win–win; early velocities “very strong,” supporting potential expansion to other divisions .
Drivers of the ramp: Velocity is the primary driver; Stryve brand velocities up sharply per SPINS; shipments lagged consumption in Q1 but catching up; pricing now positioned appropriately; expanded distribution expected to compound growth with low penetration and broad white space .
Financing the working capital ramp: Existing facilities cannot fund the full ramp; company expects to pursue additional capital (e.g., convertible notes) in a prudent, least-dilutive manner; range of needs not disclosed yet .

Estimates Context

S&P Global consensus for Q1 2024 revenue and EPS was unavailable for SNAX via our connector this quarter; as a result, we cannot present an actual vs. consensus comparison. Management did not cite Wall Street consensus on the call .

Key Takeaways for Investors

Velocity-led consumption is outpacing shipments; as supply catches up and as packaging transitions complete, distribution gains should convert to higher recognized revenue in coming quarters .
Margin trajectory is improving even against higher beef costs; the combination of mix, process efficiencies, and pricing discipline continues to support GM expansion as volume scales .
Liquidity is the principal risk/overhang; expect additional financing actions to fund working capital for distribution resets and growth—timing/terms will influence equity reaction .
Reiterated FY 2024 net sales guidance of $24M–$30M signals confidence in execution despite funding constraints; prior commentary implied potential adjusted EBITDA breakeven at the high end in Q4 if momentum sustains .
Club and large-format wins (e.g., Costco Southeast rotation) plus accelerating velocities are credible catalysts for share gains in 2H24, but the cadence depends on inventory funding and on-shelf execution .
For trading: financing headlines and proof-points on velocity-to-shipments conversion are the near-term swing factors; medium-term thesis rests on operating leverage as volumes scale through the current footprint .

Citations:

Q1 2024 earnings call transcript:
FY 2023 press release (Apr 1, 2024) incl. guidance and liquidity updates:
Q3 2023 earnings call transcript:
8-K (May 24, 2024) – additional promissory notes:

STRYVE FOODS, INC. (SNAX)·Q1 2024 Earnings Summary