Executive Summary

Net sales were $6.0M, up ~29% sequentially vs Q1 ($4.6M), while gross margin was 17.5% (down sequentially from 20.7% but sharply improved vs negative prior-year) .
Adjusted EBITDA loss improved to $2.4M, the lowest in company history; net loss was $4.3M or $2.05 EPS (post 1-for-15 reverse split) .
Management suspended revenue guidance due to order timing variability; retail consumption KPIs remain strong (latest 4-week SPINS: retail sales +39.5% YoY, TDP +19.5%) .
A 1-for-15 reverse stock split became effective July 14, 2023, intended to regain NASDAQ compliance; ATM equity program of up to $5.7M launched in July to support liquidity .
Near-term stock reaction catalysts: guidance withdrawal and reverse split optics vs improving EBITDA trajectory and accelerating retail consumption KPIs .

What Went Well and What Went Wrong

What Went Well

“Our adjusted EBITDA loss for the second quarter was $2.4 million, our lowest adjusted EBITDA quarter in the history of the company,” reflecting structural cost reductions and productivity gains .
Gross profit swung to positive $1.1M (17.5% margin) from negative gross profit in the prior-year quarter, evidencing rationalization of non-profitable revenue and pricing/productivity actions .
Retail KPIs accelerated: latest 4-week SPINS retail sales +39.5% YoY, TDP +19.5%, dollar velocity up, and share gains; new packaging is designed for retail conversion .
CEO emphasized disciplined operating model and portfolio simplification: “We have simplified our portfolio… eliminating approximately 2/3 of our SKUs,” embedding a zero-waste culture and productivity into the business .

What Went Wrong

Year-over-year revenue declined to $6.0M from $10.9M due to intentional rationalization of non-profitable revenues in the prior year; operating expenses were cut 62% YoY to $4.4M .
Gross margin declined sequentially (17.5% vs 20.7% in Q1) as volumes rebuilt and mix evolved; management had flagged a slight sequential GM decrease despite YoY improvement .
Interest expense rose to ~$0.9M from ~$0.4M in Q1, driven by accounting for April notes and associated warrants (relative value method, noncash amortization through year-end) .
Liquidity remains tight (cash ~$0.32M; inventory ~$8.4M while transitioning packaging), prompting dependence on line of credit and ATM program; guidance suspended given timing variability of retail resets .

Financial Results

Metric	Q4 2022	Q1 2023	Q2 2023
Revenue ($USD Millions)	$5.4	$4.6	$6.0
Gross Profit ($USD Millions)	$1.2	$0.963	$1.1
Gross Margin (%)	22.3%	20.7%	17.5%
Operating Expenses ($USD Millions)	$5.5	$5.2	$4.4
Adjusted EBITDA Loss ($USD Millions)	$3.5	$3.5	$2.4
Net Loss ($USD Millions)	$4.5	$4.6	$4.3
EPS (Reported)	$0.14	$0.15	$2.05
Adjusted EPS (Reported)	$0.13	$0.14	$1.66

Note: Q2 2023 EPS reflects a 1-for-15 reverse stock split effective July 14, 2023; prior quarters are pre-split and not directly comparable .

KPIs (Retail Consumption and Share)

KPI (SPINS)	Q4 2022 (context)	Q1 2023 (context)	Q2 2023 (latest datapoints)
Retail Dollar Sales YoY	n/a	+35% (12 weeks, “measured channels”)	+39.5% (latest 4 weeks)
Total Distribution Points (TDP) YoY	n/a	~+20% (“nearly a 20% increase”)	+19.5% (latest 4 weeks)
Price-Mix YoY	n/a	~+16% improvement	+12.5% (4-week data to June 18)
Category Share Change	n/a	gaining share (qual)	+15.1 bps (4-week to June 18)

Segment breakdown: Not disclosed in the quarter’s materials; company reports consolidated results .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2023	$28M–$34M (reaffirmed on May 15)	Guidance suspended; directing focus to retail consumption KPIs	Withdrawn
Gross Margin	FY 2023	Expect gross margins to scale into mid-30s by year-end, subject to volumes/commodities	No numeric update; YoY improvement noted; slight sequential decrease in Q2	Maintained long-term target (no formal update)
Operating Expenses	FY 2023	Removed ~50% in H2’22; continued improvement	Reduced 62% YoY in Q2; continuing disciplined management	Improved execution (not formal guidance)
EPS/EBITDA	FY 2023	No formal EPS/EBITDA guidance; Q4’22/Q1’23 cited “lowest adjusted EBITDA” to date	Q2 delivered “lowest adjusted EBITDA quarter” to date; no forward guide	n/a

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2022)	Previous Mentions (Q1 2023)	Current Period (Q2 2023)	Trend
Packaging Renovation & Retail Conversion	New packaging to be in market late Q2; designed for clarity and conversion	Packaging rollout starting; conservatively modeled with no velocity uplift in guidance	New packaging began transitioning; early conversion effects expected	Improving; starting to impact
Distribution Wins & Channel Mix	Shift toward stable retail/wholesale; pipeline fills and inventory dynamics	Major wins (e.g., 7-Eleven/Speedway/Whole Foods); sequential ramp expected	“Primary driver of growth”; expect step function growth; timing variability acknowledged	Accelerating
Zero-Waste/Productivity	Culture change; SKU rationalization; productivity drives margins	Zero-waste initiatives; process discipline; cost reductions	Continued zero-waste; monetizing “waste”; lowest adjusted EBITDA loss	Structural improvement
Guidance Policy	Provided FY revenue and GM trajectory	Reaffirmed $28–$34M FY revenue range	Suspended revenue guidance due to timing variability; focus on SPINS indicators	More conservative
Liquidity/Capital	Line of credit; potential going concern warning without financing	$4.1M notes & warrants to support distribution ramp	ATM up to $5.7M; noncash interest from warrants; careful cash mgmt	Stabilizing tools in place
Inventory Normalization	Orders diverged from consumption; Q4 industry inventory rationalization	Late-Q1 normalization; new distribution pipeline fills	Transition to new packaging explains steady inventory; expect decline post-transition	Normalizing over H2

Management Commentary

CEO: “We have simplified our portfolio… eliminating approximately 2/3 of our SKUs. We have executed 2 separate pricing actions… embedded productivity into our culture…” .
CFO: “Operating expenses for the second quarter were $4.4 million… eliminated 62% of our operating expenses versus the prior year period… adjusted EBITDA loss for the second quarter was $2.4 million, our lowest… in the history of the company” .
CEO: “We are maniacally focused on… costs, resources, investments, capital, debt and all aspects related to cash… we expect to grow at a rate well above the meat snack category” .
CFO on guidance: “It would not be prudent… to provide continued top line guidance… In lieu… direct investors to… retail consumption data… retail sales are up 39.5% YoY… TDP up 19.5%” .
8-K pre-announcement: “Net revenue will be within a range of $5.8M to $6.0M… greatly improved gross margins YoY… slight decrease sequentially” .

Q&A Highlights

The provided Q2 2023 transcript contains prepared remarks only and does not include a Q&A section; no Q&A themes were available in the source document .

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable for SNAX due to missing CIQ mapping in our data connector; we attempted retrieval but could not access S&P Global consensus for Q2 2023 to compare actuals vs estimates [SpgiEstimatesError for SNAX].
Given unavailability, we anchor investor context on reported results and disclosed retail consumption KPIs .

Key Takeaways for Investors

Sequential revenue inflection (+~29%) with structurally lower OpEx (−62% YoY) and the best adjusted EBITDA loss in company history signals improving operating leverage as volumes ramp .
Guidance suspension raises forecasting uncertainty, but retail consumption indicators (SPINS) are strong and accelerating, suggesting underlying demand momentum as new packaging rolls out .
Liquidity is tight; reliance on line of credit, April notes/warrants, and July ATM mitigates near-term risk as inventory transitions; monitor dilution and noncash interest impacts .
Margin path: despite a slight sequential GM dip to 17.5%, YoY margin improvement is clear; prior commentary targets mid-30s GM by year-end contingent on sustained volumes and commodity stability .
Strategic focus on core portfolio, SKU reductions, and zero-waste/productivity should sustain cost discipline; watch for distribution wins translating into durable velocity and share gains .
Near-term trading: reverse split optics and guidance withdrawal could drive volatility; upside scenarios hinge on visible retail conversion from packaging and notable distribution adds materializing in shipments .
Medium-term thesis: a leaner, more focused CPG platform with improving unit economics and growing measured-channel presence can compound if cash constraints are navigated and margin targets are met .

STRYVE FOODS, INC. (SNAX)·Q2 2023 Earnings Summary