BEYOND MEAT, INC. Q4 FY2025 earnings call

Ethan Brown mentioned the company retired majority of 2027 convertible debt notes, raised significant capital, invested in enterprise-wide transformation, disposed of unneeded assets, continued to lead the plant-based meat category, and laid groundwork for repositioning to Beyond the Plant protein company. Lubi Kutua reviewed fourth quarter financial results, discussed balance sheet and cash flow highlights, and touched on outlook and internal controls over financial reporting. Ethan Brown talked about transformation activity progress, product narrative, brand repositioning, and innovation in new products like Beyond Immerse.

Fourth quarter 2025 sales were $61.6 million, down 19.7% from the year ago period. Gross profit was $1.4 million or gross margin of 2.3% compared to gross profit of $10 million or gross margin of 13.1% in the year ago period. U.S. retail channel net revenues decreased 6.5% to $31.7 million. U.S. foodservice net revenues decreased 23.7% to $8 million. International retail channel net revenues decreased 32.5% to $8.8 million. International foodservice net revenues decreased 31.8% to $13.1 million. Operating expenses were $134.2 million in the fourth quarter of 2025 compared to $47.8 million in the year ago period. Net income was $409.9 million in the fourth quarter of 2025 compared to a net loss of $44.9 million in the year ago period.

Provides revenue guidance for the first quarter of 2026, expecting net revenues to be approximately $57 million to $59 million. Continues to provide only limited and very near-term guidance due to elevated uncertainty in core plant-based meat category.

Identified additional material weakness related to controls associated with accounting for inventory provision. Unable to file annual report on Form 10-K for the fiscal year ended December 31, 2025 within prescribed deadline, working on remediating deficiencies.

Q: About outlook for new products and product lines, A: Ethan Brown said it's broadening the aperture, launching Beyond Immerse, learning from consumer feedback and making adjustments.

Q: About cash flow and levers to pull, A: Ethan and Lubi talked about working capital management, inventory, nonordinary course business expenses, and focusing on reducing cash burn.

Q: About supply chain for new products, A: Ethan Brown said they have beverage expertise, similar ingredient focus, and co-packing is available.

Q: About scaling beverage expansion, A: Ethan Brown said measured approach, initial D2C, then regional distribution, mass.

Q: About gross margin for 2026, A: Lubi Kutua said difficult to forecast due to volatility in core category and soft volumes