Beyond Meat NASDAQ: BYND reported first-quarter 2026 net revenues of $58.2 million, down 15.3% from $68.7 million a year earlier, as the company continued to face headwinds in the plant-based meat category and weakness across several sales channels. On the company’s earnings call, Founder, President and CEO Ethan Brown said results were “in line with our expectations,” while highlighting sequential and year-over-year improvements in gross margin, adjusted EBITDA, and cash usage as the company works through a restructuring and broader transformation plan.
Revenue declines driven by lower volumes
Chief Financial Officer and Treasurer Lubi Kutua said the year-over-year revenue decline was “primarily driven by a 19.5% decrease in volume of products sold,” partially offset by a 5.4% increase in net revenue per pound. Kutua attributed the volume decline mainly to lower sales of burger and chicken to QSR customers in international food service, along with “weak category demand and some loss of distribution in our U.S. retail and food service channels.”
By channel, the company reported:
- U.S. retail: Net revenues fell 15.3% to $26.6 million, with volume down 14.7% due to weak category demand and reduced points of distribution.
- U.S. food service: Net revenues dropped 29.7% to $6.6 million, driven by a 31.8% volume decline, including the non-recurrence of chicken sales to a QSR customer from the prior-year quarter.
- International retail: Net revenues rose 8.1% to $13.7 million, with a slight volume increase of 0.3% tied to improved demand and distribution gains in parts of Europe, partially offset by limited distribution losses in Canada.
- International food service: Net revenues decreased 25.9% to $11.3 million, reflecting a 32.6% volume decline from lower sales to certain QSR customers.
Margins improve, but low absorption and inventory effects persist
Gross profit was about $2 million, or a gross margin of 3.4%, compared with a gross loss of $6.9 million and gross margin of negative 10.1% a year earlier. Kutua said the improvement reflected “lower cost per pound and higher net revenue per pound,” with lower cost per pound driven mainly by “lower inventory provision and reduced manufacturing expenses, including depreciation,” partially offset by increased materials costs.
Brown said reported gross margin was higher both sequentially and year-over-year but “significantly below what we believe to be an achievable target.” He added that the flow-through of fourth-quarter 2025 inventory produced during a period of particularly low volume and overhead absorption “obscur[ed] progress we are making on COGS, specifically conversion rates.” Kutua similarly noted that cost of goods sold in Q1 was “negatively impacted by the flow-through of inventory produced in the fourth quarter of 2025” and that lower sales volume also created “unfavorable fixed cost absorption” versus the prior-year quarter.
Gross margin also included about $0.5 million in expenses related to the shutdown of Beyond Meat’s business in China, which Kutua said the company expects to “substantially complete by the end of the year.”
Asked about the gross margin direction into the second quarter, management did not provide a specific forecast. However, Kutua said Q2 is typically a seasonally higher volume quarter, which “always…represents a benefit from a gross margin perspective,” and he expected the high-cost inventory flow-through effect “not [to] impact the Q2 to the same degree that it did in Q1.” He also cited a typically more favorable summer grilling mix, when the company sells “more higher margin core products.”
Loss narrows; operating expenses fall year over year
Total operating expenses were $43.1 million, down from $57.4 million a year earlier. Kutua said Q1 included several items, including $3.7 million of incremental share-based compensation related to the company’s convertible debt exchange, as well as non-routine SG&A expenses, lease-related amortization tied to a partial headquarters campus lease termination, and legal and other expenses tied to arbitration with a former co-manufacturer.
Despite those items, Kutua said the year-over-year decline in operating expenses was primarily driven by lower product donation costs, lower legal expenses, and reduced salary-related expenses. Brown said the combined savings and efficiency measures resulted in “an approximately $14 million year-over-year reduction in operating expenses.”
Loss from operations improved to $41.1 million from $64.4 million in the year-ago period. Below the line, total other income net increased to $12.6 million from $3.3 million, primarily due to non-cash derivative remeasurement gains and a gain on debt extinguishment tied to conversions of some 2030 convertible notes, partially offset by higher interest expense and foreign currency losses associated with the euro. Net loss narrowed to $28.5 million, or $0.06 per share, from $61.1 million, or $0.80 per share.
Adjusted EBITDA was a loss of $27.8 million, compared with an adjusted EBITDA loss of $50.5 million in the prior-year quarter.
Transformation actions and cash use show progress
Brown emphasized that cash use improved meaningfully, calling Q1 “the lowest quarterly cash use we’ve seen in over 2 years” at $11.8 million. Kutua said cash and cash equivalents, including restricted cash, totaled $205.8 million as of March 28, 2026, down about $11.8 million from the company’s 2025 ending cash balance. Net cash used in operating activities was $5 million versus $26.1 million a year earlier, while capital expenditures were $2.5 million versus $4.5 million.
Brown outlined transformation work completed to date, including:
- Consolidation of the production network and activation of a continuous production line in Columbia, Missouri to internalize volume previously outsourced
- Investments aimed at improving conversion costs and RFP actions to reduce material costs and secure secondary sourcing
- Warehouse consolidation and logistics cost reductions
- Exiting less profitable product lines and finalizing plans to exit China, including disposition of certain non-strategic assets
- Significant inventory reductions
Total debt carrying value, net of discount, was $411.6 million as of March 28, 2026. Kutua also noted that after quarter-end, an additional $62.6 million aggregate principal amount of 2030 convertible notes were converted into approximately $52.1 million shares of common stock, and an additional $3.9 million anti-dilution restricted stock units were granted to management under incentive plan awards tied to the convertible debt exchange.
New product initiatives: functional beverage entry and core portfolio updates
Brown reiterated the company’s strategy to broaden beyond plant-based meat into adjacent functional food and beverage categories. He introduced “Beyond Immerse,” described as a clear, lightly carbonated drink delivering protein, fiber, antioxidants, and electrolytes. Brown said the product contains 20 grams of protein, 7 grams of fiber, and 100 calories, and is formulated without added sugar, artificial sweeteners or colors, stabilizers, or dairy. He said the company plans to launch across New York in the summer with distribution partner Big Geyser, which he described as New York’s largest non-alcoholic beverage distributor with a footprint of more than 26,000 outlets.
In response to an analyst question about rollout and marketing amid cash constraints, Brown said the company is focusing intentionally on the New York launch and leveraging beverage expertise on its board, including Kathy Waller, Seth Goldman, and Jim Koch. Brown said marketing is expected to emphasize the product’s “system” of nutrients and draw on the company’s historical playbook of positioning plant-based nutrition with athletes and active consumers, including outreach to run clubs and fitness-focused audiences in New York.
On the core business, Brown highlighted distribution and innovation activity in frozen retail, including the rollout of Beyond Chicken Pieces Spicy Buffalo to more than 2,000 Kroger stores nationwide and a nationwide rollout of a new Beyond Breakfast Sausage lineup at Kroger, Sprouts, and “soon, Whole Foods Market.” Brown said the company has accumulated more than 20 Clean Label Project certifications, and noted that Beyond Burger IV and Beyond Steak were recognized as the first plant-based meats to qualify as Climate Solutions under a framework developed by the Exponential Roadmap Initiative and Oxford Net Zero.
Brown also pointed to consumer reactions to Beyond Steak Filet available via Beyond Test Kitchen, adding the company expects to bring the innovation to certain retail markets later in the year as production ramps. While he said the company is seeing encouraging signs in retail as it executes distribution and portfolio strategy, he said those signs are “not…present yet in our U.S. or international food service businesses,” and management expects to share more detail on food service portfolio modifications on the next call.
For the second quarter of 2026, Kutua said the company expects net revenues in a range of approximately $60 million to $65 million, noting the company is providing limited guidance due to uncertainty and volatility in the operating environment.
About Beyond Meat NASDAQ: BYND
Beyond Meat, Inc NASDAQ: BYND develops, manufactures and sells plant-based meat substitutes designed to replicate the taste, texture and appearance of animal-based proteins. Since its founding in 2009 by Ethan Brown and initial public offering in 2019, the company has focused on leveraging proprietary technology and ingredient blends to produce a suite of products that cater to both retail and foodservice channels. Beyond Meat's mission centers on offering more sustainable protein options by reducing reliance on livestock farming and its associated environmental footprint.
The company's product portfolio includes Beyond Burger, Beyond Sausage, Beyond Beef and Beyond Chicken, each formulated to appeal to a broad range of consumers seeking meat alternatives without compromising on flavor or cooking versatility.
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