Oatly Group (NASDAQ:OTLY) Posts Quarterly Earnings Results, Misses Estimates By $0.06 EPS

Key Points

• Oatly missed quarterly EPS estimates, reporting a loss of $0.86 per share versus the expected $0.80 loss, though revenue of $243.05 million slightly exceeded forecasts.
• Operational performance improved, with Q3 revenue up 9.1%, gross margin expanding to 34.1%, and adjusted EBITDA rising to $9.4 million. Europe and International led growth, while North America gained share despite a declining category.
• Oatly lowered its 2026 adjusted EBITDA outlook to $16 million–$20 million from $25 million–$35 million due to higher U.S. fuel and freight costs; shares fell 29.4% following the results.

Oatly Group (NASDAQ:OTLY - Get Free Report) posted its earnings results on Wednesday. The company reported ($0.86) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.80) by ($0.06), Zacks reports. The company had revenue of $243.05 million for the quarter, compared to analysts' expectations of $241.73 million.

Here are the key takeaways from Oatly Group's conference call:

• Q3 revenue grew 9.1% (8.9% constant currency), while gross margin expanded 436 basis points to 34.1% and adjusted EBITDA rose to $9.4 million from $3.1 million a year earlier.
• Europe & International remained the main growth engine, with constant-currency revenue up 20.4% and volume up nearly 18%; North America also grew 2.9% and gained share despite a mid-single-digit category decline.
• Oatly cut its 2026 adjusted EBITDA outlook to $16 million–$20 million from $25 million–$35 million, citing sharply higher U.S. fuel and freight costs; management expects pricing increases in North America and potentially Europe beginning in 2027.
• The company launched its Oatly Fiber platform in Europe, with a North American launch planned for January 2027, alongside continued innovation in flavored Barista products and cold foam to expand consumption occasions.
• Free cash flow deteriorated to a $18.4 million outflow in Q3 due to CapEx timing, inventory buildup and working-capital effects, while Greater China revenue fell 19.3% and remains under strategic review, including a potential carve-out.

Oatly Group Stock Down 29.4%

Shares of OTLY traded down $3.46 during trading on Wednesday, reaching $8.29. 346,324 shares of the company traded hands, compared to its average volume of 91,829. The stock has a 50-day simple moving average of $12.55 and a 200-day simple moving average of $11.37. The stock has a market cap of $264.58 million, a PE ratio of -2.02 and a beta of 1.81. Oatly Group has a twelve month low of $8.01 and a twelve month high of $16.20.

Wall Street Analyst Weigh In

Several brokerages recently commented on OTLY. Barclays set a $13.00 price target on shares of Oatly Group and gave the stock an "overweight" rating in a report on Friday, October 16th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Oatly Group in a research report on Monday, September 21st. Three investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $14.39.

About Oatly Group

Oatly Group AB is a Sweden-based food and beverage company focused on developing, producing and selling oat-based alternatives to dairy products. Its portfolio includes oat drinks, barista beverages, yogurt-style products, cooking creams, spreads, ice cream and other oat-based foods and beverages.

The company was founded in the 1990s in Sweden, based on research into the nutritional and functional properties of oats. Oatly markets its products under the Oatly brand and emphasizes plant-based nutrition, sustainability and the use of oats as an alternative to dairy ingredients.

Oatly sells its products through grocery retailers, foodservice operators, cafés and e-commerce channels across Europe, North America and parts of Asia.

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