Beyond Meat reported net revenues of $58.2 million for the first quarter of 2026, a 15.3% decline compared to the same period last year, as the El Segundo-based company continued to face weak category demand and distribution losses in its core US markets.
Despite the revenue contraction, the company recorded gross profit of $2.0 million, or a gross margin of 3.4%, reversing a gross loss of $6.9 million and a negative margin of 10.1% in Q1 2025. The improvement was attributed to lower manufacturing costs, reduced inventory provisions, and a higher net revenue per pound, which increased 5.4% year-over-year.
US sales weigh on overall performance
US revenues fell 18.6% to $33.2 million. Retail declined 15.3% to $26.6 million, primarily driven by reduced points of distribution and softer category demand, while foodservice dropped 29.7% to $6.6 million, partly reflecting the absence of chicken product sales to a quick-service restaurant customer that contributed to the year-ago period.
International performance was more mixed. Retail sales outside the US rose 8.1% to $13.7 million, supported by improved demand and limited distribution gains in European markets. International foodservice, however, fell 25.9% to $11.3 million, largely due to lower burger and chicken volumes through QSR channels.
Total volume sold across all channels was 11.8 million pounds, down 19.5% from 14.7 million pounds in Q1 2025.
Losses narrow considerably
The net loss for the quarter was $28.5 million, down from $61.1 million a year earlier. Operating expenses fell to $43.1 million from $57.4 million, driven by lower legal costs, reduced product donation expenses, and decreased salary-related spending. Loss from operations narrowed to $41.1 million from $64.4 million.
Adjusted EBITDA was a loss of $27.8 million, equivalent to 47.7% of net revenues, compared to a loss of $50.5 million, or 73.5% of net revenues, in Q1 2025. Net cash used in operating activities was $5.0 million, compared to $26.1 million in the prior-year period, which the company described as its lowest quarterly cash use in over two years.
Category pivot and Q2 outlook
Beyond Meat has begun expanding into the functional food and beverage category, a development CEO Ethan Brown outlined on the earnings call. He said, “This quarter marked a decisive broadening of our Company aperture to include the rapidly growing functional food and beverage category.
“Even as we apply our brand, expertise and technology to adjacent markets, we remain highly focused on the performance of our core business, which we believe will deliver substantial long-term value.”
For Q2 2026, the company expects net revenues of approximately $60 million to $65 million.
