Beyond Meat reported a mixed Q2 2024, delivering a sequential revenue uptick but continuing to incur losses and a leveraged balance sheet. Revenue reached $93.19 million, down 8.78% year over year but up 23.26% quarter over quarter, signaling improved top-line momentum from the prior quarter. Gross profit was $13.72 million for a gross margin of 14.72%, representing a material margin expansion from both the prior year and the preceding quarter as manufacturing costs and product mix stabilize. Despite these improvements, the company posted an operating loss of $33.93 million and a net loss of $34.48 million, with negative EBITDA of $28.24 million and an EPS of -$0.53. Cash flow remained negative, with cash from operations at -$16.01 million and free cash flow at -$17.33 million; ending cash was $145.41 million.
The balance sheet remains under strain: total assets of $711.23 million against total liabilities of $1,301.26 million, producing negative equity of -$590.03 million. Long-term debt stood at $1.218 billion, with net debt of $1.077 billion and an interest coverage of -32.97x, underscoring financing and liquidity risks despite a healthy current ratio of 3.80x. Cash burn and leverage point to a high-risk, high-variance path to profitability, dependent on continued cost discipline, margin enhancement, and revenue growth leverage.
Management commentary continues to emphasize cost control, unit economics, and portfolio optimization as the key levers for turning around profitability. However, the release provides no explicit forward targets, leaving the path to profitability contingent on sustained top-line gains, further efficiency gains, and potential additional financing options. Investors should monitor (i) continued gross margin expansion and operating leverage, (ii) progress in international and new product launches, and (iii) liquidity management and any financing actions given the sizable leverage.â€