BEYOND MEAT, INC.

Beyond Meat operates in the plant-based meat industry, offering a portfolio of plant-based meats and other innovative plant-based food and beverage products. The company's core business model revolves around creating plant-based alternatives to traditional animal-based meat products, focusing on beef, pork, and poultry platforms. Revenue is generated through sales to mainstream grocery, mass merchandiser, club store, natural retailer channels, and various food-away-from-home channels, including restaurants, foodservice outlets, and schools. The company also utilizes a direct-to-consumer (DTC) channel, Beyond Test Kitchen, launched in Q4 2025, for early access to new products. A significant portion of gross revenues, approximately 13% ²³, 12% ²⁴, and 12% ²⁵ in 2025, 2024, and 2023 respectively, is derived from one distributor, DOT Foods, Inc. ²².

The company's product portfolio is built around three core plant-based platforms: beef, pork, and poultry. Beef platform products, such as Beyond Burger IV and Beyond Beef IV, primarily use yellow pea protein, brown rice protein, faba bean protein, and red lentil protein, and are made with avocado oil, featuring 0 mg of cholesterol, no added antibiotics or hormones, and no GMOs. Beyond Steak was recognized in 2024 for meeting the American Diabetes Association's Better Choices for Life program nutritional guidelines. The pork platform includes Beyond Sausage, Beyond Breakfast Sausage Patties, Beyond Breakfast Sausage Links, and Beyond Sausage Crumbles, with protein from pea and rice protein. The 2024 Beyond Sausage IV also incorporates avocado oil and shares the same health attributes as the beef products. Poultry platform products, including Beyond Chicken Pieces, Beyond Chicken Tenders, and Beyond Chicken Nuggets, derive protein from pea protein, soy protein, and wheat gluten. In 2024, Beyond Sun Sausage was introduced as a distinct protein option, and in 2024 and 2025, value-added meals (VAM) like Beyond Bakes, Beyond Skillet Meals, and Beyond Bowls were launched. New products in 2025 included Beyond Ground, Beyond Steak Filet, and new Beyond Chicken Pieces, with Beyond Immerse, a plant-based protein drink, launched in early 2026 through the Beyond Test Kitchen DTC platform. The Beyond Burger alone accounted for approximately 50% ¹⁰⁰, 52% ¹⁰¹, and 51% ¹⁰² of gross revenues in 2025, 2024, and 2023, respectively.

For the fiscal year ended December 31, 2025, Beyond Meat reported net revenues of $275.496 million ¹⁰³, a decrease from $326.452 million ¹⁰⁴ in 2024 and $343.376 million ¹⁰⁵ in 2023. Gross profit for 2025 was $7.646 million ¹⁰⁶, down significantly from $41.699 million ¹⁰⁷ in 2024, resulting in a gross margin of 2.8% ¹⁰⁸ compared to 12.8% ¹⁰⁹ in the prior year. The company incurred a loss from operations of $333.621 million ¹¹⁰ in 2025, an increase from a loss of $156.124 million ¹¹¹ in 2024. Net income for 2025 was $219.024 million ¹¹², primarily driven by a $548.651 million ¹¹³ gain on debt restructuring, net of exchange fees. Diluted EPS for 2025 was $(1.83) ¹¹⁴, compared to $(2.43) ¹¹⁵ in 2024. Cash flows from operating activities were negative $144.9 million ¹¹⁶ in 2025, compared to negative $98.8 million ¹¹⁷ in 2024 and negative $107.8 million ¹¹⁸ in 2023. As of December 31, 2025, cash and cash equivalents and restricted cash totaled $217.5 million ¹¹⁹, and long-term debt, net of debt discount, was $415.7 million ¹²⁰.

Comparing 2025 to 2024, net revenues decreased by $50.956 million ¹²¹, or 15.6% ¹²². This was primarily due to a 15.9% ¹²³ decrease in the volume of products sold, partially offset by a 0.4% ¹²⁴ increase in net revenue per pound. U.S. retail net revenues decreased by 17.5% ¹²⁵, U.S. foodservice by 18.1% ¹²⁶, international retail by 11.1% ¹²⁷, and international foodservice by 13.7% ¹²⁸. Cost of goods sold decreased by $16.9 million ¹²⁹, or 5.9% ¹³⁰, but increased as a percentage of net revenues to 97.2% ¹³¹ from 87.2% ¹³². Research and development expenses decreased by $4.9 million ¹³³, or 17.5% ¹³⁴, to $23.235 million ¹³⁵. Selling, general and administrative (SG&A) expenses, excluding loss on write-down of assets held for sale, increased by $48.1 million ¹³⁶, or 28.3% ¹³⁷, to $217.757 million ¹³⁸, representing 79.0% ¹³⁹ of net revenues. This increase was largely due to a $38.9 million ¹⁴⁰ litigation-related accrual, $8.1 million ¹⁴¹ in legal fees for arbitration, and $8.0 million ¹⁴² in higher share-based compensation, including $13.3 million ¹⁴³ related to the Exchange Offer.

Significant operational developments in 2025 included multiple workforce reductions: the February 2025 RIF impacting approximately 44 employees ¹⁴⁴ in North America and the EU, the China RIF affecting approximately 20 employees ¹⁴⁵ (95% ¹⁴⁶ of the China workforce) as operations in China ceased, and the August 2025 RIF reducing North American workforce by approximately 40 employees ¹⁴⁷. These RIFs resulted in one-time cash charges of approximately $1.2 million ¹⁴⁸, $0.4 million ¹⁴⁹, and $1.1 million ¹⁵⁰ respectively. The cessation of China operations also led to $6.4 million ¹⁵¹ in accelerated depreciation and $3.4 million ¹⁵² in loss on write-down of assets held for sale. The company recorded an incremental provision for excess and obsolete inventory of $2.4 million ¹⁵³ due to SKU rationalization and product line discontinuation. A $51.3 million ¹⁵⁴ impairment loss on long-lived assets was recorded in Q3 2025. The company also completed an Exchange Offer in October 2025, exchanging $1,120,541,000 ¹⁵⁵ aggregate principal amount of 2027 Notes for $209,721,000 ¹⁵⁶ in 2030 Notes and 317,834,446 ¹⁵⁷ shares of common stock, resulting in a $548.7 million ¹⁵⁸ gain on debt restructuring. A Loan and Security Agreement was entered into on May 7, 2025, providing a $100.0 million ¹⁵⁹ Delayed Draw Term Loan Facility, with $40.0 million ¹⁶⁰ drawn on June 26, 2025, and $60.0 million ¹⁶¹ drawn on September 18, 2025.

Management expects interest expense to increase from current levels in 2026 due to the amortization of the issuance date fair value of the 2030 Notes Embedded Derivative liability and amortization of debt discount, as well as interest expense associated with the Delayed Draw Term Loans ¹⁶². The company also anticipates recording significant mark-to-market adjustments from the remeasurement of derivatives and other liabilities carried at fair value at each reporting period ¹⁶³. For the year ending December 31, 2026, the company expects to record approximately $2.2 million ¹⁶⁴ in accelerated depreciation for remaining leasehold improvement assets in China, unrelated to assets held for sale ¹⁶⁵.

The company intends to pursue top-line growth by expanding its retail and foodservice footprint and building market share through distribution expansion, continued innovation and commercialization of new products, including in adjacent categories outside of core meat analogue offerings ¹⁶⁶. This includes optimizing price pack architecture, increasing penetration across channels and geographies, and expanding direct-to-consumer (DTC) channels such as Beyond Test Kitchen, which was launched in the fourth quarter of 2025 ¹⁶⁷. The Beyond Test Kitchen platform allows for early access to new plant-based protein products, generally for a limited time, to test products directly with consumers and gather feedback before potential broader release ¹⁶⁸. The company believes increased global distribution, supported by existing and new partnerships, will lead to growing consumer awareness and demand for nutritious, convenient, and high-protein plant-based foods, increasing the overall size of the plant-based foods category and improving market share ¹⁶⁹.

The company plans to expand its product offerings by improving existing product formulations and creating new products that broaden the portfolio ¹⁷⁰. This includes continually refining plant-based meat products to enhance taste, texture, aroma, appearance, and nutrition, while lowering production costs ¹⁷¹. Investment in research and development will continue to innovate within the core plant-based beef, pork, and poultry platforms ¹⁷². Additionally, as protein demand grows and fiber becomes a key macronutrient trend, the company intends to broaden its product portfolio to include plant-based foods and beverages focusing on product intrinsics and compelling macronutrients ¹⁷³. An example of this expansion is the introduction in January 2026 of Beyond Immerse, a plant-based protein beverage, through the Beyond Test Kitchen DTC platform ¹⁷⁴.

Operationally, the company is continually reviewing opportunities to optimize its manufacturing capacity across its network, aiming to increase overall equipment effectiveness, improve asset utilization, leverage internal manufacturing and co-manufacturer networks, reduce material and logistics costs, and invest in new processes and business management systems to increase automation, improve operating efficiency, and enable greater scalability ¹⁷⁵. The company's cost-reduction initiatives and Global Operations Review, initiated in 2023, involve narrowing commercial focus to anticipated growth opportunities and accelerating activities that prioritize gross margin expansion and cash generation ¹⁷⁶. These efforts include exiting or discontinuing select product lines, changes to pricing architecture, cash-accretive inventory reduction initiatives, and further optimization of manufacturing capacity and real estate footprint ¹⁷⁷.

Planned capital allocation includes continued investment in research and development, although expenses in this area decreased in 2025 and are expected to decrease in 2026 as the company focuses on reducing and optimizing operating expenses ¹⁷⁸. The company expects to raise significant additional capital through the issuance of additional equity and/or debt securities, and/or incur other indebtedness, some or all of which may be secured, to continue funding operations and repaying indebtedness in the future ¹⁷⁹. As of December 31, 2025, approximately $2,000 ¹⁸⁰ in capacity remained for further sale of shares under the ATM Program, but the company has suspended its use due to not timely filing its 10-K ¹⁸¹.

Structural headwinds and execution risks management explicitly flagged include ongoing and persistent declines in demand in the plant-based meat category and for the company's products, particularly in the refrigerated subsegment ¹⁸². Adverse changes in consumer tastes and perceptions about plant-based meat, broad macroeconomic headwinds including inflation, high interest rates, waning consumer confidence, and potential recessionary concerns in certain geographic regions are also noted ¹⁸³. Increased competitive activity in the plant-based meat category, global events such as the ongoing war between Russia and Ukraine and the escalating armed conflict in the Middle East, and current and proposed future tariffs are identified as factors that could impact raw material availability and product distribution ¹⁸⁴. Regulatory uncertainty about labeling and marketing practices in Europe could negatively impact the ability to expand product distribution ¹⁸⁵. The plant-based meat sector's premium pricing relative to animal protein has caused and could continue to cause consumers to trade down into cheaper forms of protein ¹⁸⁶.

The company faces material risks including ongoing and persistent declines in demand in the plant-based meat category, exacerbated by macroeconomic trends such as inflation and high interest rates, which have negatively impacted sales and profitability ¹⁸². Geopolitical instability, including the ongoing war between Russia and Ukraine and the escalating armed conflict in the Middle East, poses risks to supply chains, costs, and global economic stability ¹⁸³. Regulatory risks are significant, with potential changes in U.S. and international laws regarding the labeling and naming of plant-based meat products, such as the Real MEAT Act in the U.S. or similar legislation in France, Italy, Poland, Belgium, Switzerland, and South Africa, which could require product relabeling, modify marketing strategies, or lead to enforcement actions and recalls ¹⁸⁷. Operational risks include reliance on a limited number of third-party suppliers for key raw materials like pea protein and avocado oil, exposing the company to supply disruptions, price volatility, and quality issues ¹⁸⁸. The company has identified material weaknesses in internal control over financial reporting related to accounting for non-routine and complex transactions and the valuation of inventory, including the provision for excess and obsolete inventory, which could impair accurate financial reporting and investor confidence ¹⁸⁹. Furthermore, the company is subject to litigation risks, including a trademark infringement lawsuit where a jury awarded $23.5 million ¹⁹⁰ in actual damages and $15.4 million ¹⁹¹ in disgorgement of profits ¹⁹². The company's common stock is also at risk of delisting from Nasdaq due to its closing bid price being below the minimum $1.00 ¹⁹³ per share requirement for 30 consecutive business days ¹⁹⁴.

Management's message to shareholders emphasizes a pivot towards sustainable long-term growth, supported by three pillars: driving margin recovery and operating expense reduction through lean value streams, inventory reduction and cash flow generation, and focusing on near-term retail and foodservice growth drivers while supporting key strategic long-term partners and opportunities ¹⁹⁵. The company has undertaken significant cost-reduction initiatives, including multiple workforce reductions in 2023 and 2025, and the cessation of operational activities in China by the end of 2025 ¹⁹⁶. Management expects to record approximately $2.2 million ¹⁹⁷ in accelerated depreciation for remaining leasehold improvement assets in China for the year ending December 31, 2026 ¹⁹⁸. Strategic priorities include expanding distribution channels, such as the Beyond Test Kitchen DTC platform, to test new products and gather consumer feedback ¹⁹⁹, and broadening the product portfolio to include plant-based foods and beverages beyond meat analogues, exemplified by the January 2026 introduction of Beyond Immerse, a plant-based protein drink ²⁰⁰. The company also aims to optimize manufacturing capacity, improve asset utilization, and reduce material and logistics costs ²⁰¹.