Beyond Meat, Inc. (BYND) shares declined after the company reported weaker second-quarter revenue and a wider adjusted EBITDA loss, reflecting persistent demand softness across key U.S. channels. The stock dropped 3.72% to $0.6101 during regular trading, then slipped a further 1.66% after hours to $0.6000. At these levels, Beyond Meat's share price remains well below the $1.00 minimum bid price required for continued listing on the Nasdaq exchange.

Q2 Revenue Falls as Product Volume Weakens

Beyond Meat reported second-quarter revenue of $68.8 million, down 8.2% from $75.0 million in the prior-year period. Product volume fell 9.5%, while net revenue per pound rose 1.3%. Lower demand and fewer distribution points reduced domestic sales and weighed on overall quarterly performance.

U.S. retail revenue declined 9.9% to $29.6 million, and U.S. foodservice revenue dropped 27.6% to $8.0 million. Weak category demand, higher discounts, and reduced product availability pressured both channels across major customer segments. The declines mirror a broader, multi-year contraction across the U.S. plant-based meat category, which has experienced sustained demand weakness across the sector.

International retail was the quarter's standout performer, with revenue rising 16.5% to $18.5 million. Stronger European and U.K. sales drove demand for burger, chicken, and ground beef products across multiple markets. However, international foodservice revenue fell 16.0% as quick-service restaurant customers reduced orders.

Margins Narrow as Operating Loss Remains High

Gross profit totaled $5.9 million, down from $7.9 million a year earlier, compressing gross margin to 8.5% from 10.6%. China exit expenses added $1.6 million to production costs during the period, further weighing on reported profitability.

Operating expenses declined to $36.7 million from $45.4 million in the comparable quarter, partly aided by an $11.0 million arbitration settlement credit. Despite that benefit, Beyond Meat still posted a $30.8 million operating loss, an improvement from $37.5 million a year earlier.

Adjusted EBITDA, however, worsened to a $27.7 million loss from a $24.7 million loss in the prior-year quarter. The adjusted EBITDA margin weakened to negative 40.2% from negative 33.0%.

Debt Gain Lifts Net Income as Q3 Outlook Remains Soft

Beyond Meat reported net income of $16.4 million, reversing a $31.8 million loss from the same period last year. The swing was driven primarily by a $57.7 million non-cash debt extinguishment gain. Even so, diluted earnings remained negative at $0.06 per share due to accounting adjustments and share dilution effects.

The company ended the quarter with $186.1 million in cash and restricted cash, while total debt carrying value stood at $323.8 million. Operating cash use improved to $23.2 million from $58.0 million over the same six-month period.

Management guided third-quarter revenue to between $60 million and $65 million, below the second-quarter total. Beyond Meat said it continues to restructure operations, reduce its cost base, and expand beyond traditional plant-based meat offerings. The company recently launched Beyond Steak Filet and Beyond Immerse under its broader plant protein strategy.