Good day, everyone. Once again, thank you for your patience, and we would like to welcome everyone to Beyond Meat's second quarter 2026 conference call. At this time, all participants are in a listen-only mode. Later, you'll have the opportunity to ask questions during the question-and-answer session. To ask a question, you may press star and then 1 on your touchstone phones. To withdraw your questions, you may press star and 2. Let's also note, today's event is being recorded. It is now my pleasure to turn the conference call over to Paul Shepard, Vice President of FP&A and Investor Relations. Please go ahead.

Hello, everyone, and thank you for participating in today's call. Joining me are Ethan Brown, Founder, President, and Chief Executive Officer, and Ludi Kizua, Chief Financial Officer and Treasurer. By now, everyone should have access to our second quarter 2026 earnings press release filed today after market close. This document is available in the Investor Relations section of Beyond Meat's website at www.beyondme.com. Before we begin, please note that during the course of this call, management may make forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Forward-looking statements in our earnings release, along with the comments on this call, are made only as of today and will not be updated as actual events unfold. We refer you to today's press release, our quarterly report on Form 10-Q for the quarter ended June 27, 2026, to be filed with the SEC, our annual report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC, along with other filings with the SEC, for a detailed discussion of the risks that could cause actual results that differ materially from those expressed or implied in any forward-looking statements made. Please note that on today's call, management may reference adjusted EBITDA, adjusted loss from operations, and adjusted net loss, which are non-GAAP financial measures. While we believe these non-GAAP financial measures provide useful information for investors, any reference to this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Please refer to today's press release for a reconciliation of these non-GAAP financial measures to their most comparable GAAP measures. And with that, I'd now like to turn the call over to Ethan.

Thank you, Paul, and good afternoon, everyone. I'll start with our second quarter results, then turn to how we're executing our turnaround across three pillars. Beginning with net revenues, we came in at $68.8 million, roughly $4 million above the high end of our $60 to $65 million guidance range. This figure headlines a quarter of sequential progress, even if it is slower than we would like. Specifically, net revenues were down 8.2% year-over-year, and improvement from year-over-year declines of 15.3% in Q1-2026 and 19.7% in Q4-2025. Gross margin tells a similar story at 8.5%, roughly 5 and 6 points better than Q1-2026 and Q4-2025, respectively. Importantly, this is the last quarter to carry the drag of accelerated depreciation tied to cessation of our China operations, a weight equal to more than 2 points of margin this Operating expenses of $36.7 million represented a 15% sequence of decline and a 19% decline year-over-year, while EBITDA of negative 27.7 is a slight improvement over the first quarter of 2026. More pronounced and perluting financing activities fell to approximately $18 million, a 44% reduction for $14 million less than cash used in the year-ago period. Positive momentum was substantial ground still to cover. We're diving into our forward path. I'll now give some additional detail around select components of our results, starting with net revenues. Our plant-based meat business continues to face pressure in U.S. retail and food service and in global food service, consistent with category trends. However, this pressure was partially offset by strong growth in Europe and Canada, where retail was up by double digits in both markets year-over-year, respectively. In the U.S., we are seeing some signs of stabilization in certain pockets of U.S. retail, with our core burger, ground beef, and dinner sausage products demonstrating resiliency in specific, though certainly not all accounts. We're hopeful that these positive signs endure and strengthen, but are also acutely aware that misinformation regarding the health of our products continues to impact our retail and food service businesses in the United States. As I've often shared over the years, we've responded to this misinformation by further leaning in to the health of our portfolio, raising the bar on its nutritional profile while working extensively with health institutions, physicians, nutritionists, and universities. That work has earned recognition from the American Heart Association and American Diabetes Association, among others, and is buttressed by clinical trials by leading researchers, as well as consumer case studies. These efforts notwithstanding, we still operate in a world where clean protein from fababines grown by farmers in the rich soils of North Dakota and Montana blended with heart-healthy avocado oil, has been, in the main, tarnished by incumbent industry-funded campaigns. To this end, we are increasingly addressing the source of this information in our efforts to educate consumers. Most recently, our Don't Believe the Cropaganda campaign was named by Ad Age as one of the top five creative ads to know about right now and voted a top-five campaign in the publication's Best Campaign of the Month reader poll. This upper-funnel education work is being done simultaneously with targeted lower-funnel activities, including shopper marketing programs at leading retailers that clearly emphasize what our products actually offer, strong macronutrient content and ratios, clean ingredient decks, and compelling taste. Turning now to operations, as we move past many of the drags of elevated operating expenses and higher-cost inventory, the underlying strength of our operations is beginning to emerge as we see strong execution across our global production network and a notable sequential reduction in cost of goods sold. Corridor's margin reflects early returns from some of this execution. Our production network and our finishing trials on our new continuous line at our Columbia, Missouri facility, absorbing volume that had previously been outsourced and improving conversion costs year-over-year. Second, we reduced certain material costs through contract renegotiation with further savings in progress through RFPs, secondary sourcing, and formulation adjustments. Third, we consolidated warehouses, lowered logistics expense, and exited less profitable product lines. Prior quarters, the benefit of these programs is muted by lower volume and the resulting under-absorption of overhead, a persistent overhang we are aiming to address through a combination of growth programs and facilities planning. Noted at the onset, operating expenses continue to fall, and while benefiting from certain non-routine items, mainly reflect the impact of ongoing focus on SG&A and transformation work required to position the business for sustainable operations. According to the results to our path forward, I'll now focus my comments around three pillars intended to deliver the enterprise to sustainable growth. These are investing growth in Europe and Canada while continuing to work to stabilize our core U.S. business. These are evolution from a narrow focus on plant-based meat to a broader focus on nutrition as beyond the plant protein company of operational efficiency and unit economic improvement. I'll now turn to the first pillar. Europe and Canada present our clearest near-term growth engines for our core product lines, and we are vesting behind them accordingly. In Europe, we are cautiously encouraged by markets such as Germany and the U.K., as well as performance therein, while in Canada, continue to enjoy strong retail distribution. In both markets, we plan to invest behind this growth, as well as bring innovation to the consumer. Here in the U.S., in addition to the upper and lower funnel marketing campaigns that I discussed earlier, we continue to bring new center-of-the-plate protein to market as we seek to stabilize U.S. net revenues. Beyond State Filet made its retail debut this quarter. Since launching on a direct consumer platform, Beyond Test Kitchen, in late 2025, it's become one of our best-selling items online with strong consumer reviews for taste, texture, and nutrition. It delivers 28 grams of plant protein, 3 grams of fiber, and 1 gram of saturated fat per serving from avocado oil, and is one of more than 20 products in our portfolio to earn clean label project certification. We believe it is one of our most compelling sound-of-the-plate innovations since the Beyond Burger. It launched at Wegmans and HEP in July, followed by Meijer, and we expect additional retailers to come. We are also building stronger brand blocks in frozen retail with existing products. Beyond Chicken Pieces Spicy Buffalo rolled out to more than 2,000 Kroger stores nationwide. 21 grams of plant protein, half a gram of saturated fat, no cholesterol, and 130 calories. Like the original variety, it meets non-GMO project standards. Together, they are the first plant-based chicken product certified by the Clean Label Project. Then we launched our new Beyond Breakfast Sausage lineup, Lynx and Patties, Original and Spicy, at Kroger, Sprouts, and Whole Foods markets nationwide, strengthening our position in the breakfast category. I'll now cover our second pillar, the broadening of our company aperture and entry into faster-growing, adjacent markets. For nearly two decades, we have innovated with plants under intense scrutiny, and we've made a habit of turning attacks into strengths. As noted, when misinformation campaigns falsely painted our products as unhealthy, we made them even healthier. When those campaigns disingenuously sought to seed doubt about our ingredients, we pushed the envelope on clean and simple formulations, and as mentioned previously, now hold more than 20 clean label product certifications. Throughout this journey, we've become exceptionally good at making simple plant-based ingredients perform as delicious center-of-the-plate proteins, leveraging significant investments across plant biology, chemistry, and functionality. These capabilities travel, and coupled with the extraordinary nutritive power of plants, our second strategic pillar. As we enter adjacent categories, we are not looking to repeat what has already been done. Instead, we apply a different lens. We seek to deliver powerful phytonutrients that are often under-consumed in modern diets but can be so essential to optimized health. Today, many products make claims that deliver a light dusting of phytonutrients when in fact clinically meaningful amounts are required to create useful signals in the body. Our system is intended to avoid that trap. You can see early signs of this strategy in the greater inclusion of fiber across our lines, from beverage to ground to steak. This product to launch under this expanded aperture targets the large and growing functional drink market. Beyond the Merse is a clear, lightly carbonated beverage built around four plant superpowers, protein, fiber, antioxidants, and electrolytes. In doing so, it addresses four distinct functional beverage categories, protein, fiber, vitamin, and electrolyte drinks, in a single, refreshing format. Each can delivers 20 grams of clean plant protein for muscle health, 5 to 7 grams of fiber for gut health, antioxidants for immunity and recovery, and electrolytes for hydration, all at 100 to 110 calories. As with Beyond Steak Filet, we introduced Immerse to Beyond Test Kitchen, allowing us to engage consumers directly, gather feedback, and bring our community into the innovation process. In keeping with our rapid or relentless innovation program, we turned iterations quickly. After launching online what was then our latest iteration in a sleek green can, Immerse has averaged 4.7 out of 5 stars on submitted reviews on our direct-to-consumer platform. I call this version the then-latest iteration, as we have just launched our newest version, leveraging the natural sweetness of agave as part of our rollout with Big Geyser, the New York distributor. This sequence, access our community through our direct-to-consumer platform, engage and learn from early adopters who become part of our innovation process, then move at a deliberate pace into a focused geography, innovating along the way, but at the center of our adjacent market strategy. Over time, we intend to build a portfolio across relevant adjacencies, unified by a single product strategy, delivering powerful, delicious, and convenient plant-based nutrition across consumer need states. As we do so, you will also see us return to a playbook that we used extensively while building our business. Athletes who understand the superpowers of plants and what they can do to build, fuel, and restore the body. I'd encourage you to check out our latest work with Josh Hart, the world champion New York Knicks. Finally, to our third pillar, we'll remain focused on operating expenses, unit economics, fixed cost absorption, and cash use. We have a great deal of work ahead to keep downward pressure on operating expenses and intend to further pursue margin gains by optimizing our production system, including the new continuous line that I referenced in Columbia, and through RFPs across ingredients and materials. We plan to better calibrate our facilities to volume, even as we seek to execute the above articulated two-track return to growth and bring higher throughput to our production facilities and lines. We will continue to take steps, large and small, with the goal of reaching cash flow positive operations as quickly as possible. In closing, we've done a lot of spade work toward what I believe will be an exciting turnaround. We continue to be focused on simultaneously stabilizing our core business, improving our cost structure, and expanding into faster-growing, functional food and beverage categories. With a more efficient operating model, a disciplined and cutting-edge approach to innovation, and a focused go-to-market strategy, we believe we can deliver improved financial performance and the extraordinary powers of plant-based nutrition to an ever-broadening base of consumers. Let's go over to Louvi to review our second quarter financials in greater detail.

Thank you, Ethan, and hello, everyone. I'll begin my remarks today by reviewing our second quarter financial results in a bit more detail, and we'll then provide some brief comments on our third quarter outlook before opening up the call for your questions. Net revenues decreased 8.2% to $68.8 million in the second quarter of 2026, compared to $75 million in the year ago period. The decrease in net revenues was primarily driven by a 9.5% decrease in volume of products sold, partially offset by a 1.4% increase in net revenue per pound. Broadly speaking, on a year-over-year basis, we continue to experience greatest pressure in our food service channels, both in the U.S. and abroad, while our retail channels are showing more encouraging signs of improvement, most notably in international. Overall, the decrease in volume of products sold for the second quarter of 2026 was primarily driven by lower sales of burger and chicken products to certain QSR customers in the international food service channel and by weak category demand and reduced points of distribution in our U.S. retail and food service channels. Net revenue per pound increased on a year-over-year basis, primarily driven by changes in product sales mix and favorable changes in foreign currency exchange rates, partially offset by higher trade discounts. Taking a closer look by channel, in our U.S. retail channel, net revenues decreased 9.9% to $29.6 million in the second quarter of 2026 compared to $32.9 million in the year-ago period. Total volume of products sold in U.S. retail declined 5.7% on a year-over-year basis, primarily reflecting persistent category softness and reduced points of distribution within certain channels. With respect to the latter, some of the distribution losses that impacted our Q2 results were associated with packaging transitions on certain items and are therefore expected to be transitory. However, challenges related to general category softness remain. In terms of price realization, net revenue per pound in U.S. retail was down 4.5% year over year, primarily driven by higher trade discounts and lower price realization on certain items, partially offset by changes in product. product sales mix. Turning to U.S. food service, net revenues in our U.S. food service channel decreased 27.6% to $8 million in the second quarter of 2026, compared to $11.1 million in the year-ago period. The decrease was primarily driven by a 27.4% decrease in volume of products sold, with net revenue per pound declining slightly year-over-year. Volume of products sold in our U.S. food service channel continued to be negatively impacted by distribution losses, primarily among smaller and dependent operators and general category softness. Net price realization in U.S. food service was slightly unfavorable on a year-over-year basis, as higher trade discounts and lower price realization on certain items more than offset favorable changes in product sales mix. Moving on to international, our international retail channel net revenues increased 16.5% to $18.5 million in the second quarter of 2026, compared to $15.9 million in the year-ago period. The increase in international retail channel net revenues was primarily driven by an 8.2% increase in volume of products sold and a 7.7% increase in net revenue per pound. Volume of products sold in this channel continues to benefit from higher sales of burger and chicken products in European markets, as well as increased sales of ground beef products in Canada. The increase in net revenue per pound in international retail primarily reflects price increases in certain geographies and favorable changes in foreign currency exchange rates, partially offset by higher trade discounts. Finally, in our international food service channel, net revenues decreased 16% to $12.7 million in the second quarter of 2026, compared to $15.1 million in the year-ago period. The decrease in international food service channel net revenues was primarily driven by a 20.4% decrease in volume of products sold, partially offset by a 5.5% increase in net revenue per pound. The decrease in volume of products sold in our international food service channel mainly reflects lower sales of burger and chicken products to certain QSR customers in Europe and Canada, while the increase in net revenue per pound was mainly attributable to favorable changes in foreign currency exchange rates and lower trade discounts. Now turning to gross profit. Gross profit in the second quarter of 2026 was $5.9 million, or gross margin of 8.5% compared to gross profit of $7.9 million or gross margin of 10.6% in the year-ago period. Gross profit and gross margin in the second quarter of 2026 included $1.6 million in expenses related to the cessation of our operational activities in China compared to $1.7 million in the year-ago period. Additionally, gross profit and gross margin in the second quarter of 2026 were negatively impacted by higher materials costs and higher manufacturing expenses, including depreciation, partially offset by lower inventory provision. The increase in manufacturing expenses in part reflected the impact from year-over-year volume declines, which has a negative impact on fixed cost absorption. Operating expenses were $36.7 million in the second quarter of 2026 compared to $45.4 million in the year-ago period. Operating expenses in the second quarter of 2026 included $4.7 million in incremental share-based compensation expense related to our convertible debt exchange, $25 million in certain non-routine SG&A expenses, $0.4 million in amortization of costs related to a partial lease termination of a portion of our campus headquarters, and a credit of $11 million reflecting the settlement of arbitration proceedings related to a previously disclosed contractual dispute with a former coal manufacturer, compared to an expense of $2.5 million in the year-ago period. Operations was therefore $30.8 million in the second quarter of 2026, compared to $37.5 million in the second quarter of 2026, compared to $5.7 million in the year-ago period, with the significant increase primarily reflecting a non-cash gain on debt extinguishment of 50 cents by a reduction in other income net, increased interest expense related to our delay and re-measurement loss of derivative liability stemming from the 2030 notes embedded derivatives. Net income was therefore $16.4 million in the second quarter of 2026, or three cents per common basic share compared to net loss of the EBITDA was a loss of $27.7 million or minus 40.2% of net revenues in the second quarter of 2026 compared to an adjusted EBITDA loss of $24.7 million or minus 33% of net revenues in the year ago period. Turning briefly to our balance sheet and cash flow highlights, our cash and cash equivalents balance including restricted cash was $186.1 million and total outstanding carrying value of debt, net of debt discount was $323.8 million as of June 27, 2026, which included the total undiscounted future cash flows of the new 2030 notes recorded at the completion of our convertible debt exchange. Net cash used in operating activities was $23.2 million in the six months ended June 27, 2026, compared to $58 million in the year bill period. Capital expenditures totaled $4 million in the six months ended June 27, 2026, compared to $6.4 million in the year ago period. Financing activities was $6.6 million in the six months ended June 27, 2026, compared to net cash provided by financial aid. As Ethan mentioned, we were pleased that our quarterly cash consumption program, as well as effective inventory management. Finally, I'll touch briefly on our outlook, as in recent periods, we are continuing to provide only limited net revenue guidance given ongoing levels of uncertainty and volatility within our operating environment, which we believe may continue to have unforeseen impacts on our actual realized results. To this end, in the third quarter of 2026, we expect net revenues to be in the range of approximately $60 million to $65 million.

And with that, I'll turn the call over to the operator to open it up for your questions. ladies and gentlemen at this time we'll begin the question and answer session to ask a question you may press star and then one using your touchtone telephones if you are using a speaker phone we do ask you please pick up the handset before pressing the keys to ensure the best sound quality to withdraw your questions you may press star and two again that is star and then one to join the question queue we'll pause momentarily to assemble the roster and our first question today comes from I'm Ben Deer from Barclays. Please go ahead with your question.

Hi. Hey, good afternoon, Ethan, Louvy. Thanks for taking my question and all the details so far in the call. One – a couple of things I just wanted to kind of like get through real quick. So as you look at the performance in the different regions and you've clearly highlighted Europe and Canada as like good opportunities but still DRAC and others. So, first of all, as you kind of, like, look at the different consumer dynamics or demand dynamics in these regions, can you help us maybe understand a little bit better why there is such a difference in terms of, like, just acceptance or just consumer willingness to engage with the products, and, for example, Europe versus the U.S.? That would be my first question.

Thank you, and it's good to hear from you. So I think what we're seeing, and we're beginning to see this at a sustained level, in Europe we do not face the same very significant campaigns and misinformation that we do here in the U.S. from the incumbent industry. I mean, they are organized there, and they do have some activities going on, but it did not gather the same momentum. So that's one backdrop. And the second is that the consumer there, I think, links much more readily their food consumption and climate there is obviously being taken more seriously than it is here in the U.S. from a policy and consumer behavior perspective. And, of course, they're experiencing some of the most difficult summers they've had in a long time. So I think those types of things are working in our favor in the markets. And then you look at different pockets. You know, Germany is very strong. UK is pretty good. Netherlands, where we are, also has some strength to it. And we've also just, you know, appointed, I think, a longtime partner of mine and of ours to run Europe for us. And Adrian and we're very excited about that. So you'll see us continue to invest in Europe. The dynamics there are such that the kind of negative narrative that was framed here by the meat industry is just not present there in the same strength. And so I think that's the deal.

And then more like of corporate actions, I mean, just a couple of days ago, you made a couple of changes hiring or bringing on a COO with Krishna Slimey. You're returning to the board. Could you talk a little bit more about what the thought process behind that is, behind those changes?

Yeah. So I think, you know, John Bokin has done a fantastic job for us as an interim, you know, Transformation Officer and serving in that capacity. But the goal always was to bring on someone full-time. So he's been very patient working with us and allowing us the time to pick the right candidate. And one of the things that I love about Bajesh is, you know, his background, if you look closely at his career, is both in the U.S. and in Europe, typically in the Netherlands. And so, you know, as you think about what I'm trying to accomplish in terms of growing both in Europe and stabilizing here in the U.S., he's a really good fit for that, as well as he's having a broad commercial experience and operating experience. So we're happy that we've got the right candidate in the door and looking forward to him starting. That's how I'm going back to the board. I'm happy to do it. But, you know, it's really more about the operating work that I'm doing and make sure we get through this turnaround, which I feel quite good about, particularly as we go into some of these adjacent categories. And so I tried to frame on the introductory comments that I really do think about this in terms of three pillars, the first being let's stabilize the core business. And we've got a lot of work to do in the U.S., but we're getting a lot of help from Canada and from Europe. And then second, let's take the technology, the science, the brand, in the adjacent categories that are not as challenged as the core categories we're in. And when we do that, we have the ability to go into those markets with a lot of experience and with a lot of expertise, and I believe create products that differentiate quickly and raise them for the innovation to create momentum in each of the categories we're going to. Merce was just the first, but there'll be others to follow.

Perfect. Thank you very much. I'll pause it on.

Once again, if you would like to ask a question, please press star and one. Our next question comes from Thomas Palmer from JPMorgan. Please go ahead with your question.

Good afternoon.

Thanks for the question, guys. Maybe just starting off on the cost environment, I appreciate how dynamic it is, but maybe at a high level, anything that you're seeing, you know, be it with freight or other areas that have been more volatile, just as we sit today, and kind of maybe actions to mitigate it if there are some.

Sure, that's a great question. Thanks. So, when I look at the unit economics, I mean, the main, we're obviously focused on continuing to drive down direct materials and direct labor and all these things. But the main solve here is throughput, right? Like, we continue to try to optimize our facilities, but the best and ultimate solve here is to just get more volume through those facilities. And so, when you have a reduction in volume to 9.5% or so, you're going to see downward pressure because of the lower... That, I think, is the main focus. We also have a lot of initiatives going on, whether the RFPs... And one of the ones that I'm most excited about is continuous line that we stood up in County, Missouri. I mean, I think you largely covered it there, Ethan.

You know, so basket of some pockets of – and then there's, you know, other income savings on a year-over-year basis. So I would say, like, just the general level of ingredients, cost inflation, we don't expect that to be, you know, necessarily overly excessive this year. And what Ethan mentioned about, you know, where we're really looking for efficiencies, right, in terms of the throughput and investments in automation, et cetera, that's really where we would expect over time to continue to drive, you know, additional costs out of our production processes. In terms of logistics, you know, obviously the transportation, you know, has been a relatively volatile space the last several months. But I think we've offset a lot of that with, you know, some really good work that we've done on the warehousing side. You know, we've significantly consolidated our prints. And so we're actually doing pretty well, you know, in terms of our logistics costs. within cost of goods sold. So, you know, I think, you know, clearly still more work to be done from a cost of production perspective. But I think, you know, just given, you know, some of the volatility that we've seen in the broader environment, the team has done a pretty solid job.

Right. Thanks for such a thorough answer.

And with that, ladies and gentlemen, we'll be concluding today's question and answer session. I'd like to turn the floor back over to management for any closing remarks.

Thanks for the time. Thanks for the continued interest. You know, we're, I think, showing this quarter sequential progress across the metrics that matter at the top line, you know, going from 19 to 15 down to 8, and we hope to cross over that threshold as soon as we possibly can. And then also just continue to drive cash used down. And, you know, if you look at the six months ending in 27, we're less than half of the cash consumed vis-a-vis a year ago period. So we've got work to do. We have a lot of margin work to do and things of that nature and to get the top line back growing again. But overall, I was pleased with the direction that we saw this quarter. And I think we're excited to demonstrate what we can do in some of these adjacent categories, even as we continue to work to stabilize our core. So we'll talk to you in a few months.

And with that, ladies and gentlemen, we'll be concluding today's conference call and presentation. We do thank you for joining. You may now disconnect your line.