Beyond Meat's second quarter revenue of $68.8M beat estimates, while a non-cash gain drove a surprise profit.

Beyond Meat reported second quarter net revenues of $68.8 million, an 8.2% decrease year-over-year, driven by a 9.5% decline in sales volume. The company posted a surprise net income of $16.4 million, or a diluted loss per share of $0.06, which was primarily due to a one-time, non-cash gain on debt extinguishment.

Key Highlights

• Revenue of $68.8 million declined 8.2% from the prior year but surpassed analyst expectations and the high end of the company's guidance.
• A net income of $16.4 million was reported, a significant swing from a $31.8 million net loss a year ago, primarily driven by a $57.7 million non-cash gain on debt extinguishment.
• Gross margin improved sequentially to 8.5% from the first quarter, though it was down from 10.6% in the same period last year.
• International retail sales grew 16.5% to $18.5 million, while U.S. retail and foodservice channels continued to see declines of 9.9% and 27.6%, respectively.