Oatly Group (OTLY) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered solid results with revenue up 15.6% year-over-year to $228.3 million, gross margin improved to 33.4%, and Adjusted EBITDA turned positive at $5.0 million, reinforcing confidence in the profitable growth strategy despite cost headwinds from the Middle East conflict.

• Growth strategies are driving impact in Europe and International, with increasing traction in North America; focus remains on execution and expanding demand.

• Strategic review of the Greater China segment is ongoing, with options including a potential carve-out to maximize value and accelerate growth; completion expected within 2026.

• Net loss attributable to shareholders narrowed to $12.0 million from $12.4 million a year ago.

Financial highlights

• Q1 2026 revenue reached $228.3 million, up 15.6% year-over-year (8.1% in constant currency); gross margin improved by 188 bps to 33.4%.

• Adjusted EBITDA was $5.0 million (2.2% of net sales), an $8.7 million improvement year-over-year.

• Free cash flow outflow improved to $11.7 million from $20.5 million, including annual bonus and Singapore facility exit payments.

• Sold volume grew 5.6% to 152.6 million liters; price/mix up 2.5%, and FX provided a 7.5% tailwind.

• SG&A plus R&D at 39% of net sales, down from 41% prior year.

Outlook and guidance

• 2026 guidance reaffirmed: constant currency revenue growth of 3%-5%, with FX expected to add 100-200 bps to full-year net sales growth.

• Adjusted EBITDA expected toward the low end of $25–$35 million due to cost impacts from the Middle East conflict.

• Q2 performance anticipated to be lower than Q1, with improvement expected in the second half as volatility normalizes and growth investments yield results.

• CapEx guidance unchanged at $20–$30 million for the year.

• Guidance includes the Greater China segment and factors in macroeconomic and geopolitical uncertainties.