Oatly Group (OTLY) Q2 2025 earnings summary

Executive summary

• Progress made on 2025 priorities, with focus on cost efficiencies, profitability, and igniting top-line momentum, though full-year revenue outlook reduced due to North America and Greater China softness.

• Strategic review initiated for Greater China to accelerate growth and maximize value, considering options like a carve-out.

• Adjusted EBITDA loss improved to $3.6M from $11.0M year-over-year, in line with guidance.

• Gross margin improved by 330 basis points to 32.5%, the best quarterly result as a public company.

• Net loss attributable to shareholders widened to $55.9M from $30.4M year-over-year, mainly due to fair value losses on Convertible Notes.

Financial highlights

• Q2 2025 revenue grew 3.0% year-over-year to $208.4M; constant currency revenue declined 0.2%.

• Gross profit: $67.6M (Q2 2025) vs $59.0M (Q2 2024); gross margin: 32.5% (+330 bps year-over-year).

• Adjusted EBITDA loss: $3.6M (Q2 2025) vs $11.0M (Q2 2024), a $7.4M improvement.

• Sold volume: 140.4M liters (+2.8% year-over-year); produced volume: 142.8M liters.

• Free cash outflow of $5M in Q2, best quarterly performance since IPO; H1 2025 free cash outflow $25.7M, improved from $106.4M in H1 2024.

Outlook and guidance

• 2025 constant currency revenue growth expected to be flat to +1%, reflecting North America and Greater China softness.

• Adjusted EBITDA guidance reaffirmed at $5M–$15M for 2025.

• CapEx expected at approximately $20M for the year.

• FX now estimated to be a $20M tailwind for the full year; 150 bps tailwind to revenue growth.

• Additional SG&A savings identified, mainly from corporate, expected to benefit beyond this fiscal year.