Oatly Group (OTLY) Q3 2025 earnings summary

Executive summary

• Achieved first profitable quarter since IPO, with Q3 2025 revenue up 7.1% year-over-year and positive adjusted EBITDA, marking a key milestone in turnaround efforts.

• Refreshed growth strategy and playbook are driving momentum, especially in Europe & International and Greater China, with North America showing improvement excluding specific headwinds.

• Reaffirmed 2025 guidance, targeting flat to +1% constant currency revenue growth and adjusted EBITDA of $5–$15 million.

• Net loss increased to $65.3 million, mainly due to fair value losses on Convertible Notes, despite improved operational performance.

• Strategic review of Greater China business is ongoing, with no definitive timetable for completion.

Financial highlights

• Q3 2025 revenue was $222.8 million, up 7.1% year-over-year (3.8% in constant currency); gross margin was 29.8%, flat versus prior year.

• Adjusted EBITDA was $3.1 million, an $8.2 million improvement year-over-year.

• Sold volume increased 6.6% to 150.6 million liters, partially offset by a 2.8% decline in price mix; FX was a 3.2% tailwind.

• Free cash flow outflow improved to $31.1 million for the nine months ended September 30, 2025, from $133.1 million in the prior year; Q3 outflow was $5 million, $22 million better than last year.

• Cash and cash equivalents at quarter-end were $58.9 million; total outstanding debt was $507.7 million.

Outlook and guidance

• Reaffirmed 2025 guidance: constant currency revenue growth of flat to 1%, adjusted EBITDA of $5–$15 million, CapEX of ~$20 million.

• Expect to be at the lower end of adjusted EBITDA guidance due to Q4 phasing and margin impacts.

• Full-year foreign exchange impact expected to be a 250 basis point tailwind to revenue growth.

• No direct impact from U.S. tariffs assumed; economic and consumer conditions expected to remain stable.