Revenue came in above the company’s revised range, but that is a low bar. Q2 revenue was $68.8 million, above the published $60–$65 million guidance range and modestly above the roughly $63.7 million consensus estimate. The beat was driven by international retail, while the larger U.S. business continued shrinking. (Net revenues by channel)
| Metric | Q2 2026 | Q2 2025 | External expectation / comparison |
|---|---|---|---|
| Net revenue | $68.8M | $75.0M | ~$63.7M consensus; above $60–$65M guidance (Net revenues by channel) |
| Adjusted net loss | $(46.5)M | $(29.6)M | — (Adjusted net loss reconciliation) |
| Adjusted EPS | $(0.09) | $(0.39) | ~$(0.08) consensus |
| Adjusted EBITDA | $(27.7)M | $(24.7)M | — (Adjusted EBITDA reconciliation) |
| Adjusted EBITDA margin | -40.2% | -33.0% | — (Adjusted EBITDA reconciliation) |
| Gross margin | 8.5% | 10.6% | — (Income Statement) |
| Cash and restricted cash | $186.1M | $117.3M at prior-year period-end | $323.8M debt carrying value (Balance Sheet; Cash Flow statement) |
The core business is still deteriorating. Total volume fell 9.5%, with U.S. revenue down 14.4% and U.S. foodservice down 27.6%. International retail grew 16.5%, but international foodservice fell 16.0%; this is not yet a broad recovery. (Segment results by channel)
Operating performance missed the headline. Gross margin fell to 8.5% as cost of goods sold per pound rose 3.8%, while adjusted EBITDA loss widened to $27.7 million from $24.7 million and the margin deteriorated to -40.2% from -33.0%. Cost cutting reduced reported operating expenses, but not enough to offset weaker sales and manufacturing pressure. (Income Statement; Adjusted EBITDA reconciliation)
The GAAP profit is almost entirely financial engineering, not an operating turnaround. Reported net income of $16.4 million included a $57.7 million non-cash gain from extinguishing debt. Excluding that and other special items, adjusted net loss was $46.5 million, worse than the $29.6 million loss a year earlier. The debt exchange also materially increased the share count: basic weighted-average shares rose to 501.3 million from 76.5 million. (Income Statement; Adjusted net loss reconciliation)
The balance sheet improved mechanically, but dilution and liquidity risk remain. Six-month operating cash burn improved to $23.2 million from $58.0 million, helped by inventory reduction and working-capital changes, while cash including restricted cash was $186.1 million. But debt remained $323.8 million, $29.5 million of notes became current, and shares outstanding rose to 515.8 million from 453.7 million at year-end. (Cash Flow statement; Balance Sheet)
Net read: mixed versus expectations, with weak quality. The revenue beat is real, but it came against reduced expectations and was outweighed by worsening adjusted profitability, declining U.S. demand, and continued dilution. The filing shows stabilization efforts, not a demonstrated recovery in the underlying business. The company also disclosed corrections to previously issued 2025 interim financial information for inventory valuation and debt issuance costs, which were deemed immaterial but add to the reporting-control concerns. (Corrections to previously issued financial information)
Read the original 8-K on SEC EDGAR ↗