OATLY GROUP AB (NASDAQ:OTLY) Q3 2025 Earnings: Revenue Beat Overshadowed by Accounting Losses

OATLY GROUP AB (NASDAQ:OTLY) has reported financial results for the third quarter of 2025, delivering a performance that presents a complex picture of operational progress overshadowed by significant accounting-related losses.

Revenue Performance Versus Estimates

The oat drink company reported third-quarter revenue of $222.8 million, representing a 7.1% increase compared to the same period last year. When examining this figure against Wall Street expectations, the results show a notable achievement.

• Reported Q3 Revenue: $222.8 million
• Analyst Estimate for Q3 Revenue: $216.3 million
• Performance: Beat estimates by approximately $6.5 million

On a constant currency basis, which removes the effect of foreign exchange fluctuations, revenue growth was a more modest 3.8%. The company's performance was driven by strong results in its Europe & International and Greater China segments, which grew by 6.0% and 28.7% in constant currency, respectively. This growth was partially offset by a 10.1% decline in North America, attributed mainly to reduced business with the segment's largest foodservice customer.

Earnings Per Share Miss

While the top-line revenue figure surpassed expectations, the bottom line told a different story. The company reported a significant net loss for the quarter.

• Reported Q3 Non-GAAP EPS: -$2.15
• Analyst Estimate for Q3 Non-GAAP EPS: -$0.74
• Performance: Missed estimates by $1.41 per share

The substantial loss was primarily driven by $32.2 million in fair value losses on the company's Convertible Notes, a non-cash accounting item. Excluding this and other one-time items, the company's operational performance showed improvement. Adjusted EBITDA, a measure of operational profitability, was positive $3.1 million for the quarter. This marks a significant $8.2 million improvement from the Adjusted EBITDA loss of $5.0 million in the prior year period, reflecting better gross profit and lower operating expenses.

Market Reaction and Outlook

The market's reaction to these mixed results appears negative. The stock is trading lower in the pre-market session, suggesting investor focus has settled more heavily on the large EPS miss than on the revenue beat and improved operational profitability.

Looking ahead, the company reaffirmed its full-year 2025 outlook, which appears cautious when compared to analyst expectations.

• Oatly's 2025 Outlook:
  • Constant currency revenue growth: approximately flat to +1%
  • Adjusted EBITDA: positive $5 million to $15 million
• Analyst Estimates for Full-Year 2025:
  • Revenue: $854.4 million
  • EPS: -$3.13

The company's revenue guidance implies a year-end figure that is significantly below the current analyst consensus. This discrepancy may be contributing to the negative market sentiment, as it suggests the company sees a more challenging path to growth than the market had anticipated.

Strategic and Operational Highlights

Beyond the headline numbers, the earnings release highlighted several key developments. CEO Jean-Christophe Flatin described the quarter as one of "profitable growth," pointing to the positive Adjusted EBITDA as a milestone reflecting three years of strategic actions. The company also completed a major refinancing initiative after the quarter ended, using proceeds from newly issued Nordic Bonds to prepay a Term Loan and repurchase some of its Convertible Notes. Furthermore, Oatly confirmed that the strategic review of its Greater China business is ongoing.

For a detailed look at historical earnings, future estimates, and analyst projections for OATLY GROUP AB (NASDAQ:OTLY), you can view more information on its earnings and estimates page.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author has no position in any stock mentioned. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.