Beyond Meat, Inc. (NASDAQ: BYND) has closed a $100 million senior secured debt facility with Unprocessed Foods, LLC, an affiliate of the Ahimsa Foundation. This financing will help strengthen the company’s balance sheet and support its long-term strategies.
“Securing this financing enables us to continue investing in our future”
The announcement follows the company’s first-quarter financial results for 2025, which reported a 9.1% decline in net revenues to $68.7 million. The drop in revenue was driven by an 11.2% reduction in the volume of products sold, particularly in the US retail and foodservice channels. The weak category demand was further compounded by broader economic conditions.
In the same period, Beyond Meat reported a gross profit loss of $1.1 million, down from a $3.7 million gross profit in the prior year. The loss reflects the company’s strategic decision to increase inventory provisions and suspend operations in China. Operating expenses decreased to $55.1 million from $57.1 million, mainly due to reductions in general and administrative costs and selling expenses.
Ethan Brown, president and CEO of Beyond Meat, noted, “As the first quarter of 2025 closed, we saw weaker-than-expected consumer demand, influenced by macroeconomic factors. In response, we have taken decisive steps to reduce costs and remain focused on our goal of becoming EBITDA-positive by the end of 2026.”
Financing terms and future plans
Beyond Meat’s financing from Unprocessed Foods is structured as a senior secured delayed-draw term loan. The facility carries an interest rate of 12% until February 2027, increasing to 17.5% thereafter. Beyond Meat intends to use the funds for general corporate purposes, including bolstering its financial position.
The agreement also includes warrants for Unprocessed Foods to purchase up to 12.5% of Beyond Meat’s outstanding shares, with the exercise price based on the average daily volume-weighted price over a 30-day period beginning today.
“We are focused on delivering high-quality, innovative products while ensuring our business is financially sound,” Brown added. “Securing this financing enables us to continue investing in our future while managing the challenges we face in the current market environment.”
