Oatly Group (NASDAQ:OTLY) Posts Earnings Results, Misses Expectations By $0.06 EPS

Oatly Group (NASDAQ:OTLY) issued its earnings results on Wednesday. The company reported ($0.86) EPS for the quarter, missing analysts’ consensus estimates of ($0.80) by ($0.06), Zacks reports. The business had revenue of $243.05 million for the quarter, compared to the consensus estimate of $241.73 million.

Here are the key takeaways from Oatly Group’s conference call:

• Q3 revenue grew 9.1% (8.9% constant currency), while gross margin expanded 436 basis points to 34.1% and adjusted EBITDA rose to $9.4 million from $3.1 million a year earlier.
• Europe & International remained the main growth engine, with constant-currency revenue up 20.4% and volume up nearly 18%; North America also grew 2.9% and gained share despite a mid-single-digit category decline.
• Oatly cut its 2026 adjusted EBITDA outlook to $16 million–$20 million from $25 million–$35 million, citing sharply higher U.S. fuel and freight costs; management expects pricing increases in North America and potentially Europe beginning in 2027.
• The company launched its Oatly Fiber platform in Europe, with a North American launch planned for January 2027, alongside continued innovation in flavored Barista products and cold foam to expand consumption occasions.
• Free cash flow deteriorated to a $18.4 million outflow in Q3 due to CapEx timing, inventory buildup and working-capital effects, while Greater China revenue fell 19.3% and remains under strategic review, including a potential carve-out.

Oatly Group Stock Performance

OTLY traded down $3.54 on Wednesday, reaching $8.21. 427,218 shares of the company’s stock were exchanged, compared to its average volume of 92,168. Oatly Group has a twelve month low of $8.01 and a twelve month high of $16.20. The company’s 50 day moving average is $12.55 and its 200-day moving average is $11.37. The company has a market cap of $262.00 million, a price-to-earnings ratio of -1.99 and a beta of 1.81.

Wall Street Analyst Weigh In

Several research analysts have commented on OTLY shares. Weiss Ratings reiterated a “sell (e+)” rating on shares of Oatly Group in a report on Monday, September 21st. Barclays set a $13.00 price target on shares of Oatly Group and gave the stock an “overweight” rating in a research note on Friday, October 16th. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $14.39.

About Oatly Group

Oatly Group AB is a Sweden-based food and beverage company focused on developing, producing and selling oat-based alternatives to dairy products. Its portfolio includes oat drinks, barista beverages, yogurt-style products, cooking creams, spreads, ice cream and other oat-based foods and beverages.

The company was founded in the 1990s in Sweden, based on research into the nutritional and functional properties of oats. Oatly markets its products under the Oatly brand and emphasizes plant-based nutrition, sustainability and the use of oats as an alternative to dairy ingredients.

Oatly sells its products through grocery retailers, foodservice operators, cafés and e-commerce channels across Europe, North America and parts of Asia.