Stryve Foods (SNAX) Q2 2024 earnings summary

Executive summary

• Q2 2024 marked significant progress in transformation, with net sales rising to $6.2 million, up 3% year-over-year and 34.4% sequentially, driven by higher retail sell-through, improved distribution, and operational efficiency.

• Gross margin expanded to 27.4% from 17.5% in Q2 2023, reflecting productivity, yield improvements, and cost management despite higher beef costs.

• Operating loss narrowed to $2.2 million, a 33.8% improvement year-over-year, with operating expenses down 11.3% due to cost discipline and transformation initiatives.

• Net loss for Q2 2024 was $3.0 million ($0.91/share), improved from $4.3 million ($2.05/share) in Q2 2023; six-month net loss was $6.9 million.

• The company is in the final phase of its transformation plan, focusing on quality growth, brand reinvigoration, and disciplined spending.

Financial highlights

• Q2 2024 net sales: $6.2 million (+3% YoY); six months: $10.8 million (+2%).

• Q2 2024 gross profit: $1.7 million (27.4% margin); six months: $2.7 million (25.1% margin).

• Q2 2024 operating loss: $2.2 million; six months: $5.2 million.

• Adjusted EBITDA loss improved by 34.8% year-over-year to $1.5 million, and by nearly 90% from Q2 2022.

• Net loss for six months: $6.9 million ($2.29/share), improved from $9.0 million ($3.98/share) prior year.

Outlook and guidance

• FY 2024 net sales guidance is $23–$26 million, representing 30–46.9% year-over-year growth.

• Management expects increased volumes and retail momentum to drive further gross margin improvement.

• Liquidity remains a concern, with additional external financing required to support growth and working capital.