Oatly Group AB (NASDAQ:OTLY) reported a 9.1% increase in third-quarter 2026 revenue to $243.1 million, supported by growth in Europe and North America, but reduced its full-year adjusted EBITDA guidance as higher fuel and freight costs weighed on its profitability outlook.
The Swedish oat drink producer reported revenue of $243.1 million for the quarter ended September 30, compared with $222.8 million in the corresponding period of 2025. Revenue increased 8.9% on a constant-currency basis, while total sales volumes rose 4.2% to 156.9 million litres.
Oatly narrowed its quarterly net loss attributable to shareholders to $27.5 million from $65.3 million a year earlier, while adjusted EBITDA increased to $9.4 million from $3.1 million.
Despite the improvement, the company lowered its full-year adjusted EBITDA forecast to between $16 million and $20 million, compared with its previous guidance of $25 million to $35 million.
Europe and International Revenue Grows 19.5%
Oatly’s Europe and International segment reported revenue of $147.2 million, an increase of 19.5% from $123.3 million in the prior-year quarter.
On a constant-currency basis, revenue grew 20.4%, supported by a 17.6% increase in sales volumes, particularly across the company’s Barista product range.
Retail accounted for approximately 78% of regional revenue, compared with 79% a year earlier.
Adjusted EBITDA for the segment increased to $31.5 million from $21.9 million, reflecting higher sales and improvements in supply chain productivity.
The increase was partly offset by higher distribution expenses, inflation-related costs and additional spending on branding and advertising.
North America Returns to Positive Adjusted EBITDA
North American revenue increased 2.8% to $63.8 million from $62.1 million in the third quarter of 2025.
The company reported volume growth of 0.4%, primarily supported by its retail operations.
Retail sales accounted for approximately 68% of regional revenue, up from 61% in the corresponding period last year.
Adjusted EBITDA improved to a profit of $0.3 million, compared with a loss of $1.3 million a year earlier.
However, Oatly said increased customer distribution expenses, higher fuel costs and constraints in the US freight market continued to affect regional profitability.
Greater China Revenue Falls 14.6%
Oatly’s Greater China business reported revenue of $32.0 million, down 14.6% from $37.4 million in the previous year.
On a constant-currency basis, revenue declined 19.3%, primarily reflecting lower volumes amid increased competition in the foodservice market.
Sales volumes fell to 23.9 million litres from 32.5 million litres a year earlier.
Foodservice represented approximately 44% of regional revenue, compared with 66% in the third quarter of 2025, as the company’s sales mix shifted towards retail.
The segment recorded an adjusted EBITDA loss of $1.9 million, compared with a profit of $1.6 million in the prior-year quarter.
Oatly continues to conduct a strategic review of its Greater China operations, which it expects to complete before the end of 2026.
The company has not announced a definitive timetable or confirmed whether the review will result in a transaction or other strategic changes.
Gross Margin Expands as Quarterly Loss Narrows
Oatly reported gross profit of $83.0 million, compared with $66.3 million in the third quarter of 2025.
Gross margin increased to 34.1% from approximately 29.7%, representing an improvement of 436 basis points.
The increase reflected supply chain efficiencies and improvements in pricing and product mix across its regional businesses.
However, higher energy and logistics expenses associated with the Middle East conflict, together with freight market constraints in the United States, partially offset those gains.
Selling, general and administrative expenses increased to $85.3 million from $75.1 million, reflecting higher advertising, branding and distribution costs.
Chief Executive Officer Jean-Christophe Flatin said the company had continued to improve its operating performance while investing in growth.
“I am pleased to report another quarter of strong revenue growth accompanied by substantial improvement in our Adjusted EBITDA. Our third quarter results reflect continued strong returns from our growth playbook including growth in market share, household penetration, and distribution,” Flatin said.
The company also announced the launch of a new fibre beverage platform, expanding its product range into the wellness category.
Oatly Cuts 2026 Adjusted EBITDA Guidance
Oatly maintained its full-year 2026 constant-currency revenue growth forecast of 8% to 10%.
The company expects foreign exchange movements to contribute approximately 200 to 250 basis points to reported revenue growth, unchanged from its previous outlook.
However, it reduced its adjusted EBITDA guidance to between $16 million and $20 million, down from the earlier forecast of $25 million to $35 million.
The reduction reflects higher-than-anticipated fuel and freight inflation in North America, which the company expects to affect fourth-quarter profitability.
Flatin said the latest cost increases had developed more quickly than anticipated, limiting the company’s ability to offset their impact before the end of the year.
Capital expenditure guidance remains unchanged at $20 million to $30 million.
Cash Position and Debt
Oatly reported cash and cash equivalents of $23.3 million as of September 30, 2026, alongside total outstanding debt of $523.2 million.
For the first nine months of the year, net cash used in operating activities decreased to $11.5 million from $17.4 million in the corresponding period of 2025.
Capital expenditure increased to $19.2 million from $13.8 million.
Free cash flow remained negative at $30.7 million, compared with an outflow of $31.1 million a year earlier.
Oatly Outlook
Oatly’s third-quarter results reflected revenue growth and improved profitability, particularly in Europe and International, while North America returned to positive adjusted EBITDA.
However, declining sales in Greater China and higher logistics costs continued to affect the business.
The company has maintained its full-year constant-currency revenue growth expectations but reduced its adjusted EBITDA forecast as cost pressures are expected to continue into the fourth quarter.
Oatly’s remaining 2026 priorities include managing inflation-related expenses, expanding its product portfolio and completing the strategic review of its Greater China operations.