Oatly Shares Face Pressure Despite Mixed Quarterly Performance

Oatly Group AB's latest quarterly report presents investors with a complex picture, where operational improvements clash with deepening bottom-line losses. The plant-based beverage company's third-quarter results revealed significant progress in operational profitability, yet this was overshadowed by a substantial net loss that has continued to weigh heavily on share performance.

The company's adjusted EBITDA showed marked improvement, reaching $3.1 million compared to a $5.0 million loss during the same period last year. However, this positive development was eclipsed by a net loss attributable to shareholders that ballooned to $65.3 million—more than double the previous year's figure. This dramatic increase was primarily driven by fair-value losses on convertible notes.

On the revenue front, Oatly delivered better-than-expected results with sales reaching $222.80 million, surpassing analyst projections by $11.80 million. This represents year-over-year growth of 7.11%. Despite this revenue beat, the company significantly missed earnings expectations, reporting a loss per share of -$2.15 compared to the anticipated -$0.63.

Market Reaction and Technical Outlook

Financial markets responded decisively to the mixed report. Following the October 29th earnings release, Oatly shares declined by 3.46%, with the downward trend continuing through November 3rd when the stock fell an additional 6.02%. Technical indicators currently suggest:

Should investors sell immediately? Or is it worth buying Oatly?

• Both short-term and long-term moving averages signal selling pressure
• Current trading price sits at $14.57
• Consensus price target among analysts stands at $17.75

Among the seven banking institutions covering the stock, the majority maintain merely a "Hold" recommendation. The wide dispersion in price targets—ranging from $12.00 to $24.00—highlights the considerable uncertainty surrounding the company's prospects.

Guidance Adjustments Add to Concerns

While Oatly reaffirmed its full-year 2025 EBITDA forecast of $5 to $15 million, the company tempered its revenue expectations. Previously anticipating 2-4% growth, management now projects revenues to remain flat or show only modest improvement.

The company recently launched a limited-edition oat-based hot beverage in the US market, potentially providing a boost during the critical holiday season. However, investors will need to wait until the spring of 2026 for the next quarterly results to gauge whether this initiative can meaningfully impact performance. Until then, market participants face continued uncertainty as they navigate these challenging market conditions.