Oatly Group (NASDAQ:OTLY) saw its shares surge 29% on Wednesday after the oat drink maker reported second quarter results that showed higher revenue, improved margins and progress toward profitability, while raising its full-year revenue outlook.
The company reported Q2 revenue of $240.1 million, up 15.2% from $208.4 million a year earlier. On a constant currency basis, revenue increased 12.7%, driven by growth across its Europe & International, North America and Greater China segments.
Oatly's Europe & International segment posted the strongest growth, with revenue rising 21% year over year to $143.1 million, while North America revenue increased 5.9% to $66.9 million. Greater China revenue rose 11.6% to $30.1 million.
"I am pleased to report another quarter of profitable growth marked by demand-led value creation," Oatly CEO Jean-Christophe Flatin said. "Our second quarter results reflect the disciplined execution of our strategy, including improvements to the mix of channels, customers, and products."
Following the quarterly performance, Oatly raised its 2026 revenue growth outlook. The company now expects constant currency revenue growth of 8% to 10%, compared with its previous forecast of 3% to 5%. Based on recent foreign exchange rates, Oatly expects currency movements to provide a 200 to 250 basis point tailwind to revenue growth for the full year.
The company maintained its adjusted EBITDA outlook of $25 million to $35 million and expects capital expenditures of between $20 million and $30 million.
Oatly noted that its outlook assumes the impact of the conflict in the Middle East does not worsen from current expectations.
Jefferies highlighted Oatly's second-quarter results as a strong performance, noting the company delivered a significant revenue beat alongside improved adjusted EBITDA.
The firm wrote that Oatly's strategy was gaining traction, particularly in Europe and International markets, where growth was supported by both new and existing customers, and suggested the approach could be extended to North America.
Jefferies also pointed to the company's raised revenue outlook, with Oatly now expecting 8% to 10% constant currency sales growth compared with its previous forecast of 3% to 5%.
While the firm noted that the adjusted EBITDA outlook was unchanged due to higher costs, it wrote that Oatly's cautious approach was reasonable given the broader external environment.
