Oatly Group (OTLY) opened 2026 with Q1 results that keep the spotlight on revenue scale and persistent losses, following 2025 figures that showed Q4 revenue of US$233.8 million alongside basic EPS of a US$0.61 loss and net income of a US$19.1 million loss. Over recent quarters, the company reported revenue of US$214.3 million in Q4 2024, US$197.5 million in Q1 2025, and US$233.8 million in Q4 2025, while basic EPS moved from a US$3.05 loss in Q4 2024 to a US$0.41 loss in Q1 2025 and a US$0.61 loss in Q4 2025. For investors, the latest results keep the focus on how quickly margins can improve from current loss-making levels.

See our full analysis for Oatly Group.

With the headline numbers on the table, the next step is to see how this earnings story lines up with the most common narratives around Oatly, and where the fresh data pushes back against those views.

Trailing Losses At US$152.8 Million On US$862.5 Million Revenue

• Over the trailing 12 months to Q4 2025, Oatly generated US$862.5 million of revenue while recording a net loss of US$152.8 million and basic EPS of US$5.03 loss.
• Consensus narrative talks about margin improvements and an eventual path toward better earnings, yet the trailing figures still show sizeable losses, which keeps the focus on:
  • Revenue growing at 4.3% per year compared with the cited 11% per year US market benchmark, so top line expansion is slower than that reference point.
  • Losses having grown at about 3.1% per year over the past five years, which contrasts with the idea of earnings moving quickly toward industry level profitability.

Ongoing Unprofitability Challenges The Bear Case Timing

• Across 2025, quarterly net losses ranged from US$12.4 million to US$65.3 million, with basic EPS losses between US$0.42 and US$2.15, showing that none of the recent quarters in the data were profitable.
• Bears highlight cost pressure and profit challenges, and the history in the data supports those concerns, but there is also tension with some of the bearish points:
  • Trailing 12 month losses of US$152.8 million are still large, which fits the view that profitability is hard to achieve, while the dataset also notes eight consecutive quarters of cost of goods reductions, pointing to ongoing cost work that could influence future margins.
  • Guidance in the narratives referring to flat to 1% revenue growth and modest adjusted EBITDA targets aligns with the idea that earnings progress may be slow, rather than a sudden break higher that would quickly remove the bearish arguments.

Do not ignore how these loss trends line up with what skeptics are saying about Oatly's path to sustainable profits, then weigh that against any shift you see in the detailed bear thesis. 🐻 Oatly Group Bear Case

P/S Of 0.4x Versus Peers At 1.7x

• The shares trade on a P/S of 0.4x compared with the cited peer average of 1.7x and a US Food industry average of 0.7x, with the analysis also flagging a DCF fair value of US$21.47 versus the current share price of US$10.87.
• Bullish investors point to this gap as an opportunity, but the numbers create a mixed picture rather than a one sided story:
  • The roughly 49.4% discount to the stated DCF fair value and the lower P/S multiple than peers support the bullish view that the market is applying a heavy discount to Oatly compared with other food names.
  • At the same time, forecasts in the dataset still describe Oatly as unprofitable over the next three years, with trailing 12 month losses of US$152.8 million, so any re rating argument rests on a company that currently does not generate positive earnings.

If you want to see how optimistic investors connect these valuation gaps to their long term expectations for Oatly, it is worth reading the full bullish narrative and checking how it stacks up against the current fundamentals. 🐂 Oatly Group Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Oatly Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards on the table, the real question is how this mix lines up with your own expectations and risk tolerance, so it is worth taking a close look at the balance of potential upside and downside by checking the 2 key rewards and 1 important warning sign.

See What Else Is Out There

Oatly is still producing sizeable losses on US$862.5 million in revenue, with guidance pointing to slow earnings progress and no clear profitability in sight.

If that mix of ongoing losses and uncertain earnings timing feels uncomfortable, it is worth checking companies with stronger fundamentals using the solid balance sheet and fundamentals stocks screener (1 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.