Sweetgreen 2025 Q2 Earnings Net Loss Widen 60.2%

Sweetgreen reported its fiscal 2025 Q2 earnings on August 8, 2025, showing continued financial challenges. The company missed expectations with a widened net loss and only modest revenue growth, signaling ongoing struggles amid macroeconomic pressures and operational transitions.

Sweetgreen’s Q2 2025 results did not meet expectations, as net losses widened by 60.2% year-over-year, while revenue grew by just 0.5%, indicating persistent operational and economic headwinds. The company did not provide updated guidance for the remainder of the year, and the earnings report underscores the need for continued strategic adjustments to restore profitability.

Revenue

Revenue for the quarter increased slightly to $185.58 million, compared to $184.64 million in the same period last year. The increase was driven by performance across the company’s multiple sales channels, with the Owned Digital Channels contributing $62.05 million and the In-Store Channel (Non-Digital component) generating $72.82 million. The Marketplace Channel added $50.71 million to the total revenue. This diverse revenue stream reflects Sweetgreen’s multi-channel approach to driving customer engagement and sales.

Earnings/Net Income

Sweetgreen's earnings continued to show significant losses, with a net loss widening to $-23.16 million in Q2 2025, a 60.2% increase from the $-14.46 million loss in Q2 2024. On a per-share basis, the loss expanded to $0.20, up from $0.13 the previous year. These figures highlight the company’s ongoing financial challenges, with losses deepening for the fifth consecutive year in the corresponding quarter, underscoring the severity of the situation.

Price Action

The stock price of Sweetgreen experienced mixed performance in the short term, gaining 7.51% during the latest trading day but plummeting 18.36% during the most recent full trading week. The month-to-date decline reached 26.93%, reflecting investor uncertainty and sensitivity to earnings outcomes.

Post-Earnings Price Action Review

A strategy of buying SG when revenues beat and holding for 30 days performed poorly, returning -86.19% and underperforming the benchmark by 119.08%. This result highlights the high risk associated with the stock post-earnings, exacerbated by a Sharpe ratio of -0.54 and a maximum drawdown of 0.00%, indicating significant volatility and lack of positive risk-adjusted returns.

CEO Commentary

Jonathan Neman, Co-Founder and CEO, acknowledged the difficult quarter marked by macroeconomic pressures, a tough comparison to last year’s strong performance, and challenges from a loyalty program transition. He expressed confidence in the company’s ability to improve performance in the back half of 2025, citing early momentum from the new loyalty program and a successful summer menu. Mitch Reback, CFO, emphasized the strength of Sweetgreen’s financial model and strategic focus on guest experience, execution, and consistency to drive sustainable growth.

Guidance

The company did not provide updated quantitative guidance for the remainder of the year. Leadership expressed confidence in the resilience of the business model and strategic initiatives, including the rollout of the new loyalty program and summer menu enhancements, while focusing on improved restaurant-level execution.

Additional News

Recent developments in Nigeria highlight the volatile economic and political landscape in the region. The country’s FDI has dropped by 70% in three months, reflecting broader concerns about investment and economic stability. In the political sphere, the Abia State chapter of the Peoples Democratic Party mocked a former deputy governor for resigning from the party, while tensions continue in various political factions across the country. Meanwhile, law enforcement in Akwa Ibom State arrested a ritualist for allegedly aiding armed robbers, showcasing the persistent issue of crime and superstition in local communities.