Question · Q4 2025
Luke Maloney inquired about the company's expectations for its $195 million cash balance, particularly regarding M&A opportunities and cash allocation. He also asked about innovation plans for 2026 and expectations for marketing spend.
Answer
Executive Chairman Mike Kirban reiterated that the priority is core brand and category growth, with M&A playing a role at some point, remaining active but disciplined. He noted that cash has been returned to shareholders through repurchases, with no overall change in approach. CEO Martin Roper discussed innovation, mentioning continued pushes for Treats (with an additional flavor expected) and multi-packs, emphasizing the need for a pipeline of pack innovation. He stated that marketing spend would increase, potentially faster than net sales on the branded side, to push the hydration message and protect the brand against private label price gaps, balancing increased marketing with promotional investments.
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