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MC

Mama's Creations, Inc. (MAMA)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 FY26 delivered 24% YoY revenue growth to $35.2M, gross margin 24.9%, and diluted EPS $0.03; adjusted EBITDA rose 18% to $3.3M, supported by volume-driven gains and targeted pricing amidst chicken commodity headwinds .
  • Wall Street consensus was exceeded: revenue beat by 4.8% ($35.20M vs $33.63M*) and EPS beat ($0.0366* vs $0.02*); EBITDA also modestly beat (~$2.664M* vs $2.464M*) . Values marked with * retrieved from S&P Global.
  • Crown 1 acquisition (closed early Sept) adds ~$56M TTM revenue and immediate capacity, with consolidated gross margin expected in “low-20%” near term, trending higher over 12–18 months as synergies lift Crown’s mid-teens margin toward Mama’s levels .
  • Commercial catalysts: first-ever national Costco print MVM in Q4 (beef meatballs), broad club/mass momentum (Costco, Sam’s, BJ’s, Walmart), and paninis scaling to >2,000 doors with strong velocities .
  • Balance sheet strengthened YTD: cash $9.4M, total debt down to $2.7M; amended credit facility provides $27.4M capacity and new $20M PA line to support accretive M&A integration .

What Went Well and What Went Wrong

What Went Well

  • Volume-led growth and pricing discipline: revenue +24% YoY with targeted pricing implemented by early Q2 to protect margins; management: “operational work in chicken improved yields and cut overtime meaningfully” .
  • Strategic acquisition accelerant: Crown adds ~$56M revenue, premium customers, nearby 42k sq. ft. USDA facility, and cross-sell potential; CEO: “Pro forma, Crown moves our revenue run-rate toward ~$200M” .
  • Club/mass wins as catalysts: confirmation of first-ever national Costco MVM in Q4; paninis exploded to >2,000 doors, beating velocity expectations; Walmart chicken expanding to ~1,800–2,000 doors with double-digit ROAS .

What Went Wrong

  • Margin mix reset with Crown: near-term consolidated gross margins guided to “low-20%” given Crown’s mid-teens margins, before synergies lift toward Mama’s historic mid/high-20s levels .
  • Elevated trade spend variability: Q2 trade at 2.2% (vs Q1’s 6%) as management flexed the “seesaw” between trade and commodities; YTD trade ~3x prior-year (> $3M vs < $1M) to drive velocities and brand building .
  • Chicken cost headwinds: while improving late in Q2, management cited ongoing protein commodity pressures impacting margins; Q&A noted chicken had been ~$1/lb lower than June and beef rising—still a watch item .

Financial Results

MetricQ4 2025Q1 2026Q2 2026
Revenue ($USD Millions)$33.6 $35.3 $35.2
Diluted EPS ($USD)$0.04 $0.03 $0.03
Gross Margin (%)27.0% 26.1% 24.9%
Net Income Margin (%)4.8% 3.5% 3.6%
Adjusted EBITDA ($USD Millions)$3.09 $2.84 $3.26

Estimate vs Actual (Q2 FY26):

MetricConsensusActualSurprise
Revenue ($USD Millions)$33.63*$35.20 +$1.57*
Primary EPS ($USD)$0.02*~$0.0366*+$0.0166*
EBITDA ($USD Millions)$2.46*~$2.664*+$0.20*

Values marked with * retrieved from S&P Global.

KPIs and Balance Sheet

KPIQ4 2025Q1 2026Q2 2026
Trade Promotion Rate (% of gross revenue)N/A6% 2.2%
Cash and Cash Equivalents ($USD Millions)$7.15 $12.01 $9.38
Total Debt ($USD Millions)$5.1 $4.6 $2.7

Segment breakdown: Not reported.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Gross Margin ProfileNear term FY26High-20% normalized (pre-Crown) Low-20% initially with Crown; trend higher over 12–18 months as synergies/mix improve Lowered near term, positive trajectory
Crown Gross Margin12–18 monthsN/AMid-teens now; targeting toward Mama’s levels over 12–18 months New
Trade Promotion StrategyFY26Flex toward ~10% goal when margins allow; Q1 at 6% Seesaw approach; Q2 at 2.2%; YTD ~3x last year; balance vs commodity conditions Maintained flexible, tactical
Revenue Run-Rate (Pro Forma)CurrentN/A~$200M with Crown New
Leverage/FacilityCurrentExisting LOC/term loan Amended credit facility to $27.4M, new $20M PA line for acquisitions Increased capacity

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY25 and Q1 FY26)Current Period (Q2 FY26)Trend
Chicken commodity costsHedged ~50% of protein volume; CapEx to double chicken throughput; overtime cut via staffing model Prices declined post-June; throughput up with six grills; continued watch on beef Improving cost tailwinds and throughput
Trade promotionQ1 record trade at 6% of gross revenue; high ROAS across Publix/Costco/Walmart Q2 trade 2.2%; YTD ~3x prior year; flexible lever vs margins Tactical modulation
Club channel (Costco)Q1 digital MVM across all 8 regions; club growth National print MVM confirmed for Q4; pathway to everyday item discussed Strengthening catalyst
Crown integrationN/AAdds ~$56M revenue; capacity, premium customers; margin uplift plan 12–18 months New scale, synergy plan
Mass channel (Walmart)New chicken items; strong digital ROAS; doors expanding Doors ~1,800–2,000; continued expansion and campaigns Scaling footprint
Convenience channelBuilding distributor network (Sysco, Dot, KeHE, McLane) Sheetz paninis >2,000 doors; strong velocities; more C-store testing Growing

Management Commentary

  • “Pro forma, Crown moves our revenue run-rate toward ~$200M and advances our 2030 $1B vision… With added capacity, premium customer access, and continued innovation, we’re positioned to drive profitable growth and margin expansion in the coming quarters.” – CEO Adam Michaels .
  • “We believe that over the next 12–18 months… we can structurally lift our combined gross margin profile from the low 20% range today towards Mama’s historical levels in the mid to high 20% range.” – CFO Anthony Gruber .
  • “Our biggest surprise this year has been… our paninis exploded and are now in over 2,000 doors… beating all velocity expectations.” – CEO Adam Michaels .

Q&A Highlights

  • Margin outlook and commodities: Chicken prices declined meaningfully after June; throughput improved (six grills); trade spend flexes with commodity backdrop to protect margins .
  • Crown revenue/mix and SKU rationalization: Management will right-size SKUs, emphasize cross-selling; Crown facility (42k sq. ft.) and added grills reduce overtime and expand capacity .
  • Costco trajectory: National MVM in Q4 positions pathway to everyday item; club momentum broad-based (BJ’s tortellini/sweet potatoes; Sam’s panini) .
  • CapEx: No major near-term CapEx required; Crown’s enhanced facility reduces system CapEx (net negative CapEx vs plan in some areas) .
  • Walmart/Kroger/Target: Walmart doors expanding (~1,800–2,000), double-digit ROAS; active discussions with Kroger/Target to diversify customer base .

Estimates Context

  • Q2 FY26 beats: revenue $35.20M vs $33.63M*, EPS ~$0.0366* vs $0.02*, EBITDA ~$2.664M* vs $2.464M* . Values marked with * retrieved from S&P Global.
  • Forward consensus (near-term): Q3 FY26 revenue ~$43.21M*, EPS -$0.01*, EBITDA ~$2.65M*; Q4 FY26 revenue ~$50.07M*, EPS $0.05*, EBITDA ~$4.28M*. Values marked with * retrieved from S&P Global.
  • Consensus recommendation text unavailable in the dataset.

Key Takeaways for Investors

  • Q2 demonstrated resilient, volume-led growth with disciplined pricing and operational efficiency, enabling beats vs Street on revenue/EPS/EBITDA despite commodity headwinds . Values marked with * retrieved from S&P Global.
  • Crown 1 is a strategic accelerant: immediate capacity, premium customers, and cross-sell opportunities with a clear 12–18 month margin-uplift plan; near-term consolidated margins reset to low-20% but trend higher as synergies flow .
  • Club/mass momentum are tangible catalysts: national Costco MVM in Q4 and Walmart door expansion underpin near-term velocity and brand equity gains; paninis scaling rapidly with strong velocities .
  • Balance sheet and liquidity support integration and selective M&A: cash $9.4M, total debt $2.7M; amended facility and $20M PA line add financial flexibility .
  • Trade spend is a tactical lever: expect variability intra-year as management “seesaws” spend against commodity conditions to balance margin and growth .
  • Watch commodity dynamics: chicken costs improved late Q2; beef rising; hedges and operational efficiencies (tumbling, trimming, throughput) mitigate impact .
  • Near-term stock catalysts: Q4 national Costco MVM and Crown integration updates; medium-term re-rating potential as consolidated margins trend back toward mid/high-20% with synergy realization .

Notes:

  • Non-GAAP: Adjusted EBITDA reconciliation provided in the 8-K press release (Q2: $3.26M; Q1: $2.84M; Q4: $3.09M) .
  • All S&P Global estimate values are marked with * and were retrieved from S&P Global.