Executive Summary

Q4 FY2025 delivered broad-based growth and margin recovery: revenue $33.585M (+25.7% YoY) with gross margin 27.0%, net income $1.600M and diluted EPS $0.04, and adjusted EBITDA $3.088M .
Results beat Wall Street consensus: revenue $31.019M*, EPS $0.0267*; actuals were $33.585M and $0.04, respectively; growth was driven primarily by volume (>85%) and supported by pricing actions; bold beat on both revenue and EPS* .
Sequential margins improved sharply post-capex completion; chicken capacity doubled, and fixed-price protein contracts now hedge at least 50% of FY2026 volume, de-risking commodity volatility .
Management reiterated normalized gross margin in high-20% and long-term low-30% targets; trade promotion to increase over time toward 10% of revenue as margin headwinds ease .
Near-term stock reaction catalysts: sustained margin expansion, Walmart/Costco scale-up, fixed-price commodity coverage, and S&OP/NetSuite-driven operational discipline .

What Went Well and What Went Wrong

What Went Well

Margin recovery and capacity expansion: “a 440 basis point sequential improvement to a fiscal year record quarterly gross margin of 27%” enabled by completed capex to more than double chicken capacity .
Demand and customer wins: All eight Costco regions, Walmart rollout, Kroger HomeChef, Lidl, BJ’s, and Sheetz; >70% of Instacart shoppers are new-to-brand; Walmart ROAS approaching $9 and Instacart ROAS >$5 .
Risk management: First-ever fixed-price protein contracts covering >50% of FY2026 volume to buffer commodity spikes; management focused on in-house trimming to lower costs and improve throughput .

What Went Wrong

YoY margin compression vs prior year: Q4 gross margin 27.0% vs 29.3% LY as chicken costs stayed historically high; operating expenses also rose with strategic hiring and higher marketing .
Trade spend pacing below plan in Q4 due to margin prudence: “down from about 2.6% in Q3 to 2.1% in Q4”; ramp contingent on further margin improvements .
Regional mix pressure: Northeast decline tied to deliberate exit from unprofitable street business despite strength across clubs and West region expansion .

Financial Results

Metric	Q4 2024	Q3 2025	Q4 2025
Revenue ($USD Millions)	$26.725	$31.523	$33.585
Diluted EPS ($USD)	$0.04	$0.01	$0.04
Gross Margin %	29.3%	22.6%	27.0%
Gross Profit ($USD Millions)	$7.821	$7.113	$9.078
Operating Expenses ($USD Millions)	$5.856	$6.550	$7.149
Net Income ($USD Millions)	$1.408	$0.410	$1.600
Adjusted EBITDA ($USD Millions)	$2.840	$1.740	$3.088

Segment breakdown: Not disclosed; management highlights breadth across clubs (Costco National Buy in six regions) and new mass retail entries (Walmart) rather than formal reporting segments .

Key KPIs

KPI	Q3 2025	Q4 2025
Cash and Cash Equivalents ($USD Millions)	$9.319	$7.150
Total Debt ($USD Millions)	$6.3	$5.1
Trade Promotion (% Revenue)	~2.6% (management)	~2.1% (management)
Chicken Throughput Growth	+90% YoY; +34% QoQ	Sustained post-capex
Fixed-Price Protein Coverage (FY2026 volume)	Initiated	>50%
Instacart ROAS	>$5	>$5
Walmart ROAS	—	~$9

Guidance Changes

Metric	Period	Previous Guidance/Outlook	Current Guidance/Outlook	Change
Revenue growth cadence	FY2026	Double-digit growth ambition (Investor Day/Q3 call)	Management “believes” it can grow double digits consistently; avoids formal “guidance”	Maintained (directional)
Normalized Gross Margin	Ongoing	High-20% range (normalized)	High-20% range reiterated	Maintained
Long-term Gross Margin	LT	Low-30% range target	Low-30% range target reiterated	Maintained
Adjusted EBITDA Margin	LT	Teens % target	Teens % target reiterated	Maintained
Trade Promotion Investment	LT	Grow from low single-digit % to ~10%	Q4 lowered near-term spend; LT target unchanged	Near-term lowered; LT maintained
Commodity Risk Mitigation	FY2026	—	>50% fixed-price protein coverage; weekly spread deliveries	New risk hedge detail

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 and Q3)	Current Period (Q4)	Trend
Supply chain/capex	Construction at Farmingdale impacted margins by ~500 bps (Q2), ~400 bps (Q3); doubling chicken capacity; ERP/warehouse system added	Capex completed; sequential margin up; S&OP launched; throughput gains	Improving execution; margin recovery
Commodity & hedging	Chicken at historic highs; proactive pricing and in-house trimming; evaluating contracts	>50% fixed-price protein contracts; weekly spreads; trimming to majority by mid-year	Hedged; operational offset
Product/customer wins	Costco National Buy; Walmart initial 2,000 stores; BJ’s, Publix programs	All 8 Costco regions; Walmart ROAS ~$9; Kroger HomeChef; Lidl; Sheetz	Accelerating breadth
Trade promotion/marketing	Ramp planned, constrained by margin; ROAS >$5; Costco geotargeting	Q4 trade spend prudence (2.1%); plan to scale as margins strengthen	Near-term cautious; LT ramp
Technology/controls	NetSuite ERP; warehouse management; quality PCR/X-ray	S&OP initiated; audits: Costco 99.8; SQF 98%/97%	Maturing systems
Regional mix	West growth; Northeast street-business exit	Continued broad-based club/mass expansion	Mix improving toward scalable channels
M&A	Pipeline building; selective pricing discipline	Team capacity to pursue deals; will not overpay	Active evaluation

Management Commentary

“The fourth quarter was highlighted by a robust 25.7% broad-based revenue growth and a 440 basis point sequential improvement to a fiscal year record quarterly gross margin of 27%. These results were enabled by the completion of strategic CapEx investments… to more than double our chicken capacity.” — Adam Michaels, CEO .
“With over half of our expected protein needs for the new fiscal year locked in via fixed price agreements, we have built a robust foundation to buffer near-term commodity fluctuations.” — Adam Michaels, CEO .
“Operating expenses… decreased as a percentage of sales in Q4 to 21.3% from 21.9%… partially offset by strategic new hires… and a 93% year-over-year increase in marketing spend… to help drive repeatable and profitable growth.” — Anthony Gruber, CFO .
“Our long-term goal is to achieve adjusted EBITDA margins in the teens percentage range.” — Anthony Gruber, CFO .

Q&A Highlights

Pricing vs volume mix: Management stated “probably 90%, definitely over 85%” of Q4 revenue growth was volume-driven; pricing is managed continuously with collaborative customer dialog .
Fixed-price commodity contracts: >50% of protein needs locked at fixed prices for the full year, delivered weekly to smooth gross margin; trimming to majority in-house by mid-year .
Trade promotion cadence: Q4 spend curtailed to ~2.1% (from ~2.6% in Q3) to protect margins; plan to ramp as margin expands .
Walmart rollout: Two SKUs across ~2,000 stores; early read positive with reorders >2x initial orders; ROAS trending ~$9 .
Tariffs/macro: Primary inputs (chicken/beef) domestically sourced; proactive multi-sourcing and preventive maintenance mitigate indirect tariff effects; no current business impact observed .

Estimates Context

Metric	Consensus (Q4 2025)	Actual (Q4 2025)	Beat/Miss
Revenue ($USD)	$31.019M*	$33.585M	Beat
Primary EPS ($USD)	$0.0267*	$0.04	Beat

Values retrieved from S&P Global.*
Coverage: Revenue # of estimates = 4*; EPS # of estimates = 3*.
Implication: Consensus likely to reset upward given top-line outperformance and demonstrated sequential margin recovery .

Key Takeaways for Investors

Margin trajectory improving post-capex; normalized high-20% gross margin reaffirmed with credible path to low-30% LT via trimming, automation, procurement and S&OP .
Volume-led growth with multiple Tier-1 wins (Costco all regions, Walmart) supports durable share gains and cross-sell runway; marketing ROI metrics (ROAS) validate scalable demand generation .
Commodity risk materially mitigated by >50% fixed-price protein contracts and in-house trimming; expect smoother gross margin profile across FY2026 .
Near-term trade spend prudence (Q4) suggests disciplined P&L stewardship; expect reinvestment to accelerate as margin expands toward targets .
Balance sheet strengthening: debt down to $5.1M, cash $7.150M; improved flexibility to pursue selective M&A without overpaying .
Trading setup: Catalysts include sustained margin expansion prints, Walmart scale-up, Costco National Buy velocity, and confirmation of FY2026 volume hedges; monitor commodity trends and trade spend ramp pace .
Watch for execution on sales mix optimization (trimming-led SKUs) and S&OP benefits to throughput, case-fill, and working capital .

Additional Data and References:

Q4 FY2025 8-K earnings press release: revenue, margins, EPS, adjusted EBITDA, cash/debt, non-GAAP reconciliation .
Q4 FY2025 earnings call transcripts: operational updates, pricing/volume mix, ROAS, fixed-price hedges, trade spend, Walmart rollout, tariffs .
Prior quarters for trend: Q3 FY2025 8-K and call (construction impact, margin recovery in November, customer/program wins) ; Q2 FY2025 8-K and call (capex timing, margin impact, Costco/Walmart initiation) .

Mama's Creations, Inc. (MAMA)·Q4 2025 Earnings Summary