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Mama's Creations Q2 Earnings Beat Estimates, Sales Rise 24% Y/Y

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Key Takeaways

  • Mama's Creations posted EPS of 3 cents, beating estimates and rising 6.9% year over year.
  • Revenues jumped 24% to $35.2M, driven by volume growth, cross-selling and new customers.
  • Gross margin rose 70 bps to 24.9% as efficiency gains offset chicken commodity headwinds.

Mama's Creations, Inc. ((MAMA - Free Report) ) reported second-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.

Management highlighted strong second-quarter results, with revenue growth outpacing the category, improved chicken operations and disciplined trade investments driving margin delivery. Most recently, the company signed an agreement to acquire Crown 1 from Sysco for $17.5 million, adding $56 million in revenues, a USDA facility in Bay Shore, NY and access to new premium retail partners.

MAMA’s Quarterly Performance: Key Metrics and Insights

Mama’s Creations, a leading national marketer and manufacturer of fresh deli-prepared foods, posted quarterly earnings of 3 cents per share, which beat the Zacks Consensus Estimate of 2 cents and increased 6.9% from the prior-year period.

Mama's Creations, Inc. Price, Consensus and EPS Surprise

Mama's Creations, Inc. Price, Consensus and EPS Surprise

Mama's Creations, Inc. price-consensus-eps-surprise-chart | Mama's Creations, Inc. Quote

Total revenues of the company rose 24% year over year to $35.2 million and beat the Zacks Consensus Estimate of $34 million. This growth was driven by higher volumes, supported by cross-selling new items to existing customers, accelerating sales of current products and expanding into new customer locations.

Gross profit increased 28% to $8.8 million from $6.9 million in the year-ago quarter. The gross margin expanded 70 basis points (bps) to 24.9% compared with 24.2% in the second quarter of fiscal 2025. The improvement was driven by operational efficiency gains across the organization, partially offset by ongoing chicken commodity headwinds.

Operating expenses of $7.1 million increased 34.3% year over year. As a percentage of sales, operating expenses increased 150 bps to 20.1% in the second quarter of fiscal 2026. The increase reflected higher marketing spend, up 75% year over year in an area of historical underinvestment, to support sustainable brand growth, partially offset by improved operating leverage and ongoing efficiency gains.

Adjusted EBITDA totaled $3.3 million in the second quarter of fiscal 2026. The figure was up from $2.7 million in the prior-year quarter, indicating an increase of 18%.

MAMA’s Financial Snapshot

Mama’s Creations ended the fiscal second quarter with cash and cash equivalents of $9.4 million and total shareholders’ equity of $29.6 million. As of July 31, 2025, total debt was $2.7 million. During the six months ended July 31, 2025, the net cash flow provided by operations was $4.3 million.

This Zacks Rank #3 (Hold) stock has risen 22.1% in the past three months against the industry’s decline of 2%.

Zacks Investment Research
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