Mama's Creations Q2 revenue rises 55%, beating estimates on new product launches

Mama's Creations

03/09/2026 21:12

Overview
U.S. deli prepared foods maker's fiscal Q2 revenue rose 55%, beating analyst expectations
Adjusted EBITDA for fiscal Q2 rose 69% and beat analyst expectations
Company completed $108.6 mln stock offering, boosting cash to $138.6 mln

Outlook
Mama's Creations targets mid-to-high-20% corporate gross margin going forward
Company says strong balance sheet enables pursuit of accretive M&A opportunities
Mama's Creations expects new product placements and expanded distribution to support future growth

Result Drivers
NEW PRODUCT LAUNCHES - Co said Q2 revenue growth was driven by ramp-up of new branded items launched with major retailers in Q1
CUSTOMER EXPANSION - Co cited item expansion at new and existing customers as a driver of Q2 revenue growth
ACQUISITION IMPACT - Bay Shore acquisition contributed to Q2 revenue and operating expense changes
COSTCO PROMOTION - Co said selection for Costco's national multi-vendor mailer helped boost placements and sales
OPERATING LEVERAGE - Operating expenses declined as a percentage of revenue, reflecting improved operating leverage

Company press release: ID:nGNXX4Zp

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$54.60 mln
$52.85 mln (8 Analysts)
Q2 EPS
 
$0.06
 
Q2 Net Income
 
$2.60 mln
 
Q2 Adjusted EBITDA
Beat
$5.50 mln
$4.90 mln (8 Analysts)
Q2 Gross Profit
 
$13.10 mln
 
Q2 Operating Expenses
 
$10.10 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Mama's Creations Inc is $21.00, about 34.4% above its September 2 closing price of $15.63
The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 52 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)