Mama's Creations Reports Second Quarter Fiscal 2026 Financial Results

Core Insights - Mama's Creations, Inc. reported a 24% year-over-year revenue growth for the second quarter of fiscal 2026, reaching $35.2 million compared to $28.4 million in the same quarter of the previous year [2][9] - The company announced the acquisition of Crown 1 Enterprises, which is expected to add approximately $56 million in revenue and enhance operational capabilities [5][6] Financial Performance - Revenue for the second quarter increased to $35.2 million, a 24% increase from $28.4 million in the same quarter of 2024 [2][9] - Gross profit rose by 27.5% to $8.8 million, representing 24.9% of total revenues, compared to $6.9 million or 24.2% in the same quarter of the previous year [10][12] - Operating expenses increased to $7.1 million, up 34.3% from $5.3 million, with operating expenses as a percentage of sales rising to 20.1% from 18.6% [11] - Net income for the quarter was $1.3 million, an 11% increase from $1.1 million, maintaining earnings per share at $0.03 [12] Acquisition Details - The acquisition of Crown 1 was completed for $17.5 million in cash, funded through a $20 million private placement and a $27.4 million long-term credit facility [5][6] - Crown 1 is expected to provide significant operational synergies and cross-selling opportunities, with a goal to improve its gross margin to align with Mama's levels within 12 to 18 months [7][8] Operational Highlights - The company experienced broad-based momentum across its protein offerings, with revenue growth outpacing the category by nearly 10 times [4] - New customer door expansion and targeted pricing actions contributed to maintaining gross margin targets [9] - Cash and cash equivalents increased to $9.4 million as of July 31, 2025, up from $7.2 million as of January 31, 2025, driven by improved profitability [13]