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

Core Insights - Mama's Creations, Inc. reported strong second-quarter fiscal 2026 results, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][3][9] Financial Performance - The company achieved quarterly earnings of 3 cents per share, surpassing the Zacks Consensus Estimate of 2 cents, marking a 6.9% increase from the previous year [3][9] - Total revenues rose 24% year over year to $35.2 million, exceeding the Zacks Consensus Estimate of $34 million, driven by higher volumes and cross-selling initiatives [4][9] - Gross profit increased by 28% to $8.8 million, with gross margin expanding by 70 basis points to 24.9% due to operational efficiency gains, despite challenges from chicken commodity prices [5][9] - Operating expenses rose 34.3% year over year to $7.1 million, with operating expenses as a percentage of sales increasing by 150 basis points to 20.1% due to higher marketing investments [6] - Adjusted EBITDA for the quarter was $3.3 million, reflecting an 18% increase from $2.7 million in the prior-year quarter [7] Strategic Developments - The company signed an agreement to acquire Crown 1 from Sysco for $17.5 million, which is expected to add $56 million in revenues and provide access to new premium retail partners [2] Financial Position - As of the end of the fiscal second quarter, Mama's Creations had cash and cash equivalents of $9.4 million and total shareholders' equity of $29.6 million, with total debt at $2.7 million [8]