Mama's Creations Q3 Earnings Beat Estimates, Sales Rise 50% Y/Y

Core Insights - Mama's Creations, Inc. reported strong third-quarter fiscal 2026 results, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][2][3] Financial Performance - The company achieved quarterly earnings of 1 cent per share, surpassing the Zacks Consensus Estimate of a loss of 1 cent, and reflecting a 24.1% increase from the prior year [2] - Total revenues rose 50% year over year to $47.3 million, exceeding the Zacks Consensus Estimate of $44 million, driven by the acquisition of Crown 1 and strong organic growth [3][8] - Gross profit increased by 56.6% to $11.1 million, with gross margin expanding by 100 basis points to 23.6% due to operational efficiency and stabilized chicken prices, despite challenges from beef prices and lower-margin sales from Crown 1 [4] - Operating expenses rose to $10.3 million from $6.6 million in the previous year, with a percentage of sales increase to 21.8%, influenced by non-recurring costs related to the Crown 1 acquisition [5] - Adjusted EBITDA for the quarter was $3.8 million, up from $1.7 million in the prior-year quarter [6] Balance Sheet and Cash Flow - As of the end of the fiscal third quarter, the company had cash and cash equivalents of $18.1 million, total shareholders' equity of $49.6 million, and total debt of $6.4 million [7][8] - The net cash flow from operations for the nine months ended October 31, 2025, was $8.2 million [7]