Mama’s Creations Inc (NASDAQ:MAMA) stock fell 7.49% (As on September 9, 11:17:29 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the second quarter of FY 26. Gross profit also saw a notable rise of 28%, amounting to $8.8 million. Operating expenses increased by 34.3% to $7.1 million, primarily due to higher marketing spend. Net income for the quarter was $1.3 million, reflecting an 11.2% increase from the previous year. Adjusted EBITDA, a non-GAAP measure, grew by 17.9% to $3.3 million. During the quarter, Mama’s Creations completed the acquisition of Crown 1 Enterprises from Sysco Corporation for $17.5 million. This acquisition is expected to add approximately $56 million in revenue and enhance the company’s operational capabilities with a new USDA facility. The acquisition of Crown 1 Enterprises is a significant strategic move for Mama’s Creations, providing access to premium retail partners and new operational capabilities. The acquisition was fully funded through a $20 million private placement and supported by an amended $27.4 million long-term credit facility with M&T Bank. The company also reported an increase in cash and cash equivalents to $9.4 million as of July 31, 2025, up from $7.2 million as of January 31, 2025. The company also expanded its product offerings and partnerships, including new items at BJ’s, Costco, Sam’s, and Publix, as well as an expanded partnership with Wal-Mart.
Further, the company has received confirmation for the Company’s first ever National Costco Multi-Vendor Mailer (MVM) with Beef Meatballs in the fourth quarter.
MAMA in the second quarter of FY 26 has reported the adjusted earnings per share of $0.03, beating the analysts’ estimates for the adjusted earnings per share of $0.02. The company had reported the adjusted revenue growth of 24 percent to $35.20 million in the second quarter of FY 26, beating the analysts’ estimates for revenue of $33.18 billion.
Looking ahead, Mama’s Creations aims to achieve a revenue run-rate of approximately $200 million, advancing towards its 2030 vision of $1 billion and a targeted gross margin improvement from the current low 20% range to Mama’s Creations’ historical mid-to-high 20% range within 12 to 18 months. The company plans to focus on rapid integration of the Crown 1 acquisition, leveraging added capacity and premium customer access to drive growth in the coming quarters. The company plan targets meaningful cost synergies by next fiscal year through procurement scale (notably chicken), throughput and overhead efficiencies, and shared services – similar to the playbook it had executed post-Creative Salads acquisition.