Buda Juice (BUDA) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 grew 26.4% year-over-year to $4.5 million, driven by organic growth, same-store sales, and new Walmart and dressing product sales.

• Gross margin declined to 36.6% from 46.7% due to transitory costs, including co-packing, freight, labor, and produce costs.

• Net income was $470,000–$500,000 ($0.04 per diluted share), down from $1.2 million in Q2 2025, with adjusted EBITDA at $0.7 million (16.1% of revenue).

• Ended the quarter with $18.8 million in cash and no debt, funding all growth initiatives internally.

• Expanded distribution into 246 Walmart stores and launched/expanded Ultra Fresh dressings, accelerating brand momentum.

Financial highlights

• Q2 2026 revenue: $4.5–$4.51 million (+26.4% YoY); gross profit: $1.7 million (flat YoY).

• Gross margin fell by 1,010 basis points to 36.6%, mainly due to temporary cost pressures.

• Operating expenses rose to $1.2 million (26.8% of revenue) from $0.5 million (14.7%), reflecting public company costs and stock-based compensation.

• Adjusted EBITDA was $0.7 million (16.1% margin), down from $1.2 million (33.8% margin) YoY.

• Free cash flow was negative $0.8 million, impacted by one-time AR and CapEx changes.

Outlook and guidance

• Preliminary unaudited Q3 net sales are up over 40% year-over-year, with about half from same-store sales and the rest from Walmart and dressings.

• Gross margin expected to improve as dressing production moves in-house in Q1 2027.

• Management expects to fund cash requirements with existing cash, operations, and available credit.