Calavo Growers (CVGW) Q1 2026 earnings summary

Executive summary

• Net sales for the quarter ended January 31, 2026, declined 21% year-over-year to $122.2 million, primarily due to lower avocado and tomato prices despite higher volumes and growth in the Prepared segment.

• Net income attributable to shareholders was $0.7 million, down from $4.4 million in the prior year quarter; adjusted net income was $4.8 million versus $6.3 million year-over-year.

• Adjusted EBITDA was $8.0 million, down from $9.3 million in the prior year quarter.

• The company paid a $0.20 per share dividend and announced a pending merger with Mission Produce, with no material changes to the merger terms during the quarter; closure targeted for Q3 2026.

• Management highlighted sequential improvement in both Fresh and Prepared segments, with strong volume growth and new customer wins in Prepared.

Financial highlights

• Gross profit was $15.2 million (12% of net sales), compared to $15.7 million (10% of net sales) in Q1 2025.

• SG&A expenses rose to $16.4 million, including $7.2 million in non-recurring M&A and other costs, driven by $4.9 million in merger-related costs and higher stock-based compensation.

• Cash used in operating activities was $8.7 million, compared to $4.4 million in the prior year period.

• Cash and cash equivalents at quarter-end were $47.7 million, with working capital of $83.6 million and $79.8 million in available liquidity.

• No borrowings under the credit facility; total debt stood at $3.9 million.

Outlook and guidance

• Management expects sufficient liquidity for at least the next 12 months, supported by cash reserves, operations, and a $75 million credit facility with $32.1 million available.

• Management expects volume growth in both Fresh and Prepared segments in Q2 2026.

• Fresh avocado pricing is anticipated to remain pressured due to a large Mexican crop.

• Longer-term capital allocation may be influenced by the timing and completion of the Mission Produce merger.

• The company believes its scale and customer relationships will help navigate the dynamic pricing environment.