Calavo Growers (CVGW) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales were $178.8M, nearly flat year-over-year, with a 5% decline in Fresh segment sales offset by a 40% increase in Prepared segment sales, driven by higher volumes and pricing in guacamole products.

• Gross profit for Q3 2025 decreased 9% to $18.2M, impacted by $4.2M in costs from an FDA detention hold on Mexican avocados and lower tomato volumes and prices.

• Net income from continuing operations for Q3 2025 was $4.7M ($0.26 per share); nine-month net income was $16.1M ($0.90 per share).

• Adjusted net income for Q3 2025 was $10.2M ($0.57 per share), up from $10.0M ($0.56 per share) year-over-year.

• The company paid $0.20 per share in quarterly dividends and maintained strong liquidity with $63.8M in cash and $114.3M in available liquidity.

Financial highlights

• Q3 2025 net sales: $178.8M (down less than 1% YoY); nine months: $523.8M (up 7% YoY).

• Q3 2025 gross profit: $18.2M (down 9% YoY); nine months: $52.0M (up 1% YoY).

• Q3 2025 SG&A expenses: $9.2M (down 12% YoY); nine months: $29.8M (down 19% YoY).

• Adjusted EBITDA for Q3 2025 was $15.1M, up from $12.9M YoY.

• Cash and cash equivalents at quarter-end: $63.8M; available liquidity: $114.3M; total debt: $5.1M.

Outlook and guidance

• Prepared segment sales for fiscal 2026 are estimated at approximately $115M, reflecting strong momentum and growth potential.

• Inflationary and cost pressures are expected to persist through the remainder of fiscal 2025.

• Management remains focused on expanding grower partnerships and customer relationships to support long-term growth.

• Management believes the company is well positioned for growth and increased shareholder value, following resolution of the FDA matter and legal milestones in Mexico.