Mama's Creations (MAMA) Q1 2027 earnings summary

Executive summary

• Revenue grew 50% year-over-year to $52.8 million in Q1 FY2027, driven by new product launches, expanded retail partnerships, higher sales velocities, new customers, and the Crown 1 acquisition.

• Net income increased 66% to $2.1 million, reflecting higher sales and operational efficiencies, partially offset by increased costs.

• Adjusted EBITDA rose 71% to $4.9 million, demonstrating strong operating leverage.

• Over a dozen new branded items launched at major retailers, including Walmart, Target, and Food Lion, with strong early performance and broad-based customer expansion.

• Integration of the Bay Shore acquisition and ERP system transition enhanced operational efficiency and analytics.

Financial highlights

• Gross profit rose 35% to $12.4 million, with gross margin at 23.6%–24% (down from 26.1%), impacted by startup costs, labor, and integration expenses.

• Operating expenses increased to $9.8 million, but as a percentage of revenue, declined to 18.5% from 21.6% year-over-year, reflecting operating leverage and strategic SG&A reallocation.

• Net income margin improved to 3.9% (up from 3.5%), and adjusted EBITDA margin increased to 9.2%–9.3% (up from 7.9%–8.0%).

• Cash and equivalents stood at $24.4 million as of April 30, 2026, with total debt at $5.1 million.

• Working capital improved to $27.8 million, and net cash provided by operating activities was $5.0 million.

Outlook and guidance

• Management reaffirmed confidence in double-digit organic growth for the year, supported by new product ramps and expanded retail distribution.

• Expectation for sequential revenue growth in Q2 as new items launched late in Q1 ramp up.

• Gross margin is expected to improve as new products move to steady-state production and initial inefficiencies are resolved.

• Focus on optimizing the three-facility network, accelerating retail distribution, and pursuing accretive acquisitions.

• Sufficient cash resources are expected for at least the next twelve months, with potential for additional funding for growth.