Mama's Creations (MAMA) Q2 2027 earnings summary

Executive summary

• Revenue grew 55% year-over-year to $54.6 million, driven by new branded launches, expanded distribution, and acquisitions including Bay Shore and Crown 1.

• Net income doubled to $2.6 million, with adjusted EBITDA up 69% to $5.5 million, reflecting strong operating leverage and margin improvement.

• Cash position surged to $138.6 million, primarily from a $108.6 million equity raise and $11.9 million in operating cash flow.

• Major new wins included first-time distribution at Kroger, a nationwide Costco MVM promotion, and expanded placements in key retail banners.

• Operating leverage improved as overheads declined as a share of revenue, and gross margin improved sequentially.

Financial highlights

• Revenue: $54.6 million, up 55% from $35.2 million in the prior-year quarter.

• Gross profit: $13.1 million (24% margin), up 49.1% year-over-year.

• Net income: $2.6 million ($0.06/share), up 100.9% from $1.3 million ($0.03/share) year-over-year.

• Adjusted EBITDA: $5.5 million, up 68.9% year-over-year; margin expanded to 10.1%.

• Operating expenses: $10.1 million, 18.5% of revenue, down 160 bps as a percentage of revenue.

Outlook and guidance

• Confident in achieving double-digit revenue growth for the remainder of the year, with a focus on profitable growth and active M&A.

• Gross margin targeted in the mid to high 20% range as product mix and facility absorption improve.

• Priorities include optimizing the three-facility network, accelerating retail distribution, and pursuing accretive M&A.

• Management expects sufficient cash resources for at least the next twelve months but may seek additional funding for growth.

• Ongoing focus on offsetting rising input costs through efficiencies and price increases.