Mama's Creations (MAMA) Q3 2026 earnings summary

Executive summary

• Revenue grew 50% year-over-year to $47.3 million in Q3 FY2026, driven by double-digit organic growth and the Crown 1 acquisition, which expanded operational capabilities and customer reach, including new placements at Target, Food Lion, and a national Costco campaign.

• Net income for the quarter was $0.5 million, up 31.7% year-over-year, with adjusted EBITDA surging 118% to $3.8 million.

• The Crown 1 acquisition contributed $10 million in net sales and $0.5 million in net income since closing, adding 42,000 sq ft of capacity and enabling access to new customers.

• Transitioned to a make-to-stock model, improving service levels, operational efficiency, and throughput with lower overtime.

• Recognized by Forbes, TIME, and NJBIZ as a top small-cap and growth leader, reflecting strong execution and organizational culture.

Financial highlights

• Gross profit increased 56.6% to $11.1 million, with gross margin rising to 24% for the quarter and 25% for the nine months, up from 22.6% and 24% in the prior year.

• Operating expenses rose 57.5% to $10.3 million, including $1.0 million in non-recurring acquisition costs; excluding these, operating expenses remained below 20% of revenue.

• Cash and cash equivalents increased to $18.1 million as of October 31, 2025, from $7.2 million at January 31, 2025.

• Working capital increased to $18.8 million from $4.9 million at the start of the year.

• Net income margin was 1.1% of revenue for the quarter, and 2.6% for the nine months.

Outlook and guidance

• Management expects to lift consolidated gross margins from the low-20% range to the mid-20% range over the next year through integration and efficiency gains, with Bay Shore's gross margin targeted to reach corporate levels within 12-18 months.

• Finalizing commodity supplier agreements for 2026 to stabilize input costs and support fiscal 2027 planning.

• Confident in the ability to double business volume with current facility expansions and ongoing SKU rationalization.

• Management expects cash resources to be sufficient for at least the next twelve months, but may seek additional funding for growth or strategic objectives.

• Continued focus on high-ROI trade and marketing spend to drive velocity and new customer acquisition.