National Beverage (FIZZ) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 FY2026 increased to $331 million, driven by a 4.4% rise in average selling price per case, offset by a 3.9% decline in case volume.

• Gross profit rose to $125.5 million, with gross margin improving to 38.0% from 37.2% year-over-year.

• Net income for the quarter was $55.8 million, down slightly from $56.8 million in the prior year period.

• Earnings per share (diluted) was $0.60, compared to $0.61 in the prior year.

• LaCroix brand achieved organic sales growth in the club channel, with new flavors showing strong initial sales.

Financial highlights

• Operating income increased to $71 million from $69.5 million year-over-year.

• Cash and cash equivalents rose to $250 million from $193.8 million at the start of the quarter.

• Working capital increased to $329.2 million, with a current ratio of 3.2:1.

• Inventory increased to $93.9 million, and inventory turns decreased to 8.2 times from 8.7 times.

• Operating cash flow was $59 million for the quarter.

Outlook and guidance

• Management expects capital expenditures for FY2026 to not exceed those of FY2025.

• Existing capital resources are considered sufficient to meet liquidity and capital requirements for the next twelve months.

• Management remains confident in navigating global economic uncertainties through innovation and disciplined management.

• Anticipates further sales increases from recently launched LaCroix flavors.

• Focus remains on developing new products and maintaining shareholder value.