Q: What is Mama's Creations (MAMA) Q2 2026 Earnings Transcript Summary?
Mama's Creations Inc. (MAMA) Q2 2026 Earnings Transcript Analysis
Mama's Creations Inc. (MAMA) recently held its Q2 2026 earnings call, providing insights into the company's performance and future outlook. The call highlighted several positive and negative aspects that could impact the company's stock price.
Here are the specific viewpoints from the earnings call:
Bullish Points:
1. Revenue for Q2 FY2026 increased 24% year-over-year to $35.2 million, driven by volume gains, same-customer cross-selling, and new customer door expansion.
2. Gross profit increased 28% year-over-year to $8.8 million, with gross margin improving to 25% from 24%, supported by operational efficiency improvements.
3. Net income for Q2 FY2026 increased 11% year-over-year to $1.3 million, maintaining profitability despite higher operating expenses.
4. Adjusted EBITDA grew 18% year-over-year to $3.3 million, reflecting strong operational performance.
5. Cash and cash equivalents increased to $9.4 million as of July 31, 2025, up from $7.2 million as of January 31, 2025, while total debt was reduced to $2.7 million from $6.8 million year-over-year.
6. Acquisition of Crown One Enterprises for $17.5 million is expected to be immediately accretive, adding $56 million in annual revenue and significant production capacity.
7. Crown One acquisition increases the company’s revenue run rate to approximately $200 million, accelerating progress toward the $1 billion revenue goal.
8. Management expects to improve Crown One’s gross margins from mid-teens to Mama’s historical mid-to-high 20% range over the next 12-18 months through operational integration and cost synergies.
9. Successful product launches, including the new panini line, which has achieved placement in over 2,000 doors and exceeded velocity expectations.
10. Confirmed participation in Costco’s national multi-vendor mailer (MVM) promotional event in Q4, which could significantly boost sales and brand visibility.
Bearish Points:
1. Operating expenses increased 34% year-over-year to $7.1 million, with operating expenses as a percentage of sales rising to 21% from 18.6%, partly due to a 75% increase in marketing spend.
2. Gross margin outlook post-Crown One acquisition is expected to be in the low 20% range, lower than Mama’s historical mid-to-high 20% range, due to Crown’s mid-teens gross margin profile.
3. Net income as a percentage of revenue declined slightly to 3.6% from 4% year-over-year, indicating some margin pressure.
4. Trade spend more than doubled year-over-year, which could weigh on profitability if returns are not sustained.
For more information about Mama's Creations Inc.'s earnings call, you can read the relevant news: Mama's Creations (MAMA) Q2 2026 Earnings Transcript
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