Mama’s Creations Reports Third Quarter Fiscal 2026 Financial Results

Management Commentary

Adam L. Michaels, Chairman and CEO of Mama’s Creations, said: “Our third quarter demonstrated meaningful momentum in scaling the business. With the integration of the business of Crown 1 underway, we delivered broad-based growth across our protein portfolio, deployed high-return trade and marketing investments, leveraging newly added retail doors and cross-selling. We also implemented targeted price increases across both our beef and chicken portfolios to help offset commodity headwinds, while improvements in chicken operations enhanced throughput and lowered overtime, helping us meet our margin objectives.

“With the acquisition of Crown 1’s assets, we began a straightforward integration supported by proximity and shared grill platforms. Crown’s initially lower gross margins weighed on the quarter, but we are executing a clear plan to lift the acquired Bay Shore facility’s margin performance through procurement scale, throughput and overhead efficiencies, shared services, and best-practice sharing – which we expect to lift consolidated corporate gross margins from the low-20% range to the mid-20% range over the next year.

“We continue to see strong sales momentum across the portfolio, with Crown opening access to hard-to-penetrate customers and creating new cross-sell channels using its premium product offerings, while expanding SKU penetration across its base remains a core priority. This traction is reinforced by new tier-one wins at Target and Food Lion; at Target, we expect first shipments to begin in February, while our products should hit Food Lion’s shelves this month. This, paired with our ongoing National Costco collaboration, positions us for significant growth in the coming quarters.

“As we look ahead, our strategic path toward becoming a $1 billion deli prepared foods company is becoming even clearer. We continue to manage our balance sheet conservatively and maintain strict discipline around capital allocation, prioritizing integration ahead of a new acquisition. With expanded capacity, access to premium retail accounts and ongoing grandma-quality innovation, we are well-positioned to drive sustained profitable growth and improved margins in the quarters to come,” concluded Michaels.

Third Quarter Fiscal 2026 Financial Results

Revenue for the third quarter of fiscal 2026 increased 50.0% to $47.3 million, as compared to $31.5 million in the same year-ago quarter. The increase was attributable to both the acquisition of the Crown 1 business, as well as robust double-digit growth in the core business on a pre-acquisition basis.

Gross profit increased 56.6% to $11.1 million, or 23.6% of total revenues, in the third quarter of fiscal 2026, as compared to $7.1 million, or 22.6% of total revenues, in the same year-ago quarter. The increase in gross margin rate was primarily attributable to operational efficiency improvements across the organization and stabilized chicken commodity prices, partially offset by higher beef commodity prices as well as the addition of lower-margin Crown 1 sales, which the Company expects to bring in-line with the corporate average in the mid-20% range over the next year.

Operating expenses totaled $10.3 million in the third quarter of fiscal 2026, as compared to $6.6 million in the same year-ago quarter. As a percentage of revenue, operating expenses increased in the third quarter fiscal 2026 to 21.8% from 20.8%. Operating expenses in the third quarter were impacted by the acquisition of the Crown 1 business, as well as $1.0 million in non-recurring professional fees and transaction expenses related to the acquisition. Excluding the aforementioned acquisition-related expenses, operating expenses remained below 20% of revenue.

Net income for the third quarter of fiscal 2026 increased 31.7% to $0.5 million, or $0.01 per diluted share, as compared to net income of $0.4 million, or $0.01 per diluted share, in the same year-ago quarter. Third quarter net income totaled 1.1% of revenue, as compared to 1.3% in the same year-ago quarter.

Adjusted EBITDA, a non-GAAP measure, increased 118.0% to $3.8 million for the third quarter of fiscal 2026, as compared to $1.7 million in the same year-ago quarter.

Cash and cash equivalents as of October 31, 2025, grew to $18.1 million, as compared to $7.2 million as of January 31, 2025, primarily driven by improved profitability, ongoing working capital optimization and the private placement completed concurrent with the acquisition of the Crown 1 business. As of October 31, 2025, total debt stood at $6.4 million, as compared to $6.3 million as of October 31, 2024.

Conference Call

Management will host an investor conference call at 4:30 p.m. Eastern time on Monday, December 8, 2025 to discuss the Company’s third quarter fiscal 2026 financial results, provide a corporate update, and conclude with Q&A from telephone participants. To participate, please use the following information:

Q3 FY2026 Earnings Conference Call
Date: Monday, December 8, 2025
Time: 4:30 p.m. Eastern time
U.S. Dial-in: 1-877-451-6152
International Dial-in: 1-201-389-0879
Conference ID: 13756863
Webcast: MAMA Q3 FY2026 Earnings Conference Call

Please join at least five minutes before the start of the call to ensure timely participation.

A playback of the call will be available through Sunday, February 8, 2026. To listen, please call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 13756863. A webcast replay will also be available using the webcast link above.

About Mama’s Creations, Inc.

Mama’s Creations, Inc. (Nasdaq: MAMA) is a leading marketer and manufacturer of fresh deli prepared foods, found in over 12,000 grocery, mass, club and convenience stores nationally. The Company’s broad product portfolio, born from MamaMancini’s rich history in Italian foods, now consists of a variety of high quality, fresh, clean and easy to prepare foods to address the needs of both our consumers and retailers. Our vision is to become a one-stop-shop deli solutions platform, leveraging vertical integration and a diverse family of brands to offer a wide array of prepared foods to meet the changing demands of the modern consumer. For more information, please visit mamascreations.com.

Use of Non-GAAP Financial Measures

This press release includes the following non-GAAP measure – adjusted EBITDA, which is not a measure of financial performance under GAAP and should not be considered as an alternative to net income as a measure of financial performance. The company believes this non-GAAP measure, when considered together with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to the company’s results of operations. However, this non-GAAP measure has significant limitations in that it does not reflect all the costs and other items associated with the operation of the company’s business as determined in accordance with GAAP. In addition, the company’s non-GAAP measures may be calculated differently and are therefore not comparable to similar measures by other companies. Therefore, investors should consider non-GAAP measures in addition to, and not as a substitute for, or superior to, measures of financial performance in accordance with GAAP. For a definition and reconciliation of EBITDA to net income, its corresponding GAAP measure, please see the reconciliation table shown in this press release below

US-GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION
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Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include information about management’s view of the Company’s future expectations, plans and prospects, including future business opportunities or strategies and are generally preceded by words such as “anticipate,” “believe,” “eventually,” “expect,” “future,” “may,” “look forward to,” “plan,” “projected,” “should,” “will,” and other words that convey the uncertainty of future events or outcomes. You are cautioned that such statements are subject to a multitude of known and unknown risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Certain of these risk factors and others are included in documents the Company files with the Securities and Exchange Commission, including but not limited to, the Company’s Annual Report on Form 10-K for the year ended January 31, 2025, as well as subsequent reports filed with the Securities and Exchange Commission.

The Company has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other factors, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except as may be required by applicable law or regulation, the Company’s does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.

Investor Relations Contact:
Lucas A. Zimmerman
Managing Director
MZ Group – MZ North America
(949) 259-4987
MAMA@mzgroup.us  
www.mzgroup.us

Mama’s Creations, Inc.
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Mama’s Creations, Inc.
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