MAMA Reports 50% Revenue Surge as Crown 1 Acquisition and New Retail Wins Accelerate Growth
Top Line Expands Rapidly—Revenues Jump 50% as Strategic Acquisitions Take Hold
Mama's Creations (NASDAQ: MAMA) posted impressive third quarter fiscal 2026 results, propelled by both robust organic sales and the integration of its Crown 1 asset acquisition. Revenues for the quarter climbed to $47.3 million—a 50% year-over-year leap—reflecting not only underlying momentum but also management’s deliberate push into new market segments and geographies.
Crown 1, acquired for $17.5 million from Sysco Corporation, has brought in $56.8 million in trailing-12-month revenues and enabled new operational efficiencies. This expansion has broadened Mama’s Creations’ reach and added substantial incremental capacity and customer access, including a 42,000 sq. ft. USDA facility within close proximity to existing operations. The combination is delivering on its promise of creating cross-sell opportunities and broadening premium customer relationships.
Operational Efficiency Boosts Margins and Profits
Gross profit increased 56.6% year-over-year to $11.1 million, with gross margin edging higher to 23.6% from 22.6% the previous year. The company attributes margin improvement to better operational efficiency and stabilized chicken commodity prices, although higher beef prices and initially lower-margin Crown 1 sales were offsetting factors. Management expects continued improvement as integration progresses and the acquired facility’s margins align more closely with the corporate average in the mid-20% range.
| Q3 Fiscal 2026 | Q3 Fiscal 2025 | % Change | |
|---|---|---|---|
| Revenues ($M) | 47.3 | 31.5 | +50.0% |
| Gross Profit ($M) | 11.1 | 7.1 | +56.6% |
| Operating Expenses ($M) | 10.3 | 6.6 | +57.5% |
| Net Income ($M) | 0.5 | 0.4 | +31.7% |
| Adjusted EBITDA ($M) | 3.8 | 1.7 | +118.0% |
National Distribution Expands With New Tier-One Placements
Recent national placements with Target and Food Lion mark a major expansion, with products rolling out to nearly 2,000 Target locations and over 1,100 Food Lion stores in early 2026. Additionally, a Costco Multi-Vendor Mailer is already underway, expected to significantly lift both brand awareness and sales. These partnerships are crucial as Mama’s Creations continues to push for greater market penetration and SKU expansion across major national retailers.
Financial Strength Supports Growth—Cash Reserves More Than Double
The company’s balance sheet reflects improved operating performance and prudent capital management. Cash and cash equivalents soared to $18.1 million from $7.2 million at the beginning of the year, primarily fueled by better profitability and capital raises associated with the Crown 1 acquisition. Debt remained controlled at $6.4 million, signaling flexibility for further strategic moves.
| Metric | Oct 31, 2025 | Jan 31, 2025 |
|---|---|---|
| Cash & Cash Equivalents ($M) | 18.07 | 7.15 |
| Total Debt ($M) | 6.40 | 6.30 |
| Stockholders' Equity ($M) | 49.60 | 24.90 |
| Total Assets ($M) | 84.03 | 47.06 |
Strategic Outlook: Growth Priorities Remain Focused on Integration and Margin Expansion
Management remains committed to integrating Crown 1’s operations, expanding cross-selling opportunities, and driving margin improvement through efficiency and procurement gains. With new distribution partnerships in place and incremental production capabilities, the roadmap toward becoming a $1 billion prepared foods company is gaining traction. Importantly, the company is prioritizing profitable growth and disciplined capital allocation over new acquisitions in the near-term, positioning itself for continued strength as market opportunities emerge.
For those tracking deli and fresh prepared food industry dynamics, Mama’s Creations offers a case study in disciplined acquisition-driven growth, operational optimization, and strategic retail partnerships—all supported by solid financial management.
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