The Hain Celestial Group posted a challenging QQ3 2025 with a revenue decline and a significant margin deterioration that culminated in a meaningful net loss. Revenue stood at $390.35 million, down 10.95% year-over-year and 5.14% quarter-over-quarter, while gross profit remained $84.65 million for a gross margin of 21.69%. Operating income was negative $121.08 million and EBITDA negative $111.81 million, producing a net loss of $134.59 million and an EPS of -1.49 for the quarter. The combination of elevated selling, general and administrative expenses alongside higher other expenses drove a steep drop in profitability, with the net income margin at roughly -34.5%.
From a cash flow and balance-sheet perspective, operating cash flow was modest at $4.65 million, with free cash flow of -$2.28 million, and cash at period end of $44.43 million. Total debt stood at $774.96 million (net debt $730.53 million), yielding a debt-to-capitalization framework that remains conservative but adds leverage pressure given the ongoing losses. The current ratio was 1.81x, indicating adequate near-term liquidity, while the cash ratio remained thin at 0.15x. Management faces a difficult but potentially actionable path to stabilize margins, improve working capital efficiency, and generate sustainable cash flow.
In the context of the Consumer Defensive landscape, Hain Celestial operates in a niche of organic and natural products with broad international exposure. The QQ3 results underscore the need for disciplined cost containment, pricing discipline, and a strategic mix shift toward higher-margin SKUs and faster-growing channels. The valuation framework appears attractive on several metrics given negative earnings, but execution risk remains high as the company seeks to transition toward profitability.