JJ Snack Foods Corp reported a mixed Q2 2025, with revenue of $356.1 million, down 1% year over year, and gross margin compression to 26.9% from 30.1% the year prior. Net income declined to $4.8 million and diluted EPS to $0.25, reflecting higher chocolate costs, FX headwinds against the peso, and a year-ago LTO churro impact in Foodservice. Despite near-term margin pressures, management highlighted a favorable setup for the second half: a projected rebound in theater attendance boosting Frozen Beverage volumes, selective price realization across portfolios, and accelerating innovations in core brands (e.g., Bavarian pretzels, Dippin' Dots, and SUPERPRETZEL enhancements). The company also provided visibility on near-term revenue drivers (Dippin' Dots expansion, new retail Sundaes reaching $1 million in sales, and Urban Air as a new customer). Management reaffirmed guidance that gross margins should recover to the low-30s in the back half, supported by higher-margin Frozen Beverage/retail mix and improving pricing. The Q2 results underscore robust cash generation potential but elevated working capital needs and modest free cash flow, with a hedged but unequal impact from tariffs and input-cost inflation.