Mama's Creations reported a solid second quarter of fiscal 2026, highlighted by 24% year-over-year revenue growth to $35.2 million and a gross profit of $8.8 million (gross margin 24.9%). The quarter benefits from a broader top-line expansion across core deli offerings and the incremental scale provided by the Crown I acquisition, including access to premium customers and near-term capacity relief. Management stressed a focus on high-ROI trade investments, targeted pricing actions, and throughput improvements in chicken operations, which helped offset ongoing commodity headwinds. The Crown I acquisition is positioned as a key accelerant to reaching a balanced, higher-margin growth trajectory, with the company targeting a path toward mid- to high-20% gross margins over the next 12–18 months as integration benefits materialize and procurement/throughput efficiencies scale across the network.
The company maintains a disciplined approach to trade spend, noting that Q2 trade as a percentage of sales was 2.2% (up from prior year) and that year-to-date there has been a multi-fold increase in trade investment to drive velocity and retailer partnerships. On the balance sheet, Mama's exited the quarter with a net cash position and a robust liquidity runway, supported by a $27.4 million credit facility with M&T Bank, and a reduction in total debt to $2.7 million. However, free cash flow remained negative in the quarter as working-capital optimization and integration costs take precedence in the near term. Management remains confident in sustaining profitable growth and leveraging Crown's capacity to approach a near-term run-rate of $200 million and ultimately near a $1 billion revenue target through the integration and expansion of cross-sell opportunities across existing and new customers (e.g., Costco, Walmart, Sam's Club, Publix).