Executive Summary
Mamas Creations Inc delivered a robust fourth quarter to cap a strong FY2025, with revenue of $33.6 million in Q4’25, up 25.7% year over year, and full-year revenue of $123.3 million, up 19.4%. The quarter featured a record gross margin for the year at 27.0% on a quarterly basis, driven by capacity investments and productivity gains in the Farmingdale facility that more than doubled chicken capacity. Management emphasized ongoing CapEx deployments, an enhanced leadership team, and a disciplined four-C framework (cost, controls, culture, and catapults) as the backbone of margin improvement and share gains in a fragmented deli-ready foods market. However, annual gross margins settled at 24.8% in FY2025, pressured by commodity cost inflation and nonrecurring Farmingdale project costs, contributing to a full-year EBITDA of $9.2 million (down versus $11.7 million in prior year) and free cash flow of negative $0.93 million in Q4, with total net debt reduced to $2.96 million. The company generated meaningful topline momentum via volume-led growth, cross-selling, and new customer door expansion, while their fixed-price protein contracts and in-house trimming initiatives are positioned to support a normalization of margins into the low- to mid-30s long term. The investment thesis rests on continued share gains in high-prequency retailers (Walmart, Costco, Kroger, Albertsons), expansion of the chicken-bottom trimming program, and a disciplined path toward higher gross margins, albeit with near-term commodity-driven margin volatility.
Key Performance Indicators
QoQ: 242.63% | YoY:-1.83%
QoQ: 290.24% | YoY:13.64%
Key Insights
Revenue growth: Q4’25 revenue $33.6M, up 25.7% YoY and 6.54% QoQ; FY25 revenue $123.3M, up 19.4% YoY. Gross profit: Q4’25 $9.08M (gross margin 27.0%); FY25 gross profit $30.5M (gross margin 24.8%). Operating income: Q4’25 $1.93M; FY25 $3.72M. Net income: Q4’25 $1.60M; FY25 $3.70M. EPS: Q4’25 $0.04; FY25 $0.09. Adjusted EBITDA: Q4’25 $3.1M; FY25 $9.2M. Cash and equivalents: $7.15M as of 2025-01-31; total debt $5.1M; net debt $2.96M. Balance sheet: total assets $47.06M; total liabiliti...
Financial Highlights
Revenue growth: Q4’25 revenue $33.6M, up 25.7% YoY and 6.54% QoQ; FY25 revenue $123.3M, up 19.4% YoY. Gross profit: Q4’25 $9.08M (gross margin 27.0%); FY25 gross profit $30.5M (gross margin 24.8%). Operating income: Q4’25 $1.93M; FY25 $3.72M. Net income: Q4’25 $1.60M; FY25 $3.70M. EPS: Q4’25 $0.04; FY25 $0.09. Adjusted EBITDA: Q4’25 $3.1M; FY25 $9.2M. Cash and equivalents: $7.15M as of 2025-01-31; total debt $5.1M; net debt $2.96M. Balance sheet: total assets $47.06M; total liabilities $23.46M; total stockholders’ equity $24.90M; current ratio 1.29, quick ratio 1.00. Cash flow: operating cash flow of $(0.86)M in Q4; full-year free cash flow $(0.93)M. Capacity and pricing dynamics: chicken capacity more than doubled via Farmingdale CapEx; fixed-price chicken contracts cover roughly half of volume; ongoing price reviews with customers.”,
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
33.59M |
25.67% |
6.54% |
| Gross Profit |
9.08M |
16.07% |
27.63% |
| Operating Income |
1.93M |
-1.83% |
242.63% |
| Net Income |
1.60M |
13.64% |
290.24% |
| EPS |
0.04 |
5.26% |
266.97% |
Key Financial Ratios
operatingProfitMargin
5.74%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.02
Management Commentary
- Strategy focus and operational discipline: Management repeatedly cites the three Cs (cost, controls, culture) and the Catapult initiatives (Walmart entry, Costco expansion, Kroger Home Chef) as catalysts for margin expansion and national deli leadership.QUOTE: “we formed an initial three C strategy to improve our cost, controls, and culture… what gets measured gets improved.” (Adam L. Michaels)
- Pricing and margin management: Management highlighted daily pricing actions in response to commodity swings and the use of fixed-price contracts to blunt poultry inflation.QUOTE: “pricing every day… if beef or chicken can start to move, immediately say, we need another ten cents… we work collaboratively with our partners.” (Adam L. Michaels)
- In-house trimming and product mix shift: The company anticipates trimming more chicken in-house by midyear, leveraging new products (cheese-stuffed meatballs, premium strips, fajita/teriyaki trims) and a broadened bottom-of-chicken utilization.QUOTE: “By midyear, we expect in-house trimming will support over half of our chicken needs… this is the margin impact we cannot underestimate.” (Adam L. Michaels)
“90% definitely over 85% of our revenue growth was volume-driven. We are a volume-driven business. We look at pricing every day. This is not something we do once a year or once a quarter. Seasonally. Every day, we're looking at what's happening in the markets from a commodity perspective. And immediately. It's a big learning from when I first got here. Take immediate action, and we actually anticipate what's going on.”
— Adam L. Michaels
“With over half of our expected protein needs locked in via fixed price agreements, we have built a robust foundation to buffer near-term commodity fluctuations.”
— Adam L. Michaels
Forward Guidance
- Short to medium term: Expect revenue growth to continue in double digits driven by cross-selling, new product launches, expanded retailer reach (Walmart, Costco, Kroger, Lidl, Sheetz, Albertsons), and ongoing pricing actions aligned with commodity trends. Management reiterated a long-run objective of EBITDA margins in the teens and gross margins in the high twenties to low thirties, depending on commodity cycles.
- Margin trajectory: Normalized gross margin profile projected to hover in the high twenties absent major commodity shocks; long-term target margins in the low thirties supported by CapEx, procurement efficiencies, and S&OP-driven efficiencies.
- Trade promotions: Trade spend likely to rise toward the goal of ~10% of revenue as gross margins improve; currently about 2.1% in Q4, with intent to scale as margins permit.
- Key risks to monitor: commodity price volatility (poultry, beef), tariff/regulatory environment affecting costs and supply chain resilience, and execution risk in scaling trimming and new product introductions across multiple retailers. Overall, investors should monitor commodity price trends, the pace of S&OP benefits, and the velocity of retailer launches (Walmart, Costco, Lidl, Kroger) as indicators of sustained topline momentum and margin progression.