National Beverage Corp (0K50.L) QQ1 2026 Results — Robust profitability and ample liquidity underpin Modest top‑line growth
Executive Summary
National Beverage Corp reported a solid QQ1 2026, with revenue of $330.515 million, up 0.32% year over year (YoY) and 5.38% quarter over quarter (QoQ) versus the prior quarter. Gross profit was $125.463 million, yielding a gross margin of 37.96%, and EBITDA stood at $70.776 million (margin 21.41%). Operating income also reached $70.776 million, with net income of $55.760 million and diluted EPS of $0.60. The company generated strong operating cash flow of $59.089 million and free cash flow of $55.994 million, supported by a modest capex outlay of $3.095 million. Net debt is negative at approximately $-179.927 million, reflecting a substantial cash position against modest liabilities.
Key Performance Indicators
Revenue
330.52M
QoQ: 5.38% | YoY:0.32%
Gross Profit
125.46M
37.96% margin
QoQ: 10.83% | YoY:2.48%
Operating Income
70.78M
QoQ: 23.09% | YoY:1.81%
Net Income
55.76M
QoQ: 24.57% | YoY:-1.80%
EPS
0.60
QoQ: 25.00% | YoY:-1.64%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $330.515 million; YoY +0.32%; QoQ +5.38% (driven by continued brand momentum and favorable seasonality relative to Q4 2025).
Net Income: $55.760 million; YoY -1.80%; QoQ +24.57%; Net margin 16.87%.
EPS: $0.60; YoY -1.64%; QoQ +25.00%.
Financial Highlights
Overview of key metrics and trend drivers:
- Revenue: $330.515 million; YoY +0.32%; QoQ +5.38% (driven by continued brand momentum and favorable seasonality relative to Q4 2025).
- Gross Profit: $125.463 million; YoY +2.48%; QoQ +10.83%; Gross margin 37.96% (reflecting favorable product mix and stable input costs).
- Operating Income: $70.776 million; YoY +1.81%; QoQ +23.09%; Operating margin 21.41%.
- Net Income: $55.760 million; YoY -1.80%; QoQ +24.57%; Net margin 16.87%.
- EPS: $0.60; YoY -1.64%; QoQ +25.00%.
- EBITDA: $70.776 million; EBITDA margin 21.41%.
- Cash flow: Net cash provided by operating activities $59.089 million; capex $3.095 million; free cash flow $55.994 million; free cash flow yield ~17% of revenue.
- Balance sheet and liquidity: Cash and cash equivalents $249.831 million; total debt $69.904 million; net debt negative $-179.927 million; current ratio ~3.24; quick ratio ~2.63; total assets $737.760 million; total stockholders’ equity $504.133 million.
- Capital allocation: No dividends paid in the period; no share repurchases disclosed. Net cash position affords optionality for strategic investments, buybacks, or M&A.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
330.52M
0.32%
5.38%
Gross Profit
125.46M
2.48%
10.83%
Operating Income
70.78M
1.81%
23.09%
Net Income
55.76M
-1.80%
24.57%
EPS
0.60
-1.64%
25.00%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript highlights not provided in the data set. No earnings call quotes or themes are available for QQ1 2026. Once the transcript is provided, a thematically organized summary with context and significance can be added.
—
—
Forward Guidance
No explicit management guidance was published for QQ1 2026 within the provided data. Given the earnings trajectory and industry backdrop, a cautious base-case assumes mid-single-digit revenue growth with continued focus on margin resilience and cash flow generation. Key factors to monitor include input cost dynamics (packaging and commodities), brand mix optimization (LaCroix and related SKUs), promotional activity, and potential capital deployment actions (buybacks, strategic acquisitions) should management choose to allocate excess liquidity. Absent fresh guidance, investors should track quarterly top-line momentum, gross margin stability, and cash conversion efficiency to validate the sustainability of the current profitability profile.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0K50.L Focus
37.96%
N/A
N/A
N/A
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The QQ1 2026 results reinforce a conservative yet constructive investment stance. The company combines a robust gross margin (~38%), strong profitability (net margin ~16.9%), and a substantial net cash position with healthy operating cash flow. This creates a favorable framework for value generation and optional capital deployment. The absence of significant debt reduces financial risk and supports potential future returns to shareholders through buybacks or strategic acquisitions if opportunities arise. However, revenue growth remains modest (YoY +0.32%), and the competitive landscape in the North American non-alcoholic space could compress margins if input costs rise or promotional intensity increases. Investors should monitor brand momentum, input cost trends, and any management signals on capital allocation plans. Overall, the risk-reward appears skewed toward stability and optionality rather than aggressive growth.
Key Investment Factors
Growth Potential
Moderate organic growth supported by LaCroix brand momentum, potential new flavors/ formats, and potential geographic expansion or channel development (e-commerce/retail modernization) that could lift mid-single-digit revenue growth with favorable mix.
Profitability Risk
Brand concentration risk in North America, competitive pressures from large incumbents (Coca-Cola, PepsiCo) and private-label players, commodity/packaging cost volatility, regulatory shifts (sugar taxes, labeling) and potential macro slowdown impacting consumer discretionary spend.
Financial Position
Strong balance sheet with a substantial cash position and minimal net debt (net debt ≈ -$179.9M). High liquidity (current ratio ~3.24) provides resilience and optionality for capital allocation (dividends, buybacks, acquisitions) while maintaining financial flexibility.
SWOT Analysis
Strengths
Significant cash balance and a net cash position (cash ≈ $249.8M, total debt ≈ $69.9M; net debt ≈ -$179.9M)
Healthy gross margin of 37.96% on revenue of $330.5M
Strong operating cash flow generation ($59.1M) and free cash flow (~$56.0M) in QQ1 2026
Low leverage and solid liquidity with current ratio ≈ 3.24 and abundant liquidity to support capital allocation
Diversified brand portfolio including LaCroix, Shasta, Faygo, Rip It, and others across sparkling water, juices, and non-alcoholic beverages
Weaknesses
Geographic concentration in North America (primarily U.S. and Canada) with limited disclosed international exposure
R&D spend not evident in QQ1 2026 results, which may indicate slower pace of formal product innovation
Revenue growth modest (YoY +0.32%), suggesting dependence on pricing/mix and promotional activity rather than aggressive top-line expansion
Limited disclosure of capital allocation history (no dividends or buybacks disclosed in the period)
Opportunities
Continued LaCroix category leadership with potential product extensions, flavor Innovations, and premiumization
Expansion into adjacent non-alcoholic segments and health-oriented beverages to capture new demand pools
Capital deployment flexibility (share repurchases or selective acquisitions) given strong cash position
Operational efficiency gains and supply chain optimization to protect margins amid input cost volatility