The Hain Celestial Group, Inc.

Reported Q3 results included organic net sales down 6% year over year, adjusted gross margin of 21% (about 90 basis points lower year over year), SG&A down 6% to $59 million, adjusted EBITDA of $26 million versus $34 million a year ago, adjusted net loss of $1 million or $0.01 per diluted share versus adjusted net income of $6 million or $0.07 per share, and free cash flow of $35 million versus an outflow of $2 million last year. North America organic net sales declined 3% and International organic net sales declined 8%. For the balance of fiscal 2026, management did not provide numeric operating guidance because of the strategic review, but said it still expects positive full-year free cash flow, North America excluding snacks should have gross margin above 30% and EBITDA margin in the low double digits, and Q4 organic trends should improve. The company also expects approximately $20 million of capital expenditures for fiscal 2026 and said stranded costs are now expected in the high end of the $20 million to $25 million range.

Alison Lewis framed the quarter as evidence that the turnaround is taking hold, emphasizing improved execution, financial discipline, and a more focused portfolio after the snacks divestiture. She repeatedly pointed to innovation as a differentiator, with launches in tea, baby & kids, yogurt, and international categories intended to drive trial, distribution, and share gains. Her tone was constructive but measured: she acknowledged organic sales were weaker than expected and said the team is actively addressing isolated challenges while keeping the focus on sustainable, profitable growth.

Lee Boyce highlighted the financial mechanics of the quarter: organic net sales down 6%, adjusted gross margin at 21%, SG&A down 6% to $59 million, adjusted EBITDA of $26 million, and free cash flow of $35 million. He said cash on hand rose to $44 million and net debt declined to $505 million, down $145 million since fiscal year start, with $196 million available on the revolver and leverage at 4.3x versus a 5.5x covenant. He also said about 70% of stranded costs have already been removed, restructuring charges taken are $108 million out of expected $115 million to $125 million, and the company remains focused on debt reduction and addressing the December maturity.

Analysts pressed on how Hain plans to fund and support innovation without sacrificing deleveraging, and management said marketing spend will be balanced and more targeted, with a heavier digital/social mix and investment tied to launches. Questions also focused on private label pressure and competitive promotions; management said North America private label is mostly low share outside yogurt and pantry, while International is seeing more private-label pressure, so spending will be surgical. On Meal Prep and branded non-dairy, management said yogurt and innovation-led subsegments are driving momentum, while pantry brands remain more challenged and are being stabilized with retailer-specific trade and marketing support.