Mama's Creations, Inc.

First-quarter fiscal 2027 revenue increased 49.7% to $52.8 million from $35.3 million a year ago. Gross profit rose 35.3% to $12.4 million, with gross margin at 23.6% versus 26.1% last year. Net income climbed 66.3% to $2.1 million, or $0.05 per diluted share, and adjusted EBITDA rose 71.2% to $4.9 million. Operating expenses were $9.8 million, or 18.5% of revenue, versus $7.6 million and 21.6% a year ago. Cash and cash equivalents were $24.4 million at April 30, 2026, and total debt was $5.1 million. Management said Q1 absorbed most of the startup costs for new packaging technologies and protein form factors, so very little of the new-item revenue came through in the quarter. For the balance of fiscal 2027, management expects the new launches at Walmart, Target, Food Lion and other accounts to ramp meaningfully, and said it remains on track to bring corporate gross margin into the mid- to high-20% range as items reach steady state production.

Adam Michaels struck a confident, expansion-oriented tone, repeatedly framing the quarter as proof that the company’s 4 C’s framework is working. He emphasized the completed ERP integration across all 3 plants, the move into the Rutherford expansion, and the company’s position as a scaled deli platform with a path toward becoming the leading national one-stop-shop deli solutions provider. He also highlighted the broader category tailwind in prepared foods, the company’s deepening relationships with major retailers, and a strengthened balance sheet that supports selective acquisitions.

Anthony Gruber focused on the financial bridge from growth to operating leverage. He cited revenue of $52.8 million, gross profit of $12.4 million at 23.6% margin, operating expenses of $9.8 million, net income of $2.1 million, and adjusted EBITDA of $4.9 million. He said gross margin was pressured by labor and raw material inefficiencies, startup costs tied to more than 12 new items, and Bayshore integration, but reiterated the company is on track toward a mid- to high-20% corporate gross margin target. He also noted cash of $24.4 million, debt of $5.1 million, and strong cash flow/working capital management supporting future growth and inorganic opportunities.

Analysts focused on how much Q1 reflected startup costs versus lasting margin pressure, and management said most of the new products launched in the middle to end of April, so the quarter carried the costs but very little of the revenue. Management described the incremental gross margin drag as largely tied to labor and raw material inefficiencies, packaging/technology learning curves, and some intentional trade spend shifts, estimating roughly $500 thousand to under $1 million of inefficiency plus about $500 thousand moved from marketing into trade. Questions also centered on Bayshore integration and capacity; management said the ERP conversion was the last major hurdle, that Bayshore is already helping absorb Walmart and Food Lion production, and that the company believes it can roughly double revenue to around $400 million before needing another facility, while still remaining active on M&A.