MAMA'S CREATIONS Revenue Jumps 55% to $54.6M as Net Income Doubles

Mama's Creations (MAMA) reported second quarter fiscal 2027 results on September 3, 2026, with revenue up 55.0% to $54.6 million from $35.2 million a year earlier. Net income doubled to $2.6 million, or $0.06 per diluted share, and adjusted EBITDA rose 68.9% to $5.5 million. Cash and equivalents ended the quarter at $138.6 million, up from $20.0 million at the end of January.

The company attributed the revenue jump to the ramp of new branded items launched with major retailers in the first quarter, item expansion at new and existing customers, and the contribution of the September 2025 Bay Shore acquisition. Gross profit rose 49.1% to $13.1 million, though gross margin slipped to 24.0% from 24.9% a year ago, absorbing $1 million more in trade spend. Margin did improve sequentially from 23.6% in the first quarter.

Operating expenses came in at $10.1 million versus $7.1 million a year earlier, but fell as a share of revenue to 18.5% from 20.1%, a decline of 160 basis points. Net income equaled 4.7% of revenue against 3.6% a year ago, and adjusted EBITDA margin widened to 10.1% from 9.3%.

The balance sheet shift stems mainly from a July 2026 public stock offering that raised roughly $108.6 million in net proceeds, including full exercise of the underwriters' option, plus $11.9 million of operating cash flow in the first half. Total debt stood at $4.8 million as of July 31.

On the commercial side, Mama's launched over a dozen new placements in the quarter, more than 60% built on chicken bottoms, mostly cross-sells into banners it already serves such as Publix, Winn-Dixie, Albertsons and Shaw's. It was selected for a Costco second half multi-vendor mailer across all eight U.S. regions; that Costco business has grown from about $0.5 million four years ago to over $25 million last fiscal year.

More than two dozen additional placements are approved for third quarter delivery, headlined by the company's first-ever launch in Kroger, starting with four items in over 100 stores in the Louisville division, alongside expansions at BJ's, Sam's Club, Ahold, Food Lion, Fresh Thyme and Sheetz. The company also opened its East Rutherford expansion, adding freezer and refrigeration storage it says will cut outside storage fees.

Chairman and CEO Adam L. Michaels framed the cash pile as a war chest for acquisitions, saying the M&A pipeline is active and that targets must broaden the one-stop-shop platform and be accretive from day one. He tied the strategy to a stated path to $1 billion in revenue.

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