Mama's Creations, Inc. (MAMA) - 10-Q Summary
Business Context and Reporting Period
Company: Mama's Creations, Inc.
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: July 31, 2026
Business Overview: A marketer, manufacturer, and distributor of fresh deli prepared foods, including meatballs, chicken, sausage, and ready-to-heat meals. The company operates through subsidiaries MamaMancini's, T&L Creative Salads, Olive Branch, and Crown 1 Foods. The company is an accelerated filer on the Nasdaq Stock Market.
Key Financial Metrics
| Metric (in thousands) | 3 Months Ended July 31, 2026 | 6 Months Ended July 31, 2026 | 6 Months Ended July 31, 2025 |
|---|---|---|---|
| Net Sales | $54,582 | $107,348 | $70,458 |
| Gross Profit | $13,077 | $25,504 | $17,955 |
| Gross Margin | 24.0% | 23.8% | 25.5% |
| Operating Income | $2,992 | $5,656 | $3,278 |
| Net Income | $2,565 | $4,622 | $2,514 |
| Diluted EPS | $0.06 | $0.10 | $0.06 |
| Cash and Equivalents (End of Period) | $138,617 (as of July 31, 2026) | ||
| Operating Cash Flow (6 Months) | $11,896 | ||
| Total Debt (Term Loan) | $4,806 (Current: $983, Long-term: $3,823) | ||
| Working Capital | $140,179 |
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 55% year-over-year for the quarter and 52% for the six-month period. Growth was driven by the acquisition of Crown 1 Foods (completed Sept 2025), new product introductions, and increased velocity of existing items.
- Profitability: Net income doubled for the six-month period ($4.6M vs. $2.5M). Operating income increased 73% year-over-year for the six-month period.
- Margins: Gross margin decreased slightly from 25% to 24% year-over-year due to increased labor, overhead, and promotional activity associated with new product launches.
- Liquidity Transformation: Cash and cash equivalents surged from $19.9M (Jan 31, 2026) to $138.6M (July 31, 2026). This was primarily due to a public offering of common stock in July 2026 yielding approximately $108.6M in net proceeds.
- Operating Expenses: Increased significantly due to payroll (new hires/variable comp), freight, and commissions/royalties tied to sales volume.
Guidance, Outlook, and Risks
- Capital Raise: On July 1, 2026, the company completed an underwritten public offering of 5.56M shares at $18.00/share, with a full exercise of the overallotment option (833k shares). Proceeds are designated for working capital, general corporate purposes, and potential future acquisitions.
- Outlook: Management believes current cash resources are sufficient for the next 12 months but may require additional funding for strategic growth. No specific financial guidance was provided in this filing.
- Risks:
- Integration Risk: Uncertainty regarding the successful integration of the Crown 1 acquisition and realization of anticipated synergies.
- Customer Concentration: For the three months ended July 31, 2026, three customers accounted for 39%, 11%, and 11% of gross revenue.
- Cost Pressures: Ongoing exposure to rising labor, fuel, and freight costs, though partially offset by efficiencies and pricing actions.
- Commodity Volatility: Potential impact of tariff volatility and raw material price fluctuations.
Investor Verification Checklist
- Capital Raise Details: Verify the final net proceeds and specific allocation of the $108.6M raised in July 2026.
- Crown 1 Integration: Monitor future filings for updates on the integration progress and financial performance of the Crown 1 acquisition.
- Customer Concentration: Assess the stability of the top three customers representing ~61% of Q2 revenue.
- Debt Covenants: Confirm continued compliance with the Senior Funded Debt/EBITDA covenants under the M&T Credit Agreement and Crown Note.
- Stock-Based Compensation: Review the impact of the $1.45M stock-based compensation expense (6 months) on future earnings as awards vest.