0001437749-26-007987
SEC filingNational Beverage Corp. (FIZZ) reported solid Q3 2026 results with net sales of $264.6 million, a slight decrease from $267.1 million in Q3 2025. Net income increased to $41.2 million from $39.6 million in the prior year quarter, driven by improved gross profit of $99.6 million (up from $99.0 million) and operating income of $51.1 million (up from $50.6 million). The company generated strong operating cash flow of $135.7 million for the nine-month period ending January 31, 2026, and maintained a robust balance sheet with $314.0 million in cash and total shareholders' equity of $591.1 million. Key performance indicators show stable margins with gross margin at 37.6% and operating margin at 19.3%. The company continues to operate as a single segment with no material changes in market risk factors.
National Beverage Corp. reported Q3 2026 net sales of $264.6 million, representing a slight decrease of 0.9% compared to $267.1 million in Q3 2025. Despite the modest revenue decline, the company improved profitability with net income increasing 3.9% to $41.2 million from $39.6 million in the prior year quarter. Gross profit grew to $99.6 million from $99.0 million, while operating income increased to $51.1 million from $50.6 million. For the nine-month period ending January 31, 2026, net sales totaled $883.4 million with net income of $143.3 million. The company maintained strong cash generation with operating cash flow of $135.7 million for the nine-month period.
The company operates as a single operating segment encompassing the development, production, marketing and sale of beverages. No segment breakdown or geographic revenue mix is provided in the filing. Revenue performance shows stability with a slight year-over-year decline in the quarter but overall consistent performance across the nine-month period. The Chief Operating Decision Maker assesses performance based primarily on consolidated operating income and net income, with regular review of cost of sales, shipping and handling costs, and marketing costs.
Gross margin improved to 37.6% in Q3 2026 from 37.1% in Q3 2025, reflecting effective cost management despite revenue pressure. Operating margin remained strong at 19.3%. Cost of sales was $165.0 million in Q3 2026 compared to $168.1 million in the prior year quarter. Selling, general and administrative expenses were stable at $48.5 million. The company's derivative financial instruments for aluminum hedging contributed to cost stability, with $6.5 million in gains reclassified from accumulated other comprehensive income to cost of sales during the quarter.
The company generated $135.7 million in operating cash flow for the nine-month period ending January 31, 2026. Free cash flow (operating cash flow minus capital expenditures) was $120.5 million. Cash and cash equivalents increased to $314.0 million from $193.8 million at the beginning of the period. Total assets grew to $792.5 million with current assets of $538.0 million. The company maintains $150 million in available credit facilities with no borrowings outstanding. Total liabilities decreased to $201.4 million while shareholders' equity increased to $591.1 million, resulting in a strong equity position.
The filing indicates no material changes in market risks from those reported in the Annual Report on Form 10-K for fiscal year 2025. The company maintains disclosure controls and procedures that were deemed effective. Forward-looking statements identify risks including general economic conditions, pricing of competitive products, fluctuations in raw material costs, labor issues, changing consumer preferences, technology failures, government regulations, and climate change impacts. The company continues to evaluate recently issued accounting pronouncements but does not expect material impacts upon adoption.