0001193125-26-191644
SEC filingRevenue grew 8.0% to $281.8M, driven by pricing and new customer sales, but profitability declined across gross, operating, and net income lines — reflecting volume softness in private brand bars and ongoing strategic capacity investments.
Revenue for Q3 FY2026 was $281.8M, an 8.0% increase over $260.9M in Q3 FY2025. This growth reflects both pricing actions and increased sales to a customer added during the second quarter of fiscal 2025. However, this top-line expansion occurred alongside a sales volume decrease in private brand products — notably bars, nuts, trail mix, and peanut butter — driven in part by the company’s strategic decision to reduce sales to a grocery store retailer.
Gross profit was $53.8M, down 3.8% year-over-year, and gross margin was 19.1%. The decline in gross profit reflects lower volume in private brand bars — a core category undergoing active capacity expansion — despite revenue growth. Business context confirms that private brand bar volume declined meaningfully, contributing to gross profit compression even as pricing supported revenue.
Operating income was $23.8M, down 15.6% versus $28.2M in Q3 FY2025, with operating margin at 8.4%. This reduction is consistent with the company’s stated focus on long-term capability building: management commentary notes significant capital investments beginning in Q2 FY2025 and continuing into FY2027 to expand production capabilities, improve efficiency, and enhance product offerings — particularly for the bars business.
Net income was $16.8M, down 16.4% year-over-year, and diluted EPS was $1.43, down 16.9% versus $1.72. These declines align with the broader contraction in operating income and reflect the absence of offsetting non-operating gains or tax benefits sufficient to reverse the underlying margin pressure.
Net cash provided by operating activities was $94.8M, a sharp improvement from a use of $6.0M in Q3 FY2025. Management attributes this swing to changes in working capital — specifically decreased inventory and increased accrued expenses — alongside higher net income. This recovery underscores improved operational execution in cash conversion despite elevated investment activity.
Capital expenditures totaled $69.0M, up from $37.2M in Q3 FY2025. This increase is directly tied to the company’s multi-year plan to expand bar production capacity and food safety infrastructure. As noted in management commentary, these outlays include equipment purchases, facility maintenance, and infrastructure improvements essential to scaling the bars business sustainably.