0001193125-26-197491
SEC filingQ1 2026 delivered a sharp operating loss of -$190.5M versus prior $33.8M profit, driven by challenging year-over-year comparisons from 2025 distributor inventory builds for innovations and lower 2026 inventory levels due to improved supply chain responsiveness.
Q1 2026 financial results reflect challenging year-over-year comparisons, as distributors built inventories in Q1 2025 to support innovations like Sun Cruiser and Truly Unruly, while 2026 saw modestly lower distributor inventory levels from improved supply chain responsiveness. This dynamic contributed to revenue of $433.9 million, down 4.4% from $453.9 million in the prior year. Gross profit declined 2.4% to $214.0 million from $219.3 million, maintaining a stable gross margin of 49.3%. The resilience in margins stems from net revenue per barrel increases driven by pricing, favorable product mix, and higher freight rates, partially offsetting volume-related pressures.
Operating income deteriorated dramatically to a -$190.5 million loss from $33.8 million profit, yielding an operating margin of -43.9%. This swing highlights the impact of revenue softness combined with operating expense pressures in a seasonally challenging quarter. Net income followed suit, posting a -$145.3 million loss versus $24.4 million profit, with diluted EPS at -$13.88 compared to $2.16—a year-over-year change exceeding -700%. These results underscore the quarter's profitability challenges amid the inventory comparison headwinds.