UTZ · Utz Brands, Inc.

Utz Brands delivered a solid start to fiscal 2026 with net sales rising 2.6% to $361.3 million, driven by 3.7% net pricing partially offset by a 1.1% volume/mix decline, which excluded the prior-year Bonus Packs promotion impact where volumes grew 1.6%. Branded Salty Snacks, comprising 89% of sales, surged 5.2%, led by Power Four Brands (Utz, On The Border, Zapp’s, Boulder Canyon), while Non-Branded & Non-Salty Snacks fell 14.3% due to low-margin item eliminations. Retail sales outperformed the category at +4.6% vs. +2.4%, with Power Four Brands up 6.7%, securing dollar share gains despite volume pressures from lapping promotions. Gross profit margin expanded 200bps to 25.4%, and adjusted gross margin improved 210bps to 30.8%, fueled by productivity savings outpacing supply chain inflation. SG&A rose to 23.6% of sales from investments in marketing and geographic expansion, with adjusted SG&A at 17.6%. Adjusted EBITDA grew 6.2% to $47.9 million (13.3% margin), reflecting gross margin leverage despite SG&A spend. GAAP net loss of $2.4 million compared to prior-year income, impacted by no warrant gain repeat and higher D&A. CEO Howard Friedman highlighted category improvement, commitment to branded growth, productivity, and marketing reinvestment. CFO BK Kelley noted working capital focus driving Adjusted Free Cash Flow improvement to $(25.9) million and leverage down 0.4x to 3.6x. The company reaffirmed full-year guidance, including 2-3% organic sales growth (excluding 53rd week benefit of ~$20M sales/$3M EBITDA), 5-8% Adjusted EBITDA growth, and $60-80M Adjusted FCF, signaling confidence amid dynamic consumer environment.