0001104659-26-057824
SEC filingTootsie Roll's Q1 2026 revenue grew 2.1% to $151.5M, but gross profit declined 2.2% and net income fell 2.2%, reflecting cost pressures.
Revenue for the first quarter of 2026 was $151.5 million, a 2.1% increase from $148.5 million in the prior year quarter. The growth was primarily driven by domestic sales, while foreign sales experienced a decline. The company continues to benefit from its strong brand portfolio and market presence in the U.S.
Net cash provided by operating activities increased significantly to $11.5 million from $3.6 million in the prior year quarter. The improvement was primarily due to changes in working capital, including the timing of income tax payments and prepaid expenses. This strong cash generation supports the company's investment activities and dividend payments.
Management believes that operating losses at its Spanish subsidiary are expected to continue beyond 2026 and may require additional cash financing. Additionally, the company's withdrawal liability increased due to a change in the valuation interest rate for plans receiving Special Financial Assistance. These factors represent ongoing risks that management is monitoring closely.