Sep 10, 2026 earnings call — Credit amendment and transformation focus
Company expects fiscal 2027 adjusted EBITDA of $10 million-$15 million and revenue to decline in the mid-single-digit range.
Revenue $0.3B (est $0.3B) · EPS $-0.80 (est $-0.70)
Key quotes
"Throughout fiscal 2026, we strengthened our leadership team, simplified our organization, began to modernize our digital and marketing capabilities, improved operational efficiency, and increasingly put the customer at the center of everything we do."
"As Adolfo mentioned, we amended our credit agreement to extend our existing covenant relief period and provide greater flexibility in the use of proceeds from potential asset sales, including the ability to retain a portion of those proceeds to invest in strategic initiatives to support our transformation."
"With clearer responsibility for customer acquisition and retention, our marketing team is increasingly focused on reaching the right customers, strengthening engagement, and improving the productivity of our marketing investments."
Analyst Q&A 3
2027 EBITDA bridge and marketplaces
Q (Michael Kupinski · Noble): He asked for a bridge to the 2027 adjusted EBITDA guide, including whether consulting fees continue and the roles of cost savings, gross margin, and marketing. He also asked about Easter's revenue impact and commodity/shipping effects, the credit facility amendment and liquidity plans, and early results from Amazon/DoorDash/Instacart and cannibalization.
A: Management said start from $2.9 million of adjusted EBITDA and expect approximately $50 million of run-rate cost savings in fiscal 2027, with consulting costs finished and about $12 million of incremental variable compensation. They said savings will be partly offset by a mid-single digit revenue decline; Easter shifted Gourmet Foods by about 2.5-3.5 percentage points (about 1.5% of the quarter), cocoa is a headwind while butter, flour and liquid eggs helped, and outbound fuel surcharges are a potential headwind. They said the bank amendment, potential asset sales and capital raising are linked to strengthen liquidity and flexibility (Guggenheim Securities retained), and third-party marketplaces are "growing double, sometimes triple digits from a very small base" with very little cannibalization and marketing contribution margin positive.
"The bank amendment, the potential sale of assets, and the capital raising evaluation really are intended to strengthen our financial position and provide flexibility to invest in strategic initiatives that will improve the business performance." — James Langrock (CFO)
Mother's Day results, florist vs direct, BloomNet
Q (Anthony Lebiedzinski · Sidoti & Company): He asked how Mother's Day performed versus expectations and what learnings from Valentine's were applied, and how that will change marketing and sites. He also asked for the current mix between florist-fulfilled and direct fulfillment and whether there's an optimal target, plus what's driving BloomNet and whether more tariff refunds are expected.
A: They said Mother's Day was aligned with expectations and used learnings from Valentine's—testing same SKUs, aligning value between florist and direct channels, using AI ranking, and rolling out improvements by website with A/B tests. Management said "Right now the mix is, +60% is florist fulfilled, and the remaining is direct," and they have no fixed target, focusing on customer choice and the right fulfillment by location. They said BloomNet rose by about a $500,000 increase year-over-year driven by local marketplace apps (DoorDash, Instacart, Uber Eats) and florist Mother's Day, and they believe "we've got all the refunds that are due us at the moment."
"Right now the mix is, +60% is florist fulfilled, and the remaining is direct." — James Langrock (CFO)
marketing metrics, sales cadence, divestitures
Q (Linda Bolton-Weiser · Water Tower): She asked for metrics showing marketing productivity progress (for example CAC and other measures) beyond spend as percent of revenue. She also asked about the cadence of sales in FY2027 (whether declines ease through the year and Q4 could be flat) and whether potential divestitures are brands or facilities and if any brands are unprofitable standalone.
A: They said they do not have hard numbers to share, but in 2026 customer acquisition cost declined and customer lifetime value increased after pausing non-contributive marketing and applying a marketing contribution margin rule. They are implementing new capabilities: multi-touch attribution across all websites (going live in October), redesigning loyalty with a wallet, segmenting customers, and modernizing media; they expect the rate of revenue decline to moderate through 2027 but gave no quarterly guidance. On divestitures they are evaluating non-strategic assets, including brands and hard assets, to simplify the business and improve capital efficiency, but will not discuss specifics now.
"For the first time ever, we are going to have marketing measurement, multi-touch attribution across all of our websites." — Adolfo Villagomez (CEO)