Sep 3, 2026 earnings call — Retail wins and balance sheet for M&A
We grew revenue 55% to $54.6 million, and expanded adjusted EBITDA 69% to $5.5 million.
Revenue $0.1B (est $0.1B) · EPS $0.06 (est $0.05)
Key quotes
"We will start in the Louisville division in over 100 stores with four items, three of which are chicken bottom SKUs."
"Margin improved sequentially to 24.0% from 23.6% while spending more trade in Q2 than in Q1 and spending over $1 million more in high ROI trade versus prior year."
"Following our recent offering, we closed the quarter with over $138 million cash war chest and virtually no debt, supported by the strong operating cash flow the business generated on its own."
Analyst Q&A 7
Kroger launch; Costco MVM; marketing vs trade
Q (Jon Andersen · William Blair): He asked how Mama got Kroger distribution, what the initial launch and roadmap look like. He also asked how the Costco MVM came together, its size and impact on second-half Costco revenue and margins. He asked if marketing dollars were moved into trade and why.
A: Management said they start small in one division with high-velocity items like meatballs and chicken and then build out over time. They said the Costco MVM is already in four regions, was voted into all eight regions and is planned to be bigger than last year, and that Mama does not sell into Costco at a loss. They also said they intentionally moved about $0.5 million from marketing into trade and spent over $1 million more in trade this year than last year because of strong ROIs.
"Let's start smaller, let's start in one division, let's start strong with the items that are great, right?" — Adam Michaels (CEO·CHAIR)
New Sam's item and Walmart update
Q (George Kelly · ROTH Capital Partners): He asked whether Sam's Club took an additional item, what it was and when it went in, and whether it is in all stores. He also asked for an update on Walmart store count, velocities, and which products work best.
A: Management said the new Sam's product is a Panko breaded chicken breast that just went in, likely this week, and they will confirm exactly how many stores. They said Walmart placements are now in over 2,300 stores, velocities are rising, grilled chicken is performing exceptionally well, and lower-velocity items may be proactively replaced by their team.
"This was a new product for us, a Panko chicken that just went in, I think literally -- I think this week possibly." — Adam Michaels (CEO·CHAIR)
M&A size and focus
Q (Benjamin Klieve · StoneX): He asked whether Mama will still pursue smaller acquisitions or now prefers larger, more transformative deals, and what differences they see in operations and multiples.
A: Management said integration takes work and that buying a $25 million revenue company likely no longer makes sense. They said the focus is on capability, new customers and cultural fit rather than just revenue, and that their recent raise lets them participate at the "grown-up table" for larger deals while remaining diligent on multiples and diligence.
"Quite honestly, just it probably just doesn't make sense to buy a $25 million revenue company anymore." — Adam Michaels (CEO·CHAIR)
Ways to hit higher gross margin; growth outlook
Q (Ryan Meyers · Lake Street Capital): He asked what needs to happen in the back half to reach mid-to-high-20s gross margin and what to expect for Q3 and Q4 revenue growth and whether double-digit growth still applies.
A: Management said three things can drive margin: selling a higher percentage of lower-cost "bottoms," continued operational trimming, and Bay Shore margin improvement. They said they have added more than $10 million of chicken bottom sales versus last year, see room for a couple more gross-margin points, and remain confident in achieving double-digit, increasingly profitable growth.
"The biggest one, which we've been talking about for some time now, is we need to keep selling the bottoms, right?" — Adam Michaels (CEO·CHAIR)
Mix of chicken bottoms in Q3; Costco MVM scope
Q (Eric Des Lauriers · Craig-Hallum Capital Group): He asked what share of the two dozen Q3 new placements will use chicken bottoms and how to think about their velocities. He also asked how this year's Costco MVM compares to last year in timing and scope.
A: Management said much of the new product flow is chicken bottoms but velocities will determine the ultimate mix, and they are optimistic Q3 will sequentially improve versus Q2. They said the Costco MVM will be bigger than last year, may run a bit longer, has already started in some regions and strengthens the everyday relationship in regions like the Northeast.
"It is going to be bigger than last year." — Adam Michaels (CEO·CHAIR)
Bay Shore margins and capacity
Q (Matthew Curtis · D.A. Davidson): He asked how Bay Shore's gross margin compares to other facilities and how much of the original margin gap is closed. He also asked how much unused capacity remains.
A: Management said they do not run separate business P&Ls and instead track absorption and overall efficiency. They said Bay Shore was a much larger facility and they have filled more volume into it, lowering overhead percentage, and that the facility still has plenty of unused capacity (not running seven days or 24 hours everywhere) so current sites could support substantial growth.
"So much of the stuff, and I think I mentioned earlier, the legacy Walmart stuff, we're actually doing in Bay Shore now and vice versa." — Adam Michaels (CEO·CHAIR)
Seafood plans and convenience channel progress
Q (Nicholas Sherwood · Maxim Group): He asked how important adding seafood capability is for M&A and what challenges integration would bring. He also asked about progress in the convenience channel after Sheetz placements.
A: Management said Bay Shore used to make seafood and has some capability, but bringing seafood back requires different HACCP plans and USDA approvals, so an M&A could be an approach. On convenience stores, they said new Sheetz paninis and wraps are performing well, they have distributor partners and the right portfolio, but the c-store channel still offers lots of opportunity.
"First, what's wonderful, actually, Bay Shore used to make seafood products." — Adam Michaels (CEO·CHAIR)