Mama's Creations Q1 FY27 revenue jumps 50% to $52.8 million
Mama's Creations reported a 50% increase in revenue to $52.8 million for Q1 FY27, with net income rising 66% to $2.1 million and adjusted EBITDA growing 71% to $4.9 million. The company launched over a dozen new items with major retailers, including Walmart and Target, and completed the integration of Bay Shore into its ERP system. Cash and cash equivalents increased to $24.4 million.
*this image is generated using AI for illustrative purposes only.
Mama's Creations reported financial results for the first quarter of fiscal 2027, demonstrating significant growth across key financial metrics. Revenue increased 50% to $52.8 million, compared to $35.3 million in the prior-year quarter. The company successfully lapped a nearly $10 million digital Costco multi-vendor mailer from the prior year without incremental programming. Net income rose 66% to $2.1 million, or $0.05 per diluted share, up from $1.2 million, or $0.03 per diluted share, in the same period last year. Adjusted EBITDA grew 71% to $4.9 million.
The company's balance sheet strengthened, with cash and cash equivalents growing to $24.4 million as of April 30, 2026, from $20.0 million as of January 31, 2026. Total debt stood at $5.1 million at the end of the quarter. The increase in cash was primarily driven by improved profitability, strong operating cash flow generation, and ongoing working capital optimization.
Operational Highlights
During the quarter, Mama's Creations successfully launched over a dozen new items with major retailers, including Walmart, Target, and Food Lion. The company won Costco Everyday Item status for branded beef meatballs in the San Diego region. Additionally, the company completed the ERP transition of the legacy Bay Shore system to its enterprise-wide ERP system, creating a unified platform for sales, procurement, production, inventory, and accounting.
Financial Performance
Gross profit increased 35% to $12.4 million, representing 23.6% of total revenues, compared to $9.2 million, or 26.1% of total revenues, in the prior-year quarter. The gross margin was impacted by short-term labor and raw material inefficiencies associated with the start-up of new packaging technologies and protein form factors for new product launches. Operating expenses totaled $9.8 million, up from $7.6 million in the prior-year quarter, but declined as a percentage of revenue to 18.5% from 21.6%.
| Metric | Three Months Ended April 30, 2026 | Three Months Ended April 30, 2025 | % Increase |
|---|---|---|---|
| Revenues | $52.8 million | $35.3 million | 50% |
| Gross Profit | $12.4 million | $9.2 million | 35% |
| Operating Expenses | $9.8 million | $7.6 million | 28% |
| Net Income | $2.1 million | $1.2 million | 66% |
| Earnings per Share (Diluted) | $0.05 | $0.03 | 67% |
| Adj. EBITDA (non-GAAP) | $4.9 million | $2.8 million | 71% |
Adam L. Michaels, Chairman and CEO of Mama's Creations, attributed the growth to the successful integration of the Bay Shore business, durable demand across the customer base, and the execution of the integrated three-facility manufacturing platform. He noted that the company remains on track toward its mid-to-high-20% corporate gross margin target as new items transition into steady-state production.
What is the timeline for resolving the short-term labor and raw material inefficiencies to restore gross margins?
Are there plans to expand the Costco beef meatball program to additional regions following the San Diego launch?
How does the company intend to utilize its increased cash balance and strong operating cash flow for future growth?
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