Mission Produce reported a net loss of $7.2 million, or $0.10 per diluted share, for the fiscal second quarter ended April 30, 2026, compared to net income of $3.1 million in the same period last year. Total revenue decreased 24% to $290.9 million from $380.3 million, driven by a 36% decrease in per-unit avocado sales prices, partially offset by a 15% increase in volume sold. Adjusted net income was $0.8 million, excluding $6.4 million in transaction advisory costs related to the Calavo Growers acquisition.

Financial Performance

Gross profit for the quarter was $20.5 million, down from $28.4 million in the prior year, with gross margin decreasing to 7.0% of revenue. Adjusted EBITDA was $7.1 million, a decline from $19.1 million in the same period last year, primarily due to lower gross profit resulting from margin compression. The company cited historically low prices and a temporary mismatch in supply and demand for core fruit sizes as key factors pressuring margins.

Segment Performance

In the Marketing & Distribution segment, sales were $277.2 million compared to $362.5 million last year. The segment reported an operating loss of $3.8 million, compared to income of $7.6 million, with adjusted EBITDA of $7.2 million. The International Farming segment recorded sales of $7.7 million and an operating loss of $3.9 million, while the Blueberries segment reported sales of $11.0 million and operating income of $0.7 million.

Strategic Developments

On May 28, 2026, Mission Produce completed its acquisition of Calavo Growers, issuing 17,530,823 shares of common stock and paying approximately $266 million in cash. Post-acquisition, the company has 88.3 million shares outstanding and $350 million in term loan indebtedness. On June 3, 2026, the Board of Directors authorized a new stock repurchase program for up to $100 million over the next 36 months, replacing the previous program. The company expects $25 million in annual cost synergies within 18 months, with benefits starting in the fiscal fourth quarter.

Outlook

For the third quarter of fiscal 2026, the company expects consolidated adjusted EBITDA in the range of $28 million to $32 million. For the second half of the fiscal year, consolidated adjusted EBITDA is expected to be between $84 million and $88 million. Avocado industry volumes are expected to increase by approximately 5 to 10% versus the prior year period. Total capital expenditures for the full year are now expected to be approximately $45 million.

Mission Produce, Inc. has authorized a stock repurchase program allowing the company to buy back up to $100 million of its common stock over the next 36 months. The program, effective June 3, 2026, was approved by the company's Board of Directors to return capital to shareholders.

Program Details

The 2026 Program permits Mission Produce to repurchase shares through open market transactions or privately negotiated deals. The timing and actual volume of purchases will be determined by management based on market conditions and corporate requirements.

The company is not obligated to repurchase any specific number of shares, and the program may be suspended or discontinued at any time without prior notice. This initiative underscores the Board's confidence in the company's financial health and long-term strategy.