The Hain Celestial Group 2026 Q1 Earnings Wider Losses Amid Revenue Decline

The Hain Celestial Group (HAIN) reported fiscal 2026 Q1 results on Nov 8, 2025, with revenue declining 6.8% to $367.88 million and a widened net loss of $20.63 million (-$0.23/share), missing analyst expectations. The company withheld numeric guidance but signaled sequential organic sales moderation and cost-driven EBITDA improvements in the second half.

Revenue

Revenue fell 6.8% year-over-year to $367.88 million, with North America’s segment declining 11.8% due to snacks weakness, while International sales rose slightly by 0.3% amid meal prep growth. The North America segment’s adjusted EBITDA improved 37% to $17 million, though gross profit margins contracted 220 basis points to 18.5%.

Earnings/Net Income

The company’s losses deepened to $0.23/share in Q1 2026, a 4.5% wider loss compared to Q1 2025. Net losses expanded by 4.9% to $20.63 million, driven by lower volume/mix and cost inflation. The EPS deterioration underscores the challenge of stabilizing profitability despite cost-cutting measures.

Post-Earnings Price Action Review

Shares of Hain Celestial surged 7.14% on the day of the earnings release but remained down 15.49% month-to-date. The stock’s 3.45% weekly gain contrasts with its broader 15.5% monthly decline, reflecting mixed investor sentiment. Analysts note the stock’s volatility is tied to the company’s strategic overhauls and uncertain guidance, with Wall Street Zen upgrading its rating to “Hold” amid insider buying and cautious optimism about long-term deleveraging.

CEO Commentary

Interim CEO Alison Lewis emphasized sequential sales improvement in both segments, with North America’s Beverages, Baby and Kids, and Meal Prep categories offsetting snacks declines. Strategic priorities include SKU rationalization (30% reduction by 2027), innovation (e.g., Garden Veggie relaunch), and digital marketing shifts to drive ROI. Lewis expressed cautious optimism about second-half momentum from pricing, innovation, and margin improvements.

Guidance

The company expects positive free cash flow for fiscal 2026 but withheld numeric guidance due to strategic review uncertainties. CFO Lee Boyce highlighted anticipated EBITDA improvements in the second half from cost savings, pricing, and International margin drivers, with net leverage targeting a long-term reduction to 3x adjusted EBITDA.

Additional News

Wall Street Zen upgraded HAIN to “Hold” from “Sell,” citing insider buying and strategic progress, though the MarketBeat consensus remains “Reduce.” Insiders, including CEO Alison Lewis, acquired 137,535 shares in three months, now owning 1.71% of the company. The firm also announced a strategic review with Goldman Sachs, aiming to streamline operations and reduce debt. Institutional investors, including Charles Schwab and Deutsche Bank, increased stakes in Q1, with Deutsche Bank’s position rising 634%.

The Hain Celestial Group’s Q1 earnings highlight ongoing challenges in its North America snacks segment and broader industry softness, but strategic initiatives like SKU rationalization and digital marketing shifts offer potential for long-term stabilization. Investors remain cautious as the company navigates deleveraging and operational reforms.