Mamas Creations 2026 Q1 Earnings Strong Performance with Net Income Surging 124%

Mama's Creations (MAMA) reported its fiscal 2026 Q1 earnings on June 3rd, 2025. The company posted a significant 18.2% increase in revenue to $35.26 million compared to the previous year. Net income surged by an impressive 124%, reaching $1.24 million. The company maintained its optimistic outlook, reaffirming its guidance for double-digit growth for the remainder of the fiscal year.
Despite a challenging macroeconomic environment, Mama's Creations exceeded expectations with a notable increase in revenue and net income. The company also raised its guidance, demonstrating confidence in achieving continued growth.

Revenue
Mama's Creations experienced a notable 18.2% rise in total revenue for 2026 Q1, reaching $35.26 million compared to $29.84 million in the same quarter of the previous year. This growth was primarily driven by increased net sales, contributing to the overall revenue increase.

Earnings/Net Income
Mama's Creations saw its earnings per share (EPS) increase by 200% to $0.03 in 2026 Q1 from $0.01 in 2025 Q1, highlighting ongoing earnings growth. The company's net income reached $1.24 million, marking a 123.7% increase from $553,000 in the previous year. The EPS indicates a strong performance, reflecting the company's profitability.

Price Action
The stock price of Mama's Creations edged down by 2.58% during the latest trading day, climbed 7.51% during the most recent full trading week, and surged 23.70% month-to-date.

Post-Earnings Price Action Review
The investment strategy of purchasing Mama's Creations shares when revenues fall short and holding them for 30 days has proven successful, delivering an impressive 173.66% return and significantly outperforming the benchmark. Despite experiencing a maximum drawdown of 70.57%, the strategy demonstrated resilience, showcasing its potential in volatile markets. With a Sharpe ratio of 0.45 and a compound annual growth rate (CAGR) of 29.75%, the approach has shown efficient risk-adjusted returns, making it an attractive option for investors seeking both growth and stability.

CEO Commentary
Adam L. Michaels, Chairman & CEO of Mama's Creations, expressed optimism about the company's strong performance, emphasizing the 18% year-over-year revenue growth to a record $35.3 million. He attributed the growth to volume increases and successful product introductions, despite challenges posed by a difficult macroeconomic environment. Michaels highlighted the company's value-oriented offerings as a key factor in its resilience and maintained confidence in achieving double-digit growth moving forward. Strategic investments in production capabilities and customer relationships remain priorities, ensuring operational excellence and sustainable growth.

Guidance
Looking forward, Mama's Creations remains confident in achieving double-digit growth rates for the rest of the fiscal year. CEO Adam L. Michaels expects to maintain gross margins in the high 20% range, with trade promotion investments aligned closer to 10% of gross revenue. Operational improvements and strategic initiatives are expected to position the company for profitable growth and market share gains throughout fiscal '26 and beyond.

Additional News
Mama's Creations has been invited to attend leading investor conferences across the nation, including the ROTH Conference, the 2025 Planet MicroCap Showcase, and the Craig-Hallum Institutional Investor Conference. This participation showcases the company's growing presence and interest in expanding its market reach. Additionally, Mama's Creations has secured new customers in the second quarter, including Lidl, Amazon Fresh, and Sheetz, further solidifying its national footprint. The company continues to focus on strategic initiatives that enhance its distribution network and product offerings, aiming to capture a larger share of the market.