Mission Produce, Inc. (NASDAQ: AVO) reported fiscal first‑quarter 2026 results that included a net loss of $0.7 million, revenue of $278.6 million, and adjusted EBITDA of $18.5 million. The company’s earnings per share of $0.10 beat the consensus estimate of $0.07, while revenue fell 17% year‑over‑year, driven by a 30% drop in per‑unit avocado prices offset by a 14% increase in volume sold.
Revenue decline was largely a pricing effect. Avocado prices fell 30% from the elevated levels seen in the previous year, but the company increased avocado volume by 14%, which helped lift adjusted EBITDA 5% to $18.5 million from $17.7 million a year earlier. The net loss was largely attributable to $7.0 million in transaction advisory costs related to the pending Calavo Growers acquisition, which were not offset by the volume‑driven margin improvement.
Gross margins expanded by 190 basis points to 11.3%, a gain driven by higher avocado volumes and improved per‑unit margins in the Marketing & Distribution unit. In contrast, the Blueberries segment experienced margin compression due to lower per‑acre yields and higher production costs, while the International Farming unit remained modest at $10.6 million in sales. Marketing & Distribution generated $234.8 million in sales, the largest contributor to revenue.
Management reiterated its guidance for the remainder of the fiscal year and emphasized a “volume‑centric strategy.” CEO Steve Barnard said, “We are off to a strong start in fiscal 2026, delivering 14% avocado volume growth and strong adjusted EBITDA results as industry pricing normalized from the elevated levels experienced over the past year.” CFO Bryan Giles noted, “Fiscal 2026 first‑quarter revenue totaled $278.6 million, which was down 17% from prior year and driven by a 30% decrease in pricing.” The company expects lower Q2 profitability and EBITDA as pricing pressures continue.
Strategically, Mission Produce is in the final stages of acquiring Calavo Growers for approximately $490 million, a deal expected to close in the third quarter and generate at least $25 million in annualized cost synergies. The acquisition expands the company’s prepared‑food capabilities and strengthens its North American avocado supply chain, positioning it for long‑term growth amid a transition to a more normalized pricing regime.
Compared with the prior year, Mission Produce’s net income was $3.9 million, a swing to a $0.7 million loss in Q1 2026. Adjusted EBITDA rose 5% year‑over‑year, and the company’s gross margin expansion offset the impact of the transaction advisory costs, underscoring disciplined cost management even as it navigates pricing headwinds.
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