Hain Celestial Group, Inc. reported fiscal second‑quarter 2026 results that ended December 31, 2025. The company posted a net loss of $116 million on revenue of $384.1 million, a 7 % decline from the $388.5 million reported a year earlier. Adjusted earnings per share were –$0.03, matching the consensus estimate of –$0.03.
Revenue fell 7 % year‑over‑year, driven by a 10 % decline in the North America segment and a 3 % decline in International sales. The drop reflects lower volume and mix, higher raw‑material costs, and the impact of unfavorable fixed‑cost absorption as the company continues to streamline its portfolio.
Gross profit margin contracted to 19.4 % from 22.7 % in the prior year, while adjusted gross margin fell to 19.5 % from 22.7 %. The compression is largely attributable to lower volume/mix, cost inflation, and the absorption of fixed costs that were previously spread over a larger sales base.
Adjusted EBITDA declined to $24 million from $38 million a year earlier, reflecting the margin squeeze and higher operating expenses. The divestiture of the North American snack business, completed for $115 million in cash, has already improved cash flow and reduced debt, positioning the company for a more focused strategy.
CEO Alison Lewis said the company has made “meaningful strategic and operational progress” and is “advancing our turnaround strategy with urgency.” She highlighted the snack‑business sale as a decisive step toward a leaner portfolio and emphasized that sequential improvement is expected in the second half of the fiscal year.
Investors reacted negatively to the results, citing the earnings miss and margin compression despite the revenue beat. The company’s guidance for the remainder of the year remains unchanged, underscoring management’s confidence in the turnaround plan.
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