Mission Produce Reports Strong Q3 Revenue but Faces Profitability Challenges
Mission Produce Inc. (NASDAQ: AVO) reported strong revenue growth in its third-quarter FY26 results, driven by increased Mexican avocado supply and the impact of its recent acquisition of Calavo Growers. The company's topline rose 26% year-over-year to $450 million, with a notable 38% increase in avocado sales volume. Despite these gains, profitability metrics showed signs of strain, including lower adjusted net income and declining segment performance due to softer pricing and integration costs from the Calavo acquisition. The Blueberries segment saw improved operating income but also experienced negative EBITDA for the first time since Q3 FY25. The International Farming segment reported a significant drop in sales and operating income, attributed to global avocado supply expansion reducing average prices. Additionally, cash flow turned negative due to advisory expenses related to Calavo integration and increased working capital needs. Management remains optimistic about future performance, maintaining its full-year adjusted EBITDA guidance of $84 million to $88 million for FY26 and projecting Q4 earnings between $52 million to $55 million. Institutional ownership data shows stable hedge fund exposure with no significant changes in the second quarter.
Tickers: $AVO
Topics: AVO Calavo Acquisition EBITDA Mexican Avocado Supply Mission Produce