Mama's Creations Smashes Sales, Net Income in Q2

TL;DR

**MAMA is cooking up profits, with sales and net income surging, making it a tasty long-term play in the prepared foods sector.**

AI Summary

Mama's Creations, Inc. reported robust financial performance for the three and six months ended July 31, 2025. Net sales for the three-month period increased by 24.0% to $35.203 million from $28.382 million in the prior year, while six-month net sales grew by 21.0% to $70.458 million from $58.220 million. Gross profit also saw significant gains, rising to $8.771 million for the three months and $17.955 million for the six months, up from $6.879 million and $14.342 million, respectively. Net income for the three months ended July 31, 2025, was $1.277 million, an 11.2% increase from $1.148 million in the same period last year. For the six-month period, net income surged by 47.8% to $2.514 million, compared to $1.701 million in 2024. The company's cash and cash equivalents increased to $9.384 million as of July 31, 2025, from $7.150 million at January 31, 2025. A key strategic move was the issuance of 184,286 shares of common stock, valued at approximately $1.5 million, to fulfill the final payment obligation for the acquisition of Chef Inspirational Foods, LLC (CIF). Risks include intense competition, variability in sales and earnings due to the cyclical nature of the grocery industry, and volatility in food and beverage prices.

Why It Matters

Mama's Creations' strong Q2 performance, marked by significant revenue and net income growth, signals healthy consumer demand for its ready-to-heat meals and specialty foods, positioning it favorably against competitors in the competitive prepared foods market. This growth, coupled with increased cash reserves, provides the company with greater financial flexibility for future expansion or acquisitions, potentially impacting employees through job creation and customers through broader product availability. For investors, the substantial increase in net income and positive cash flow from operations suggests efficient management and a strong operational foundation, making MAMA an attractive prospect in the consumer staples sector. The successful integration and final payment for Chef Inspirational Foods, LLC also demonstrates effective M&A strategy.

Risk Assessment

Risk Level: medium — The company faces medium risk due to its exposure to intense competition and the cyclical nature of the grocery industry, as stated in Note 2. Additionally, the majority of Mama's Creations' cash and cash equivalents, approximately $8.6 million as of July 31, 2025, are held at one financial institution, exceeding insured amounts, which presents a concentration risk.

Analyst Insight

Investors should consider MAMA's consistent growth in net sales and net income, alongside its strategic acquisition of CIF, as indicators of strong operational execution and market expansion. Given the positive cash flow from operations of $4.334 million for the six months ended July 31, 2025, and increased cash reserves, investors might view MAMA as a stable growth opportunity in the consumer packaged goods sector.

Financial Highlights

debt To Equity

0.73

revenue

$70.458M

operating Margin

4.65%

total Assets

$51.236M

total Debt

$21.649M

net Income

$2.514M

gross Margin

25.49%

cash Position

$9.384M

revenue Growth

+21.0%

Key Numbers

• $35.203M — Net sales for Q2 2025 (Increased by 24.0% from $28.382 million in Q2 2024)
• $70.458M — Net sales for six months ended July 31, 2025 (Increased by 21.0% from $58.220 million in the same period of 2024)
• $1.277M — Net income for Q2 2025 (Increased by 11.2% from $1.148 million in Q2 2024)
• $2.514M — Net income for six months ended July 31, 2025 (Increased by 47.8% from $1.701 million in the same period of 2024)
• $9.384M — Cash and cash equivalents as of July 31, 2025 (Increased from $7.150 million at January 31, 2025)
• $4.334M — Net cash provided by operating activities for six months ended July 31, 2025 (Increased from $1.234 million in the same period of 2024)
• 184,286 — Shares of common stock issued (Valued at approximately $1.5 million for CIF acquisition final payment)
• $1.5M — Value of common stock issued (For final payment of CIF acquisition)
• $8.6M — Cash exceeding insured amounts (Held at one financial institution as of July 31, 2025)

Key Players & Entities

• Mama's Creations, Inc. (company) — Registrant and parent company
• MamaMancini's, Inc. (company) — Subsidiary, marketer, manufacturer, and distributor of meatballs and other meats/sauces
• T&L Acquisition Corp. (company) — Subsidiary, gourmet food manufacturer (T&L Creative Salads and Olive Branch brands)
• Chef Inspirational Foods, LLC (company) — Acquired company, developer, innovator, marketer, and sales company selling prepared foods
• United States Department of Agriculture (regulator) — Approves 'all-natural' product claims
• Securities and Exchange Commission (regulator) — Governs financial reporting rules and regulations
• Siegel Suffolk Family, LLC (company) — Seller in CIF acquisition
• R&I Loeb Family, LLC (company) — Seller in CIF acquisition
• Nasdaq Stock Market LLC (regulator) — Exchange where MAMA common stock is registered

FAQ

Risk Factors

• Intense Competition [high — market]: The company operates in a highly competitive market. This intense competition can pressure pricing and market share, potentially impacting sales and profitability. Specific competitors are not named, but the general nature of the grocery industry implies numerous players.
• Sales and Earnings Variability [medium — market]: Sales and earnings are subject to variability due to the cyclical nature of the grocery industry. This means demand can fluctuate based on economic conditions and consumer spending habits, making revenue less predictable.
• Food and Beverage Price Volatility [medium — market]: The company is exposed to volatility in food and beverage prices. Fluctuations in commodity costs can directly impact the cost of goods sold, potentially squeezing gross margins if these costs cannot be passed on to consumers.

Industry Context

Mama's Creations, Inc. operates within the competitive grocery industry, characterized by significant price sensitivity and consumer demand fluctuations. The industry is subject to the cyclical nature of consumer spending and can be impacted by shifts in food and beverage prices. Success hinges on efficient supply chain management, effective pricing strategies, and adapting to evolving consumer preferences.

Regulatory Implications

While no specific regulatory issues are detailed, companies in the food and beverage sector are subject to food safety regulations, labeling requirements, and potential environmental compliance. Changes in these regulations could impact operational costs and product offerings.

What Investors Should Do

1. Monitor Gross Margin Trends
2. Analyze Operating Expense Control
3. Evaluate CIF Acquisition Synergies
4. Assess Cash Flow Generation

Key Dates

• 2025-07-31: End of Second Quarter and Six-Month Period — Reporting period for strong net sales growth (24.0% Q2, 21.0% YTD) and significant net income increase (11.2% Q2, 47.8% YTD).
• 2025-01-31: Beginning of Fiscal Year — Reference point for year-to-date financial performance and cash position comparison.
• 2025-07-31: Final Payment for CIF Acquisition — Issuance of 184,286 shares of common stock, valued at $1.5 million, to complete the acquisition of Chef Inspirational Foods, LLC.

Glossary

Net sales

The total revenue generated from sales of goods or services after deducting returns, allowances, and discounts. (Key indicator of top-line performance, showing the company's ability to generate revenue from its core business.)

Gross profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. (Measures the efficiency of production and pricing strategies. A higher gross profit indicates better cost management or stronger pricing power.)

Net income

The company's total earnings or profit after all expenses, taxes, and interest have been deducted from revenue. (The bottom line, representing the overall profitability of the company.)

Cash and cash equivalents

Includes cash on hand, bank deposits, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (Indicates the company's immediate liquidity and ability to meet short-term obligations.)

Intangible assets

Non-physical assets that have value, such as patents, copyrights, trademarks, goodwill, and brand recognition. (Represents value derived from intellectual property or other non-physical sources, which can be significant in acquisitions like CIF.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (Reflects the premium paid for the acquired company (CIF), indicating expected future benefits or synergies.)

Operating lease right of use assets

Assets recognized by a lessee under a lease, representing the right to use an underlying asset for the lease term. (Shows the company's utilization of leased assets, which has increased significantly, impacting both assets and liabilities.)

Additional paid-in capital

The amount of money a company receives from selling stock above its par value. (Indicates capital raised from equity issuance, such as the shares issued for the CIF acquisition.)

Year-Over-Year Comparison

Mama's Creations, Inc. demonstrated substantial year-over-year growth in the first half of fiscal year 2025. Net sales increased by 21.0% to $70.458 million, and net income saw a remarkable surge of 47.8% to $2.514 million, indicating improved profitability. Gross margin improved to 25.49% from approximately 24.63% in the prior year's comparable period. The company also strengthened its balance sheet, with cash and cash equivalents rising to $9.384 million. Key risks related to competition, industry cyclicality, and price volatility remain, but the current performance suggests effective navigation of these challenges.

Key Financial Figures

• $0.00001 M — ich registered Common Stock, par value $0.00001 MAMA The Nasdaq Stock Market LLC Indica

Filing Documents

• mama-20250731.htm (10-Q) — 1007KB
• mama-20241031xex31111.htm (EX-31.1) — 11KB
• mama-20241031xex31211.htm (EX-31.2) — 11KB
• mama-20241031xex32111.htm (EX-32.1) — 5KB
• mama-20241031xex32211.htm (EX-32.2) — 5KB
• 0001520358-25-000004.txt ( ) — 6834KB
• mama-20250731.xsd (EX-101.SCH) — 48KB
• mama-20250731_cal.xml (EX-101.CAL) — 87KB
• mama-20250731_def.xml (EX-101.DEF) — 245KB
• mama-20250731_lab.xml (EX-101.LAB) — 672KB
• mama-20250731_pre.xml (EX-101.PRE) — 467KB
• mama-20250731_htm.xml (XML) — 896KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements. 1 Condensed Consolidated Balance Sheets as of July 3 1 , 2025 (unaudited) and January 31, 2025 2 Condensed Consolidated Statements of Operations for the Three and Six Months Ended July 31 , 2025 and 2024 (unaudited) 3 Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Six M onths Ended July 3 1 , 2025 and 2024 (unaudited) 4 Condensed Consolidated Statements of Cash Flows for the S ix Months Ended July 3 1 , 2025 and 2024 (unaudited) 6 Notes to Condensed Consolidated Financial Statements (unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 30 Item 4.

Controls and Procedures

Controls and Procedures. 30

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1. Legal Proceedings. 32 Item 1A. Risk Factors. 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 32 Item 3. Defaults Upon Senior Securities. 32 Item 4. Mine Safety Disclosures. 32

Other Information

Item 5. Other Information . 33 Item 6. Exhibits. 34

Signatures

Signatures 36 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. 1 Table of Contents Mama's Creations, Inc. Condensed Consolidated Balance Sheets (In thousands, except share and per share data) July 31, 2025 January 31, 2025 (Unaudited) Assets: Current Assets: Cash and cash equivalents $ 9,384 $ 7,150 Accounts receivable, net 6,740 8,131 Inventories, net 6,433 4,817 Prepaid expenses and other current assets 881 1,779 Total Current Assets 23,438 21,877 Property, plant, and equipment, net 9,377 9,387 Intangible assets, net 2,685 3,436 Goodwill 8,633 8,633 Operating lease right of use assets, net 6,492 3,376 Deferred tax asset 516 258 Deposits 95 95 Total Assets $ 51,236 $ 47,062 Liabilities and Stockholders' Equity: Liabilities: Current Liabilities: Accounts payable and accrued expenses $ 11,128 $ 12,052 Term loan, net of unamortized debt discount of $ 16 and $ 22 , respectively 1,536 1,530 Operating lease liabilities 1,113 848 Finance leases payable 309 345 Promissory notes – related parties 750 2,250 Total Current Liabilities 14,836 17,025 Term loan – net of current 451 1,342 Operating lease liabilities – net of current 5,321 2,600 Finance leases payable – net of current 1,041 1,199 Total long-term liabilities 6,813 5,141 Total Liabilities 21,649 22,166 Commitments and contingencies (Notes 10 and 11) Stockholders' Equity: Series A Preferred stock, $ 0.00001 par value; 120,000 shares authorized; 23,400 issued, 0 shares outstanding - - Series B Preferred stock, $ 0.00001 par value; 200,000 shares authorized; 0 and 0 issued or outstanding - - Preferred stock, $ 0.00001 par value; 19,680,000 shares authorized; 0 shares issued or outstanding - - Common stock, $ 0.00001 par value; 250,000,000 shares authorized; 38,054,000 and 37,826,000 shares issued as of July 31, and January 31, 2025, respectively, 37,824,000 and 37,596,000 shares outstanding as of July 31, and January 31, 2025, respectively - - Additional paid-in capital 27,059 24,882 Retained e

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