Mama's Creations Soars: Sales Up 31%, Net Income Jumps 45%

TL;DR

**MAMA is cooking up serious growth, with sales and profits exploding thanks to smart acquisitions and strong demand; buy the dip if you can find one.**

AI Summary

Mama's Creations, Inc. reported significant growth for the nine months ended October 31, 2025, with net sales increasing to $117.727 million from $89.743 million in the prior year, a 31.18% rise. Net income also saw a substantial increase, reaching $3.054 million compared to $2.111 million in the same period last year, representing a 44.67% improvement. The company's cash and cash equivalents surged to $18.068 million as of October 31, 2025, up from $7.150 million at January 31, 2025. This growth was partly driven by strategic acquisitions, notably the $17.500 million cash paid for Crown I Enterprises, Inc. Property, plant, and equipment, net, more than doubled from $9.387 million to $21.061 million, indicating significant capital investment. Total assets grew from $47.062 million to $84.034 million, while total liabilities increased from $22.166 million to $34.436 million. The company also issued common stock, generating net proceeds of $18.927 million, and secured $18.770 million in net proceeds from notes payable, contributing to a net increase in cash of $10.918 million.

Why It Matters

Mama's Creations' robust growth in sales and net income signals strong market demand for its diverse food products, potentially attracting new investors seeking high-growth consumer staples. The significant capital expenditures and strategic acquisition of Crown I Enterprises, Inc. suggest an aggressive expansion strategy, which could lead to increased market share and competitive advantage against rivals in the gourmet and ready-to-heat meal sectors. For employees, this expansion could mean job creation and stability, while customers may benefit from a broader range of innovative, high-quality food options. However, the increased debt and liabilities associated with this growth warrant careful monitoring by investors.

Risk Assessment

Risk Level: medium — The company's cash and cash equivalents exceeded insured amounts by approximately $16.7 million at October 31, 2025, concentrating risk at a single financial institution. Additionally, total liabilities increased from $22.166 million to $34.436 million, and the company incurred $16.011 million in debt repayment, indicating a higher leverage profile that could be sensitive to interest rate fluctuations.

Analyst Insight

Investors should consider Mama's Creations as a growth-oriented play in the consumer packaged goods sector, given its strong revenue and net income growth. However, they should closely monitor the company's debt levels and cash concentration risk. A deeper dive into the integration success of Crown I Enterprises, Inc. and future capital expenditure plans would be prudent before making a significant investment.

Financial Highlights

debt To Equity

0.69

revenue

$117.727M

operating Margin

3.48%

total Assets

$84.034M

total Debt

$34.436M

net Income

$3.054M

gross Margin

24.71%

cash Position

$18.068M

revenue Growth

+31.18%

Key Numbers

• $117.727M — Net sales for nine months ended Oct 31, 2025 (Increased from $89.743M in 2024, a 31.18% rise.)
• $3.054M — Net income for nine months ended Oct 31, 2025 (Increased from $2.111M in 2024, a 44.67% rise.)
• $18.068M — Cash and cash equivalents as of Oct 31, 2025 (Increased from $7.150M at Jan 31, 2025.)
• $17.500M — Cash paid for acquisition of Crown I Enterprises, Inc. (Significant investing activity during the nine months ended Oct 31, 2025.)
• $21.061M — Property, plant, and equipment, net as of Oct 31, 2025 (More than doubled from $9.387M at Jan 31, 2025, indicating capital investment.)
• $18.927M — Net proceeds from issuance of common stock (Financing activity for the nine months ended Oct 31, 2025.)
• $18.770M — Net proceeds from notes payable (Financing activity for the nine months ended Oct 31, 2025.)
• $10.918M — Net increase in cash for nine months ended Oct 31, 2025 (Reflects strong cash generation and financing activities.)
• $16.7M — Cash exceeding insured amounts (Held at one financial institution as of October 31, 2025, posing a concentration risk.)
• 40,653,333 — Shares of common stock outstanding (As of December 5, 2025.)

Key Players & Entities

• Mama's Creations, Inc. (company) — registrant
• Crown I Enterprises, Inc. (company) — acquired business
• MamaMancini's, Inc. (company) — subsidiary
• T&L Acquisition Corp. (company) — subsidiary
• United States Department of Agriculture (regulator) — product certification
• Food and Drug Administration (regulator) — product standards
• The Nasdaq Stock Market LLC (regulator) — exchange for common stock
• Securities and Exchange Commission (regulator) — filing oversight

FAQ

Risk Factors

• Concentration of Cash Holdings [medium — financial]: As of October 31, 2025, Mama's Creations, Inc. held $16.7 million in cash at a single financial institution, which exceeds insured amounts. This concentration poses a risk of loss should that institution experience financial difficulties.
• Rapid Asset Growth and Integration [medium — operational]: The company's total assets more than doubled from $47.062 million to $84.034 million, driven by significant capital investments like the $21.061 million in property, plant, and equipment and the $17.500 million acquisition of Crown I Enterprises, Inc. Integrating these new assets and operations effectively presents an operational challenge.
• Increased Leverage [medium — financial]: Total liabilities increased from $22.166 million to $34.436 million, a rise of over 55%. This increase in leverage, partly due to financing activities, could heighten financial risk if earnings do not keep pace.

Industry Context

Mama's Creations, Inc. operates in a sector likely characterized by consumer goods or manufacturing, where growth can be driven by product innovation, market penetration, and strategic acquisitions. The current environment may favor companies that can scale operations efficiently and manage supply chains effectively. The reported growth suggests the company is successfully navigating its market, potentially gaining market share or benefiting from favorable industry trends.

Regulatory Implications

The company must ensure compliance with all SEC reporting requirements, including accurate financial disclosures in its 10-Q filings. Any material changes in operations, such as acquisitions, require proper accounting treatment and potential disclosures to investors. Adherence to accounting standards like GAAP is crucial for maintaining investor confidence and avoiding regulatory scrutiny.

What Investors Should Do

1. Monitor integration of Crown I Enterprises, Inc.
2. Analyze debt levels and repayment capacity
3. Evaluate cash management strategy
4. Assess sustainability of revenue growth

Key Dates

• 2025-10-31: Nine months ended October 31, 2025 — Reporting period showing significant sales growth (31.18%) and net income increase (44.67%), alongside substantial increases in assets and cash due to acquisitions and financing.
• 2025-01-31: January 31, 2025 — Prior period balance sheet date, showing lower asset base ($47.062M) and cash position ($7.150M) compared to October 31, 2025.
• 2025-10-31: Acquisition of Crown I Enterprises, Inc. — A key event contributing to the significant increase in property, plant, and equipment and total assets.
• 2025-10-31: Issuance of common stock — Generated $18.927 million in net proceeds, contributing to the company's increased cash position and equity.
• 2025-10-31: Secured notes payable — Generated $18.770 million in net proceeds, bolstering cash reserves and increasing liabilities.

Glossary

Additional paid-in capital

The amount of money a company receives from selling stock above its par value. (Increased significantly from $24.882M to $46.530M, reflecting proceeds from common stock issuance.)

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair market value of its assets and liabilities. (Increased from $8.633M to $9.447M, indicating the premium paid in acquisitions over the fair value of net identifiable assets.)

Operating lease right of use assets, net

An asset representing the right to use an asset for a specified period under an operating lease. (More than doubled from $3.376M to $8.309M, suggesting expansion or new leasing arrangements.)

Treasury stock

Stock that a company has repurchased from the open market. (Remained constant at $150K, indicating no recent treasury stock transactions.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Mama's Creations, Inc. has demonstrated robust performance. Net sales surged by 31.18% to $117.727 million, and net income saw an even more impressive increase of 44.67% to $3.054 million. This growth is supported by significant strategic investments, including a major acquisition and substantial capital expenditures on property, plant, and equipment, which more than doubled. The company also successfully raised capital through stock issuance and debt, leading to a significant increase in total assets from $47.062 million to $84.034 million and a corresponding rise in total liabilities.

Key Financial Figures

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

Filing Documents

• mama-20251031.htm (10-Q) — 1118KB
• mama-formofindemnification.htm (EX-10.7) — 42KB
• mama-20241031xex311111.htm (EX-31.1) — 11KB
• mama-20241031xex312111.htm (EX-31.2) — 11KB
• mama-20241031xex321111.htm (EX-32.1) — 5KB
• mama-20241031xex322111.htm (EX-32.2) — 5KB
• 0001628280-25-055809.txt ( ) — 7366KB
• mama-20251031.xsd (EX-101.SCH) — 48KB
• mama-20251031_cal.xml (EX-101.CAL) — 100KB
• mama-20251031_def.xml (EX-101.DEF) — 257KB
• mama-20251031_lab.xml (EX-101.LAB) — 696KB
• mama-20251031_pre.xml (EX-101.PRE) — 489KB
• mama-20251031_htm.xml (XML) — 977KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements. 1 Condensed Consolidated Balance Sheets as of October 31, 2025 (unaudited) and January 31, 2025 2 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended October 31, 2025 and 2024 (unaudited) 3 Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Nine Months Ended October 31, 2025 and 2024 (unaudited) 4 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended October 31, 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. 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 31 Item 4.

Controls and Procedures

Controls and Procedures. 32

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1. Legal Proceedings. 34 Item 1A. Risk Factors. 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 34 Item 3. Defaults Upon Senior Securities. 35 Item 4. Mine Safety Disclosures. 35

Other Information

Item 5. Other Information . 35 Item 6. Exhibits. 36

Signatures

Signatures 38 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) October 31, 2025 January 31, 2025 (Unaudited) Assets: Current Assets: Cash and cash equivalents $ 18,068 $ 7,150 Accounts receivable, net 11,047 8,131 Inventories, net 10,360 4,817 Prepaid expenses and other current assets 1,488 1,779 Total Current Assets 40,963 21,877 Property, plant, and equipment, net 21,061 9,387 Intangible assets, net 3,534 3,436 Goodwill 9,447 8,633 Operating lease right of use assets, net 8,309 3,376 Deferred tax asset 625 258 Deposits 95 95 Total Assets $ 84,034 $ 47,062 Liabilities and Stockholders' Equity: Liabilities: Current Liabilities: Accounts payable and accrued expenses $ 18,468 $ 12,052 Term loan, net of unamortized debt discount of $ 226 and $ 22 , respectively 949 1,530 Operating lease liabilities 1,646 848 Finance leases payable 315 345 Promissory notes – related parties 750 2,250 Total Current Liabilities 22,128 17,025 Term loan – net of current 4,706 1,342 Operating lease liabilities – net of current 6,642 2,600 Finance leases payable – net of current 960 1,199 Total long-term liabilities 12,308 5,141 Total Liabilities 34,436 22,166 Commitments and contingencies (Notes 11 and 12) 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; 40,880,000 and 37,826,000 shares issued as of October 31, and January 31, 2025, respectively, 40,650,000 and 37,596,000 shares outstanding as of October 31, and January 31, 2025, respectively - - Additional paid-in capital 46,530 24,

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View this 10-Q filing on SEC EDGAR