Calavo Growers Revenue Drops 21% to $122.2M as Operating Loss Widens in Q1 FY2026
Calavo Growers, an international marketer and distributor of avocados and other fresh produce, reported revenue of $122.2 million for the quarter ended January 31, down from $154.4 million a year earlier. The company swung to an operating loss of $1.4 million from operating income of $5.0 million.
Revenue Falls Sharply Amid Higher SG&A Costs
Calavo Growers, Inc. (NASDAQ: CVGW), an international marketer and distributor of avocados and other fresh produce, reported net revenue of $122.2 million for the three months ended January 31, 2026, down 20.9% from $154.4 million in the same quarter a year earlier. The company posted an operating loss of $1.4 million, reversing operating income of $5.0 million in the prior-year period. Read more earnings reports.
Despite the revenue decline, cost of goods sold fell to $107.0 million from $138.7 million, yielding a gross profit of $15.2 million compared to $15.7 million in Q1 FY2025. Gross margin improved slightly to 12.4% from 10.2%, but the benefit was erased by a sharp jump in operating expenses.
SG&A Expenses Climb 59%
Selling, general and administrative expenses surged to $16.4 million from $10.3 million in the year-ago quarter, an increase of $6.1 million or 59.4%. The spike in overhead costs pushed the company into an operating loss despite stable gross profit dollars.
Net income for the quarter was $732,000, or $0.04 per diluted share, down 83.4% from net income of $4.4 million, or $0.25 per diluted share, in Q1 FY2025. The effective tax rate was lower, with tax expense of $473,000 compared to $1.3 million in the prior year.
Cash Position Weakens
Cash and cash equivalents stood at $47.7 million as of January 31, 2026, down from $61.2 million at the end of October 2025. Cash used in operations was $8.7 million for the quarter, nearly double the $4.4 million used in the same period last year.
The company spent $788,000 on investing activities and $4.0 million on financing activities during the quarter. Total assets increased to $298.2 million from $292.2 million at fiscal year-end October 31, 2025, driven primarily by higher accounts receivable of $40.6 million and inventory of $37.8 million.
Key Financial Metrics
| Metric | Q1 FY2026 (Ended Jan 31, 2026) | Q1 FY2025 (Ended Jan 31, 2025) |
|---|---|---|
| Net Revenue | $122.2 million | $154.4 million |
| Gross Profit | $15.2 million | $15.7 million |
| Operating Income (Loss) | ($1.4 million) | $5.0 million |
| Net Income | $732,000 | $4.4 million |
| Diluted EPS | $0.04 | $0.25 |
| Cash from Operations | ($8.7 million) | ($4.4 million) |
Current liabilities increased to $69.1 million from $60.5 million at the prior fiscal year-end, while total stockholders' equity declined slightly to $205.7 million from $206.9 million. The company had 17.9 million shares outstanding as of January 31, 2026.