Mission Produce Swings to $700,000 Loss as Q1 Revenue Drops 17% to $278.6M

Mission Produce, Inc., an avocado producer and distributor, swung to a net loss of $700,000 for the quarter ending January 31, 2026, compared to net income of $3.9 million in the same period a year earlier. The Delaware-incorporated company reported revenue of $278.6 million for the three-month period, down 16.6% from $334.2 million in the prior-year quarter. Read more earnings reports.

The company's gross profit held essentially flat at $31.6 million versus $31.5 million a year earlier, but operating income fell sharply to $2.5 million from $9.3 million. Selling, general and administrative expenses surged 31% to $29.1 million from $22.2 million in the year-ago quarter, eating into operating margins.

Mission Produce reported a loss per share of $0.01 on both basic and diluted bases, compared to earnings of $0.06 per basic share and $0.05 per diluted share in the first quarter of fiscal 2025. The weighted average share count declined slightly to 70.6 million basic shares from 71.0 million a year earlier.

Balance Sheet and Cash Flow

Total assets climbed to $997.7 million as of January 31, 2026, up from $983.0 million at the end of the prior fiscal year on October 31, 2025. Inventory jumped 23% to $99.3 million from $80.6 million three months earlier, while cash and cash equivalents fell to $44.8 million from $64.8 million.

The company generated negative cash flow from operations of $3.0 million for the quarter, compared to negative $1.2 million in the same period last year. Cash used in investing activities totaled $11.8 million, while financing activities consumed $4.4 million. Combined cash and restricted cash stood at $47.4 million as of January 31, 2026, versus $42.2 million a year earlier.

Long-term debt increased to $97.0 million from $92.8 million at the end of October 2025. Total liabilities rose to $377.6 million from $363.1 million, while stockholders' equity edged down to $586.9 million from $587.3 million over the same three-month span.

Segment Performance

Marketing and distribution revenue, the company's largest segment, fell to $220.9 million from $279.2 million in the prior-year quarter. International farming and blueberry revenue contributed $40.8 million and $12.9 million respectively, compared to $36.4 million and $14.8 million a year earlier.

Cost of goods sold decreased to $247.0 million from $302.7 million, in line with the revenue decline. The company's tax expense totaled $1.1 million for the quarter, down from $3.2 million in the year-ago period.

Financial Summary

The company had 70.8 million shares outstanding as of January 31, 2026, up from 70.6 million at the end of the prior fiscal year.