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Earnings analysis · 10-Q

BUDA earnings analysis

Filed August 14, 2026 · Our reading of the company's report

The latest report

Buda Juice delivered strong Q2 revenue growth of 26.4% to $4.508 million, supported by organic growth, Walmart expansion, and the dressings initiative. However, gross margin fell 10.1 percentage points to 36.6%, SG&A…

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Buda Juice delivered strong Q2 revenue growth of 26.4% to $4.508 million, supported by organic growth, Walmart expansion, and the dressings initiative. However, gross margin fell 10.1 percentage points to 36.6%, SG&A rose 179.1%, and net income declined 59.8% to $470 thousand, producing diluted EPS of $0.04. Liquidity is strong following the IPO, with $18.819 million of cash and $20.143 million of working capital, but operating cash flow declined 48.7% to $940 thousand and customer concentration remains substantial at 90% of six-month revenue. The filing states that there were no material changes to the risk factors from the 2025 Form 10-K and provides no quantitative earnings guidance.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $63 Operating expenses $27 Left as operating profit $10

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Mar 2026 Aug 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$0.04
Segment
Single reportable segment: total revenue $4.508 million for Q2 2026 versus $3.567 million in Q2 2025; branded revenue was $2.118 million and private-label/other revenue was $2.390 million.

What stood out

  • Strong Revenue Growth

    Q2 net sales increased 26.4% year over year to $4.508 million from $3.567 million, and rose from $3.508 million in Q1 2026. Management cited same-store organic growth, Buda Fresh distribution into Walmart across 9 states, and a fresh-dressings initiative.

  • Private Label Led Product Growth

    Private-label/other revenue grew 40.6% year over year to $2.390 million from $1.700 million, while branded revenue increased to $2.118 million from $1.867 million, a 13.4% increase.

  • IPO Strengthened Liquidity

    Cash and cash equivalents increased to $18.819 million from $1.840 million at December 31, 2025, primarily reflecting $16.827 million of net financing cash from the January IPO. The company had no outstanding borrowings and $3.000 million available under its credit facility.

  • Substantial Working Capital Cushion

    Working capital increased to $20.143 million from $2.634 million at December 31, 2025, while total current assets rose to $21.561 million from $3.219 million.

  • Higher Interest Income

    Interest income increased to $149 thousand from $13 thousand in Q2 2025 and to $286 thousand from $26 thousand for the six-month period, driven by the larger investable cash balance following the IPO.

What to watch

  • Severe Gross Margin Compression

    Gross margin declined to 36.6% from 46.7% year over year, as cost of goods sold increased 50.4% to $2.857 million despite revenue growth of 26.4%. Management cited higher inbound freight, diesel-price volatility, interim third-party co-packing, and elevated produce costs.

  • Public-Company Cost Burden

    Operating expenses increased 130.8% to $1.207 million, including a 179.1% increase in SG&A to $1.055 million. Operating income fell 61.2% to $444 thousand from $1.144 million, reducing operating margin to approximately 9.8%.

  • Working-Capital Cash Drag

    Operating cash flow fell 48.7% to $940 thousand from $1.833 million for the six months ended June 30, 2026. Accounts receivable increased to $1.359 million from $386 thousand at year-end, and management attributed the cash-flow impact partly to a large customer moving from a 1% early-payment discount to net-30 terms.

  • Extreme Customer Concentration

    One customer represented approximately $7.145 million, or 90% of six-month revenue, compared with 97% in the prior-year period, leaving the company materially exposed to customer concentration despite the improvement.

  • Higher Corporate Tax Load

    Income tax expense increased to $129 thousand in Q2 and $488 thousand for the six-month period, with the six-month effective tax rate at 36.23% versus 0.90% in 2025 following the conversion to a C corporation.

  • Rising Investment Requirements

    Capital spending was $688 thousand for the six months, versus $270 thousand in 2025, and management expects planned regional production facilities to represent material investments; future minimum lease payments total $839 thousand through July 2030.

Management's outlook

No explicit quantitative revenue or EPS guidance was provided in the 10-Q. Management stated that planned regional production facilities are expected to require material investment and may be funded with operating cash flow and IPO proceeds.

Earlier filings 2

10-Q · May 14, 2026

Buda Juice reported Q1 2026 revenue of $3,508,000, reflecting a 17.7% increase compared to $2,980,000 in Q1 2025, while GAAP EPS stood at $0.03. Despite the revenue growth, net income decreased by 52% to $388,000 due to…

10-K · March 26, 2026

Buda Juice reported FY2025 revenue of $12,609,000 and GAAP EPS of $0.20 while recording net profit of $3.53 million for the year ended December 31, 2025. The company positions itself as a category pioneer with an…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.