10-K · January 14, 2026
Calavo Growers, Inc. reported a significant decline in revenue and EPS for Q4 2025, with actual revenue of $124.68 million falling short of expectations of $147.95 million, and EPS of $0.22 compared to an estimated…
Earnings analysis · 10-Q
CVGW earnings analysis
Filed March 12, 2026 · Our reading of the company's report
The latest report
Calavo reported net sales of $122,202,000 and GAAP diluted EPS of $0.04 for the quarter ended January 31, 2026. Revenue declined materially year-over-year (from $154,385,000) and the company reported an operating loss…
Read full summary
Calavo reported net sales of $122,202,000 and GAAP diluted EPS of $0.04 for the quarter ended January 31, 2026. Revenue declined materially year-over-year (from $154,385,000) and the company reported an operating loss of $1,447,000, while gross profit held relatively steady at $15,184,000. Cash flow from operations used $8,658,000 and free cash flow was negative $9,446,000 after $788,000 of capex. Management disclosed an agreed merger with Mission Produce (Merger Agreement dated January 14, 2026) and a Form S-4 filing on March 9, 2026.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
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
What stood out
-
Revenue (YoY) decline
Net sales fell to $122,202,000 from $154,385,000 a year earlier (decrease of $32,183,000), per the Condensed Consolidated Statements of Operations.
-
Gross margin expansion
Gross profit was $15,184,000 on $122,202,000 of sales (gross margin ~12.4%), compared with $15,728,000 on $154,385,000 a year earlier, indicating an improved gross margin despite lower sales.
-
Prepared segment growth
Prepared segment net sales increased to $17,515,000 from $14,590,000 in the prior-year period (up $2,925,000) and prepared gross profit rose to $4,871,000 from $3,591,000.
-
Merger progress disclosed
The Company reaffirmed the Agreement and Plan of Merger dated January 14, 2026 and disclosed that Mission Produce filed a Registration Statement on Form S-4 on March 9, 2026.
-
Dividend maintained
The company paid a $0.20 per share dividend on January 28, 2026 (aggregate $3,576,000) and the Board declared a quarterly cash dividend of $0.20 per share on March 6, 2026 to be paid April 29, 2026.
-
Inventory and receivables rise
Inventories increased to $37,770,000 from $33,604,000 (up $4,166,000) and accounts receivable, net rose to $40,557,000 from $31,647,000 (up $8,910,000) as of January 31, 2026.
What to watch
-
Operating loss and EPS compression
Operating loss was $1,447,000 in the quarter versus operating income of $5,046,000 in the prior-year period; diluted EPS declined to $0.04 from $0.25 a year earlier.
-
Weak operating cash flow / negative FCF
Net cash used in operating activities was $8,658,000 and purchases of property and equipment were $788,000, producing negative free cash flow of $9,446,000 for the quarter.
-
Concentration and Fresh segment contraction
Fresh segment net sales fell to $104,687,000 from $139,795,000 a year earlier (down $35,108,000), pressuring overall revenue given Fresh represented 86% of sales.
-
Significant Mexican tax exposure
The 2013 Mexico Assessment has been adjusted to 3.5 billion Mexican pesos (approximately $201.8 million USD) and the company previously recorded a provision of $11,000,000 in fiscal 2021 which management says 'remains appropriate' as of January 31, 2026.
-
Cash decline
Cash and cash equivalents decreased to $47,670,000 from $61,155,000 as of October 31, 2025, a drop of $13,485,000 during the quarter.
-
Legal/settlement accruals
The Company recorded approximately $600,000 related to a PAGA claim for the three months ended January 31, 2026 associated with its former Fresh Cut business.
Management's outlook
No quantitative forward revenue or EPS guidance included in the 10-Q. Management disclosed the merger agreement (Jan 14, 2026) and the March 9, 2026 Form S-4 filing; other forward-looking statements are qualitative (e.g., intent to settle the 2013 Mexico Assessment). Outlook appears deferred to subsequent filings/earnings releases and merger proxy materials.
Earlier filings 4
10-Q · June 9, 2025
Calavo Growers, Inc. reported Q2 FY2025 results with revenues of $190.5 million, up from $184.4 million year-over-year but slightly below consensus estimates of $192.8 million. The diluted EPS of $0.38 reflects a…
10-Q · September 9, 2024
Calavo reported Q3 net sales of $179,596,000, up from $160,856,000 a year earlier, driven by Grown product volume (avocados). However, profitability was pressured: gross profit fell to $20,093,000 and diluted net income…
10-Q · June 10, 2024
Calavo Growers, Inc. reported strong performance in Q2 FY2024 with significant revenue growth and improved earnings per share compared to prior quarters. The company achieved a revenue increase of 16.48% year-over-year,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.