CVGW earnings analysis
What we found in CVGW's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.04
- Gross margin
- 12.4%
- Operating margin
- -1.2%
- Segment
- Fresh: Net sales $104,687,000 and gross profit $10,313,000 (three months ended January 31, 2026)
- Segment
- Prepared: Net sales $17,515,000 and gross profit $4,871,000 (three months ended January 31, 2026)
What they said about what is next.
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.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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