10-K · September 14, 2026
Hain is executing a major portfolio reset through the sale of North American Snacks and the pending sale of its International business, with the stated goal of becoming a more focused North American company and using…
Earnings analysis · 10-K
HAIN earnings analysis
Filed October 23, 2026 · Our reading of the company's report
The latest report
Hain’s late-fiscal-year gross margin and free cash flow improved, but the business remains characterized by severe operating losses, negative EPS and declining quarterly revenue. The strategic review and proposed…
Read full summary
Hain’s late-fiscal-year gross margin and free cash flow improved, but the business remains characterized by severe operating losses, negative EPS and declining quarterly revenue. The strategic review and proposed AURELIUS international divestiture offer a potential path to simplification, but financing and closing uncertainty remain material. The $4.3 million of CEO and CFO retention payments, including provisions tied to a potential Chapter 11 emergence, underscore the company’s financial and strategic fragility. Numeric annual guidance was not provided.
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.
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
- $-0.68
What stood out
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Gross margin and cash flow improved late-year
Fiscal 2026 quarterly revenue declined from $390 million in 2025Q3 to $263 million in 2026Q4. The latest quarter nevertheless showed gross margin recovery to 22.5% from 18.5% in 2026Q1, while free cash flow was positive at $7 million versus negative $14 million in 2026Q1.
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Portfolio review supports international divestiture
The Company continues to pursue the International Business Transaction with AURELIUS involving its United Kingdom, Ireland and Europe businesses. The filing describes the transaction as part of the Company’s broader strategic review initiated in May 2025.
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Incentives aligned with margin and cash flow
The 2026–2028 LTIP directly targets operating improvement: adjusted EBITDA margin pays 50% of target at 9.00% and 100% at 10.00%, while cumulative unlevered free cash flow pays 50% at $331 million and 100% at $367 million.
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Board adds restructuring and finance expertise
The Company appointed Patricia Ferrari and Richard J. Shinder as directors in October 2026. The current board has six independent directors out of seven, and Mr. Shinder and Michael Sims were designated audit committee financial experts.
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Significant institutional ownership
The Company had four disclosed 5% holders, including CastleKnight at 9.88%, Nantahala at 9.37%, Goldman Sachs at 5.74% and AQR at 5.35%. This ownership base may provide material shareholder oversight during the strategic review.
What to watch
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International transaction and solvency execution risk
The International Business Transaction remains dependent on financing and other closing conditions. The filing states that the transaction involves the UK, Ireland and Europe businesses, while the related retention awards can be clawed back if an executive resigns without good reason or is terminated for cause before the earliest of 15 months, 30 days after a change in control, or 30 days after emergence from Chapter 11.
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Large retention payments signal transition risk
The Company paid retention awards of $2.8 million to CEO Alison Lewis and $1.5 million to CFO Lee Boyce, or $4.3 million in total. In exchange, the executives forfeited rights to strategic success bonuses, outstanding retention awards and the fiscal 2027 annual bonus, indicating substantial dependence on key management through the strategic review.
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Persistent operating losses
Underlying operating performance remains weak despite the late-year gross-margin improvement: 2026Q4 operating margin was negative 31.0% and diluted EPS was negative $0.68. For the full quarterly history supplied, operating margins were negative in every period, including negative 69.3% in 2025Q4 and negative 32.5% in 2026Q2.
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Prior performance targets were missed
The 2024–2026 LTIP provides no near-term equity incentive benefit because the filing states that no PSUs will vest under the program. The award had potential payouts of 0% to 200% of target, but actual performance resulted in zero vesting.
Management's outlook
The Form 10-K/A does not provide quantitative revenue or EPS guidance. It states that it does not otherwise update the Original Form 10-K, and the amendment contains no financial statements.
Earlier filings 2
10-Q · May 11, 2026
Hain Celestial's Q3 2026 results showed revenues of $338 million, a 13.3% decline year-over-year, and EPS at a loss of $1.17, which is an improvement from a loss of $1.49 in the same quarter of the previous year. The…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.