Earnings analysis · 10-K
STKL earnings analysis
Filed April 27, 2026 · Our reading of the company's report
The latest report
SunOpta's FY2025 operating performance improved versus FY2024 with revenue trending higher (quarterly revenue reached $219M in 2025Q4) and EPS turning positive (sum of 2025 quarters = $0.13). The company generated…
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SunOpta's FY2025 operating performance improved versus FY2024 with revenue trending higher (quarterly revenue reached $219M in 2025Q4) and EPS turning positive (sum of 2025 quarters = $0.13). The company generated positive free cash flow for the fiscal year (four-quarter total $22M) while gross and operating margins recovered to roughly mid-teens and mid-single-digits respectively. Material corporate development: SunOpta entered an Arrangement Agreement on February 6, 2026 under which Refresco will acquire all common shares for $6.50 per share in cash, expected to close in the second quarter of 2026, which will result in delisting from Nasdaq and the TSX.
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.
Reported figures
- Earnings per share
- $0.13
What stood out
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Signed definitive sale at $6.50/share
On February 6, 2026 SunOpta entered an Arrangement Agreement under which Purchaser will acquire all issued and outstanding common shares for consideration of $6.50 per share in cash, with the Arrangement expected to close in the second quarter of 2026.
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Revenue recovery to ~$817M FY2025
Quarterly revenue climbed to $219M in 2025Q4 and the four quarters of fiscal 2025 sum to $817M (2025Q1 $202M, 2025Q2 $191M, 2025Q3 $205M, 2025Q4 $219M).
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EPS turned positive in FY2025
Diluted EPS across FY2025 quarters totaled $0.13 (2025Q1 $0.04, 2025Q2 $0.03, 2025Q3 $0.01, 2025Q4 $0.05) versus a negative FY2024 total of -$0.14.
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Positive free cash flow for the year
Free cash flow across fiscal 2025 quarters totaled $22M (2025Q1 $10M, 2025Q2 -$9M, 2025Q3 $12M, 2025Q4 $9M), improving versus the prior year four-quarter total of $19M (2024Q1 -$2M, 2024Q2 -$15M, 2024Q3 $12M, 2024Q4 $24M).
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Margins recovered to mid-teens/mid-single-digits
Quarterly gross margin in fiscal 2025 averaged about 14.2% (2025 quarters: 15.0%, 14.8%, 12.4%, 14.5%) and operating margin averaged about 4.9% (2025 quarters: 5.3%, 5.3%, 3.3%, 5.5%).
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Board with food & supply-chain expertise
Board and management include executives with deep food/beverage and supply-chain experience (e.g., CEO Brian Kocher appointed January 2, 2024) which the filing highlights as a governance priority.
What to watch
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Transaction closing risk
The Arrangement is "subject to satisfaction or waiver of the closing conditions" and thus may not close as expected in the second quarter of 2026 (filing language: "expected to close in the second quarter of 2026, subject to satisfaction or waiver of the closing conditions").
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Delisting / loss of public-market liquidity
The filing states that "upon completion of the transaction, we will become a wholly-owned subsidiary of Refresco, and our common shares will be delisted from The Nasdaq Stock Market and the Toronto Stock Exchange."
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Cash consideration net of withholdings
Consideration is $6.50 per share "in cash, less applicable withholdings," which could reduce net proceeds to individual holders (filing phrase: "for consideration of $6.50 per share in cash, less applicable withholdings").
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Arrangement requires court approval
The acquisition is structured "by way of a court-approved statutory plan of arrangement under the Canada Business Corporations Act," so completion depends on court and regulatory outcomes.
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Margin and cash-flow volatility
Quarterly gross margin ranged from 10.9% (2024Q4) to 16.8% (2024Q1) and operating margin swung from -0.05 (2024Q3 as EPS -$0.05 corresponds with low op margins) to 5.5% (2025Q4), indicating material quarter-to-quarter volatility in margins and profitability.
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Regulatory & food-safety exposure
The filing notes the Company is "subject to a range of governmental regulations and policies regarding food safety and quality," which can materially affect operations, product labeling, and market access.
Management's outlook
The 10-K/Amendment does not provide forward numeric guidance; management has deferred numeric outlook to SEC filings, earnings releases or the transaction process. The filing does state the Arrangement is expected to close in Q2 2026 but provides no FY2026 financial guidance.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.