10-Q · May 6, 2026
Utz Brands reported Q1 2026 net sales of $361.3 million, marking a 2.6% increase from the prior year, although it fell slightly short of expectations. The gross margin improved to 25.4%, reflecting operational…
Earnings analysis · 10-Q
UTZ earnings analysis
Filed August 5, 2026 · Our reading of the company's report
The latest report
Utz delivered modest Q2 sales growth of 1.4% to $371.8 million, with price realization offsetting lower volume/mix and branded salty-snack growth offsetting declining non-branded sales. Gross margin held essentially…
Read full summary
Utz delivered modest Q2 sales growth of 1.4% to $371.8 million, with price realization offsetting lower volume/mix and branded salty-snack growth offsetting declining non-branded sales. Gross margin held essentially flat at 25.9% and adjusted EBITDA rose to $55.7 million, but elevated marketing, expansion capabilities and transformation costs drove a GAAP operating loss and diluted EPS of negative $0.11 versus positive $0.12 in the prior-year quarter. Liquidity improved modestly, but the investment case is now principally governed by the pending $14.25-per-share Intersnack take-private transaction, for which management has withdrawn 2026 guidance.
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
- $-0.11
- Segment
- Branded Salty Snacks: 89% of Q2 net sales; sales increased 3.3% year over year.
- Segment
- Non-Branded & Non-Salty Snacks: 11% of Q2 net sales; sales decreased 12.1% year over year.
What stood out
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Pricing drove 1.4% Q2 sales growth
Q2 net sales rose $5.1 million, or 1.4%, to $371.8 million from $366.7 million. Higher net price realization contributed 3.6%, more than offsetting a 2.2% volume/mix reduction.
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Branded portfolio and Boulder Canyon advanced
Branded Salty Snacks, representing 89% of sales, grew 3.3% year over year, led by the Power Four Brands. Boulder Canyon retail sales grew 65.5% in the quarter, according to Circana.
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Gross margin remained resilient
Gross profit increased $0.9 million to $96.2 million, while gross margin was nearly stable at 25.9% versus 26.0%. Productivity savings more than offset supply-chain cost inflation.
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Underlying adjusted profitability improved
Adjusted EBITDA increased $7.0 million to $55.7 million from $48.7 million, while adjusted gross margin expanded 150 basis points to 33.2% from 31.7%.
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Year-to-date cash deployment improved
Year-to-date operating cash use narrowed to $0.5 million from $3.9 million, aided by supplier-payment process improvements and inventory levels. Investing cash use declined to $29.5 million from $71.3 million, primarily for property and equipment.
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Liquidity availability increased
Variable-rate debt declined to $685.1 million at June 28 from $687.5 million at year-end, and ABL availability increased to $154.1 million from $119.7 million. The company reported compliance with its debt covenants.
What to watch
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GAAP loss and operating-margin contraction
GAAP profitability deteriorated despite sales growth: Q2 net loss was $16.0 million versus net income of $10.1 million a year earlier, and operating results shifted to a $5.5 million loss from $6.4 million of income. Selling, general and administrative expense rose 15.1%, or $13.3 million, to $101.3 million.
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Merger execution and disruption risk
The newly disclosed Intersnack merger risks may disrupt customer, supplier, independent-operator and employee relationships. The proposed transaction is for $14.25 per share and carries a potential $50 million termination fee under certain circumstances.
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Volume weakness and promotional pressure
The filing cites a 2.2% volume/mix decline, Core Geographies retail volumes down 6.5%, and Core Geographies retail sales down 2.2%. Management expects pricing and promotional conditions to remain dynamic in the near term.
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Transformation and transaction costs escalated
Corporate transformation costs were $19.4 million in Q2, up from $6.1 million a year earlier, including costs related to the announced Intersnack transaction and other initiatives. These costs contributed to the gap between adjusted EBITDA of $55.7 million and the $16.0 million GAAP net loss.
Management's outlook
Utz will not provide a 2026 outlook or further guidance updates because of the pending Intersnack transaction. The company expects the $14.25-per-share cash transaction to close in Q4 2026, subject to closing conditions.
Earlier filings 4
10-K · February 12, 2026
Utz Brands positions itself as a leading U.S. branded salty snacks manufacturer with strong household penetration (~50% of U.S. households as of December 28, 2025) and scale in marquee brands (the Utz flagship generated…
10-Q · October 30, 2025
Utz reported net sales of $377.8 million for the thirteen weeks ended September 28, 2025, up $12.3 million (+3.4%) versus the prior-year quarter, but profitability compressed materially: gross margin fell and operating…
10-Q · July 31, 2025
Utz reported quarterly net sales of $366.7M for the thirteen weeks ended June 29, 2025, up $10.5M (+3.0%) versus the prior-year quarter, but operating income compressed to $6.4M from $22.5M a year ago and diluted EPS…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.