Mission Produce (AVO) Q3 2026: Revenue Growth Amid Losses — Disappointing Quarter for Shareholders

Mission Produce, Inc. (NASDAQ: AVO) reported its fiscal third quarter results for 2026, revealing a total revenue of $450 million, which reflects a 26% increase over the prior year. However, the company also faced a net loss of $6.5 million, a stark contrast to the net income of $14.7 million reported in the same period last year.

Key Financial Metrics

• Total Revenue: $450 million, up $93 million or 26% YoY
• Net Loss: $(6.5) million, compared to $14.7 million income last year
• Loss per Diluted Share: $(0.08), down from $0.21 per diluted share
• Adjusted Net Income: $15.0 million, down from $18.2 million
• Adjusted EBITDA: $32.4 million, slightly down from $32.6 million

This quarter's results are disappointing for shareholders, primarily due to the significant net loss attributed to acquisition-related costs from the recent purchase of Calavo Growers, Inc. The reported loss of $6.5 million includes $25.4 million in pre-tax costs associated with the acquisition, which overshadowed the revenue growth.

Segment Performance

• Marketing & Distribution: Revenue increased to $414.3 million, up from $344.1 million last year, driven by a 38% increase in avocado volume sold. However, the segment's operating income fell to $1.1 million from $14.5 million due to acquisition-related costs.
• Prepared Foods: Generated $15.5 million in sales but reported an operating loss of $4.1 million.
• International Farming: Sales decreased to $45.8 million from $49.0 million, with operating income dropping to $1.1 million from $6.7 million.
• Blueberries: Sales rose to $5.4 million, with an operating income of $2.4 million, compared to a loss of $0.2 million last year.

Cost and Expense Analysis

The increase in selling, general, and administrative expenses (SG&A) was driven by the integration of Calavo, with transaction advisory and integration costs amounting to $12.6 million. This increase in costs significantly impacted the bottom line, leading to the reported net loss.

Dividend and Share Buyback

There were no announcements regarding dividends or share buybacks in this quarter's report, which may concern investors looking for returns on their investments.

Guidance and Future Outlook

Looking ahead, Mission Produce reaffirmed its fiscal second-half 2026 Adjusted EBITDA outlook of $84 million to $88 million. The company expects fourth-quarter Adjusted EBITDA to be approximately $52 million to $55 million, supported by increased avocado volumes and improved margin dynamics.

Conclusion

In summary, while Mission Produce achieved notable revenue growth, the substantial net loss and increased costs related to the Calavo acquisition overshadowed these gains. Investors should remain cautious as the company navigates integration challenges and works to stabilize its financial performance. The upcoming Investor Day in October will be a critical event for stakeholders to assess the company's strategic direction and operational execution moving forward.

Note: All amounts in the following tables are in millions.

Condensed Consolidated Statements of Operations (Unaudited)

	Nine Months Ended	July 31, 2026	2025
Net Sales	$450.0	$357.0
Cost of Sales	405.0	312.0
Gross Profit	44.7	45.1
Selling, General and Administrative Expense	31.6	24.0
Transaction Advisory and Integration Costs	12.6	0.1
Operating Income (Loss)	0.5	21.0
Interest Expense	-5.1	-2.4
Equity Method Income	1.9	2.0
Other Income (Expense)	-2.5	-0.8
Net Income (Loss) Before Tax	-5.2	19.8
Provision for Income Taxes	0.6	5.3
Net Income (Loss)	$-5.8	$14.5
Less: Net Income (Loss) Attributable to Noncontrolling Interest	0.7	-0.2
Net Income (Loss) Attributable to Mission Produce	$-6.5	$14.7
Net Income (Loss) Per Share Attributable to Mission Produce	$-0.08	$0.21
Weighted-Average Shares Used to Compute Net Income Per Share, Basic	82,000	71,000

Condensed Consolidated Balance Sheets (Unaudited)

Assets	July 31, 2026	October 31, 2025
Current Assets
Cash and Cash Equivalents	$47.1	$64.8
Restricted Cash	1.2	1.7
Accounts Receivable
Trade, Net of Allowances	136.0	80.5
Grower and Fruit Advances	12.2	2.7
Other	36.6	14.6
Inventory	141.3	80.6
Prepaid Expenses and Other Current Assets	11.1	8.5
Income Taxes Receivable	16.4	8.8
Total Current Assets	401.9	262.2
Property, Plant and Equipment, Net	657.7	542.2
Operating Lease Right-of-Use Assets	78.2	67.7
Equity Method Investees	33.1	34.8
Deferred Income Tax Assets, Net	10.5	10.2
Goodwill	268.3	39.4
Intangible Asset, Net	100.7	—
Other Assets	56.4	26.5
Total Assets	$1,606.8	$983.0
Liabilities and Equity
Liabilities
Accounts Payable	$61.4	$47.3
Accrued Expenses	69.5	38.9
Income Taxes Payable	—	6.8
Grower Payables	49.6	23.8
Short-Term Borrowings	—	4.5
Loans from Noncontrolling Interest—Current Portion	3.9	0.2
Long-Term Debt—Current Portion	11.5	3.0
Operating Leases—Current Portion	10.2	6.9
Finance Leases—Current Portion	3.6	3.1
Total Current Liabilities	209.7	134.5
Long-Term Debt, Net of Current Portion	388.9	92.8
Loans from Noncontrolling Interest, Net of Current Portion	—	0.9
Operating Leases, Net of Current Portion	75.6	67.5
Finance Leases, Net of Current Portion	24.9	22.0
Deferred Income Tax Liabilities, Net	51.3	19.1
Other Long-Term Liabilities	56.3	26.3
Total Liabilities	807.0	363.1
Equity
Mission Produce Shareholders' Equity	764.0	587.3
Noncontrolling Interest	35.8	32.6
Total Equity	799.8	619.9
Total Liabilities and Equity	$1,606.8	$983.0

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