Utz Brands, Inc. (UTZ): Results of Operations and Financial Condition
Utz Brands, Inc. (UTZ) filed an SEC Form 8-K — Results of Operations and Financial Condition. Utz Brands Reports Second Quarter 2026 Results Company Recently Announced Agreement to Take Utz Private Hanover, PA – August 5, 2026 – Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded Salty Snacks and a small-cap growth and value Stapl
How this was made
The 30-second read
Why it matters
The definitive take-private price ($14.25/share) and expected 4Q26 closing create a clear near-term trading framework (deal spread, conditions, and timing), while the earnings release provides supporting operating context (organic sales growth, adjusted profitability, and liquidity/leverage).
Market read
This is a combined earnings and definitive M&A disclosure, with the deal terms likely to dominate trading versus the quarter’s mixed GAAP and cash-flow outcomes.
What to watch
Closing is contingent on conditions and timing in 4Q26; traders should monitor deal-condition updates, financing/antitrust risk, and any changes to leverage trajectory (net leverage cited at 3.5x).
Utz Brands Reports Second Quarter 2026 Results; Adjusted EBITDA increased 14.4% to $55.7 million while the Company reported a Net Loss of $(16.0) million and withdrew 2026 outlook updates due to the pending take-private transaction.
Net Sales increased 1.4%, Branded Salty Snacks Organic Net Sales increased 3.3%, and Adjusted EBITDA increased 14.4%, supported by 150bps of Adjusted Gross Profit Margin expansion. However, volume/mix declined, GAAP Net Income shifted to a $(16.0) million loss, EBITDA declined 55.5%, and the Company will not provide further 2026 guidance updates because of the pending transaction.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net Sales, 13-weeks ended June 28, 2026GAAP | $371.8 million | – | 1.4% |
| Organic Net Sales, 13-weeks ended June 28, 2026other | $371.8 million | – | 1.4% |
| Gross Profit, 13-weeks ended June 28, 2026GAAP | $96.2 million | – | 0.9% |
| Gross Profit Margin, 13-weeks ended June 28, 2026GAAP | 25.9% | – | (10) bps |
| Adjusted Gross Profit, 13-weeks ended June 28, 2026non-GAAP | $123.6 million | – | 6.4% |
| Adjusted Gross Profit Margin, 13-weeks ended June 28, 2026non-GAAP | 33.2% | – | 150bps |
| Selling, General, and Administrative, 13-weeks ended June 28, 2026GAAP | $101.3 million | – | 15.1% |
| Selling, General, and Administrative Margin, 13-weeks ended June 28, 2026GAAP | 27.2% | – | 320 bps |
| Adjusted Selling, General, and Administrative, 13-weeks ended June 28, 2026non-GAAP | $67.9 million | – | 0.7% |
| Adjusted Selling, General and Administrative Margin, 13-weeks ended June 28, 2026non-GAAP | 18.3% | – | (10) bps |
| Net (Loss) Income, 13-weeks ended June 28, 2026GAAP | $(16.0) million | – | nm |
| Net (Loss) Income Margin, 13-weeks ended June 28, 2026GAAP | (4.3)% | – | nm |
| Adjusted Net Income, 13-weeks ended June 28, 2026non-GAAP | $27.1 million | – | 14.8% |
| EBITDA, 13-weeks ended June 28, 2026other | $17.4 million | – | (55.5)% |
| Adjusted EBITDA, 13-weeks ended June 28, 2026non-GAAP | $55.7 million | – | 14.4% |
| Adjusted EBITDA Margin, 13-weeks ended June 28, 2026non-GAAP | 15.0% | – | 170 bps |
| Basic (Loss) Income Per Share, 13-weeks ended June 28, 2026GAAP | $(0.11) | – | nm |
| Adjusted Earnings Per Diluted Share, 13-weeks ended June 28, 2026non-GAAP | $0.19 | – | 11.8% |
| Cash Flow From Operations, 13-weeks ended June 28, 2026other | $11.7 million | – | (28.2)% |
| Adjusted Free Cash Flow, 13-weeks ended June 28, 2026non-GAAP | $(0.7) million | – | 93.4% |
| Net Sales, 26-weeks ended June 28, 2026GAAP | $733.1 million | – | 2.0% |
| Organic Net Sales, 26-weeks ended June 28, 2026other | $733.1 million | – | 2.0% |
| Gross Profit, 26-weeks ended June 28, 2026GAAP | $188.1 million | – | 5.9% |
| Gross Profit Margin, 26-weeks ended June 28, 2026GAAP | 25.7% | – | 100 bps |
| Adjusted Gross Profit, 26-weeks ended June 28, 2026non-GAAP | $235.0 million | – | 8.1% |
| Adjusted Gross Profit Margin, 26-weeks ended June 28, 2026non-GAAP | 32.1% | – | 190 bps |
| Selling, General, and Administrative, 26-weeks ended June 28, 2026GAAP | $186.7 million | – | 12.9% |
| Selling, General, and Administrative Margin, 26-weeks ended June 28, 2026GAAP | 25.5% | – | 250 bps |
| Adjusted Selling, General, and Administrative, 26-weeks ended June 28, 2026non-GAAP | $131.4 million | – | 6.4% |
| Adjusted Selling, General and Administrative Margin, 26-weeks ended June 28, 2026non-GAAP | 17.9% | – | 70 bps |
| Net (Loss) Income, 26-weeks ended June 28, 2026GAAP | $(18.4) million | – | nm |
| Net (Loss) Income Margin, 26-weeks ended June 28, 2026GAAP | (2.5)% | – | nm |
| Adjusted Net Income, 26-weeks ended June 28, 2026non-GAAP | $48.4 million | – | 5.4% |
| EBITDA, 26-weeks ended June 28, 2026other | $47.7 million | – | (35.5)% |
| Adjusted EBITDA, 26-weeks ended June 28, 2026non-GAAP | $103.6 million | – | 10.4% |
| Adjusted EBITDA Margin, 26-weeks ended June 28, 2026non-GAAP | 14.1% | – | 110 bps |
| Basic (Loss) Income Per Share, 26-weeks ended June 28, 2026GAAP | $(0.13) | – | nm |
| Adjusted Earnings Per Diluted Share, 26-weeks ended June 28, 2026non-GAAP | $0.34 | – | 6.3% |
| Cash Flow From Operations, 26-weeks ended June 28, 2026other | $(0.5) million | – | 87.2% |
| Adjusted Free Cash Flow, 26-weeks ended June 28, 2026non-GAAP | $(26.6) million | – | 61.3% |
| Branded Salty Snacks Organic Net Sales growth, 13-weeks ended June 28, 2026other | 3.3% | – | 3.3% |
| Non-Branded & Non-Salty Snacks Organic Net Sales growth, 13-weeks ended June 28, 2026other | (12.1)% | – | (12.1)% |
| Branded Salty Snacks Retail Sales growth, 13-weeks ended June 28, 2026other | 0.3% | – | 0.3% |
| Retail Volumes growth, 13-weeks ended June 28, 2026other | (4.6)% | – | (4.6)% |
| Power Four Brands Retail Sales growth, 13-weeks ended June 28, 2026other | 2.0% | – | 2.0% |
| Net Leverage Ratio, June 28, 2026other | 3.5x | – | decreased 0.6x |
Capital returns
- For the twenty-six weeks ended June 28, 2026, dividends and distributions paid were $18.8 million.
What drove it
- Organic Net Sales growth was driven by favorable net price realization of 3.6%, partially offset by lower volume/mix of (2.2)%.
- Excluding the Bonus Packs promotion, net price realization increased 3.0% and volume/mix decreased 1.6%.
- Branded Salty Snacks Organic Net Sales, representing 89% of total Net Sales, increased 3.3%, led by the Power Four Brands.
- Adjusted Gross Profit Margin expansion was driven by productivity savings, which more than offset supply chain cost inflation.
- Adjusted EBITDA growth was driven by Adjusted Gross Profit Margin expansion, which more than offset the increase in Adjusted SG&A expenses.
Concerns
- Non-Branded & Non-Salty Snacks Organic Net Sales declined 12.1%, primarily due to Non-Branded, which was impacted by accelerated elimination of low margin items.
- Retail Volumes decreased by 4.6%, impacted by the lap of Bonus Packs, while the Salty Snack category reported a 1.1% increase.
- Branded Salty Snacks Retail Sales increased 0.3%, compared with a 0.8% increase for the Salty Snack category overall.
- GAAP Net Income shifted to a Net Loss of $(16.0) million from Net Income of $10.1 million; the prior-year period benefited from a $12.5 million gain from the remeasurement of the warrant liability.
- EBITDA decreased 55.5% to $17.4 million, and cash flow from operations decreased 28.2% to $11.7 million.
What to watch
- The Company will not provide further updates to forward-looking guidance for 2026 due to the pending take-private transaction.
- The transaction is expected to close in the fourth quarter of 2026, subject to satisfaction of closing conditions.
- Certain subsidiaries of Intersnack Group will acquire all outstanding shares of Class A Common Stock for $14.25 per share in cash.
- Upon closing, Utz will become a private company with the Rice and Lissette Family and Intersnack Group each owning 50% of Utz.
- The Company will not host an investor call to discuss quarterly and year-to-date results.
Balance sheet and cash flow
- As of June 28, 2026, total liquidity was $212.7 million, consisting of cash on hand of $58.6 million and $154.1 million available under the Company’s revolving credit facility.
- As of June 28, 2026, net debt was $791.0 million, resulting in a Net Leverage Ratio of 3.5x based on trailing twelve months Adjusted EBITDA of $226.3 million.
- For the twenty-six weeks ended June 28, 2026, cash flow used in operations was $0.5 million.
- For the twenty-six weeks ended June 28, 2026, capital expenditures were $27.4 million.
- For the twenty-six weeks ended June 28, 2026, Adjusted Free Cash Flow was $(26.6) million.
Analysis
Second-quarter Net Sales increased 1.4% to $371.8 million, with Organic Net Sales also up 1.4%. The reported sales growth was price-led: favorable net price realization of 3.6% more than offset lower volume/mix of (2.2)%. Excluding the prior-year Bonus Packs promotion, net price realization increased 3.0% and volume/mix decreased 1.6%. Branded Salty Snacks, which represented 89% of total Net Sales, grew Organic Net Sales 3.3%, while Non-Branded & Non-Salty Snacks Organic Net Sales declined 12.1% amid accelerated elimination of low-margin Non-Branded items.
Retail data show a more restrained demand picture. Branded Salty Snacks Retail Sales increased 0.3%, below the 0.8% increase for the Salty Snack category overall, and Retail Volumes decreased 4.6% compared with category growth of 1.1%. Management identified the lap of Bonus Packs as an impact on volume. The Power Four Brands posted 2.0% Retail Sales growth, and the Company reported Retail Sales gains in its Expansion Geographies.
Profitability improved on an adjusted basis. Adjusted Gross Profit Margin expanded 150bps to 33.2%, as productivity savings more than offset supply chain cost inflation. Adjusted SG&A was nearly flat at $67.9 million, and its margin improved 10bps to 18.3%, though increased marketing partially offset adjusted expense leverage. These factors supported 14.4% growth in Adjusted EBITDA to $55.7 million and a 170bps expansion in Adjusted EBITDA Margin to 15.0%. In contrast, GAAP Gross Profit Margin decreased 10bps to 25.9%, GAAP SG&A rose 15.1% to $101.3 million, and EBITDA declined 55.5% to $17.4 million.
GAAP earnings and cash generation remained negative or weaker than the prior year. The Company reported a Net Loss of $(16.0) million and Basic Loss Per Share of $(0.11), compared with Net Income of $10.1 million and Basic Income Per Share of $0.12. The prior-year Net Income benefited from a $12.5 million gain from the remeasurement of the warrant liability. Adjusted Net Income increased 14.8% to $27.1 million, while Adjusted EPS increased 11.8% to $0.19. Second-quarter cash flow from operations was $11.7 million, down 28.2%, although Adjusted Free Cash Flow improved to $(0.7) million.
For the first half, Net Sales increased 2.0% to $733.1 million and Adjusted EBITDA increased 10.4% to $103.6 million. Cash flow used in operations was $0.5 million, capital expenditures were $27.4 million, dividends and distributions paid were $18.8 million, and Adjusted Free Cash Flow was $(26.6) million. At June 28, total liquidity was $212.7 million and net debt was $791.0 million, with a 3.5x Net Leverage Ratio based on trailing twelve months Adjusted EBITDA of $226.3 million. The Company will not provide further 2026 guidance updates or hold an earnings call due to the pending take-private transaction, which is expected to close in the fourth quarter of 2026 subject to closing conditions.
Management, verbatim
We delivered another quarter of solid growth in net sales and Adjusted EBITDA, led by 3.3% Branded Salty Snacks growth.
Howard Friedman, Chief Executive Officer of Utz
I was pleased with our execution in the quarter and the business performance through the first half, including the continued year-over-year improvement in adjusted free cash flow and net leverage.
Howard Friedman, Chief Executive Officer of Utz
Not in the filing
stated, not guessed- Forward financial guidance for fiscal year 2026, including revenue, gross margin, operating expenses, tax rate, EPS, EBITDA, capital expenditures, and free cash flow guidance, was not provided because the Company will not provide further updates to forward-looking guidance for 2026.
- Prior guidance was not provided.
- Quarter-over-quarter comparisons were not provided.
- GAAP diluted earnings per share was not provided; the filing reports Basic (Loss) Income Per Share and Adjusted Earnings Per Diluted Share.
- Operating income and operating margin were not provided.
- Gross debt was not provided.
- Share repurchases were not provided.
- Reportable segment revenue was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Utz filed an SEC 8-K with 2Q26 operating results and a definitive agreement with Intersnack to acquire all outstanding Class A shares for cash, taking Utz private.
Ticker impact
Utz reported 2Q26 results and disclosed a definitive deal to take the company private at $14.25 per share, expected to close in 4Q26.
Elevated deal-arb and volatility risk around the $14.25 offer price, with fundamentals likely secondary until closing conditions and timing become clearer.
The text includes both quantified 2Q26 financials and a definitive acquisition agreement with a stated per-share cash price and expected 4Q26 close, which typically drives trading more than earnings alone.
Market effects
Branded salty snack peers may see read-through on margin and productivity initiatives, but the immediate catalyst is company-specific deal risk.
Limited direct regional spillover; impact is primarily on US small-cap consumer staples sentiment and deal-arb flows.
Intersnack involvement may modestly connect European snack M&A appetite to US branded snack valuations.
Counterpoint
Despite adjusted EBITDA growth, the company reported a net loss and weaker cash flow from operations, which could raise skepticism about deal economics or post-close leverage.
Key entities
- companyUtz Brands, Inc.
US branded salty snacks manufacturer; reported 2Q26 results and entered a definitive agreement to be taken private.
- acquirerIntersnack Group GmbH & Co. KG
Agreed to acquire Utz subsidiaries’ Class A shares for $14.25 per share in cash; expected to close in 4Q26.
- shareholder groupRice and Lissette Family Entities
Will own 50% of Utz upon closing alongside Intersnack.
