Fiscal third quarter 2026
Filed Sep 8, 2026Revenue of $450 million reflects 26% increase over prior year; annualized Calavo synergy outlook raised to more than $30 million; second-half fiscal 2026 guidance reaffirmed.
Revenue increased 26% and avocado volume sold increased 38%, while gross margin decreased 270 basis points to 9.9% and Mission reported a net loss attributable to Mission Produce of $(6.5) million. Adjusted EBITDA of $32.4 million was essentially unchanged from $32.6 million in the prior-year period, with acquisition-related costs materially affecting GAAP results.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $450.0 million | – | 26% |
| Avocado volume soldother | 252.7 million | – | 38% |
| Average avocado sales price per poundother | $ 1.58 | – | decrease in per-unit avocado sales prices of 9% |
| Gross profitGAAP | $44.7 million | – | – |
| Gross marginGAAP | 9.9% of revenue | – | decreased 270 basis points |
| Selling, general and administrative expensesGAAP | $31.6 million | – | – |
| Transaction advisory and integration costsGAAP | $12.6 million | – | – |
| Operating income (loss)GAAP | $0.5 million | – | – |
| Net (loss) income attributable to Mission ProduceGAAP | $(6.5) million | – | – |
| Diluted net (loss) income per share attributable to Mission ProduceGAAP | $(0.08) | – | – |
| Mission Produce adjusted net incomenon-GAAP | $15.0 million | – | – |
| Mission Produce adjusted net income per diluted sharenon-GAAP | $0.18 | – | – |
| Total adjusted EBITDAnon-GAAP | $32.4 million | – | – |
| Nine-month net salesGAAP | $1,019.5 million | – | – |
| Nine-month operating income (loss)GAAP | $(4.0) million | – | – |
| Nine-month net (loss) income attributable to Mission ProduceGAAP | $(14.4) million | – | – |
| Nine-month Mission Produce adjusted net incomenon-GAAP | $23.1 million | – | – |
| Nine-month total adjusted EBITDAnon-GAAP | $58.0 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Marketing & DistributionSales increased due to an increase in avocado volume sold of 38%, partially offset by a decrease in per-unit avocado sales prices of 9%. Volume increased from the integration of the acquired Calavo operation and increased Mexican avocado supply due to higher yields. | $414.3 million | – | – |
| Prepared FoodsThe segment was reported following the Calavo acquisition completed on May 28, 2026; segment operating loss included amortization of inventory adjustments recognized in the business combination. | $15.5 million | – | – |
| International FarmingResults were impacted by lower average sales prices attributed to higher global supply of avocados in the current year. | $45.8 million | – | – |
| BlueberriesThird-quarter 2026 segment sales and operating income growth were driven primarily by IEEPA tariff refunds; adjusted EBITDA was affected by decreases in volume sold related to harvest timing and lower per-unit sales prices. | $5.4 million | – | – |
Fiscal 2026 fourth quarter and full year fiscal 2026 outlook
- NoteAvocado industry volumes in the fiscal 2026 fourth quarter are expected to increase by approximately 10% versus the prior year period.
- NoteExportable avocado production from Mission’s owned farms in Peru is expected to range between 120 million to 130 million pounds.
- NotePricing is expected to be lower on a year-over-year basis by approximately 10% compared to the $1.39 per pound average experienced in the fourth quarter of fiscal 2025.
- NoteFiscal second-half 2026 Adjusted EBITDA outlook of $84 million to $88 million.
- NoteFourth-quarter Adjusted EBITDA of approximately $52 million to $55 million, including a full quarter of Calavo.
- NoteFor full year fiscal 2026, total capital expenditures are expected to be approximately $45 million, including planned expenditures related to the legacy Calavo business.
- NoteEstimated annualized synergy opportunity of more than $30 million.
Capital returns
- Purchase and retirement of common stock: $(9.4) million for the nine months ended July 31, 2026, compared to $(5.5) million for the same period last year.
- In the Calavo transaction, Mission issued 17,530,762 shares of its common stock and paid approximately $267 million in cash.
What drove it
- The acquired Calavo operation contributed to higher avocado volumes and Marketing & Distribution segment gross profit.
- Increased Mexican avocado supply due to higher yields increased avocado volume sold.
- International Farming average sales prices were lower because of higher global avocado supply.
- Blueberries gross profit improvement was driven by the one-time impact of IEEPA tariff refunds.
- The company expects fourth-quarter Adjusted EBITDA to be supported by later timing of sales from its Peru avocado harvest, increased blueberry volumes, and improved avocado margin dynamics.
Concerns
- Gross margin decreased 270 basis points compared to the same period last year, to 9.9% of revenue.
- Net loss attributable to Mission Produce was $(6.5) million, compared to income of $14.7 million for the same period last year.
- Transaction advisory and integration costs were $12.6 million in the third quarter and $26.0 million for the nine months ended July 31, 2026.
- International Farming segment adjusted EBITDA was $7.6 million, compared to $12.1 million in the same period last year.
- Net cash used in operating activities was $(25.9) million for the nine months ended July 31, 2026.
- Long-term debt, net of current portion, was $388.9 million as of July 31, 2026.
What to watch
- Fourth-quarter Adjusted EBITDA of approximately $52 million to $55 million and reaffirmed fiscal second-half 2026 Adjusted EBITDA outlook of $84 million to $88 million.
- Execution of Calavo integration, including the estimated annualized synergy opportunity of more than $30 million.
- Peru exportable avocado production expected to range between 120 million to 130 million pounds and the timing of Peru harvest sales.
- Expected fiscal 2026 fourth-quarter avocado industry volume increase of approximately 10% and pricing expected to be lower on a year-over-year basis by approximately 10%.
- Full-year fiscal 2026 capital expenditures expected to be approximately $45 million.
Balance sheet and cash flow
- Cash and cash equivalents were $47.1 million as of July 31, 2026, compared to $64.8 million as of October 31, 2025.
- Long-term debt, net of current portion, was $388.9 million as of July 31, 2026, compared to $92.8 million as of October 31, 2025.
- Long-term debt, current portion, was $11.5 million as of July 31, 2026, compared to $3.0 million as of October 31, 2025.
- Net cash used in operating activities was $(25.9) million for the nine months ended July 31, 2026, compared to cash provided of $21.4 million in the same period last year.
- Purchases of property, plant and equipment were $(32.0) million for the nine months ended July 31, 2026, compared to $(39.8) million for the same period last year.
- Cash paid for acquisition of Calavo, net of cash acquired, was $(247.0) million for the nine months ended July 31, 2026.
- Net cash provided by financing activities was $286.4 million for the nine months ended July 31, 2026, compared to $5.8 million for the same period last year.
Analysis
Mission reported fiscal third-quarter revenue of $450.0 million, up 26% from $357.7 million, as avocado volume sold increased 38% to 252.7 million pounds. The volume increase reflected Calavo integration and greater Mexican avocado supply from higher yields. Average avocado sales price per pound was $1.58, compared with $1.74, and management described a 9% decrease in per-unit avocado sales prices.
Profitability was pressured despite the sales increase. Gross profit was $44.7 million versus $45.1 million, and gross margin decreased 270 basis points to 9.9% of revenue. Operating income was $0.5 million versus $21.0 million. Net loss attributable to Mission Produce was $(6.5) million, or $(0.08) per diluted share, and included $25.4 million of Calavo acquisition-related pre-tax costs. Adjusted net income was $15.0 million, compared with $18.2 million, while adjusted EBITDA was $32.4 million, compared with $32.6 million.
Marketing & Distribution generated $414.3 million of sales and $24.7 million of adjusted EBITDA, compared with $20.0 million, with the increase attributed primarily to Calavo post-acquisition results. Prepared Foods contributed $15.5 million of sales and $0.2 million of adjusted EBITDA. International Farming sales were $45.8 million and adjusted EBITDA was $7.6 million, compared with $12.1 million, as higher global avocado supply reduced average sales prices. Blueberries sales were $5.4 million, and operating income increased to $2.4 million from a $(0.2) million loss primarily because of IEEPA tariff refunds, although adjusted EBITDA was $(0.1) million.
Cash flow reflected transaction costs, working-capital investment and the Calavo acquisition. Net cash used in operating activities was $(25.9) million for the nine months ended July 31, 2026, versus $21.4 million of cash provided in the prior-year period. Cash and cash equivalents were $47.1 million, while long-term debt net of current portion was $388.9 million. The company paid $(247.0) million for Calavo, net of cash acquired, and repurchased $(9.4) million of common stock during the nine-month period.
Mission reaffirmed fiscal second-half 2026 Adjusted EBITDA guidance of $84 million to $88 million and expects fourth-quarter Adjusted EBITDA of approximately $52 million to $55 million. The fourth-quarter outlook assumes avocado industry volumes increase by approximately 10% versus the prior-year period and pricing declines by approximately 10% from the $1.39 per pound average in the fourth quarter of fiscal 2025. Management raised its estimated annualized Calavo synergy opportunity to more than $30 million and expects full-year fiscal 2026 capital expenditures of approximately $45 million.
Management, verbatim
Our third-quarter results demonstrate the strength of our business and the team’s continued focus on operational execution.
John Pawlowski, President and CEO of Mission
Based on higher-than-anticipated SG&A savings and network efficiencies, we are raising our estimated annualized synergy opportunity to more than $30 million.
John Pawlowski, President and CEO of Mission
Looking ahead, our priorities remain straightforward: extend our marketplace momentum, execute consistently across our global network, integrate Calavo thoughtfully, and translate our expanded scale into stronger earnings and returns.
John Pawlowski, President and CEO of Mission
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported quarterly metrics were not provided.
- Prior-year gross margin was not printed on the gross-margin line.
- Quarterly operating cash flow was not provided.
- Free cash flow was not provided.
- Dividend amount or dividend declaration was not provided.
- Revenue guidance was not provided.
- Gross-margin guidance was not provided.
- Operating-expense guidance was not provided.
- Tax-rate guidance was not provided.
- A prior earnings release outlook was not provided, so comparisons with prior guidance are unavailable.
AlphAI 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.