Mission Produce (NASDAQ: AVO) reported fiscal Q3 2026 revenue of $450.0 million, up 26% from $357.7 million a year earlier, while diluted EPS swung to a loss of $0.08 from earnings of $0.21. Avocado volume climbed 38%, helped by the Calavo acquisition and higher Mexican supply, but lower pricing, weaker International Farming economics, and $25.4 million of pre-tax Calavo-related costs weighed on profitability. Adjusted EBITDA remained nearly flat at $32.4 million.
Core Earnings Results
Mission Produce generated substantially more sales without increasing gross profit. A 9% decline in per-unit avocado prices partly offset the volume increase, leaving gross profit at $44.7 million and reducing gross margin by 270 basis points to 9.9%.
Acquisition and integration expenses also widened the gap between revenue and GAAP earnings. Even after adjustments, however, net income and EPS declined from the prior-year quarter, while adjusted EBITDA was approximately unchanged.
| Metric | Q3 FY2026 | Q3 FY2025 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $450.0 million | $357.7 million | Up 26% |
| Gross profit | $44.7 million | $45.1 million | Down about 1% |
| Gross margin | 9.9% | 12.6% | Down 270 basis points |
| Operating income | $0.5 million | $21.0 million | Down about 98% |
| Net income attributable to Mission Produce | $(6.5) million | $14.7 million | Swung to a loss |
| Diluted EPS | $(0.08) | $0.21 | Swung to a loss |
| Adjusted EPS | $0.18 | $0.26 | Down about 31% |
| Adjusted EBITDA | $32.4 million | $32.6 million | Down about 1% |
Business and Segment Performance
Marketing & Distribution supplied most of the company’s revenue and adjusted EBITDA, benefiting from Calavo’s post-acquisition contribution. International Farming moved in the opposite direction as higher global avocado supply reduced average selling prices.
| Segment | Q3 FY2026 Sales | Q3 FY2025 Sales | Q3 FY2026 Adjusted EBITDA | Q3 FY2025 Adjusted EBITDA |
|---|---|---|---|---|
| Marketing & Distribution | $414.3 million | $344.1 million | $24.7 million | $20.0 million |
| Prepared Foods | $15.5 million | — | $0.2 million | — |
| International Farming | $45.8 million | $49.0 million | $7.6 million | $12.1 million |
| Blueberries | $5.4 million | $4.5 million | $(0.1) million | $0.5 million |
International Farming sales include affiliated transactions that are eliminated in consolidation. Its adjusted EBITDA declined as avocado prices fell amid increased global supply.
Blueberries reported operating income of $2.4 million, compared with a $0.2 million loss a year earlier, primarily because of IEEPA tariff refunds. That improvement did not extend to adjusted EBITDA, which slipped to a $0.1 million loss due to lower volume associated with harvest timing and lower per-unit prices.
Calavo Added Scale While Acquisition Costs Distorted GAAP Profit
Mission Produce completed the Calavo acquisition on May 28, 2026, so the third quarter included only part of Calavo’s operations. The transaction added avocado distribution volume and created the new Prepared Foods segment, but it also introduced purchase-accounting charges and higher expenses.
The quarter’s $6.5 million attributable net loss included $25.4 million of pre-tax Calavo acquisition-related costs. Transaction advisory and integration costs alone were $12.6 million, while the Prepared Foods operating loss of $4.1 million included amortization of an inventory adjustment. Excluding acquisition-related items, Prepared Foods generated adjusted EBITDA of $0.2 million.
Management raised its estimated annualized Calavo synergy opportunity to more than $30 million, citing greater expected SG&A savings and network efficiencies. The transaction consideration included approximately $267 million in cash and 17.5 million Mission Produce shares; the cash flow statement recorded $247.0 million of acquisition payments net of cash acquired.
Profitability, Cash Flow, and Balance Sheet
For the nine months ended July 31, 2026, operating activities used $25.9 million of cash, compared with $21.4 million generated in the prior-year period. This year-to-date decline reflected lower income, including $26.0 million of transaction and integration costs, and greater working-capital requirements.
Inventory and receivables increased because of crop yields, harvest and sales timing, pricing, and the timing of value-added tax refunds. Capital expenditures were $32.0 million for the nine-month period, down from $39.8 million a year earlier.
Cash and cash equivalents stood at $47.1 million on July 31, down from $64.8 million on October 31, 2025. Long-term debt, including the current portion, totaled approximately $400.4 million, compared with approximately $95.8 million at the end of fiscal 2025. During the nine-month period, Mission Produce borrowed $350.0 million under long-term debt obligations while funding the Calavo acquisition.
Guidance
Mission Produce reaffirmed its fiscal second-half adjusted EBITDA outlook. The fourth-quarter forecast assumes a full quarter of Calavo and a seasonal increase in earnings from later Peruvian avocado sales and higher blueberry volumes.
| Metric | Latest Outlook | Comparison or Status |
|---|---|---|
| Fiscal Q4 avocado industry volume | Up approximately 10% year over year | Higher available supply expected |
| Fiscal Q4 avocado pricing | Down approximately 10% year over year | Compared with $1.39 per pound in Q4 FY2025 |
| Peru owned-farm exportable production | 120 million–130 million pounds | 105 million pounds in FY2025; 53 million sold through Q3 |
| Second-half adjusted EBITDA | $84 million–$88 million | Reaffirmed |
| Fiscal Q4 adjusted EBITDA | Approximately $52 million–$55 million | Includes a full quarter of Calavo |
| Full-year capital expenditures | Approximately $45 million | Includes planned legacy Calavo spending |
The Q4 adjusted EBITDA outlook is also supported by expected improvement in avocado margin dynamics. At the same time, the industry pricing outlook remains lower because of increased avocado volumes in U.S. and international markets.
Recent Insider Transactions
Nine of the ten most recent transactions listed in the supplied insider data were purchases. The records show repeated purchases by Global Harvest Holdings Venture Ltd and directors Bruce Taylor and Jay Pack, alongside one sale by CFO Bryan Giles; these transactions do not by themselves establish insiders’ views on valuation or future performance.
| Date | Insider | Role | Transaction | Price per Share | Ownership | Reported Value |
|---|---|---|---|---|---|---|
| Jul. 9, 2026 | Global Harvest Holdings Venture Ltd | More than 10% beneficial owner | Purchase | $13.28 | Direct | $7,874,469 |
| Jul. 8, 2026 | Global Harvest Holdings Venture Ltd | More than 10% beneficial owner | Purchase | $13.40–$13.42 | Direct | $15,813,510 |
| Jul. 6, 2026 | Global Harvest Holdings Venture Ltd | More than 10% beneficial owner | Purchase | $12.73 | Direct | $8,279,783 |
| Jun. 30, 2026 | Jay A. Pack | Director | Purchase | $12.10 | Direct | $484,000 |
| Jun. 29, 2026 | Bryan E. Giles | CFO | Sale | $12.13 | Direct | $60,650 |
| Jun. 23, 2026 | Bruce C. Taylor | Director | Purchase | $11.25–$11.36 | Indirect | $1,128,269 |
| Jun. 17, 2026 | Bruce C. Taylor | Director | Purchase | $11.27 | Indirect | $3,227,841 |
| Jun. 16, 2026 | Bruce C. Taylor | Director | Purchase | $11.29–$11.40 | Indirect | $3,541,926 |
| Jun. 15, 2026 | Jay A. Pack | Director | Purchase | $11.34 | Indirect | $2,138,157 |
| Jun. 12, 2026 | Bruce C. Taylor | Director | Purchase | $11.14–$11.16 | Indirect | $1,850,597 |
Risks Investors Should Watch
- Continued avocado price pressure: Higher global and Mexican supply has already reduced per-unit prices and International Farming earnings. Management expects Q4 industry pricing to decline approximately 10% year over year.
- Calavo integration execution: Mission Produce must realize more than $30 million in estimated annualized synergies while controlling integration costs and maintaining customer service and business continuity.
- Cash flow and leverage: Nine-month operating cash flow was negative, cash declined, and debt increased substantially following the acquisition. Working-capital requirements can also create meaningful quarterly volatility.
- Dependence on harvest timing: The Q4 outlook relies partly on later sales from Peru’s avocado harvest and increased blueberry volume, making production and shipment timing important to second-half results.
- Nonrecurring blueberry support: Blueberries’ GAAP operating improvement benefited from IEEPA tariff refunds, while the segment remained slightly negative on an adjusted EBITDA basis.
Summary
Mission Produce’s fiscal Q3 2026 results showed the immediate trade-off from expanding through Calavo: substantially higher volume and revenue, but lower consolidated margins and significant acquisition-related costs. Marketing & Distribution improved on an adjusted basis, while lower avocado prices weakened International Farming. The next quarter will test whether a full period of Calavo, seasonal harvest sales, and early integration benefits can support the reaffirmed second-half adjusted EBITDA outlook while cash flow and leverage remain under scrutiny.
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