Mama’s Creations (MAMA) Just Proved Its Growth Spurt Wasn’t A Fluke

On September 3, Mama's Creations (NASDAQ: MAMA ) reported second quarter fiscal 2027 results that turned a familiar growth story into something sturdier. Revenue jumped 55% to $54.6 million, but the number that mattered more sat underneath it: net income more than doubled to $2.6 million, and adjusted EBITDA climbed 68.9% to $5.5 million. Every profit metric outran the top line, exactly the sequence management had promised three months earlier when it front loaded costs into new product launches.

Distribution is scaling fast. October brings Mama's first placement inside banner Kroger, with over 100 stores in the Louisville division stocking four items. Costco has already confirmed the company for a second-half multi-vendor mailer across all eight national regions, a promotion expected to move more volume than it did last year. Walmart shelf space has grown past 2,300 stores, and high-protein items like grilled chicken are gaining velocity every week, while Sam's Club is adding 300 clubs for a new panko chicken product this quarter.

Margins are catching up to the growth, too. Gross margin ticked up to 24.0% from 23.6% in the first quarter as new packaging lines and protein formats reached steady state, and operating expenses fell 160 basis points to 18.5% of revenue as the business added scale without adding overhead. A July stock offering brought in $108.6 million, pushing cash to $138.6 million against just $4.8 million of total debt as of July 31. Operating cash flow of $11.9 million over the first six months gives the balance sheet room to chase acquisitions without straining the business.

The growth is not evenly profitable. CEO Adam Michaels flagged what he called the "challenge" of chicken bottom percentages not growing as fast as overall volume, since those dark meat cuts carry higher margins than the portion chicken products currently driving the fastest sales gains. At Walmart, some newer items, sausage and peppers and meatloaf among them, are moving at lower velocity than chicken and meatball products, a reminder that not every new placement performs evenly.

The Bay Shore facility acquired last year is still working toward the company's corporate average margins rather than already matching them, meaning part of the reported growth is still digesting. Trade spend rose more than $1 million year over year, with another $500,000 shifted over from marketing, support that helped drive new placements but also shows how much promotional spending it currently takes to keep the shelves moving.