Revenue growth has decelerated sharply to a 23.5% year-over-year decline in 2026Q2, while gross margins compressed to 7.0% from a 17.5% peak in 2025Q4.
| Sales/Revenue | 1.25B | 1.39B | 1.23B | 953.9M | 1.05B | 891.7M | 862.3M | 883.3M | 859.9M |
| Revenue Growth % | -10.53% | 12.68% | 29.44% | -8.8% | 17.29% | 3.41% | -2.38% | 2.72% | - |
| Cost of Goods Sold | 1.09B | 1.23B | 1.08B | 870.6M | 956.1M | 767.2M | 737.7M | 728.63M | 805.9M |
| COGS % of Revenue | - | 88.45% | 87.65% | 91.27% | 91.41% | 86.04% | 85.55% | 82.49% | 93.72% |
| Gross Profit | 152.9M | 160.7M | 152.5M | 83.3M | 89.8M | 124.5M | 124.6M | 154.68M | 54M |
| Gross Margin % | 12.27% | 11.55% | 12.35% | 8.73% | 8.59% | 13.96% | 14.45% | 17.51% | 6.28% |
| Gross Profit Growth % | - | 5.38% | 83.07% | -7.24% | -27.87% | -0.08% | -19.44% | 186.44% | - |
| Operating Expenses | 95M | 95.5M | 86.8M | 76.4M | 127M | 63.6M | 56.2M | 48.17M | 35.3M |
| OpEx % of Revenue | - | 6.86% | 7.03% | 8.01% | 12.14% | 7.13% | 6.52% | 5.45% | 4.11% |
| Selling, General & Admin | 95M | 95.5M | 86.8M | 76.4M | 77.5M | 62.4M | 56.2M | 48.17M | 35.3M |
| SG&A % of Revenue | - | 6.86% | 7.03% | 8.01% | 7.41% | 7% | 6.52% | 5.45% | 4.11% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 400K | 400K | 500K | 300K |
| R&D % of Revenue | - | - | - | - | - | 0.04% | 0.05% | 0.06% | 0.03% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 49.5M | 800K | -400K | -308K | -400K |
| Operating Income | 64.2M | 71.5M | 65.7M | 6.9M | -37.2M | 60.9M | 68.4M | 106.51M | 18.7M |
| Operating Margin % | 5.15% | 5.14% | 5.32% | 0.72% | -3.56% | 6.83% | 7.93% | 12.06% | 2.17% |
| Operating Income Growth % | - | 8.83% | 852.17% | 118.55% | -161.08% | -10.96% | -35.78% | 469.56% | - |
| EBITDA | 99M | 106.1M | 103.4M | 39.7M | -7.1M | 85.6M | 86.5M | 122.97M | 28.14M |
| EBITDA Margin % | 7.94% | 7.63% | 8.37% | 4.16% | -0.68% | 9.6% | 10.03% | 13.92% | 3.27% |
| EBITDA Growth % | 2.7% | 2.61% | 160.45% | 659.15% | -108.29% | -1.04% | -29.66% | 337% | - |
| D&A (Non-Cash Add-back) | 34.8M | 34.6M | 37.7M | 32.8M | 30.1M | 24.7M | 18.1M | 16.47M | 9.44M |
| EBIT | 61.4M | 71.3M | 73M | 10.7M | -25.7M | 69.7M | 68.4M | 106.32M | 94.08M |
| Net Interest Income | -6.8M | -7.7M | -10.5M | -10.1M | -3.8M | -2M | -4.3M | -8.6M | -4.7M |
| Interest Income | 1.5M | 1.7M | 2.1M | 1.5M | 1.7M | 1.7M | 2.4M | 1.7M | 700K |
| Interest Expense | 8.3M | 9.4M | 12.6M | 11.6M | 5.5M | 3.7M | 6.7M | 10.32M | 5.4M |
| Other Income/Expense | -24.1M | -9.6M | -5.3M | -7.8M | 6M | 5.1M | -24.6M | -10.5M | 69.9M |
| Pretax Income | 40.1M | 61.9M | 60.4M | -900K | -31.2M | 66M | 43.8M | 96M | 88.6M |
| Pretax Margin % | 3.22% | 4.45% | 4.89% | -0.09% | -2.98% | 7.4% | 5.08% | 10.87% | 10.3% |
| Income Tax | 16.3M | 21.4M | 18.6M | 2.2M | 3.7M | 21.1M | 15M | 24.3M | 16.2M |
| Effective Tax Rate % | 40.65% | 34.57% | 30.79% | -244.44% | -11.86% | 31.97% | 34.25% | 25.31% | 18.28% |
| Net Income | 22.8M | 37.7M | 36.7M | -2.8M | -34.6M | 44.9M | 28.8M | 71.7M | 72.4M |
| Net Margin % | 1.83% | 2.71% | 2.97% | -0.29% | -3.31% | 5.04% | 3.34% | 8.12% | 8.42% |
| Net Income Growth % | -37.87% | 2.72% | 1410.71% | 91.91% | -177.06% | 55.9% | -59.83% | -0.97% | - |
| Net Income (Continuing) | 23.8M | 40.5M | 41.8M | -3.1M | -34.9M | 44.9M | 28.8M | 71.7M | 72.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 33M | 32.6M | 29.8M | 24.7M | 20.8M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.32 | 0.53 | 0.52 | -0.04 | -0.49 | 0.63 | 0.41 | 1.02 | 1.04 |
| EPS Growth % | 1122.68% | 1.92% | 1413.13% | 91.92% | -177.78% | 53.66% | -59.8% | -1.92% | - |
| EPS (Basic) | - | 0.53 | 0.52 | -0.04 | -0.49 | 0.64 | 0.41 | 1.02 | 1.04 |
| Diluted Shares Outstanding | 70.71M | 71.33M | 71.2M | 70.75M | 70.65M | 71.07M | 70.55M | 70.55M | 69.35M |
| Basic Shares Outstanding | 70.71M | 71.13M | 71.2M | 70.75M | 70.65M | 70.58M | 70.55M | 70.55M | 69.35M |
| Dividend Payout Ratio | - | - | - | - | - | - | 45.14% | 7.81% | 6.22% |
Commodity price volatility exposure
As reported in recent financial filings, Mission Produce experienced a significant revenue contraction of 23.5% year-over-year in 2026Q2, marking a sharp reversal from the double-digit growth rates observed throughout 2024 and early 2025, which suggests that the company is struggling to maintain volume amidst shifting market conditions.
The transition from consistent top-line expansion to a double-digit decline indicates that the company's transactional revenue model is highly sensitive to seasonal harvest cycles and pricing fluctuations. Investors should monitor whether this deceleration reflects a structural loss of market share or merely the expected volatility inherent in the avocado supply chain.
Based on the provided income statement data, gross margins plummeted to 7.0% in 2026Q2, a significant deterioration from the 17.5% peak achieved in 2025Q4, which highlights the company's limited ability to pass through procurement cost increases to retailers during periods of supply chain disruption.
The volatility in gross margins suggests that Mission Produce remains a price-taker in the global avocado market, with little insulation against rising input costs. This narrow margin profile leaves the firm with minimal buffer to absorb operational inefficiencies, making consistent pack-out yields critical for maintaining even modest profitability.
According to the latest quarterly results, operating income swung to a loss of $600,000 in 2026Q2, demonstrating that the company's fixed cost structure, including its extensive ripening infrastructure, fails to provide operating leverage when gross profit dollars contract significantly due to lower realized pricing.
The inability to scale SG&A expenses down in proportion to the revenue decline suggests that the company's operating model is heavily burdened by fixed logistical costs. This lack of operating leverage implies that profitability will remain highly sensitive to volume throughput, potentially leading to further earnings volatility in future quarters.
Analysis of the income statement reveals that stock-based compensation remains a persistent expense, totaling $1.4 million in 2026Q2, which further exacerbates the net loss of $7.2 million and suggests that shareholder dilution is occurring even during periods of negative operational performance.
The consistent presence of stock-based compensation during quarters where the company is failing to generate positive net income warrants further investigation into management's incentive alignment. Investors should consider whether these non-cash charges are masking the true extent of the company's operational cash burn.
While management emphasizes the benefits of vertical integration, the recent collapse in net margins to -2.5% in 2026Q2 suggests that the company's owned farming assets may be a liability during low-yield cycles rather than the competitive moat that was previously anticipated by the market.
Short-sellers may focus on the company's inability to maintain profitability despite its purported logistical advantages, questioning whether the capital-intensive nature of its farming operations is truly value-accretive. The reliance on high-volume throughput to cover fixed costs appears to be a significant risk factor that could lead to further margin compression if demand softens.
Quick answers to the most common questions about buying AVO stock.
For fiscal year 2025, Mission Produce, Inc. (AVO) reported total revenue of $1.39B. This represents a 61.8% increase compared to $859.9M in 2018.
Mission Produce, Inc. (AVO) is profitable, generating $37.7M in net income for the fiscal year ending 2025 with a net profit margin of 2.7%.
Mission Produce, Inc. (AVO) reported an operating income of $71.5M, resulting in an operating profit margin of 5.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Mission Produce, Inc. (AVO) generated $160.7M in gross profit for the year, representing a gross profit margin of 11.6%. This demonstrates the company's core pricing power and production efficiency.