Earnings call transcript: Armanino Foods posts Q3 2026 revenue beat

Armanino Foods reported Q3 2026 earnings of $0.15 per share, matching analysts' expectations. Revenue grew 10% year over year to $21.7 million, exceeding forecasts by 2.5%. Secondary sauce sales rose 20% and now account for over 15% of total revenue. While the company's Mountain House facility project remains on schedule and on budget with startup expected in Q2 2027, facility relocation costs contributed to a reported decline in gross margin to 46.5%.

However, adjusted gross margin remained stable at 49.5%, indicating improved underlying profitability despite the transition. International sales reached 10% of revenue for the first time, and new retail partnerships contributed to the growth. EPS remained at $0.15, in line with estimates, while non-GAAP operating income increased 16.5% to $7.3 million.

Net sales grew to $21.7 million from $19.7 million the previous year, with three-quarters of the increase driven by volume growth rather than price hikes. The company's management highlighted the strength of its national accounts, secondary sauces, international markets, and retail placements as key growth drivers.