Utz Brands Reports Modest Sales Increase but Significant Net Loss in Q2 Fiscal 2026

Utz Brands, Inc. reported its financial results for the second quarter of fiscal 2026, revealing a modest increase in net sales but a significant net loss compared to the same period last year. For the thirteen weeks ended June 28, 2026, net sales reached $371.8 million, a 1.4% increase from $366.7 million in the prior year. However, the company experienced a net loss of $16.0 million, compared to a net income of $10.1 million in the same quarter of 2025. This resulted in a loss per share of $0.11, contrasting with earnings of $0.12 per share in the previous year.

The company's gross profit for the quarter was $96.2 million, slightly up from $95.3 million, with a gross margin of 25.9%, down marginally from 26.0%. The increase in gross profit was attributed to productivity savings that offset supply chain cost inflation. However, selling, general, and administrative expenses surged by 15.1% to $101.3 million, primarily due to increased marketing efforts and investments in capabilities to support geographic expansion. The company also reported a loss from operations of $5.5 million, compared to an income of $6.4 million in the prior year.

In terms of operational developments, Utz Brands continues to focus on its strategic growth initiatives, including the consolidation of its manufacturing footprint. The company plans to close its Grand Rapids, Michigan facility as part of a broader strategy to enhance efficiency and reduce costs. Additionally, Utz has been expanding its presence in California through acquisitions, including the purchase of Insignia International’s DSD distribution assets, which is expected to bolster its market share in a key growth region.

The company’s balance sheet as of June 28, 2026, showed total assets of $2.775 billion, a slight decrease from $2.794 billion at the end of the previous fiscal year. Current liabilities increased to $340.7 million from $323.2 million, while total liabilities rose to $1.462 billion from $1.449 billion. The company’s equity also declined to $1.314 billion from $1.345 billion, reflecting the impact of the net loss during the quarter. Utz Brands has also entered into a definitive agreement to be acquired by Intersnack Group for $14.25 per share, a transaction expected to close in the fourth quarter of 2026, which will further shape the company’s future direction.

Looking ahead, Utz Brands has not provided specific guidance for the remainder of the fiscal year due to the pending acquisition. However, the company remains focused on its long-term growth strategy, which includes enhancing its product offerings and expanding its market reach, particularly in the salty snack category, which continues to show resilience despite competitive pressures and rising costs.