Utz Brands — Third Quarter 2026 Earnings Summary

Financial Performance

• Net sales decreased 2.3% year-over-year to $369.2 million for the 13 weeks ended September 27, 2026, compared to $377.8 million in the prior year period; year-to-date net sales increased 0.5% to $1,102.3 million.
• Total organic net sales decreased 2.3% year-over-year for the quarter, driven by a 5.2% reduction in volume/mix partially offset by 2.9% higher net price realization; Branded Salty Snacks organic net sales increased 0.3%.
• Gross profit margin declined 320 basis points to 21.0% from 24.2% in the prior year period; adjusted gross profit margin declined 530 basis points to 27.2% from 32.5%.
• Net loss increased to $32.1 million compared to a net loss of $20.2 million in the prior year period.
• Adjusted net income decreased 57.6% to $14.2 million compared to $33.5 million in the prior year period; adjusted earnings per share decreased 56.5% to $0.10 from $0.23.
• EBITDA decreased 95.4% to $1.1 million compared to $23.8 million in the prior year period; adjusted EBITDA decreased 30.3% to $42.0 million compared to $60.3 million.
• Cash flow used in operations was $4.9 million for the quarter compared to $51.2 million provided in the prior year period; year-to-date cash flow used in operations was $5.4 million.
• Adjusted free cash flow declined to $(15.5) million for the quarter compared to $27.8 million in the prior year period; year-to-date adjusted free cash flow was $(42.1) million.
• Net leverage ratio remained consistent with the prior year at 3.9x based on trailing twelve months adjusted EBITDA of $208.0 million.
• Total liquidity was $153.8 million, consisting of $70.1 million in cash on hand and $83.7 million available under the revolving credit facility.
• Net debt was $815.4 million.

Business Segments and Product Lines

• Branded Salty Snacks, representing 92% of total net sales, increased organic net sales by 0.3% year-over-year, led by the "Power Four Brands" (Utz®, On The Border®, Zapp's®, and Boulder Canyon®).
• Non-Branded & Non-Salty Snacks organic net sales declined 23.8% year-over-year, primarily due to the accelerated elimination of low-margin items in the Non-Branded category.
• Branded Salty Snacks retail sales increased 0.2% year-over-year, while the broader Salty Snack category increased 1.1%.
• Company retail volumes decreased 3.3% year-over-year, compared to a 0.1% increase for the Salty Snack category.
• The "Power Four Brands" retail sales increased by 2.1% year-over-year.
• Retail sales gains were driven in Expansion Geographies.

Risks and Challenges

• Results were impacted by industry-wide headwinds including abrupt, significant inflation and a modestly weaker consumer.
• Declines in adjusted gross profit margin were driven by significant supply chain cost inflation, channel mix changes, and lower volumes.
• Selling, General, and Administrative (SG&A) expenses increased to $97.4 million (26.4% of net sales) from $87.7 million (23.2% of net sales), primarily due to costs related to the take-private transaction.
• Year-to-date capital expenditures were $43.5 million, and dividends and distributions paid were $27.9 million.

Management Commentary and Tone

• CEO Howard Friedman stated results were impacted by industry-wide headwinds and noted his focus on supporting the transition to a private company and the CEO transition to John Lindeman.
• Management indicated the company will not provide forward-looking guidance for 2026 due to the pending take-private transaction.
• The company will not host a conference call or webcast presentation to discuss the results.

Other Key Points

• On July 20, 2026, Utz entered a definitive agreement for Intersnack Group to acquire all outstanding shares of Class A Common Stock for $14.25 per share in cash.
• Upon closing, Utz will become a private company with the Rice and Lissette Family Entities and Intersnack Group each owning 50% of Utz Brands Holdings, LLC.
• The transaction is expected to close in the fourth quarter of 2026, subject to closing conditions; all regulatory conditions have been satisfied.
• A special meeting of stockholders to vote on the transaction is scheduled for November 13, 2026.
• Transaction costs for the 13 weeks ended September 27, 2026, were $17.7 million; year-to-date transaction costs were $23.7 million.
• The company revised the categorization of certain charges and gains in the first quarter of 2026, moving them from acquisition/divestiture categories to supply chain and corporate transformation categories.