Utz Brands — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net Sales decreased 2.3% year-over-year to $369.2 million for the quarter; year-to-date Net Sales increased 0.5% to $1,102.3 million.
• Total Organic Net Sales decreased 2.3% for the quarter, driven by a 5.2% reduction in volume/mix partially offset by 2.9% higher net price realization; year-to-date Organic Net Sales increased 0.5%.
• Branded Salty Snacks Organic Net Sales increased 0.3% for the quarter, representing 92% of total Net Sales.
• Gross Profit declined 15.2% to $77.6 million; Gross Profit Margin decreased 320 basis points to 21.0%.
• Adjusted Gross Profit declined 18.3% to $100.4 million; Adjusted Gross Profit Margin decreased 530 basis points to 27.2%.
• Selling, General, and Administrative (SG&A) Expenses increased 11.1% to $97.4 million (26.4% of Net Sales); Adjusted SG&A decreased 5.0% to $58.4 million (15.8% of Net Sales).
• Net Loss increased to $32.1 million compared to $20.2 million in the prior year period.
• Adjusted Net Income decreased 57.6% to $14.2 million; Adjusted Earnings Per Share decreased 56.5% to $0.10.
• EBITDA decreased 95.4% to $1.1 million; Adjusted EBITDA decreased 30.3% to $42.0 million (11.4% margin).
• Cash Flow Used in Operations was $4.9 million for the quarter and $5.4 million for the year-to-date period.
• Adjusted Free Cash Flow declined to $(15.5) million for the quarter and $(42.1) million for the year-to-date period.
• 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.

Guidance and Future Outlook:

• 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 to discuss quarterly or year-to-date results.

Business Segments and Product Lines:

• Branded Salty Snacks Retail Sales increased 0.2% year-over-year, outperforming the Salty Snack category overall which increased 1.1%.
• Company Retail Volumes decreased 3.3%, compared to a 0.1% increase for the Salty Snack category.
• The "Power Four Brands" (Utz®, On The Border®, Zapp's®, and Boulder Canyon®) Retail Sales increased 2.1%.
• Non-Branded & Non-Salty Snacks Organic Net Sales declined 23.8%, primarily due to the accelerated elimination of low-margin items in the Non-Branded segment.
• The Company drove Retail Sales gains in its Expansion Geographies.

Market and Competitive Landscape:

• Industry-wide headwinds intensified during the quarter, including abrupt, significant inflation and a modestly weaker consumer.
• The Salty Snack category overall increased 1.1% in retail sales as measured by Circana MULO+ w/convenience.

Risks and Challenges:

• Significant supply chain cost inflation, channel mix shifts, and lower volumes drove the decline in Adjusted Gross Profit Margin.
• Costs related to the take-private transaction contributed to the increase in SG&A Expenses.
• The transaction is subject to closing conditions, including a special stockholder meeting scheduled for November 13, 2026.

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 upcoming CEO transition to John Lindeman.
• Management expressed pride in serving as CEO for nearly four years and emphasized the focus on the pending transaction.

Other Key Points:

• On July 20, 2026, Utz entered a definitive agreement for Intersnack Group subsidiaries to acquire all outstanding Class A Common Stock for $14.25 per share in cash.
• Upon closing, Utz will become a private company owned 50% by Intersnack Group and 50% by the Rice and Lissette Family Entities.
• All regulatory conditions for the transaction have been satisfied.
• For the 39 weeks ended September 27, 2026, Capital Expenditures were $43.5 million, and dividends and distributions paid were $27.9 million.
• The Company revised the categorization of certain charges and gains in the first quarter of 2026, moving them from "acquisition, divestitures and investments" to "supply chain transformation" and "corporate transformation."
• Transaction costs for the quarter were $17.7 million, and $23.7 million for the year-to-date period.
• Supply chain transformation initiatives costs were $11.2 million for the quarter and $29.5 million for the year-to-date period.
• Corporate transformation costs were $6.8 million for the quarter and $26.1 million for the year-to-date period.