Snack food company Utz Brands (NYSE:UTZ) fell short of the market's revenue expectations in Q2 CY2026 as sales only rose 1.4% year on year to $371.8 million. Its non-GAAP profit of $0.19 per share was in line with analysts' consensus estimates.
Is now the time to buy Utz? Find out in our full research report .
Utz (UTZ) Q2 CY2026 Highlights:
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Revenue:$371.8 million vs analyst estimates of $374.2 million (1.4% year-on-year growth, 0.6% miss)
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Adjusted EPS:$0.19 vs analyst estimates of $0.20 (in line)
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Adjusted EBITDA:$55.7 million vs analyst estimates of $56.3 million (15% margin, 1.1% miss)
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Operating Margin:-1.5%, down from 1.7% in the same quarter last year
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Free Cash Flowwas -$1.9 million compared to -$10.59 million in the same quarter last year
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Organic Revenuerose 1.4% year on year (miss)
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Sales Volumeswere down 2.2% year on year
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Market Capitalization:$1.25 billion
Company Overview
Tracing its roots back to 1921 when Bill and Salie Utz began making potato chips in their kitchen, Utz Brands (NYSE:UTZ) offers salty snacks such as potato chips, tortilla chips, pretzels, cheese snacks, and ready-to-eat popcorn, among others.
Revenue Growth
Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.
With $1.45 billion in revenue over the past 12 months, Utz is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.
As you can see below, Utz struggled to increase demand as its $1.45 billion of sales for the trailing 12 months was close to its revenue three years ago. To its credit, however, consumers bought more of its products — we'll explore what this means in the "Volume Growth" section.
This quarter, Utz's revenue grew by 1.4% year on year to $371.8 million, falling short of Wall Street's estimates.
Looking ahead, sell-side analysts expect revenue to grow 4.4% over the next 12 months. Although this projection indicates its newer products will catalyze better top-line performance, it is still below the sector average.
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Organic Revenue Growth
When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business's performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.
The demand for Utz's products has been stable over the last eight quarters but fell behind the broader sector. On average, the company has posted feeble year-on-year organic revenue growth of 1.9%.
In the latest quarter, Utz's organic sales rose by 1.4% year on year. This performance was more or less in line with its historical levels.
Key Takeaways from Utz's Q2 Results
We struggled to find many positives in these results. Its gross margin missed and its EPS was in line with Wall Street's estimates. Overall, this quarter could have been better. The stock remained flat at $14.14 immediately following the results.
Should you buy the stock or not? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free .
