The Hain Celestial Group, Inc. (NASDAQ:HAIN) shares surged more than 12% in premarket trading on Monday after the company reported fiscal third-quarter earnings that came in ahead of analyst expectations, despite weaker-than-expected revenue.
The health and wellness food company posted an adjusted loss of $0.01 per share for the quarter ended March 31, 2026, outperforming analyst forecasts for a loss of $0.02 per share.
Revenue Falls Short as Sales Decline
Quarterly revenue totaled $338 million, missing the consensus estimate of $359.21 million and declining 13% from $390 million recorded in the same period last year.
Organic net sales were down 6% year-over-year.
Adjusted EBITDA declined to $26 million from $34 million in the prior-year quarter, while adjusted gross profit margin slipped 90 basis points to 21.0%.
The company also reported a net loss of $106 million during the quarter.
That figure included a pre-tax loss of $51 million tied to the divestiture of its North American snacks business, along with $46 million in non-cash impairment charges.
Cash Flow and Debt Reduction Support Turnaround Efforts
Despite weaker revenue, investors appeared encouraged by the company’s improving balance sheet and cash generation.
Hain Celestial generated $38 million in operating cash flow during the quarter and reduced total debt by $155 million.
Net debt declined to $505 million from $650 million at the start of the fiscal year, while the company ended the quarter with a net secured leverage ratio of 4.3x.
Free cash flow improved significantly to $35 million during the fiscal third quarter, compared with an outflow of $2 million in the same period last year.
CEO Highlights Progress on Restructuring Strategy
“Third quarter results reflect improving execution and financial discipline as we continued to strengthen our foundation and advance our turnaround strategy,” said President and CEO Alison Lewis.
“Strong cash generation and debt reduction materially improved our financial position, while the completion of the North American snacks divestiture further enhances our margin and cash flow profile going forward.”