Mission Produce Inc. (NASDAQ:AVO) reported second-quarter earnings on Monday that came in below analyst expectations, prompting a decline in the company’s shares in premarket trading.
The avocado supplier’s stock fell 4.15% before the opening bell after the company released its results for the quarter ended April 30, 2026.
Adjusted earnings per share totaled $0.01, falling short of the consensus analyst estimate of $0.08 by $0.07. Revenue reached $290.9 million, slightly below forecasts of $291.47 million and representing a 24% decline from the $380.3 million reported in the same period a year earlier.
On a GAAP basis, Mission Produce recorded a net loss of $0.10 per diluted share, compared with earnings of $0.04 per share in the corresponding quarter of the prior year.
The decline in revenue was primarily driven by a 36% reduction in average avocado selling prices. This was partly offset by a 15% increase in sales volumes during the quarter. Adjusted EBITDA decreased to $7.1 million from $19.1 million a year earlier, as profitability was impacted by lower pricing and an imbalance between supply and demand for key fruit sizes during April.
“This quarter was shaped by high volumes, low prices, strong execution by our sales and operations teams, and unfortunately, margin compression concentrated in April,” said CEO John Pawlowski. “Despite the low-price environment, we maintained manageable margins through most of the quarter until the Mexican supply of core fruit sizes fell out of line with customer demand in the final weeks.”
During the quarter, the company completed its acquisition of Calavo Growers on May 28, 2026, and also approved a new share repurchase programme worth $100 million to be executed over the next three years.
Looking ahead, Mission Produce expects consolidated adjusted EBITDA for the third quarter of fiscal 2026 to range between $28 million and $32 million, including a partial-quarter contribution from the recently acquired Calavo business. The midpoint forecast of $30 million reflects both the timing of farming contributions from Peru and the continued margin pressure experienced during the second quarter.
For the second half of fiscal 2026, the company forecasts adjusted EBITDA in the range of $84 million to $88 million.