Utz Brands Sales Reverse After Two Quarters of Growth

The Tip Desk · November 12, 2026 · 4 min read

Net sales fell 2.3% to $369.2 million in the third quarter as adjusted gross margin compressed 530 bps and adjusted net income dropped 57.6%.

Utz Brands, Inc. (UTZ), a U.S. manufacturer of branded salty snacks, reported net sales of $369.2 million for the 13 weeks ended September 27, 2026, a 2.3% year-over-year decline that reversed a 1.4% increase in the second quarter.

Organic net sales fell 2.3% on a 5.2% volume/mix reduction, only partially offset by 2.9% higher net price realization. Branded Salty Snacks Organic Net Sales, which represented 92% of total net sales, increased 0.3% after 3.3% growth in the prior quarter, led by the Power Four Brands. Non-Branded & Non-Salty Snacks Organic Net Sales declined 23.8%, primarily due to Non-Branded and accelerated elimination of low-margin items.

Branded Salty Snacks Retail Sales increased 0.2% versus a 1.1% increase for the Salty Snack category overall. Retail Volumes decreased 3.3% versus a 0.1% category increase. Power Four Brands Retail Sales increased 2.1%.

Gross Profit Margin compressed 320 bps to 21.0% after a 10 bps decrease in the prior quarter. Adjusted Gross Profit Margin declined 530 bps to 27.2% after a 150 bps expansion in the second quarter. The company said the decrease was driven by significant supply chain cost inflation, channel mix, and lower volumes. Chief Executive Officer Howard Friedman said results were impacted by industry-wide headwinds that intensified throughout the quarter, including abrupt, significant inflation and a modestly weaker consumer.

Selling, general, and administrative expenses were $97.4 million, or 26.4% of net sales, compared with $87.7 million, or 23.2%, a year earlier. The company said the increase was primarily due to costs related to the take-private transaction. Adjusted SG&A was $58.4 million, or 15.8% of sales, versus $61.5 million, or 16.3%, with the margin decline attributed to lower variable compensation.

The company reported a net loss of $32.1 million, or $(0.27) a share, compared with a net loss of $20.2 million, or $(0.17) a share, a year earlier. Adjusted Net Income decreased 57.6% to $14.2 million after a 14.8% increase in the prior quarter. Adjusted Earnings Per Share fell 56.5% to $0.10. EBITDA decreased 95.4% to $1.1 million. Adjusted EBITDA decreased 30.3% to $42.0 million, or 11.4% of net sales, after a 14.4% increase in the second quarter. The company said the Adjusted EBITDA decline was driven by the drop in Adjusted Gross Profit Margin, partially offset by lower Adjusted SG&A.

Cash flow used in operations was $4.9 million versus $51.2 million provided a year earlier. Adjusted Free Cash Flow declined to $(15.5) million from $27.8 million. As of September 27, 2026, total liquidity was $153.8 million, consisting of $70.1 million in cash and $83.7 million available under the revolving credit facility. Net debt of $815.4 million produced a Net Leverage Ratio of 3.9x, consistent with the prior year, after improving to 3.5x in the second quarter.

On July 20, 2026, Utz and Intersnack Group GmbH & Co. KG entered a definitive agreement under which certain Intersnack subsidiaries will acquire all outstanding Class A Common Stock for $14.25 a share in cash. Upon closing, Utz will become a private company with the Rice and Lissette Family Entities and an Intersnack subsidiary each owning 50% of Utz Brands Holdings, LLC. All regulatory conditions have been satisfied, and a special stockholder meeting to vote on the transaction is scheduled for November 13, 2026. The company expects the transaction to close in the fourth quarter of 2026, subject to closing conditions.

Due to the pending take-private, the company will not provide an outlook for 2026 and will not host a conference call on third-quarter and year-to-date results. Friedman said he remains focused on supporting Utz’s transition to a private company and John Lindeman’s transition to CEO in the coming weeks following the expected closing.