Utz Brands misses Q3 estimates as revenue falls 2.3% and losses widen

Utz Brands (NYSE:UTZ) reported third-quarter fiscal 2026 revenue of $369.2 million, down 2.3% from $377.8 million a year earlier, missing analyst expectations of approximately $384.4 million as weaker sales volumes and margin pressures weighed on performance.

The company recorded a GAAP net loss of $24.3 million, or $0.27 per diluted share, compared with a net loss of $14.7 million, or $0.17 per share, in the prior-year quarter.

Adjusted earnings per share, a non-GAAP measure, declined to $0.10, missing analyst expectations of approximately $0.23.

Adjusted EBITDA also fell short of expectations, reaching $42 million against an estimated $65.01 million.

Sales volumes declined 5.2% year over year, while operating margin fell to negative 5.9%, reflecting supply-chain cost inflation and an unfavorable channel mix.

The company is also advancing a proposed take-private transaction involving Germany's Intersnack Group and the Rice and Lissette family entities.

Under the definitive agreement announced in July 2026, shareholders are expected to receive $14.25 per share in cash, representing a transaction valued at approximately $2.9 billion.

Closing is expected in the fourth quarter of 2026, subject to applicable conditions and approvals.

Separately, Chief Executive Officer Howard Friedman announced his departure, effective November 30, 2026, with John Lindeman expected to assume the CEO position.

Utz Brands manufactures and distributes branded salty snacks across the United States, including potato chips, pretzels, tortilla chips and other snack products. Its portfolio includes established snack brands serving retail and food distribution channels.