Hain Celestial Group (NASDAQ:HAIN) reported a wider net loss for its fiscal second quarter on Monday, as a double-digit collapse in snack sales and a massive impairment charge overshadowed modest revenue gains in its beverage and tea business.
The Hoboken, New Jersey-based health and wellness company posted a net loss of $116 million, or $1.28 per share, for the quarter ended Dec. 31, 2025.
The results included a $132 million non-cash impairment charge related to the declining value of certain assets.
On an adjusted basis, the company reported a loss of $0.03 per share, meeting analyst estimates but marking a sharp reversal from the $0.08 profit recorded in the same period last year.
The quarterly performance highlights the steep hill CEO Alison Lewis must climb as part of the "Hain Reimagined" turnaround plan.
While total revenue of $384.1 million slightly beat Wall Street expectations, organic sales fell 7% year-over-year.
The decline was fueled by a 20% organic sales plunge in the North American snacks category, which has been plagued by volume softness and increased promotional competition.
Despite the top-line pressure, management pointed to a strengthened balance sheet and improved cash flow as evidence that the company’s "focus" pillar is taking hold.
On Feb. 2, Hain reached a definitive agreement to sell its North American Snacks business—including the Garden Veggie brand—a move expected to close by the end of the month.
"The sale of our snacks business is a decisive first step to sharpen our focus on core categories like tea, yogurt, and baby food where we have higher margins," Lewis said during the earnings call.
The company generated $30 million in free cash flow during the quarter, a 20% increase that will be used to further pay down its $705 million debt load.