Utz Brands Reports Third Quarter 2026 Financial Results Amid Industry-Wide Challenges
Utz Brands, Inc , a leading U.S. manufacturer of branded salty snacks, has announced its financial results for the third quarter of fiscal 2026, ended September 27, 2026. The company reported lower net sales, declining profitability and increased operating pressures, reflecting significant supply chain cost inflation, weaker consumer demand and challenging market conditions throughout the quarter.
Utz Brands reported net sales of $369.2 million for the third quarter of 2026, representing a 2.3% decrease compared with $377.8 million in the corresponding period of the previous year. Organic net sales also declined 2.3%, primarily driven by a 5.2% reduction in volume and product mix. This decline was partially offset by a 2.9% benefit from improved net price realization.
Despite the overall decrease in sales, the company’s core Branded Salty Snacks business demonstrated relative resilience. Branded Salty Snacks Organic Net Sales, which accounted for approximately 92% of total company net sales, increased 0.3% compared with the third quarter of 2025. Performance was supported by the company’s leading brands, including Utz®, On The Border®, Zapp’s® and Boulder Canyon®.
However, the company’s Non-Branded and Non-Salty Snacks Organic Net Sales declined 23.8% during the quarter. The decrease was primarily attributable to the non-branded business, which was affected by the accelerated elimination of lower-margin products as part of the company’s efforts to improve its business portfolio and profitability.
Financial Performance Reflects Continued Operating Pressure
Utz Brands experienced considerable pressure on profitability during the third quarter, with higher supply chain costs and unfavorable channel mix affecting margins.
Gross profit declined 15.2% to $77.6 million, compared with $91.5 million in the prior-year quarter. Gross profit margin decreased 320 basis points to 21.0%, down from 24.2% in the third quarter of 2025.
Adjusted gross profit was $100.4 million, representing an 18.3% decrease from $122.9 million in the prior-year period. Adjusted gross profit margin declined 530 basis points to 27.2%, compared with 32.5% a year earlier. The company attributed the reduction primarily to significant inflation across its supply chain, changes in channel mix and lower sales volumes.
These factors created additional challenges for the business as the company navigated a difficult operating environment. While improved pricing provided some support to revenue performance, it was not sufficient to fully offset the impact of lower volumes and higher production and distribution costs.
Selling, general and administrative expenses (SG&A) increased to $97.4 million, or 26.4% of net sales, compared with $87.7 million, or 23.2% of net sales, in the third quarter of 2025. The increase was primarily related to expenses associated with the company’s pending transaction to become a privately held business.
On an adjusted basis, however, SG&A expenses decreased 5.0% to $58.4 million from $61.5 million in the prior-year period. Adjusted SG&A expenses represented 15.8% of net sales, improving from 16.3% in the third quarter of 2025. The improvement was primarily supported by lower adjusted operating expenses, including reduced variable compensation.
Net Loss and Adjusted Earnings Performance
The company’s weaker gross profit performance and higher transaction-related expenses contributed to a larger net loss during the quarter.
Utz Brands reported a net loss of $32.1 million, compared with a net loss of $20.2 million in the third quarter of 2025. The prior-year period included a $0.7 million loss associated with the remeasurement of the company’s warrant liability.
Adjusted net income declined 57.6% to $14.2 million, compared with $33.5 million in the corresponding quarter last year. Adjusted earnings per diluted share decreased 56.5% to $0.10, compared with $0.23 in the prior-year period. According to the company, the decline in adjusted earnings per share was primarily driven by lower adjusted net income.
EBITDA for the third quarter was $1.1 million, representing a substantial decrease from $23.8 million in the same period of 2025. Adjusted EBITDA declined 30.3% to $42.0 million, compared with $60.3 million a year earlier.
Adjusted EBITDA margin also decreased to 11.4%, compared with 16.0% in the prior-year quarter, representing a decline of 460 basis points. The reduction was primarily attributable to lower adjusted gross profit margins, partially offset by improvements in adjusted SG&A expenses.
These results highlight the impact of inflationary pressures and volume-related challenges on the company’s operating performance during the quarter.
Core Snack Brands Deliver Retail Sales Growth
Although overall net sales declined, Utz continued to generate positive retail sales performance across its branded salty snacks portfolio.
For the 13-week period ended September 27, 2026, the company’s Branded Salty Snacks retail sales increased 0.2% compared with the prior-year period. This performance was slightly below the overall salty snack category’s retail sales growth of 1.1%, as measured by Circana MULO+ with convenience data.
Retail volumes for Utz decreased 3.3%, while the broader salty snack category recorded a 0.1% increase. The difference reflects the volume challenges facing the company during the quarter.
Nevertheless, the company’s Power Four Brands delivered stronger results. Retail sales for Utz®, On The Border®, Zapp’s® and Boulder Canyon® increased 2.1% year over year. These brands remain important contributors to the company’s branded snack portfolio and represent a significant part of its retail market presence.
The company also reported retail sales gains across its expansion geographies, demonstrating continued opportunities to strengthen distribution and consumer demand in markets where its brands are growing.
The positive performance of the Power Four Brands provided some support amid broader challenges affecting the company’s overall sales and retail volumes.
Balance Sheet, Liquidity and Cash Flow Position
As of September 27, 2026, Utz Brands reported total liquidity of $153.8 million. This included $70.1 million in cash and cash equivalents and $83.7 million available through its revolving credit facility.
The company reported net debt of $815.4 million, resulting in a net leverage ratio of 3.9x based on trailing twelve-month adjusted EBITDA of $208.0 million. The leverage ratio remained consistent with the prior-year level.
Cash flow performance was also affected during the reporting period. For the third quarter, cash flow used in operations totaled $4.9 million, compared with cash generated from operations of $51.2 million in the third quarter of 2025.
Adjusted free cash flow declined to negative $15.5 million, compared with positive adjusted free cash flow of $27.8 million in the prior-year quarter.
For the 39 weeks ended September 27, 2026, cash flow used in operations totaled $5.4 million, compared with operating cash flow of $47.3 million in the corresponding period of 2025.
During the same 39-week period, capital expenditures amounted to $43.5 million, while dividends and distributions paid totaled $27.9 million. Adjusted free cash flow was negative $42.1 million, compared with negative $41.0 million in the prior-year period.
These figures provide an overview of the company’s liquidity and capital allocation position as it continues to navigate operating challenges and prepares for its anticipated ownership transition.
Utz Brands Moves Forward With Agreement to Become a Private Company
Alongside its third-quarter financial announcement, Utz Brands highlighted the pending transaction under which the company is expected to transition from a publicly traded business to a privately held company.
On July 20, 2026, Utz Brands entered into a definitive agreement with Intersnack Group GmbH & Co. KG, an international snack food company. Under the agreement, certain subsidiaries of Intersnack Group will acquire all outstanding shares of Utz’s Class A Common Stock for $14.25 per share in cash.
Following completion of the transaction, Utz will become a private company. The Rice and Lissette Family Entities and a subsidiary of Intersnack Group will each own 50% of Utz Brands Holdings, LLC.
The proposed transaction represents an important development in the company’s corporate structure and ownership. It is expected to bring together Utz’s established snack brands and market presence with Intersnack Group’s international experience in the snack food industry.
Utz expects the transaction to close during the fourth quarter of 2026, subject to the satisfaction of the remaining closing conditions. According to the company, all regulatory conditions have been satisfied.
A special meeting of Utz stockholders is scheduled for November 13, 2026, to vote on the proposed transaction.
Because of the pending acquisition, Utz Brands will not provide additional forward-looking guidance for fiscal year 2026. The company also confirmed that it will not host a conference call to discuss its third-quarter and year-to-date financial results.
Leadership Transition and CEO Comments
Howard Friedman, Chief Executive Officer of Utz Brands, commented on the company’s quarterly performance and the challenges affecting the broader snack food industry.
Friedman stated that the company’s results were impacted by industry-wide headwinds that intensified throughout the quarter. These included abrupt and significant inflation as well as a modestly weaker consumer environment.
He also reflected on his nearly four years serving as CEO of Utz Brands and emphasized his continued focus on supporting the company’s transition to private ownership.
Friedman is expected to support the leadership transition to John Lindeman, who is scheduled to assume the CEO position in the coming weeks following the anticipated closing of the transaction.
The leadership transition is expected to take place as the company moves into its next ownership structure under the agreement with Intersnack Group and the Rice and Lissette Family Entities.
About Utz Brands, Inc.
Utz Brands, Inc. is a leading U.S. manufacturer of branded savory snacks, offering a diverse portfolio of products through well-known brands, including Utz®, On The Border® Chips & Dips, Zapp’s® and Boulder Canyon®, among others.
With more than a century of family heritage, the company has built its business around producing and distributing snack foods made with quality ingredients. Its products are designed to serve a wide range of consumer preferences and are available through multiple retail and distribution channels across the United States.
Headquartered in Hanover, Pennsylvania, Utz operates multiple manufacturing facilities throughout the country to support its national customer base. Its products are distributed through grocery stores, mass merchandisers, warehouse clubs, convenience stores, drugstores and other retail channels.
The company’s established brand portfolio and nationwide distribution network have helped it maintain a significant presence in the U.S. salty snacks market.
As Utz reports its third-quarter 2026 financial results, the company faces a challenging operating environment characterized by inflation, lower retail volumes and margin pressure. While its overall financial performance declined, its leading branded salty snack products continued to demonstrate positive retail sales growth.
The anticipated acquisition by Intersnack Group and the Rice and Lissette Family Entities marks a significant milestone for the business. With the proposed transaction expected to close in the fourth quarter of 2026, Utz is preparing for a transition to private ownership while continuing to serve consumers through its established portfolio of snack brands.
