Despite a revenue growth swing to 25.8% in 2026Q3, gross margin declined to 9.9% from a peak of 17.5% in 2025Q4, and net losses of $6.5M (-1.4% net margin) highlight persistent profitability challenges.
Mission Produce, Inc. (AVO) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 |
|---|
| Sales/Revenue | 1.34B | 1.39B | 1.23B | 953.9M | 1.05B | 891.7M | 862.3M | 883.3M | 859.9M |
| Revenue Growth % | -6.18% | 12.68% | 29.44% | -8.8% | 17.29% | 3.41% | -2.38% | 2.72% | - |
| Cost of Goods Sold | 1.19B | 1.23B | 1.08B | 870.6M | 956.1M | 767.2M | 737.7M | 728.63M | 805.9M |
| COGS % of Revenue | - | 88.45% | 87.65% | 91.27% | 91.41% | 86.04% | 85.55% | 82.49% | 93.72% |
| Gross Profit | 152.5M | 160.7M | 152.5M | 83.3M | 89.8M | 124.5M | 124.6M | 154.68M | 54M |
| Gross Margin % | 11.39% | 11.55% | 12.35% | 8.73% | 8.59% | 13.96% | 14.45% | 17.51% | 6.28% |
| Gross Profit Growth % | - | 5.38% | 83.07% | -7.24% | -27.87% | -0.08% | -19.44% | 186.44% | - |
| Operating Expenses | 102.5M | 95.5M | 86.8M | 76.4M | 127M | 63.6M | 56.2M | 48.17M | 35.3M |
| OpEx % of Revenue | - | 6.86% | 7.03% | 8.01% | 12.14% | 7.13% | 6.52% | 5.45% | 4.11% |
| Selling, General & Admin | 102.5M | 95.5M | 86.8M | 76.4M | 77.5M | 62.4M | 56.2M | 48.17M | 35.3M |
| SG&A % of Revenue | - | 6.86% | 7.03% | 8.01% | 7.41% | 7% | 6.52% | 5.45% | 4.11% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 400K | 400K | 500K | 300K |
| R&D % of Revenue | - | - | - | - | - | 0.04% | 0.05% | 0.06% | 0.03% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 49.5M | 800K | -400K | -308K | -400K |
| Operating Income | 56.3M | 71.5M | 65.7M | 6.9M | -37.2M | 60.9M | 68.4M | 106.51M | 18.7M |
| Operating Margin % | 4.21% | 5.14% | 5.32% | 0.72% | -3.56% | 6.83% | 7.93% | 12.06% | 2.17% |
| Operating Income Growth % | - | 8.83% | 852.17% | 118.55% | -161.08% | -10.96% | -35.78% | 469.56% | - |
| EBITDA | 97.6M | 106.1M | 103.4M | 39.7M | -7.1M | 85.6M | 86.5M | 122.97M | 28.14M |
| EBITDA Margin % | 7.29% | 7.63% | 8.37% | 4.16% | -0.68% | 9.6% | 10.03% | 13.92% | 3.27% |
| EBITDA Growth % | -2.5% | 2.61% | 160.45% | 659.15% | -108.29% | -1.04% | -29.66% | 337% | - |
| D&A (Non-Cash Add-back) | 41.3M | 34.6M | 37.7M | 32.8M | 30.1M | 24.7M | 18.1M | 16.47M | 9.44M |
| EBIT | 39.1M | 71.3M | 73M | 10.7M | -25.7M | 69.7M | 68.4M | 106.32M | 94.08M |
| Net Interest Income | -9.3M | -7.7M | -10.5M | -10.1M | -3.8M | -2M | -4.3M | -8.6M | -4.7M |
| Interest Income | 1.7M | 1.7M | 2.1M | 1.5M | 1.7M | 1.7M | 2.4M | 1.7M | 700K |
| Interest Expense | 11M | 9.4M | 12.6M | 11.6M | 5.5M | 3.7M | 6.7M | 10.32M | 5.4M |
| Other Income/Expense | -41.2M | -9.6M | -5.3M | -7.8M | 6M | 5.1M | -24.6M | -10.5M | 69.9M |
| Pretax Income | 15.1M | 61.9M | 60.4M | -900K | -31.2M | 66M | 43.8M | 96M | 88.6M |
| Pretax Margin % | 1.13% | 4.45% | 4.89% | -0.09% | -2.98% | 7.4% | 5.08% | 10.87% | 10.3% |
| Income Tax | 11.6M | 21.4M | 18.6M | 2.2M | 3.7M | 21.1M | 15M | 24.3M | 16.2M |
| Effective Tax Rate % | 76.82% | 34.57% | 30.79% | -244.44% | -11.86% | 31.97% | 34.25% | 25.31% | 18.28% |
| Net Income | 1.6M | 37.7M | 36.7M | -2.8M | -34.6M | 44.9M | 28.8M | 71.7M | 72.4M |
| Net Margin % | 0.12% | 2.71% | 2.97% | -0.29% | -3.31% | 5.04% | 3.34% | 8.12% | 8.42% |
| Net Income Growth % | -95.9% | 2.72% | 1410.71% | 91.91% | -177.06% | 55.9% | -59.83% | -0.97% | - |
| Net Income (Continuing) | 3.5M | 40.5M | 41.8M | -3.1M | -34.9M | 44.9M | 28.8M | 71.7M | 72.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 35.8M | 32.6M | 29.8M | 24.7M | 20.8M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.02 | 0.53 | 0.52 | -0.04 | -0.49 | 0.63 | 0.41 | 1.02 | 1.04 |
| EPS Growth % | 263.22% | 1.92% | 1413.13% | 91.92% | -177.78% | 53.66% | -59.8% | -1.92% | - |
| EPS (Basic) | - | 0.53 | 0.52 | -0.04 | -0.49 | 0.64 | 0.41 | 1.02 | 1.04 |
| Diluted Shares Outstanding | 82.85M | 71.33M | 71.2M | 70.75M | 70.65M | 71.07M | 70.55M | 70.55M | 69.35M |
| Basic Shares Outstanding | 82.85M | 71.13M | 71.2M | 70.75M | 70.65M | 70.58M | 70.55M | 70.55M | 69.35M |
| Dividend Payout Ratio | - | - | - | - | - | - | 45.14% | 7.81% | 6.22% |
Quick answers to the most common questions about buying AVO stock.
For fiscal year 2025, Mission Produce, Inc. (AVO) reported total revenue of $1.39B. This represents a 61.8% increase compared to $859.9M in 2018.
Mission Produce, Inc. (AVO) is profitable, generating $37.7M in net income for the fiscal year ending 2025 with a net profit margin of 2.7%.
Mission Produce, Inc. (AVO) reported an operating income of $71.5M, resulting in an operating profit margin of 5.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Mission Produce, Inc. (AVO) generated $160.7M in gross profit for the year, representing a gross profit margin of 11.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin volatility and net losses
Metrics are mathematically derived from official filings.
Revenue Swing Toward Acceleration
After three quarters of year-over-year revenue contraction, Mission Produce's revenue growth swung sharply positive to 25.8% in 2026Q3, according to its latest financial statements, marking a significant reversal from the -23.5% decline in the prior quarter.
The dramatic turn from consistent double-digit declines to solid double-digit growth suggests a potential inflection in volume or pricing dynamics. This volatility implies the company's top line is highly sensitive to market conditions or mix shifts, making the sustainability of this acceleration a key question for the coming quarters.
Gross Margin Pressure and Cyclicality
Mission Produce's gross margin in 2026Q3 was 9.9%, a decline from the 17.5% peak in 2025Q4, indicating significant cyclicality and potential pricing headwinds within the avocado distribution market, as reported in its income statements.
The wide fluctuation in gross margin, from a low of 7.0% to a high of 17.5% over the last ten quarters, points to a business model heavily exposed to commodity costs and volatile selling prices. This cyclicality makes it challenging to predict sustainable profitability and suggests limited structural pricing power relative to input cost swings.
Operating Leverage Fails to Materialize
Despite a 25.8% revenue increase in 2026Q3, operating income was only $13.1M, demonstrating weak operating leverage as rising SG&A and cost of goods sold consumed most of the gross profit upside, based on the company's reported results.
The company's SG&A expense of $31.6M in 2026Q3 was notably higher than the $24.1M reported in 2025Q3, even though revenue was lower in the prior year period. This suggests that the overhead structure is not scaling efficiently with volume, limiting the bottom-line benefit from top-line growth.
Net Losses Despite Top-Line Growth
Mission Produce reported a net loss of $6.5M in 2026Q3, translating to a negative EPS of $0.08, which starkly contrasts with the revenue growth and raises concerns about the quality and sustainability of the company's core profitability.
The persistent net losses, even in a quarter with strong revenue growth, indicate that non-operating items like taxes, interest, or other expenses are creating a significant drag. The negative EPS growth of -137.4% highlights the disconnect between top-line momentum and the final earnings result available to shareholders.
SG&A as the Dominant Cost Burden
In 2026Q3, SG&A expenses of $31.6M consumed over 70% of the gross profit generated, making it the primary cost pressure point for Mission Produce's ability to convert revenue into operating income.
With R&D at zero, the entire operating expense burden falls on SG&A, which appears rigid in the face of revenue volatility. The 70%+ consumption of gross profit in a low-margin quarter like 2026Q3 demonstrates how quickly operating profitability can erode when the top line does not flow through efficiently.
Short Thesis on Margin Sustainability
The strongest analytical challenge is that Mission Produce's 2026Q3 revenue growth may mask a deteriorating cost structure, where gross margins are too low to sustainably cover SG&A and result in consistent net losses.
A critic would focus on the 9.9% gross margin in 2026Q3, arguing it is insufficient to support the $31.6M SG&A expense without resulting in an operating loss. The history of quarterly net losses, even when revenue is growing, suggests the business model may require either structurally higher margins or a permanent reduction in its cost base to achieve reliable profitability.