Operating income remains under pressure, evidenced by a negative 1.2% operating margin in 2026Q1 as the company struggles to offset a 20.8% year-over-year revenue decline.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 |
|---|
| Sales/Revenue | 616.25M | 648.43M | 661.54M | 594.1M | 1.19B | 1.06B | 1.06B | 1.2B | 1.09B | 1.08B | 935.68M | 856.82M | 782.51M | 691.45M | 551.12M | 522.53M | 398.35M | 344.76M | 361.47M | 302.98M | 273.91M | 258.82M | 274.22M | 246.76M | 242.67M | 217.68M | 220.71M |
| Revenue Growth % | -10.47% | -1.98% | 11.35% | -50.12% | 12.81% | -0.33% | -11.41% | 9.83% | 1.23% | 14.95% | 9.2% | 9.5% | 13.17% | 25.46% | 5.47% | 31.17% | 15.54% | -4.62% | 19.3% | 10.61% | 5.83% | -5.61% | 11.13% | 1.69% | 11.48% | -1.37% | - |
| Cost of Goods Sold | 553.13M | 584.77M | 593.74M | 531.49M | 1.12B | 998.4M | 969.47M | 1.07B | 975.14M | 961.02M | 828.14M | 771.6M | 711.28M | 632M | 490.45M | 479.67M | 346.82M | 300.23M | 328.29M | 271.21M | 244.64M | 237.09M | 248.81M | 221.3M | 216.85M | 196.67M | 0 |
| COGS % of Revenue | - | 90.18% | 89.75% | 89.46% | 93.88% | 94.56% | 91.51% | 89.29% | 89.56% | 89.35% | 88.51% | 90.05% | 90.9% | 91.4% | 88.99% | 91.8% | 87.06% | 87.08% | 90.82% | 89.51% | 89.31% | 91.6% | 90.74% | 89.68% | 89.36% | 90.35% | - |
| Gross Profit | 63.12M | 63.66M | 67.8M | 62.61M | 72.84M | 57.42M | 89.9M | 128.08M | 113.62M | 114.54M | 107.53M | 85.23M | 71.23M | 59.45M | 60.66M | 42.86M | 51.53M | 44.53M | 33.18M | 31.77M | 29.27M | 21.73M | 25.4M | 25.46M | 25.82M | 21.01M | 220.71M |
| Gross Margin % | 10.24% | 9.82% | 10.25% | 10.54% | 6.12% | 5.44% | 8.49% | 10.71% | 10.44% | 10.65% | 11.49% | 9.95% | 9.1% | 8.6% | 11.01% | 8.2% | 12.94% | 12.92% | 9.18% | 10.49% | 10.69% | 8.4% | 9.26% | 10.32% | 10.64% | 9.65% | 100% |
| Gross Profit Growth % | - | -6.11% | 8.29% | -14.05% | 26.85% | -36.12% | -29.81% | 12.73% | -0.81% | 6.52% | 26.17% | 19.65% | 19.82% | -2.01% | 41.54% | -16.82% | 15.71% | 34.21% | 4.43% | 8.54% | 34.68% | -14.45% | -0.24% | -1.39% | 22.9% | -90.48% | - |
| Operating Expenses | 50M | 44.05M | 50.08M | 44.9M | 62.2M | 67.42M | 57.95M | 59.11M | 56.18M | 55.05M | 46.44M | 41.56M | 36.6M | 33.48M | 32.71M | 24.76M | 23.17M | 22.79M | 20.91M | 19.76M | 19.95M | 18.59M | 15.92M | 14.77M | 13.88M | 14.86M | 0 |
| OpEx % of Revenue | - | 6.79% | 7.57% | 7.56% | 5.22% | 6.39% | 5.47% | 4.94% | 5.16% | 5.12% | 4.96% | 4.85% | 4.68% | 4.84% | 5.94% | 4.74% | 5.82% | 6.61% | 5.79% | 6.52% | 7.28% | 7.18% | 5.81% | 5.99% | 5.72% | 6.83% | - |
| Selling, General & Admin | 48.2M | 42.09M | 48.94M | 41.68M | 60.68M | 56.46M | 57.95M | 59.01M | 56.18M | 55.05M | 46.44M | 41.56M | 35.8M | 31.98M | 32.61M | 24.76M | 23.17M | 22.79M | 20.91M | 19.76M | 19.95M | 18.59M | 15.92M | 14.77M | 13.88M | 14.86M | 0 |
| SG&A % of Revenue | - | 6.49% | 7.4% | 7.02% | 5.09% | 5.35% | 5.47% | 4.94% | 5.16% | 5.12% | 4.96% | 4.85% | 4.58% | 4.63% | 5.92% | 4.74% | 5.82% | 6.61% | 5.79% | 6.52% | 7.28% | 7.18% | 5.81% | 5.99% | 5.72% | 6.83% | - |
| Research & Development | 0 | 0 | 100K | 100K | 100K | 0 | 0 | 100K | 0 | 0 | 0 | 0 | 800K | 1.5M | 100K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 0.02% | 0.02% | 0.01% | - | - | 0.01% | - | - | - | - | 0.1% | 0.22% | 0.02% | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.69M | 1.96M | 1.04M | 3.13M | 1.42M | 10.96M | -216K | -2.08M | 0 | 0 | 0 | 0 | 51.08M | 32.87M | 2.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 185K | 106K | 0 | 0 | 220.71M |
| Operating Income | 13.12M | 19.61M | 17.72M | 17.71M | 10.64M | -10M | 31.95M | 68.97M | 57.44M | 59.49M | 61.09M | 43.67M | 34.62M | 25.96M | 27.95M | 18.1M | 28.36M | 21.74M | 12.27M | 12.01M | 9.32M | 3.15M | 9.48M | 10.59M | 11.94M | 6.15M | 220.71M |
| Operating Margin % | 2.13% | 3.02% | 2.68% | 2.98% | 0.89% | -0.95% | 3.02% | 5.77% | 5.28% | 5.53% | 6.53% | 5.1% | 4.42% | 3.75% | 5.07% | 3.46% | 7.12% | 6.31% | 3.39% | 3.96% | 3.4% | 1.22% | 3.46% | 4.29% | 4.92% | 2.83% | 100% |
| Operating Income Growth % | - | 10.65% | 0.08% | 66.37% | 206.47% | -131.29% | -53.68% | 20.08% | -3.46% | -2.62% | 39.9% | 26.13% | 33.36% | -7.11% | 54.43% | -36.19% | 30.45% | 77.24% | 2.11% | 28.94% | 196.15% | -66.83% | -10.44% | -11.32% | 94.18% | -97.21% | - |
| EBITDA | 20.41M | 27.09M | 28.33M | 34.99M | 27.25M | 7.66M | 48.21M | 82.6M | 70.48M | 70.18M | 69.91M | 51.71M | 41.55M | 32.33M | 33.86M | 22.43M | 31.73M | 24.8M | 14.92M | 14.4M | 11.35M | 6.01M | 12.13M | 12.61M | 13.9M | 8.14M | 220.71M |
| EBITDA Margin % | 3.31% | 4.18% | 4.28% | 5.89% | 2.29% | 0.73% | 4.55% | 6.91% | 6.47% | 6.53% | 7.47% | 6.03% | 5.31% | 4.68% | 6.14% | 4.29% | 7.97% | 7.19% | 4.13% | 4.75% | 4.14% | 2.32% | 4.42% | 5.11% | 5.73% | 3.74% | 100% |
| EBITDA Growth % | -38.31% | -4.35% | -19.05% | 28.39% | 255.92% | -84.12% | -41.63% | 17.2% | 0.42% | 0.4% | 35.2% | 24.45% | 28.52% | -4.52% | 50.99% | -29.32% | 27.96% | 66.15% | 3.61% | 26.89% | 88.95% | -50.48% | -3.82% | -9.25% | 70.79% | -96.31% | - |
| D&A (Non-Cash Add-back) | 7.29M | 7.48M | 10.6M | 17.28M | 16.61M | 17.65M | 16.27M | 13.63M | 13.04M | 10.69M | 8.81M | 8.04M | 6.93M | 6.37M | 5.91M | 4.33M | 3.37M | 3.05M | 2.66M | 2.39M | 2.04M | 2.86M | 2.65M | 2.02M | 1.96M | 1.99M | 0 |
| EBIT | 19.17M | 25.66M | 12.54M | 14.45M | -1.1M | 1.34M | -11.15M | 64.5M | 57.41M | 58.4M | 61.65M | 44.16M | -3.14M | -6.2M | 26.5M | 18.66M | 29.07M | 22.39M | 13.5M | 12.77M | 10.35M | 5.5M | 9.78M | 10.7M | 11.94M | 6.24M | 220.71M |
| Net Interest Income | 2.19M | 2.41M | -1.87M | -1.89M | -1.19M | -463K | 1.12M | 1.73M | -513K | -999K | -624K | -753K | -755K | -843K | -923K | -825K | -560K | -727K | -969K | 0 | -587K | -51K | 322K | 0 | 0 | 0 | 0 |
| Interest Income | 2.94M | 3.24M | 1.02M | 605K | 500K | 335K | 2M | 2.67M | 318K | 24K | 132K | 77K | 228K | 255K | 229K | 191K | 274K | 381K | 516K | 0 | 356K | 200K | 388K | 0 | 0 | 0 | 0 |
| Interest Expense | 743K | 827K | 2.89M | 2.5M | 1.69M | 798K | 877K | 948K | 831K | 1.02M | 756K | 830K | 983K | 1.1M | 1.15M | 1.02M | 834K | 1.11M | 1.49M | 0 | 943K | 251K | 66K | 0 | 0 | 0 | 0 |
| Other Income/Expense | 7.08M | 5M | -8.55M | -6.51M | -13.99M | 8.82M | -50.08M | -19.5M | -12.7M | -1.72M | -1.34M | -418K | -38.77M | -33.46M | -1.61M | 661K | 1.37M | 756K | 304K | -238K | 170K | 2.36M | 293K | 889K | 700K | 432K | 0 |
| Pretax Income | 20.2M | 24.62M | 9.17M | 11.2M | -3.35M | -1.18M | -18.13M | 49.47M | 44.73M | 57.77M | 59.76M | 43.25M | -4.14M | -7.5M | 26.34M | 18.76M | 29.73M | 22.5M | 12.57M | 11.78M | 9.49M | 5.5M | 9.78M | 11.48M | 12.64M | 6.58M | 0 |
| Pretax Margin % | 3.28% | 3.8% | 1.39% | 1.89% | -0.28% | -0.11% | -1.71% | 4.14% | 4.11% | 5.37% | 6.39% | 5.05% | -0.53% | -1.08% | 4.78% | 3.59% | 7.46% | 6.53% | 3.48% | 3.89% | 3.46% | 2.13% | 3.57% | 4.65% | 5.21% | 3.02% | - |
| Income Tax | 3.86M | 4.65M | 2.33M | 6.15M | 3.25M | 10.75M | -4.29M | 12.88M | 12.72M | 20.45M | 21.87M | 16.09M | -3.92M | -4.71M | 10.21M | 7.25M | 11.34M | 8.28M | 4.57M | 4.27M | 3.62M | 2.18M | 3.57M | 4.32M | 5.73M | 2.74M | 216.24M |
| Effective Tax Rate % | 19.13% | 18.87% | 25.35% | 54.89% | -97.02% | -914.64% | 23.67% | 26.04% | 28.43% | 35.4% | 36.6% | 37.21% | 94.52% | 62.88% | 38.77% | 38.64% | 38.15% | 36.79% | 36.33% | 36.27% | 38.16% | 39.63% | 36.48% | 37.63% | 45.3% | 41.69% | - |
| Net Income | 16.11M | 19.8M | -1.27M | -8.34M | -6.25M | -11.82M | -13.63M | 36.65M | 32.28M | 37.27M | 38.02M | 27.2M | 97K | -1.79M | 15.8M | 11.07M | 17.76M | 13.61M | 7.72M | 7.33M | 5.79M | 3.32M | 6.21M | 7.16M | 6.92M | 3.84M | 4.48M |
| Net Margin % | 2.61% | 3.05% | -0.19% | -1.4% | -0.52% | -1.12% | -1.29% | 3.06% | 2.96% | 3.47% | 4.06% | 3.17% | 0.01% | -0.26% | 2.87% | 2.12% | 4.46% | 3.95% | 2.14% | 2.42% | 2.11% | 1.28% | 2.26% | 2.9% | 2.85% | 1.76% | 2.03% |
| Net Income Growth % | 71.16% | 1661.2% | 84.8% | -33.53% | 47.12% | 13.26% | -137.18% | 13.52% | -13.39% | -1.98% | 39.79% | 27940.21% | 105.4% | -111.36% | 42.77% | -37.69% | 30.51% | 76.19% | 5.39% | 26.64% | 74.23% | -46.51% | -13.27% | 3.54% | 80.17% | -14.25% | - |
| Net Income (Continuing) | 16.34M | 19.97M | 6.85M | 5.05M | -6.6M | -11.92M | -13.84M | 36.59M | 32.01M | 37.32M | 37.89M | 27.16M | -227K | -2.78M | 16.13M | 11.51M | 18.39M | 14.22M | 8M | 7.5M | 5.87M | 3.32M | 6.21M | 7.16M | 6.92M | 3.84M | 4.48M |
| Discontinued Operations | 0 | 0 | -8.06M | -13.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.69M | 1.62M | 1.44M | 1.39M | 1.01M | 1.37M | 1.47M | 1.69M | 1.75M | 1.02M | 962K | 1.01M | 270K | -6K | 357K | 461K | 575K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.90 | 1.11 | -0.06 | -0.47 | -0.34 | -0.58 | -0.44 | 2.88 | 1.84 | 2.13 | 2.18 | 1.57 | 0.01 | 1.17 | 1.15 | 0.75 | 1.22 | 0.94 | 0.53 | 0.51 | 0.40 | 0.24 | 0.46 | 0.55 | 0.60 | 0.37 | 0.43 |
| EPS Growth % | 86.35% | 1950% | 87.23% | -38.24% | 41.38% | -31.82% | -115.28% | 56.52% | -13.61% | -2.29% | 38.85% | 15600% | -99.15% | 1.74% | 53.33% | -38.52% | 29.79% | 77.36% | 3.92% | 27.5% | 66.67% | -47.83% | -16.36% | -8.33% | 62.16% | -13.95% | - |
| EPS (Basic) | - | 1.11 | -0.06 | -0.47 | -0.34 | -0.58 | -0.44 | 2.89 | 1.85 | 2.14 | 2.19 | 1.57 | 0.01 | 1.17 | 1.15 | 0.75 | 1.22 | 0.94 | 0.54 | 0.51 | 0.40 | 0.24 | 0.46 | 0.55 | 0.60 | 0.37 | 0.43 |
| Diluted Shares Outstanding | 17.89M | 17.9M | 17.86M | 17.75M | 17.66M | 17.62M | 17.56M | 17.59M | 17.57M | 17.51M | 17.43M | 17.36M | 17.22M | 14.86M | 14.81M | 14.75M | 14.62M | 14.5M | 14.48M | 14.44M | 14.35M | 13.98M | 13.58M | 12.94M | 11.6M | 10.45M | 10.41M |
| Basic Shares Outstanding | 17.87M | 17.84M | 17.8M | 17.75M | 17.66M | 17.62M | 17.56M | 17.52M | 17.48M | 17.42M | 17.35M | 17.3M | 15.77M | 14.86M | 14.79M | 14.74M | 14.61M | 14.45M | 14.4M | 14.3M | 14.3M | 13.89M | 13.5M | 12.91M | 11.56M | 10.45M | 10.41M |
| Dividend Payout Ratio | - | 72.18% | - | - | - | - | - | 47.94% | 51.6% | 42.11% | 36.58% | 47.69% | 11345.36% | - | 51.4% | 73.18% | 40.82% | 37.08% | 65.13% | 62.39% | 78.85% | 121.97% | 54.36% | 35.85% | 31.34% | 129.57% | - |
Supply chain and margin volatility
As reported in recent financial filings, Calavo's revenue growth has trended downward, culminating in a significant 20.8% year-over-year decline in 2026Q1, which suggests that the company is struggling to maintain volume throughput amidst a challenging commodity pricing environment and shifting consumer demand patterns.
The consistent revenue contraction over the last several quarters indicates that the company's core distribution business is facing structural headwinds. Investors should monitor whether this decline is a result of intentional volume shedding to improve margins or a broader loss of market share to competitors like Mission Produce.
Based on the company's reported figures, gross margins have remained thin, fluctuating around the 9% to 12% range, which highlights the inherent difficulty in passing through commodity cost volatility to retail customers while maintaining a competitive position in the perishable food distribution industry.
The inability to consistently expand gross margins suggests that Calavo lacks significant pricing power, leaving it vulnerable to fluctuations in avocado procurement costs. This thin margin profile leaves little room for operational error, making the company highly sensitive to even minor disruptions in the supply chain.
According to quarterly income statements, operating income has frequently dipped into negative territory, with a -1.2% operating margin in 2026Q1, indicating that the company's fixed cost structure is not scaling efficiently with the current level of top-line revenue generation.
The persistent volatility in operating income suggests that management has yet to successfully optimize the cost base of the Renaissance Food Group segment. Without a clear path to consistent operating leverage, the company remains susceptible to earnings dilution during periods of lower throughput.
As evidenced by the erratic net income figures, including a $732,000 profit in 2026Q1 following a $331,000 loss in 2024Q4, the quality of reported earnings appears compromised by non-operating items and significant fluctuations in stock-based compensation expenses that warrant further investigation by stakeholders.
The disconnect between top-line performance and bottom-line results suggests that investors should focus on normalized earnings metrics rather than GAAP net income. The recurring nature of these adjustments implies that the underlying operational profitability is often masked by accounting noise.
Based on the provided data, short-sellers may focus on the company's inability to achieve consistent profitability, as evidenced by the negative operating margins in four of the last ten quarters, which raises questions about the long-term viability of the current fresh-cut processing strategy.
The reliance on a high-variable-cost model in a low-margin industry creates a precarious situation where any external shock could lead to sustained losses. Investors should consider whether the current strategic focus on facility consolidation is sufficient to offset the structural challenges inherent in the fresh produce supply chain.
Quick answers to the most common questions about buying CVGW stock.
For fiscal year 2025, Calavo Growers, Inc. (CVGW) reported total revenue of $648.4M. This represents a 193.8% increase compared to $220.7M in 2000.
Calavo Growers, Inc. (CVGW) is profitable, generating $19.8M in net income for the fiscal year ending 2025 with a net profit margin of 3.1%.
Calavo Growers, Inc. (CVGW) reported an operating income of $19.6M, resulting in an operating profit margin of 3.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Calavo Growers, Inc. (CVGW) generated $63.7M in gross profit for the year, representing a gross profit margin of 9.8%. This demonstrates the company's core pricing power and production efficiency.