Utz (NYSE:UTZ) Beats Q2 Sales Targets But Stock Drops 10.3%

Snack food company Utz Brands (NYSE:UTZ) reported Q2 CY2025 results topping the market’s revenue expectations , with sales up 3% year on year to $366.7 million. Its non-GAAP profit of $0.17 per share was 5.6% below analysts’ consensus estimates.

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• Revenue: $366.7 million vs analyst estimates of $362.3 million (3% year-on-year growth, 1.2% beat)

• Adjusted EPS: $0.17 vs analyst expectations of $0.18 (5.6% miss)

• Adjusted EBITDA: $45.1 million vs analyst estimates of $49.55 million (12.3% margin, 9% miss)

• Operating Margin: 1.7%, down from 6.3% in the same quarter last year

• Free Cash Flow was -$10.59 million compared to -$15.26 million in the same quarter last year

• Organic Revenue rose 2.9% year on year (1.6% in the same quarter last year)

• Market Capitalization: $1.20 billion

“I am pleased with our strong performance in the second quarter, with Organic Net Sales growth of nearly 3%(1). Our Branded Salty Snacks portfolio is accelerating, with 5.4% growth in the quarter(1). We gained value and volume shares in both our Core and Expansion Geographies(3). Our proactive approach to cost management and operational excellence has enabled us to achieve significant Adjusted Gross Profit Margin expansion,” said Howard Friedman, Chief Executive Officer of Utz.

Tracing its roots back to 1921 when Bill and Salie Utz began making potato chips in their kitchen, Utz Brands (NYSE:UTZ) offers salty snacks such as potato chips, tortilla chips, pretzels, cheese snacks, and ready-to-eat popcorn, among others.

A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

With $1.43 billion in revenue over the past 12 months, Utz is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.

As you can see below, Utz’s sales grew at a sluggish 3% compounded annual growth rate over the last three years, but to its credit, consumers bought more of its products.

This quarter, Utz reported modest year-on-year revenue growth of 3% but beat Wall Street’s estimates by 1.2%.

Looking ahead, sell-side analysts expect revenue to grow 1.9% over the next 12 months, similar to its three-year rate. This projection is underwhelming and suggests its products will face some demand challenges.

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