The company reported a net loss of $2.5 million, or 3 cents per share, reversing a profit of $2.3 million from the same period last year. While total sales edged up 0.4% to $342.2 million, they fell slightly short of Wall Street expectations. However, Utz’s core segment showed resilience, with branded salty snacks posting a 2.5% increase in organic net sales. On an adjusted basis, the company earned 26 cents per share, narrowly outperforming the 25 cents projected by analysts.

Management attributed the quarterly pressure to a significant reduction in retailer inventory. This pullback was driven by several macroeconomic headwinds, including the ripple effects of the federal government shutdown and disruptions to SNAP benefit disbursements. According to the company, these factors constrained consumer spending and led retailers to adopt a more cautious approach to stocking shelves.

Growth Outlook and Shareholder Returns

Looking ahead, Utz issued guidance for 2026, forecasting organic net sales growth of 2% to 3%. Despite this growth, the company expects adjusted earnings to decline between 3% and 6% due to roughly $13 million in higher depreciation and amortization, alongside rising interest expenses and a higher tax rate. To navigate these headwinds, the board approved a $50 million share repurchase program, the first in the company's history. CEO Howard Friedman stated that the business remains focused on productivity and capturing market share within the salty snack category through targeted marketing investments.