Branded Salty Snacks Growth of 5.2%;

Significant Improvement in Cash Metrics

HANOVER, Pa.--(BUSINESS WIRE)--May 6, 2026-- Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded Salty Snacks and a small-cap growth and value Staples equity, today reported financial results for the Company’s first fiscal quarter ended March 29, 2026.

1Q’26 Summary⁽¹⁾

• Net Sales increased 2.6% to $361.3 million
• Total Organic Net Sales increased 2.6%; Branded Salty Snacks Organic Net Sales increased 5.2%
• Gross Profit Margin expansion of 200bps
• Adjusted Gross Profit Margin expansion of 210bps
• Net Income decreased to $(2.4) million
• Adjusted Net Income decreased 4.5% to $21.3 million
• EBITDA decreased 12.9% to $30.3 million
• Adjusted EBITDA increased 6.2% to $47.9 million
• Diluted Earnings Per Share decreased to $(0.02)
• Adjusted Earnings Per Share decreased 6.3% to $0.15
• Cash Flow Used in Operations was $12.2 million
• Adjusted Free Cash Flow increased to $(25.9) million
• Net Leverage Ratio improved and decreased 0.4x to 3.6x

“I’m pleased with our solid start to the year, as we delivered 2.6% Net Sales growth and 5.2% Branded Salty Snacks growth, gained dollar share in the Salty Snacks category⁽²⁾, and continued to expand Adjusted EBITDA margins,” said Howard Friedman, Chief Executive Officer of Utz.

Mr. Friedman continued, “The category has demonstrated signs of continued improvement with solid growth in the first quarter. Looking ahead to the remainder of 2026, we expect it to remain a dynamic operating environment and we are committed to our playbook of driving Branded Salty Snacks growth, generating productivity, and reinvesting in marketing and geographic expansion. We believe the flexibility of our model will allow us to succeed in an evolving consumer and category backdrop.”

“Adjusted Free Cash Flow improved sharply in the first quarter with our focus on working capital management and normalizing capital expenditures,” said BK Kelley, EVP and Chief Financial Officer of Utz. “Leverage at 3.6x was down considerably from a year ago, and we expect leverage to improve further as we progress through 2026. We are reaffirming all aspects of our 2026 guidance.”

First Quarter 2026 Results

First quarter Net Sales increased 2.6% to $361.3 million compared to $352.1 million in the prior year period. Organic Net Sales increased 2.6% year-over-year, driven by a favorable net price realization of 3.7% partially offset by lower volume/mix contribution of (1.1)%. The Bonus Packs promotion in the prior year first quarter had a net neutral 2.7 point impact on both volume/mix and price. Excluding the Bonus Packs promotion, volume/mix increased 1.6% and net price realization increased 1.0%. Branded Salty Snacks Organic Net Sales⁽³⁾ (representing 89% of total Net Sales) increased 5.2% led by our Power Four Brands, offset by a 14.3% decline in Non-Branded & Non-Salty SnacksOrganic Net Sales⁽³⁾, primarily due to Non-Branded, which was impacted by accelerated elimination of low margin items.

For the 13-week period ended March 29, 2026, the Company’s Branded Salty Snacks Retail Sales increased 4.6% versus the prior year period, outperforming the 2.4% increase for the Salty Snack category overall⁽³⁾. On a 2-year stack basis, total Company Branded Salty Snacks Retail Sales also increased 4.6%, outperforming a 0.7% increase for the Salty Snack category. The Company’s Retail Volumes decreased by 3.0%, impacted by the lap of Bonus Packs, compared to a 1.5% increase for the Salty Snack category. On a 2-year stack basis, the Company’s Retail Volumes increased 2.7%, outperforming a 0.1% decrease for the Salty Snack category. The Company drove Retail Sales gains in both its Core and Expansion Geographies⁽²⁾⁽³⁾. The Company’s Power Four Brands of Utz^®, On The Border^®, Zapp’s^® and Boulder Canyon^®Retail Sales increased by 6.7%.

Gross Profit Margin of 25.4% increased 200bps compared to 23.4% in the prior year period. Adjusted Gross Profit Margin of 30.8% expanded 210bps compared to 28.7% in the prior year period. The increase in both Gross Margin and Adjusted Gross Profit Margin was driven by productivity savings, which more than offset supply chain cost inflation.

Selling, General, and Administrative Expenses (“SG&A Expenses”) were $85.4 million, or 23.6% of Net Sales, compared to $77.4 million, or 22.0% of Net Sales, in the prior year period. Adjusted SG&A Expenses were $63.5 million, or 17.6% of Net Sales, compared to $56.1 million, or 15.9% of Net Sales, in the prior year period. The increase in both SG&A Expenses and Adjusted SG&A Expenses as a percentage of Net Sales were primarily due to increased marketing, and adding capabilities to support the Company’s geographic expansion and growth initiatives.

The Company reported a Net Loss of $2.4 million compared to Net Income of $5.7 million in the prior year period. Net Income in the prior year period benefited from an $11 million gain from the remeasurement of the warrant liability. Adjusted Net Income in the quarter decreased 4.5% to $21.3 million compared to $22.3 million in the prior year period. Adjusted Earnings Per Share decreased 6.3% to $0.15 compared to $0.16 in the prior year period. The Adjusted Earnings Per Share decrease was primarily the result of lower Adjusted Net Income, driven by an increase in depreciation and amortization.

The Company reported EBITDA of $30.3 million compared to EBITDA of $34.8 million in the prior year period. Adjusted EBITDA increased 6.2% to $47.9 million, or 13.3% as a percentage of Net Sales, compared to $45.1 million, or 12.8% as a percentage of Net Sales, in the prior year period. The increase in Adjusted EBITDA was driven by Adjusted Gross Profit Margin expansion, which more than offset the increase in Adjusted SG&A expenses.

Balance Sheet and Cash Flow Highlights

• As of March 29, 2026
  • Total liquidity of $196.1 million, consisting of cash on hand of $73.7 million and $122.4 million available under the Company’s revolving credit facility.
  • Net debt of $780.3 million resulting in a Net Leverage Ratio of 3.6x based on trailing twelve months Adjusted EBITDA of $219.3 million.
• For the thirteen weeks ended March 29, 2026
  • Cash flow used in operations was $12.2 million.
  • Capital expenditures were $13.8 million, and dividends and distributions paid were $9.7 million.
  • Adjusted Free Cash Flow of $(25.9) million.

Share Repurchase Program

The Company did not repurchase shares during the first quarter of 2026 and has $50 million remaining under its stock repurchase program adopted in February 2026.

Fiscal Year 2026 Outlook

The Company will benefit from a 53rd week in the fourth quarter of 2026. Guidance has indicated the impact of the 53rd week, where appropriate. The Company is reiterating all aspects of 2026 guidance. For the fiscal year 2026, the Company continues to expect:

• Organic Net Sales growth of 2% to 3%, assuming a flat Salty Snacks category at midpoint, led by continued Branded Salty Snacks growth, particularly the Power Four Brands. This metric excludes the 53rd week
  • We expect that the 53rd week will benefit Reported Net Sales by approximately $20 million in the fourth quarter of 2026
• Productivity savings of approximately 4% of Adjusted COGS
• Adjusted EBITDA growth of 5% to 8% and Adjusted EBITDA margin expansion, led by Adjusted Gross Margin expansion fueled by strong productivity cost savings and improved product mix. This metric includes the 53rd week
  • We expect that the 53rd week will benefit Adjusted EBITDA by approximately $3 million in the fourth quarter of 2026
• Adjusted EPS decline in range of 3% to 6%, driven primarily by higher depreciation and amortization ofapproximately $13 million, higher interest expense, and a higher tax rate, the impact of these three items equating to approximately 12 cents
  • We expect that the 53rd week will benefit Adjusted EPS by 2 cents in the fourth quarter of 2026
• Adjusted Free Cash Flow in the range of $60 and $80 million
  • Adjusted Free Cash Flow is defined as Cash Flows From Operating Activities less Capital Expenditures Plus Net Sales of Property and Equipment

The Company also continues to expect:

• An effective tax rate (normalized GAAP basis tax expense, which excludes one-time items) of between 17-19%;
• Interest expense in the range of $47 to $49 million;
• Depreciation and amortization in the range of $93 to $97 million;
• Capital expenditures in the range of $60 to $65 million with the majority focused on delivering accelerated productivity savings and supporting targeted growth initiatives; and
• Net Leverage Ratio between 3.0x - 3.2x at fiscal year-end 2026

Quantitative reconciliations are not available for the forward-looking non-GAAP financial measures used herein without unreasonable efforts due to the high variability, complexity, and low visibility with respect to certain items which are excluded from Organic Net Sales, Adjusted COGS, Adjusted EBITDA, Adjusted Free Cash Flow, Net Leverage Ratio, normalized GAAP basis tax expense, excluding one-time items, and Adjusted Earnings Per Share, respectively. We expect the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future financial results.

Conference Call and Webcast Presentation

The Company has also posted a pre-recorded management discussion of its first quarter results to its website at https://investors.utzsnacks.com. In addition, the Company will host a live question and answer session with analysts at 8:30 a.m. Eastern Time today. Please visit the “Events & Presentations” section of Utz’s Investor Relations website at https://investors.utzsnacks.com to access the live listen-only webcast. Participants can also dial in over the phone by calling 1-888-596-4144. The Event Plus passcode is 3860587. The Company has also posted presentation slides and additional supplemental financial information, which are available now on Utz’s Investor Relations website.

About Utz Brands, Inc.

Utz Brands, Inc. (NYSE: UTZ) manufactures a diverse portfolio of savory snacks through popular brands, including Utz^®, On The Border^® Chips & Dips, Zapp’s^®, and Boulder Canyon^®, among others.

After over a century with a strong family heritage, Utz continues to have a passion for exciting and delighting consumers with delicious snack foods made from top-quality ingredients. Utz's products are distributed nationally through grocery, mass merchandisers, club, convenience, drug, and other channels. Based in Hanover, Pennsylvania, Utz has multiple manufacturing facilities located across the U.S. to serve our growing customer base. For more information, please visit the Company’s website or call 1‐800‐FOR‐SNAX.

Investors and others should note that Utz announces material financial information to its investors using its Investor Relations website, U.S. Securities and Exchange Commission (the “Commission”) filings, press releases, public conference calls, and webcasts. Utz uses these channels, as well as social media, to communicate with our stockholders and the public about the Company, the Company’s products, and other Company information. It is possible that the information that Utz posts on social media could be deemed to be material information. Therefore, Utz encourages investors, the media, and others interested in the Company to review the information posted on the social media channels listed on Utz’s Investor Relations website.

Forward-Looking Statements

This press release includes certain statements made herein that are not historical facts but are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are accompanied by or include, without limitation, statements such as “may,” “can,” “should,” “will,” “estimate,” “plan,” “project,” "forecast,” "intend,” "expect,” “anticipate,” “believe,” “seek,” “target” “goal”, “on track” or other similar words, phrases or expressions. These forward-looking statements include future plans for the Company, including outlook for fiscal 2026, assumptions for category performance, plans related to the transformation of the Company’s supply chain, the Company’s product mix, the Company’s expectations regarding its level of indebtedness and associated interest expense impacts; the estimated or anticipated future results and benefits of the Company’s future plans and operations; the Company’s cost savings plans and the Company’s logistics optimization efforts; the effects of tariffs, inflation or supply chain disruptions on the Company or its business; the benefits of the Company’s productivity initiatives; the effects of the Company’s marketing and innovation initiatives; the Company’s future capital structure; future opportunities for the Company’s growth; statements regarding the Company’s projected balance sheet and liabilities, including net leverage; and other statements that are not historical facts.

These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties and the Company’s business and actual results may differ materially. Some factors that could cause actual results to differ include, without limitation: we operate in the highly competitive and increasingly consolidated snack food industry; demand for our products may be adversely affected by changes in consumer preferences and tastes or if we are unable to innovate or market our products effectively; our reputation or brand image might be impacted as a result of issues or concerns relating to the quality and safety of our products, ingredients or packaging, processing techniques, which in turn could negatively impact our operating results; changes in retail distribution arrangements can result in the loss of retail shelf space and disrupt sales of food products, causing our sales to fall; our DTW delivery network system relies on a significant number of brokers, wholesalers and logistics companies, and our DSD network system and regional third-party distributor network relies on a significant number of independent operators and third-party distributors, and such reliance could affect our ability to effectively and profitably distribute and market products, maintain existing markets and expand business into other geographic markets; the evolution of e-commerce retailers and sales channels may adversely affect us; disruption to our manufacturing operations, supply chain or distribution channels could impair our ability to produce or deliver finished products and negatively impact our operating results; our results of operations and profitability may continue to be adversely affected by inflation, including from rising labor costs and the effects of shortages of raw materials, energy, water and other supplies; all of our products must be compliant with laws and regulations promulgated by various governmental authorities, and changes in the legal and regulatory environment, including with respect to the One Big Beautiful Bill Act, could limit our business activities, increase our operating costs, reduce demand for our products or result in litigation or other regulatory action; we may be unable to successfully identify and execute acquisitions or dispositions or to successfully integrate acquisitions or carve out dispositions; the geographic concentration of our markets may adversely impact us if we are unable to effectively diversify the markets in which we participate; we may not be able to attract and retain the highly skilled people we need to support our business; impairment in the carrying value of goodwill or other intangible assets could have an adverse impact on our results; our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products and brands; climate change or legal, regulatory or market measures to address climate change may negatively affect our business and operations or damage our reputation, and liabilities, claims or new laws or regulations with respect to environmental matters could have a significant negative impact on our business; we are subject to increasing focus on ESG issues, including those related to climate change, and any perceived failure by us to meet ESG initiatives may negatively impact our business; our debt instruments contain covenants that impose restrictions on our operations that may adversely affect our ability to operate our business if we fail to meet those covenants or otherwise suffer a default thereunder; we are subject to risks from changes to the trade policies and tariff and import/export regulations by the U.S. and/or other foreign governments; resales of shares of our Class A Common Stock could affect the market price of our Class A Common Stock; we are a holding company dependent upon distributions made by our subsidiaries to pay taxes, make payments under the Company’s Tax Receivable Agreement (the “TRA”) and pay dividends; pursuant to the TRA, we are required to make certain payments to certain noncontrolling interest holders, and those payments may be substantial; Delaware law, our organizational documents and certain other agreements contain certain provisions, including anti-takeover provisions, that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts; our Certificate of Incorporation designates the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders; certain of our significant stockholders whose interests may differ from those of our other stockholders have the ability to significantly influence our business and management; and other risks and uncertainties set forth in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 28, 2025 and in the other reports we file with the Commission from time to time.

Forward-looking statements provide the Company’s expectations, plans or forecasts of future events and views as of the date of this communication. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication. The Company cautions investors not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as otherwise required by law.

Non-GAAP Financial Measures:

Utz uses non-GAAP financial information and believes it is useful to investors as it provides additional information to facilitate comparisons of historical operating results and identify trends in our underlying operating results, and it provides additional insight and transparency on how we evaluate the business. We use non-GAAP financial measures to budget, make operating and strategic decisions, and evaluate our performance. These non-GAAP financial measures do not represent financial performance in accordance with generally accepted accounted principles in the United States (“GAAP”) and may exclude items that are significant to understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations, earnings per share or other measures of profitability, liquidity, or performance under GAAP. You should be aware that the presentation of these measures may not be comparable to similarly titled measures used by other companies.

Management believes that non-GAAP financial measures should be considered as supplements to the GAAP measures reported, should not be considered replacements for, or superior to, the GAAP measures, and may not be comparable to similarly named measures used by other companies. The Company’s calculation of the non-GAAP financial measures may differ from methods used by other companies. We believe that these non-GAAP financial measures provide useful information to investors regarding certain financial and business trends relating to the financial condition and results of operations of the Company to date when considered with both the GAAP results and the reconciliations to the most comparable GAAP measures, and that the presentation of non-GAAP financial measures is useful to investors in the evaluation of our operating performance compared to other companies in the Salty Snack industry, as similar measures are commonly used by the companies in this industry. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of management judgment about which items of expense and income are excluded or included in determining these non-GAAP financial measures. The non-GAAP financial measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures. As new events or circumstances arise, these definitions could change. When the definitions change, we will provide the updated definitions and present the related non-GAAP historical results on a comparable basis.

During the first quarter of 2026, the Company revised the categorization of certain charges and gains that were historically categorized as acquisition, divestitures and investments, business transformation, and financing-related costs. The Company is now presenting the associated charges and gains within the categories supply chain transformation and corporate transformation. The nature of the charges and gains included in these adjustments, as well as the total amount of all of these adjustments in all prior periods presented, are unchanged. We believe that this change provides a better reflection of the impact of the charges and gains and aligns with how management views the adjustments internally. Prior period balances have been reclassified to conform to the current presentation. Additionally, the Company has revised the presentation of its reconciliations of Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Selling, General, and Administrative Expenses, EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted Earnings Per Share to the most directly comparable GAAP measures. We believe the revised presentation of reconciliation information provides investors with helpful context on the impacts of the adjustments.

Utz uses the following non-GAAP financial measures in its financial communications, and in the future could use others:

• Organic Net Sales
• Adjusted Gross Profit
• Adjusted Gross Profit as % of Net Sales (Adjusted Gross Profit Margin)
• Adjusted Cost of Goods Sold (COGS)
• Adjusted Selling, General and Administrative Expense
• Adjusted Selling, General and Administrative Expense as % of Net Sales (Adjusted Selling, General and Administrative Expense Margin)
• Adjusted Net Income
• Adjusted Earnings Per Share
• Adjusted Earnings Before Taxes
• EBITDA
• Adjusted EBITDA
• Adjusted EBITDA as % of Net Sales (Adjusted EBITDA Margin)
• Effective Normalized Tax Rate
• Net Leverage Ratio
• Adjusted COGS
• Branded Salty Snacks Organic Net Sales
• Non-Branded & Non-Salty Snacks Organic Net Sales
• Adjusted Free Cash Flow

Organic Net Sales is defined as Net Sales excluding the impacts of acquisitions, divestitures and independent operator (“IO”) route conversions that took place after 1Q’2024.

Adjusted Gross Profit represents Gross Profit excluding Depreciation and Amortization expense, a non-cash item. In addition, Adjusted Gross Profit excludes the impact of costs that fall within the categories of non-cash adjustments and/or other cash adjustment items such as those related to stock-based compensation, hedging and purchase commitments adjustments, asset impairments, supply chain transformation, and corporate transformation. Adjusted Gross Profit is one of the key performance indicators that our management uses to evaluate operating performance. We also report Adjusted Gross Profit as a percentage of Net Sales as an additional measure for investors to evaluate our Adjusted Gross Profit Margin.

Adjusted Cost of Goods Sold (COGS) represents Net Sales less Adjusted Gross Profit.

Adjusted Selling, General and Administrative Expense is defined as all Selling, General and Administrative expense excluding Depreciation and Amortization expense, a non-cash item. In addition, Adjusted Selling, General and Administrative Expense excludes the impact of costs that fall within the categories of non-cash adjustments and/or other cash adjustment items such as those related to stock-based compensation, hedging and purchase commitments adjustments, asset impairments, supply chain transformation, and corporate transformation. We also report Adjusted Selling, General and Administrative Expense as a percentage of Net Sales as an additional measure for investors to evaluate our Adjusted Selling, General and Administrative Margin.

Adjusted Net Income is defined as Net Income excluding Depreciation and Amortization expense, a non-cash item, related to fair value adjustments on property, plant, and equipment, and definite-lived intangibles relating to business combinations recorded in prior periods. In addition, Adjusted Net Income excludes deferred financing fees, interest income, and expense relating to IO loans and certain non-cash adjustments and/or other cash adjustment items such as those related to stock-based compensation, hedging, and purchase commitments adjustments, asset impairments, supply chain transformation, corporate transformation, remeasurement of warrant liabilities. Lastly, Adjusted Net Income normalizes the income tax provision to account for the above-mentioned adjustments.

Adjusted Earnings Before Taxes is defined as Adjusted Net Income before normalized GAAP basis tax expense.

Adjusted Earnings Per Share is defined as Adjusted Net Income divided by the weighted average shares outstanding for each period on a fully diluted basis assuming the shares of Class V Common Stock of the Company are converted to Class A Common Stock of the Company.

EBITDA is defined as Net Income Before Interest, Income Taxes, and Depreciation and Amortization.

Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash adjustments and/or other cash adjustment items, such as stock-based compensation, hedging and purchase commitments adjustments, asset impairments, supply chain transformation, and corporate transformation. Adjusted EBITDA is one of the key performance indicators we use in evaluating our operating performance and in making financial, operating, and planning decisions. We believe Adjusted EBITDA is useful to the users of this release because the financial information contained in the release can be used in the evaluation of Utz’s operating performance compared to other companies in the Salty Snack industry, as similar measures are commonly used by companies in this industry. In this release, we also provide Adjusted EBITDA as a percentage of Net Sales as an additional measure for readers to evaluate our Adjusted EBITDA Margin.

Adjusted Free Cash Flow is defined as Cash Flow from Operating Activities on the Consolidated Statements of Cash Flows less Purchases of Property and Equipment (Capital Expenditures) plus Net Proceeds from Sale of Property and Equipment, both included in Cash flow from investing activities on the Consolidated Statements of Cash Flows.

Effective Normalized Tax Rate is defined as normalized GAAP basis tax expense, which excludes one-time items, divided by Adjusted Earnings before Taxes.

Net Leverage Ratio is defined as trailing twelve month Adjusted EBITDA divided by Net Debt. Net Debt is defined as Gross Debt less Cash and Cash Equivalents.

Other Defined Terms:

Branded Salty Snacks is defined as Power Four Brands and Other Brands. Power Four Brands consist of the Utz^® brand, On The Border^®, Zapp’s^®, and Boulder Canyon^®. Other Brands include Golden Flake^®, TORTIYAHS!^®, Hawaiian^®, Bachman^®, Tim’s Cascade^®, Dirty Potato Chips^®, TGI Fridays^® and Vitner's^®.

Non-Branded & Non-Salty Snacks is defined as partner brands, private label, co-manufacturing for which we are the manufacturer, Utz branded non-salty snacks such as On The Border^® Dips and Salsa, and sales not attributable to specific brands.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260506376736/en/

Investor Contact
Trevor Martin
Utz Brands, Inc.
tmartin@utzsnacks.com

Media Contact
Colleen Farley
Utz Brands, Inc.
cfarley@utzsnacks.com

Source: Utz Brands, Inc.