Natural food company Hain Celestial (NASDAQ: HAIN) announced better-than-expected revenue in Q3 CY2025, but sales fell by 6.8% year on year to $367.9 million. Its non-GAAP loss of $0.08 per share was 48.1% below analysts’ consensus estimates.
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Hain Celestial (HAIN) Q3 CY2025 Highlights:
- Revenue: $367.9 million vs analyst estimates of $360.5 million (6.8% year-on-year decline, 2.1% beat)
- Adjusted EPS: -$0.08 vs analyst expectations of -$0.05 (48.1% miss)
- Adjusted EBITDA: $19.73 million vs analyst estimates of $19.81 million (5.4% margin, in line)
- Operating Margin: -1.9%, down from 2.1% in the same quarter last year
- Free Cash Flow was -$13.71 million compared to -$16.54 million in the same quarter last year
- Organic Revenue fell 6% year on year vs analyst estimates of 5.4% declines (61.1 basis point miss)
- Market Capitalization: $96.61 million
"First quarter results met our expectations on the top- and bottom-line. During the quarter, organic net sales trends demonstrated sequential improvement in both our North America and International segments. Cost discipline and the decisive actions taken to streamline our cost structure drove a reduction in SG&A, and we are seeing early results from the execution against our ‘5 actions to win’, including benefits from pricing initiatives beginning to build,” said Alison Lewis, interim President and CEO.
Company Overview
Sold in over 75 countries around the world, Hain Celestial (NASDAQ: HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $1.53 billion in revenue over the past 12 months, Hain Celestial 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, Hain Celestial’s demand was weak over the last three years. Its sales fell by 6.5% annually, a tough starting point for our analysis.
This quarter, Hain Celestial’s revenue fell by 6.8% year on year to $367.9 million but beat Wall Street’s estimates by 2.1%.
Looking ahead, sell-side analysts expect revenue to decline by 2.1% over the next 12 months. it’s hard to get excited about a company that is struggling with demand.
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Organic Revenue Growth
When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.
Hain Celestial’s demand has been falling over the last eight quarters, and on average, its organic sales have declined by 5.2% year on year. 
In the latest quarter, Hain Celestial’s organic sales fell by 6% year on year. This performance was more or less in line with its historical levels.
Key Takeaways from Hain Celestial’s Q3 Results
It was encouraging to see Hain Celestial beat analysts’ revenue expectations this quarter. On the other hand, its EPS fell short of Wall Street’s estimates. Overall, this was a mixed quarter. The stock traded up 4.2% to $1.11 immediately following the results.
Is Hain Celestial an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
