Stifel has reaffirmed a Hold rating on Hain Celestial following the company’s fiscal second-quarter results for 2026, which fell short of analyst expectations.
The company reported EBITDA of $24.3 million for the quarter, a 36% decline from the year-ago period. That EBITDA figure missed both Stifel’s internal forecast and consensus estimates by $4 million.
Hain Celestial recorded a 7% decline in organic net sales overall. Regionally, North American organic sales fell 10% while the International segment declined 3%.
Gross margin contracted sharply versus the prior year, tightening by 340 basis points in total. The deterioration was most pronounced in North America, where margin contracted by 440 basis points, and the International segment saw a 200 basis-point decline.
The company did not issue guidance for fiscal 2026, citing an ongoing strategic review of the business. Management has indicated an expectation to complete the divestiture of its North American Snacks business in late February.
Stifel identified the weaker-than-expected organic revenue in North America and the larger-than-anticipated gross margin contraction as the primary drivers of the earnings shortfall relative to its estimates.
Both earnings and revenue for the quarter came in below projections, a performance that contributed to a 3.25% drop in pre-market trading for Hain Celestial shares. The stock is trading at $0.95 and has fallen roughly 74% over the past year, staying near a 52-week low of $1.00.
Context and next steps
With results missing expectations and management withholding full-year guidance while the strategic review is underway, investors will be watching subsequent quarterly reports and any strategic actions the company pursues to address the revenue and margin pressures.
For now, Stifel’s stance remains Hold, reflecting the firm’s view that near-term fundamentals and the company’s ongoing review create uncertainty around a definitive upgrade or downgrade.