CVGWMEDIUM SIGNALFINANCIAL10-K

Calavo Growers substantially reduced debt while showing improved operational performance with higher operating income and lower SG&A expenses.

The 65% debt reduction signals meaningful deleveraging and improved financial flexibility, while the company maintained profitable operations despite slightly lower cash generation. The combination of reduced SG&A expenses and higher operating income suggests effective cost management and operational efficiency gains.

Comparing 2026-01-14 vs 2025-01-14View on EDGAR →
FINANCIAL ANALYSIS

CVGW demonstrated solid financial improvement with total debt declining 65% to $2.8M and operating income growing 17% to $19.6M, supported by a 16% reduction in SG&A expenses. The company showed mixed working capital trends with accounts receivable declining 25% while current liabilities decreased 17%. Despite operating cash flow moderating to $21.5M and reduced capital expenditures, the overall picture reflects a company strengthening its balance sheet while maintaining operational profitability.

FINANCIAL STATEMENT CHANGES
Total Debt
Balance Sheet
-64.6%
$7.9M$2.8M

Debt reduced 64.6% — deleveraging strengthens balance sheet and reduces financial risk.

Interest Expense
P&L
+48%
$1.7M$2.5M

Interest expense surged 48% — significant debt increase or rising rates materially impacting earnings.

Capital Expenditure
Cash Flow
-25.6%
$2.9M$2.2M

Capex reduced 25.6% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Accounts Receivable
Balance Sheet
-24.5%
$41.9M$31.6M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Current Liabilities
Balance Sheet
-17.4%
$73.2M$60.5M

Current liabilities reduced — improved short-term financial position and working capital health.

Operating Income
P&L
+17.3%
$16.7M$19.6M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

SG&A Expense
P&L
-15.9%
$50.0M$42.1M

SG&A reduced 15.9% — improved cost efficiency or headcount reduction improving operating margins.

Operating Cash Flow
Cash Flow
-11.8%
$24.4M$21.5M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

LANGUAGE CHANGES
NEW — 2026-01-14
PRIOR — 2025-01-14
ADDED
The number of outstanding shares of the registrant's common stock as of January 6, 2026 was 17,874,079 .
Market for Registrant s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 27 Item 6.
Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 7A.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 83 Item 9A.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 85 Item 13.
and its consolidated subsidiaries (collectively, Calavo, the Company, we, us or our ) that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements involve risks, uncertainties, and assumptions, are based on current expectations, and are not guarantees of future performance.
All statements other than historical facts are forward-looking statements, including but not limited to: Projections of financial performance and management s plans and objectives for future operations, including restructuring and integration efforts; The impact of acquisitions, equity investments, or other financial transactions; Commentary on macroeconomic trends or global events and their potential impact on Calavo s performance; Updates on legal matters, investigations, or tax disputes; Statements regarding potential impacts of changes in U.S.
and foreign trade policy, including tariffs and quotas, on our sourcing, costs, pricing, and demand; Statements regarding our cybersecurity risk management, planned enhancements to controls and documentation, and the potential impact of cyber incidents on operations, liquidity, or results; Statements regarding working capital and liquidity, including the timing and magnitude of tariff prepayments and the timing of IVA (as defined in Item 1A.
Risk Factors) refund collections in Mexico; Statements regarding the timing and outcomes of legal and tax proceedings in Mexico, including the recovery of IVA receivables and the resolution of assessments by the Mexican Tax Administration Service ( SAT ), and the effects of related court rulings; Statements regarding potential changes in Mexico s tax policies or enforcement actions and the expected effects on our operations, costs, tax positions, or liquidity.
REMOVED
The number of outstanding shares of the registrant's common stock as of December 31, 2024 was 17,837,351 .
CAUTIONARY STATEMENT This Annual Report on Form 10-K, including Management s Discussion and Analysis of Financial Condition and Results of Operations in Item 7, contains statements relating to future events and results of Calavo Growers, Inc.
and its consolidated subsidiaries (collectively, Calavo , the Company , we , us or our ), including certain projections and business trends, that are "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, that involve risks, uncertainties and assumptions.
These statements are based on our current expectations and are not promises or guarantees.
If any of the risks or uncertainties materialize or the assumptions prove incorrect, the results of Calavo may differ materially from those expressed or implied by such forward-looking statements and assumptions.
and foreign governmental actions, such as restrictions on transfers of funds, restrictions as a result of trade protection measures such as import/export/customs duties, tariffs and/or quotas).
and foreign laws appliable to international trade and dealings and possible restrictive U.S.
(referred to in this report as Calavo , the Company , we , us or our ), is a global leader in the avocado industry and a provider of value-added fresh food.
Our expertise in marketing and distributing avocados, prepared avocado products, and other perishable foods allows us to deliver a wide array of fresh and prepared food products to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers worldwide.
We procure avocados from California, Mexico and other growing regions around the world.
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