Adjusted EBITDA was $20.1 million, down significantly from $54.7 million last year, impacted by losses from the ended McDonald's USA partnership and divestiture effects.
Bank leverage ratio was 4.5x, below the 5x covenant limit, while net leverage ratio was 7.5x, impacted by cyber incidents and partnership losses.
International equity markets saw 5.9% organic revenue growth driven by expansion in Canada, Mexico, and Japan, with adjusted EBITDA margin at 13.7%.
Market Development segment revenue declined 14.2%, with adjusted EBITDA margin stable at 52.9%.
Net revenue for Q2 2025 was $379.8 million, slightly above the midpoint of guidance but reflecting a 0.8% organic decline and a $64.2 million reduction from the divestiture of Insomnia Cookies.
Noncash impairment charges totaled $407 million, including goodwill and asset impairments related partly to the McDonald's USA partnership termination.
U.S. segment adjusted EBITDA declined to $9.9 million from $32.7 million last year, affected by retail transaction declines and partnership losses.
Advertising spend in Q4 was down dramatically compared to last year but consistent with annual spend of about 11%.
Glad JV ending in January 2026 will improve gross margin by about 20 to 25 basis points in fiscal 2026.
Gross margin impact from ERP was higher than anticipated, about 50 basis points for the full year and 150 basis points for the quarter.
Organic sales growth was about 8%, but excluding the 13-14% ERP-related retailer inventory build, organic sales were negative 5%, below the expected negative 3%.
Price/mix was abnormally negative 4 points in the quarter, with a one-time adjustment; excluding this, price/mix was about negative 2%.
Q4 and fiscal year 2025 performance met with weaker-than-expected top line growth but strong margin and earnings performance for the year.
Dafinchi