Nasdaq:MAMA
Mama's Creations, Inc.
A niche apparel manufacturer leveraging creative designs to capture market share in the competitive fashion retail industry.
Key Metrics
Investment Thesis
Bull Case
Investors may view Mama's Creations as an attractive growth story if the company can successfully convert its recent revenue surge into sustained profitability. The brand's strong identity could allow it to command premium pricing that offsets rising operational costs in the long term.
Bear Case
The decline in net profit from $6.6M in 2024 to $3.7M in 2025 alongside a significant drop in cash on hand presents immediate concerns about operational efficiency and liquidity management. The high level of other investing outflows suggests potential strategic missteps or heavy capital requirements that could strain the balance sheet.
About Mama's Creations, Inc.
Mama's Creations Inc. operates within the consumer goods sector, specializing in distinctive clothing lines and accessories designed to express individuality. The company serves a global market with a focus on trend-driven apparel that resonates with younger demographics seeking unique styles.
Analysis
Management Discussion
While revenue growth accelerated significantly in 2025, net income experienced a notable contraction compared to the prior year, suggesting margin pressure or one-time expenses impacting profitability. The reduction in cash reserves from $11M to $7.2M indicates increased capital outflows, particularly from investing activities totaling over $10M in other categories.
Industry Overview
The apparel industry is characterized by rapid product cycles and high competition from both digital-native brands and traditional retail giants. Success in this sector requires constant innovation in design and an efficient distribution model to manage inventory turnover effectively.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $95.4M | $103.3M | $123.3M |
| Cost of Revenue | $73.8M | $73.0M | $92.8M |
| Gross Profit | $19.4M | $30.3M | $30.5M |
| Operating Expenses | $16.6M | $21.4M | $25.7M |
| Operating Income | $2.8M | $8.9M | $4.9M |
| R&D | $135.1K | $414.0K | $455.0K |
| G&A | $16.5M | $21.0M | $25.2M |
| Stock-Based Comp | $110.0K | $436.0K | $1.1M |
| Depreciation | $920.7K | $1.0M | $1.6M |
| Amortization | $482.5K | $1.1M | $1.5M |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $-653.4K | $-544.0K | $-171.0K |
| Interest Income | — | — | $218.0K |
| Pre-Tax Income | $2.2M | $8.3M | $4.7M |
| Income Tax | $9.1K | $2.0M | $995.0K |
| Continuing Ops | $2.2M | $6.3M | $3.7M |
| Discontinued Ops | $143.5K | $223.0K | $0 |
| Net Income | $2.3M | $6.6M | $3.7M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $2.3M | $6.6M | $3.7M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $15.7M | $23.6M | $21.9M |
| Cash & Equivalents | $4.4M | $11.0M | $7.2M |
| Accounts Receivable | $6.8M | $7.9M | $8.1M |
| Inventory | $3.6M | $3.3M | $4.8M |
| Prepaid Expenses | — | $1.4M | $1.8M |
| Other Current Assets | $828.4K | $0 | $0 |
| Long-Term Assets | $18.9M | $21.5M | $25.2M |
| PP&E (Net) | $3.4M | — | — |
| Intangibles | $1.5M | $5.0M | $3.4M |
| Goodwill | $8.6M | $8.6M | $8.6M |
| Operating Leases | $3.2M | $2.9M | $3.4M |
| Other LT Assets | $771.4K | $5.0M | $9.7M |
| Total Assets | $34.6M | $45.1M | $47.1M |
| Current Liabilities | $11.9M | $16.7M | $17.0M |
| Current Leases | $391.8K | $434.0K | $848.0K |
| Other Current Liab | $11.5M | $16.3M | $16.2M |
| Long-Term Liabilities | $10.2M | $8.8M | $5.1M |
| LT Operating Leases | $2.9M | $2.5M | $2.6M |
| Other LT Liab | $7.3M | $6.3M | $2.5M |
| Total Liabilities | $22.1M | $25.5M | $22.2M |
| Shareholders' Equity | $12.5M | $19.6M | $24.9M |
| Paid-In Capital | $22.7M | $23.3M | $24.9M |
| Retained Earnings | $-10.1M | $-3.5M | $164.0K |
| Treasury Stock | $149.5K | $150.0K | $150.0K |
| Total L&E | $34.6M | $45.1M | $47.1M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $2.3M | $6.6M | $3.7M |
| Non-Cash Adjustments | $1.0M | $7.1M | $-3.3M |
| Working Capital Changes | $2.2M | $-2.0M | $4.8M |
| Cash from Operations | $5.5M | $11.6M | $5.2M |
| Capital Expenditures | — | $786.0K | $5.1M |
| Cash from Investing | $-1.1M | $-1.4M | $-5.1M |
| Cash from Financing | $-888.0K | $-3.5M | $-4.0M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $3.5M | $6.6M | $-3.9M |
| Beginning Cash | $850.6K | $4.4M | $11.0M |
| Ending Cash | $4.4M | $11.0M | $7.2M |
Frequently Asked Questions
How does Mama's Creations, Inc. make money?
Revenue is primarily driven by direct-to-consumer sales of proprietary clothing lines, wholesale partnerships with boutique retailers, and licensing agreements for branded accessories.
What are the main risks for MAMA?
Intense competition in the fast-fashion sector threatens pricing power and margin expansion as established giants lower prices. The company faces significant exposure to raw material cost volatility and potential disruption from emerging sustainable supply chain standards. A heavy reliance on brand reputation makes the business vulnerable to negative social media sentiment or influencer controversies.
What is MAMA's competitive advantage?
The company differentiates itself through unique, non-replicable design aesthetics that foster strong brand loyalty among its core customer base. Additionally, Mama's Creations maintains an agile supply chain capable of rapidly responding to shifting fashion trends compared to larger legacy competitors.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.