Calavo Growers Stock Price, News & Analysis
Company Description
Calavo Growers, Inc. (NASDAQ: CVGW) is a fresh food company focused on the processing and distribution of avocados, tomatoes, papayas and guacamole. The company describes itself as a global leader in these categories and sells products under the Calavo brand, proprietary sub-brands, private label and store brands. Calavo serves retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers in markets worldwide.
Founded in 1924, Calavo has a long operating history in the avocado industry and fresh foods. The company is headquartered in Santa Paula, California, and maintains facilities and operations throughout the U.S. and Mexico, supporting sourcing, packing, processing and distribution activities across its network.
Business model and segments
According to company and third-party descriptions, Calavo’s operations are organized around two primary business segments: Fresh (also referred to as Grown) and Prepared.
- Fresh / Grown segment: This segment includes fresh avocados, tomatoes and papayas. Calavo sources and packs these products and distributes them to retail, foodservice and other channel partners. The company’s news releases repeatedly highlight the importance of avocado volumes and pricing, as well as tomato performance, within this segment.
- Prepared segment: This segment includes fresh-cut fruits and vegetables, ready-to-eat sandwiches, wraps, salads and snacks, guacamole, salsa and avocado pulp sold into retail and foodservice channels. Company updates describe this segment as benefiting from higher volumes, expanded programs with key customers, new customers on-boarded and new products launched in fiscal 2025.
Calavo’s financial disclosures emphasize metrics such as net sales, gross profit, segment gross profit, adjusted net income and adjusted EBITDA for both segments. The company reports that Prepared segment sales and profitability have increased meaningfully in recent periods, supported by higher volumes, lower fruit input costs and improved operating efficiencies, while Fresh segment results are sensitive to avocado and tomato volumes, pricing dynamics, weather conditions and regulatory events.
Industry context and operations
Calavo operates in the fresh fruit and vegetable merchant wholesaler space within the broader wholesale trade sector. Its business is closely tied to global avocado supply, tomato supply and demand, and related pricing trends. Company commentary notes that avocado pricing can be influenced by supply from regions such as Mexico, California and Peru, while tomato performance can be affected by weather in U.S. markets and domestic supply levels.
The company highlights a vertically integrated approach in certain communications, describing itself as operating a vertically integrated business model in the avocado industry and value-added fresh food. This involves sourcing, packing, distribution and processing activities that support both the Fresh and Prepared segments. Calavo’s operations in Mexico, including Calavo de Mexico, have been referenced in relation to sourcing, regulatory matters and tax treatment.
Strategic developments and corporate actions
Calavo has engaged in a strategic review process and has been the subject of acquisition interest. In June 2025, the company announced that it had received a non-binding, indicative proposal to acquire all outstanding shares of Calavo Growers, Inc. and that its Board of Directors, with the assistance of financial and legal advisors, was evaluating strategic alternatives. Subsequent filings and news releases state that a Special Transactions Committee was formed to lead this review, which may or may not result in a transaction.
On January 14, 2026, Calavo disclosed in an 8-K that it had entered into an Agreement and Plan of Merger with Mission Produce, Inc. Under this agreement, Mission Produce will acquire Calavo in a cash and stock transaction, subject to customary closing conditions, shareholder approvals and regulatory clearances. The transaction is structured as a two-step merger, with Calavo merging into a Mission subsidiary and then into another Mission subsidiary. The companies describe the planned combination as creating a vertically integrated platform with sourcing security and an expanded year-round portfolio across complementary fresh produce categories. The merger has an expected closing timeframe by the end of August 2026, but Calavo explicitly notes that there can be no assurance the merger will close when expected or at all.
Calavo’s Board has also discussed potential capital return actions, such as share repurchases or special dividends, if the strategic review process does not result in a definitive transaction, as disclosed in an 8-K filed in December 2025. In addition, the company has a history of paying quarterly cash dividends, with multiple news releases announcing dividends on its common stock.
Regulatory and legal matters
Calavo’s recent disclosures reference several regulatory and legal developments. In 2025, the company experienced a temporary FDA detention hold on certain avocado imports from Mexico, which led to discrete costs for inspection, testing, logistics and inventory write-downs. The company has characterized these costs as unusual and not reflective of normal operations and has indicated that the matter was resolved.
The company has also been involved in a Foreign Corrupt Practices Act (FCPA) investigation related to its operations in Mexico. Calavo reported that the U.S. Department of Justice closed its FCPA inquiry in September 2025 and that the U.S. Securities and Exchange Commission staff concluded its investigation in December 2025 without intending to recommend an enforcement action against the company. Calavo previously disclosed this investigation in its periodic SEC reports.
In Mexico, Calavo has reported that a Federal Court recognized Calavo de Mexico as a maquila, which the company believes strengthens its position regarding value-added tax receivables and a historic tax assessment, as described in a 2025 earnings release.
Leadership and governance
Calavo has reported leadership transitions at the executive level. In November 2025, the company announced that its long-serving President and Chief Executive Officer, Lee E. Cole, would retire effective December 8, 2025. The Board appointed B. John Lindeman, a current director and former Chief Financial Officer of Calavo, as President and Chief Executive Officer effective the same date, as detailed in both a press release and an 8-K filing. The company has also disclosed the retirement of other senior executives, such as the Executive Vice President, Sales and Operations.
Calavo’s governance disclosures include information about Board leadership, such as the election of a Chair of the Board, and the formation of a Special Transactions Committee to review strategic alternatives. The company files proxy statements and other materials with the SEC in connection with its annual shareholder meetings.
Financial reporting and performance metrics
Calavo regularly reports its financial results through quarterly and annual earnings releases and related Form 10-K and Form 10-Q filings. These communications highlight segment net sales, gross profit, SG&A expenses, net income from continuing operations, adjusted net income and adjusted EBITDA. The company explains non-GAAP measures such as EBITDA, adjusted EBITDA and adjusted net income, and provides reconciliations to the most directly comparable GAAP measures in its press releases and SEC filings.
Recent results have shown differing trends between the Fresh and Prepared segments, with Prepared segment sales and gross profit growing due to higher volumes and operating efficiencies, while Fresh segment results have been affected by avocado and tomato volume and pricing, regulatory events and weather-related factors. Calavo also discusses balance sheet metrics, including cash and cash equivalents, liquidity and total debt, and notes that it defines liquidity as cash plus available borrowing capacity under its revolving credit facility.
Stock information
Calavo Growers, Inc. is incorporated in California and its common stock trades on the Nasdaq Global Select Market under the ticker symbol CVGW, as disclosed in multiple Form 8-K filings. The company’s SEC filings and news releases provide additional details on its capital structure, equity incentive plans, stock options, restricted stock units and related compensation arrangements.