[Management View]
Mission Produce delivered record third-quarter revenues of $357.7 million, driven by a 10% rise in avocado volumes sold. The company emphasized the strength of its vertically integrated supply model and strategic global sourcing capabilities, particularly in Europe and Asia.

[Outlook]
Management expects a 15% increase in avocado volumes in Q4, with average pricing anticipated to decline by 20%-25%. Continued investments in supply chain and packhouse infrastructure are planned, especially ahead of the Mexican harvest season.

[Financial Performance]
Total revenue increased by 10% YoY to $357.7 million. Adjusted net income rose to $18.2 million or $0.26 per diluted share, compared to $16.7 million or $0.23 per diluted share last year. Adjusted EBITDA increased by 3% to $32.6 million.

[Q&A Highlights]
Question 1: Did you note the impact of tariffs in the third quarter or the first nine months of the year?
Answer: We spent a little over $5 million on tariff-related expenses through the nine months ended. We expect Q4 to be largely in line with Q3, with more volume coming out of Peru into the US market at slightly lower selling prices.

Question 2: How has the tariff environment impacted the order of trade?
Answer: There has been no significant shift in where we placed product this year. We went to where the demand was and ensured product support for that demand.

Question 3: Can you talk about your expectations for acreage expansion from '25 to '26 and beyond?
Answer: We have a target of about 1,000 hectares for blueberries by fiscal 2027-2028. For avocados, we have some extra land but no major expansion plans. For mangoes, we plan to tap into partnerships with quality mango farmers.

Question 4: Are there opportunities to expand further in Europe or Asia using your playbook?
Answer: We are strategically oriented to optimize and support the US market. In Europe, we have seen success with our UK facility and may consider inorganic growth. In Asia, we have developed new partnerships and upgraded our team to drive future business.

Question 5: Are international markets more dependent on the size of the harvest coming out of Peru and Mexico?
Answer: Yes, the size of the harvest from Peru and Mexico opens up more opportunities for us on the margin.

Question 6: What would be a run rate for SG&A on a go-forward basis?
Answer: SG&A has a variable component tied to profit-sharing, particularly in the farming segment. North of 50% of the increase in Q3 was due to variable costs.

[Sentiment Analysis]
The tone of the management was optimistic, highlighting strong performance and strategic execution. Analysts' questions focused on tariffs, international expansion, and future growth plans, indicating a positive outlook on the company's strategic direction.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|----------------------------|-----------------|-----------------|
| Total Revenue | $357.7 million | $325.2 million |
| Adjusted Net Income | $18.2 million | $16.7 million |
| Adjusted EBITDA | $32.6 million | $31.5 million |
| Gross Profit | $45.1 million | $37.0 million |
| Gross Margin | 12.6% | 11.4% |

[Risks and Concerns]
- Tariff impact: Projected direct tariff cost of approximately $10 million annually.
- Pricing pressure: Expected decline in average pricing by 20%-25% due to increased industry supply.
- SG&A increase: Variable expenses related to performance-based compensation and profit-sharing.

[Final Takeaway]
Mission Produce demonstrated resilience and strategic execution in Q3 2025, achieving record revenues and strong financial performance. The company's global sourcing capabilities and investments in infrastructure position it well for future growth, despite potential pricing pressures and tariff impacts. Management's focus on optimizing supply chains and expanding market access in Europe and Asia underscores their commitment to long-term value creation for shareholders.