Shares of natural food company Hain Celestial (NASDAQ:HAIN) fell 25% in the morning session after the company reported disappointing second-quarter 2025 results that missed Wall Street expectations.

The company's revenue fell 13.2% year over year to $363.3 million, short of analyst forecasts. On an adjusted basis, Hain Celestial reported a loss of $0.02 per share, a significant miss compared to the $0.03 profit analysts had anticipated. Profitability was severely impacted by a $252 million pre-tax non-cash impairment charge related to goodwill and other assets, which pushed its operating margin down to negative 69.3%. Furthermore, adjusted EBITDA came in at $19.9 million, 28.2% below estimates, and organic sales declined by 11%, indicating persistent struggles with consumer demand.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hain Celestial? Access our full analysis report here, it’s free.

Hain Celestial’s shares are extremely volatile and have had 53 moves greater than 5% over the last year. But moves this big are rare even for Hain Celestial and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 5.7% on the news that the release of a cooler-than-expected Producer Price Index (PPI) report, fanned investor hopes for an interest rate cut by the Federal Reserve.

The U.S. Bureau of Labor Statistics reported that the PPI, a key measure of wholesale inflation, unexpectedly declined by 0.1% in August. This contrasted sharply with economists' forecasts of a 0.3% rise and followed a revised 0.7% increase in July.

This sign of easing inflation, combined with other recent data pointing to a weakening U.S. labor market, has convinced many investors that the central bank will lower borrowing costs. The Federal Reserve, which closely monitors inflation and employment data, is now widely expected to implement a rate cut at its meeting next week to help stimulate the economy.

Hain Celestial is down 72.8% since the beginning of the year, and at $1.64 per share, it is trading 82% below its 52-week high of $9.09 from October 2024. Investors who bought $1,000 worth of Hain Celestial’s shares 5 years ago would now be looking at an investment worth $48.79.

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