TopGum Industries Ltd., the Israel-based functional gummy manufacturer, reported first-quarter 2026 revenue of $31.9 million, an 85% increase from the year-earlier period, marking the company's ninth consecutive record quarter measured against the corresponding prior-year frame. Adjusted EBITDA climbed 112% to $5.3 million, lifting the margin to 17% from roughly 15% in Q1 2025.
The dietary supplements segment drove the outperformance, generating $25.8 million — approximately 81% of total group revenue — on a triple-digit increase of roughly 162% year-on-year. The company disclosed that its order backlog for the supplements division, covering the next four to five months, reached a record $52 million, signalling continued near-term demand visibility despite broader macroeconomic uncertainty.
Earlier in May, TopGum completed the acquisition of gummy manufacturing operations in the United States from P&L Developments, securing its first physical production presence in what management describes as the company's primary target market. The deal also provides a pathway into the pharmaceutical sector, extending TopGum's addressable opportunity beyond the consumer health and supplement channel where it has built its growth record.
The U.S. move is consistent with a broader industry pattern in which contract manufacturers of functional formats — gummies in particular — are pursuing vertical integration and geographic diversification to capture margin and insulate against single-market concentration risk. Demand for gummy-format dietary supplements has expanded sharply across North American and European retail channels over the past three years, compressing lead times and pushing backlogs higher across the sector, as covered in recent F&B supply-chain analysis.
Looking ahead, TopGum said the strategic steps taken in recent years — including the U.S. acquisition and capacity investments — may support annual revenues exceeding $250 million in the dietary supplements segment alone, alongside an adjusted EBITDA margin above 20%. The company did not provide a specific timeline for reaching those targets, characterising the outlook as a multi-year trajectory rather than near-term guidance.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
