Farmer Brothers | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 81.6 M

Revenue: As of FY2026 Q1, the actual value is USD 81.6 M, missing the estimate of USD 86.26 M.

EPS: As of FY2026 Q1, the actual value is USD -0.19, missing the estimate of USD -0.11.

EBIT: As of FY2026 Q1, the actual value is USD -1.857 M.

Segment Revenue

• Net Sales: For the three months ended September 30, 2025, net sales were $81.6 million, a decrease of 4.1% from $85.1 million in the same period in 2024.

Operational Metrics

• Gross Profit: Gross profit decreased to $32.4 million for the three months ended September 30, 2025, compared to $37.3 million for the same period in 2024. Gross margin decreased to 39.7% from 43.9%.
• Operating Expenses: Operating expenses decreased by $4.5 million to $35.6 million, or 43.6% of net sales, from $40.1 million, or 47.2% of net sales in the prior year period. This includes a $1.4 million decrease in selling expenses and a $2.5 million decrease in general and administrative expenses.
• Net Loss: The net loss was $4.0 million for the three months ended September 30, 2025, compared to a net loss of $5.0 million for the same period in 2024.

Cash Flow

• Operating Cash Flow: Net cash used in operating activities was $5.0 million for the three months ended September 30, 2025, compared to net cash provided by operating activities of $2.5 million in the same period in 2024.
• Investing Cash Flow: Net cash used in investing activities was $1.9 million, compared to $3.3 million in the same period in 2024.
• Financing Cash Flow: Net cash provided by financing activities was $4.0 million, compared to net cash used in financing activities of $0.1 million in the same period in 2024.

Unique Metrics

• Coffee Pounds: Coffee pounds sold were 4,695 for the three months ended September 30, 2025, a decrease of 3.5% from 4,863 in the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: The company continues to monitor macroeconomic trends and uncertainties such as product cost inflation and the effects of tariffs, which may impact net sales and profitability. The company anticipates increased commodity cost volatility and consumer and economic uncertainty due to changes in global trade policies.
• Non-Core Business: No specific plans related to divestitures or emerging segments were mentioned in the report.