Farmer Brothers Coffee Announces Plan to Explore Strategic Alternatives
Written by Emily J. Thompson, Senior Investment Analyst
0mins
Should l Buy FARM?
Source: Newsfilter
Strategic Review Announcement: Farmer Bros. Co. has formed a strategy committee to evaluate options for maximizing shareholder value, engaging independent financial and legal advisors to assist in the process.
Operational Improvements: The company has made significant operational improvements since selling its direct ship business in 2023 and believes it is now the right time to explore additional strategic alternatives.
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Analyst Views on FARM
Wall Street analysts forecast FARM stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 1.600
Low
1.50
Averages
2.25
High
3.00
Current: 1.600
Low
1.50
Averages
2.25
High
3.00
About FARM
Farmer Bros. Co. is a coffee roaster, wholesaler, equipment servicer and distributor of coffee, tea and culinary products. Its product lines include organic, Direct Trade and sustainably produced coffee, as well as tea, cappuccino mixes, spices and baking/biscuit mixes. It delivers beverage-planning services and culinary products to a variety of U.S.-based customers, ranging from small independent restaurants and foodservice operators to institutional buyers, such as restaurant, department and convenience store chains, hotels, casinos, healthcare facilities and gourmet coffee houses, as well as grocery chains with private brand coffee and consumer branded coffee and tea products and foodservice distributors. Its primary brands include Farmer Brothers, Boyd’s, Cain’s, China Mist and West Coast Coffee. It distributes its products from its Portland, Oregon production facility, as well as separate distribution centers in Northlake, Illinois; Moonachie, New Jersey, and Rialto, California.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Farmer Bros. Co. Q2 2026 Earnings Call Insights
- Financial Performance Decline: Farmer Bros. reported net sales of $88.9 million for Q2, a 1% decrease year-over-year, while adjusted EBITDA was only $484,000, significantly down from $5.9 million in the prior year, indicating financial challenges under high costs and softening demand.
- Gross Margin Under Pressure: The gross margin for the quarter was 36.3%, reflecting a 680 basis point decline compared to the previous year, although management expects it to remain above 30% for the remainder of fiscal 2026, necessitating vigilance against green coffee market volatility.
- Operating Cost Control: Operating costs decreased by $1.4 million to $36.4 million this quarter, primarily due to reductions in selling and administrative expenses, showcasing the company's efforts in cost management aimed at enhancing overall profitability.
- Strategic Development Focus: Management emphasized the continued leverage of the DSD network and expansion of the white label portfolio to drive revenue growth, while actively assessing opportunities to maximize shareholder value, demonstrating the company's commitment to long-term growth amidst adversity.
See More
Farmer Bros. Co. Reports Q2 Operating Loss of $4.136 Million
- Company Overview: Farmer Bros. Co. reported a Q2 income from operations of $4.136 million.
- Financial Performance: The reported income indicates the company's operational profitability during the second quarter.
See More
Farmer Brothers Coffee Reports Q2 Earnings with Declining Sales and Increased Losses
- Sales Decline: Farmer Brothers Coffee reported Q2 net sales of $88.9 million, a decrease of $1 million or 1% year-over-year, indicating pressure in market competition that could affect future market share.
- Increased Net Loss: The company experienced a net loss of $4.9 million this quarter, compared to a net income of $200,000 in the prior year, highlighting significant financial challenges that may impact investor confidence.
- Declining Adjusted EBITDA: Adjusted EBITDA stood at $484,000, a sharp decline from $5.9 million in the same quarter last year, reflecting a substantial weakening in profitability that could complicate future financing efforts.
- Cash Flow Position: As of December 31, 2025, the company had $4.2 million in unrestricted cash and cash equivalents and $24.6 million available under its revolving credit facility, indicating some liquidity but raising concerns about the impact of ongoing losses on cash flow.
See More
Major Earnings Preview: Farmer Bros. Co.
- Earnings Release Preview: Farmer Bros. Co. is set to report its earnings after the market closes on Friday, with market participants keenly anticipating the results, which are expected to impact the company's stock price.
- Market Reaction Expectations: Investors are optimistic about Farmer Bros. Co.'s earnings report, with analysts generally believing that the results will reflect the company's operational capabilities in the current economic environment.
- Industry Context: As a coffee and food distributor, Farmer Bros. Co.'s earnings will provide critical insights into its market share and competitiveness, particularly in the context of economic recovery.
- Future Outlook: The earnings results will inform the company's future strategic decisions, with investors closely monitoring changes in revenue and profit to assess the company's growth potential.
See More
Farmer Brothers to Announce Q2 Earnings on February 13
- Earnings Announcement Date: Farmer Brothers is set to release its Q2 earnings report on February 13 after market close, with stakeholders keenly awaiting performance insights to gauge future growth potential.
- Earnings Expectations: The consensus EPS estimate stands at -$0.09, reflecting a staggering 1000% year-over-year decline, indicating significant profitability challenges that may dampen investor confidence.
- Revenue Forecast Changes: The consensus revenue estimate is $90.47 million, representing a modest 0.5% year-over-year increase, suggesting limited growth but still indicating some market demand that could support future recovery.
- Historical Performance Review: Over the past year, Farmer Brothers has only surpassed EPS and revenue estimates 25% of the time, highlighting instability in profitability and market performance, prompting investors to carefully assess the company's financial health.
See More
Roth Capital Upholds Buy Rating for Farmer Bros. (FARM)
Analyst Recommendation: Roth Capital has maintained a Buy recommendation for Farmer Bros. (NasdaqGS:FARM) as of November 28, 2025, with an average one-year price target of $2.55/share, indicating a potential upside of 61.39% from its current price of $1.58/share.
Projected Revenue and EPS: Farmer Bros. is projected to achieve annual revenue of $582 million, reflecting a 71.88% increase, while the expected non-GAAP EPS is -0.45.
Fund Sentiment: There are currently 78 funds reporting positions in Farmer Bros., with a slight decrease in ownership by 2.50% over the last quarter. The average portfolio weight for these funds is 0.07%, which has increased by 1.49%.
Shareholder Activity: Notable shareholders include 22nw, JCP Investment Management, and Gamco Investors, with some firms increasing their holdings in Farmer Bros. over the last quarter, while others have decreased their allocations.
See More
Farmer Bros. Co. Q2 2026 Earnings Call Insights
- Financial Performance Decline: Farmer Bros. reported net sales of $88.9 million for Q2, a 1% decrease year-over-year, while adjusted EBITDA was only $484,000, significantly down from $5.9 million in the prior year, indicating financial challenges under high costs and softening demand.
- Gross Margin Under Pressure: The gross margin for the quarter was 36.3%, reflecting a 680 basis point decline compared to the previous year, although management expects it to remain above 30% for the remainder of fiscal 2026, necessitating vigilance against green coffee market volatility.
- Operating Cost Control: Operating costs decreased by $1.4 million to $36.4 million this quarter, primarily due to reductions in selling and administrative expenses, showcasing the company's efforts in cost management aimed at enhancing overall profitability.
- Strategic Development Focus: Management emphasized the continued leverage of the DSD network and expansion of the white label portfolio to drive revenue growth, while actively assessing opportunities to maximize shareholder value, demonstrating the company's commitment to long-term growth amidst adversity.
See More
Farmer Bros. Co. Reports Q2 Operating Loss of $4.136 Million
- Company Overview: Farmer Bros. Co. reported a Q2 income from operations of $4.136 million.
- Financial Performance: The reported income indicates the company's operational profitability during the second quarter.
See More
Farmer Brothers Coffee Reports Q2 Earnings with Declining Sales and Increased Losses
- Sales Decline: Farmer Brothers Coffee reported Q2 net sales of $88.9 million, a decrease of $1 million or 1% year-over-year, indicating pressure in market competition that could affect future market share.
- Increased Net Loss: The company experienced a net loss of $4.9 million this quarter, compared to a net income of $200,000 in the prior year, highlighting significant financial challenges that may impact investor confidence.
- Declining Adjusted EBITDA: Adjusted EBITDA stood at $484,000, a sharp decline from $5.9 million in the same quarter last year, reflecting a substantial weakening in profitability that could complicate future financing efforts.
- Cash Flow Position: As of December 31, 2025, the company had $4.2 million in unrestricted cash and cash equivalents and $24.6 million available under its revolving credit facility, indicating some liquidity but raising concerns about the impact of ongoing losses on cash flow.
See More
Major Earnings Preview: Farmer Bros. Co.
- Earnings Release Preview: Farmer Bros. Co. is set to report its earnings after the market closes on Friday, with market participants keenly anticipating the results, which are expected to impact the company's stock price.
- Market Reaction Expectations: Investors are optimistic about Farmer Bros. Co.'s earnings report, with analysts generally believing that the results will reflect the company's operational capabilities in the current economic environment.
- Industry Context: As a coffee and food distributor, Farmer Bros. Co.'s earnings will provide critical insights into its market share and competitiveness, particularly in the context of economic recovery.
- Future Outlook: The earnings results will inform the company's future strategic decisions, with investors closely monitoring changes in revenue and profit to assess the company's growth potential.
See More
Farmer Brothers to Announce Q2 Earnings on February 13
- Earnings Announcement Date: Farmer Brothers is set to release its Q2 earnings report on February 13 after market close, with stakeholders keenly awaiting performance insights to gauge future growth potential.
- Earnings Expectations: The consensus EPS estimate stands at -$0.09, reflecting a staggering 1000% year-over-year decline, indicating significant profitability challenges that may dampen investor confidence.
- Revenue Forecast Changes: The consensus revenue estimate is $90.47 million, representing a modest 0.5% year-over-year increase, suggesting limited growth but still indicating some market demand that could support future recovery.
- Historical Performance Review: Over the past year, Farmer Brothers has only surpassed EPS and revenue estimates 25% of the time, highlighting instability in profitability and market performance, prompting investors to carefully assess the company's financial health.
See More
Roth Capital Upholds Buy Rating for Farmer Bros. (FARM)
Analyst Recommendation: Roth Capital has maintained a Buy recommendation for Farmer Bros. (NasdaqGS:FARM) as of November 28, 2025, with an average one-year price target of $2.55/share, indicating a potential upside of 61.39% from its current price of $1.58/share.
Projected Revenue and EPS: Farmer Bros. is projected to achieve annual revenue of $582 million, reflecting a 71.88% increase, while the expected non-GAAP EPS is -0.45.
Fund Sentiment: There are currently 78 funds reporting positions in Farmer Bros., with a slight decrease in ownership by 2.50% over the last quarter. The average portfolio weight for these funds is 0.07%, which has increased by 1.49%.
Shareholder Activity: Notable shareholders include 22nw, JCP Investment Management, and Gamco Investors, with some firms increasing their holdings in Farmer Bros. over the last quarter, while others have decreased their allocations.
See More
