Farmer Bros. Co. (FARM) Q4 2025 Earnings Call Transcript
Gross Margins Gross margins were above 43% for the year, a year-over-year improvement of 420 basis points. The fourth quarter gross margin was 44.9%, a year-over-year increase of 610 basis points. This improvement was attributed to a proactive pricing strategy that stayed ahead of rising green coffee market prices.
Adjusted EBITDA Adjusted EBITDA for the fourth quarter was $5.8 million and $14.8 million for the full fiscal year, representing a year-over-year improvement of more than $7 million for the quarter and more than $14 million for the full fiscal year. This improvement was driven by operational efficiencies and cost structure optimization.
Net Sales Net sales during the fourth quarter were $85.1 million compared to $84.4 million in the prior year period. For the full fiscal year, net sales were $342.3 million compared to $341.1 million in the prior year, showing a slight increase. The increase was modest due to challenges in the coffee market and consumer purchasing patterns.
Operating Expenses Operating expenses increased by $14.3 million to $150.4 million for the year, primarily due to a $20.2 million year-over-year decrease in net gains from asset sales. Excluding asset sales, operating expenses decreased by $6 million, reflecting progress in driving efficiencies in the SG&A cost structure.
Net Loss Net loss for the fourth quarter was $4.7 million compared to $4.6 million in the prior year. For the full fiscal year, the net loss was $14.5 million compared to $3.9 million in the prior year. The increase in net loss was due to noncash losses of $7.7 million related to pension settlements and a $20.2 million decrease in net gains on asset sales.
Free Cash Flow Free cash flow for the fourth quarter was $7.5 million and $6.5 million for the full fiscal year, representing a year-over-year increase of $12.1 million for the quarter and $34.5 million for the full fiscal year. This improvement was driven by better operating performance, improved working capital management, and CapEx efficiency.
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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.
Roth Capital Reaffirms Buy Rating on Farmer Bros, Reduces Price Target to $3
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders, helping them stay informed and make timely decisions in the stock market.
Exclusive Content: The platform provides exclusive stories and insights generated by Benzinga reporters, enhancing the trading experience for its users.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, indicating a robust network for sharing market intelligence.
Market Winning Tools: Benzinga Pro is designed to equip traders with the tools and information necessary to succeed in the markets daily.
Fresh Strong Sell Stocks for November 7
Stocks Added to Zacks Rank #5: DraftKings Inc., Farmer Bros. Co., and Golden Entertainment, Inc. have been added to the Zacks Rank #5 (Strong Sell) List due to significant downward revisions in their earnings estimates over the past 60 days.
Earnings Estimate Revisions: DraftKings' earnings estimate was revised down by 22.1%, Farmer Bros. by 7.3%, and Golden Entertainment by 16.2%.
Top Stock Recommendations: Zacks Investment Research has revealed their Top 5 stock recommendations, highlighting one that could significantly outperform previous successful picks.
Access to Stock Analysis Reports: Free stock analysis reports for Farmer Bros. Co., Golden Entertainment, and DraftKings are available for those interested in further insights.
Farmer Brothers anticipates gross margin challenges in the high 30s for 2026 due to increasing green coffee prices.
Management Insights: CEO John Moore reported significant operational and financial improvements for Farmer Bros. Co. in Q4 2025, including a gross margin above 43% and a $14 million year-over-year increase in adjusted EBITDA, despite challenges such as a 10% decrease in coffee volumes and rising green coffee prices.
Financial Performance: The company recorded net sales of $85.1 million for Q4 and a net loss of $4.7 million, with operating expenses rising to $150.4 million due to fewer asset sales. Management anticipates continued pressure on gross margins in fiscal 2026, projecting a drop into the high 30s range.
Today's Options Volatility and Implied Earnings Movements - September 11, 2025
Earnings Reports Today: Major companies reporting earnings today include Adobe, Farmer Brothers, Kroger, Vera Bradley, RH, KalVista Pharmaceuticals, The Lovesac Company, and IBEX.
Expected Earnings Moves: Investors can track expected stock movements based on options prices, with notable implied moves for companies reporting before and after market close, such as Kroger (+/- 6.53%) and Adobe (+/- 9.77%).
Anticipated Insights from Farmer Bros Co (FARM) Q4 2025 Earnings Report
Earnings Release and Estimates: Farmer Bros Co (NASDAQ:FARM) is set to release its Q4 2025 earnings on September 11, 2025, with revenue estimates at $81.66 million and expected earnings of -$0.19 per share. For the full year 2025, revenue is projected at $338.80 million with earnings of -$0.64 per share.
Recent Performance and Analyst Ratings: In the previous quarter, Farmer Bros Co reported revenue of $82.05 million, missing expectations, and saw a significant drop in stock price. Analysts have set an average target price of $3.75 for the stock, indicating a potential upside, while the consensus recommendation is an "Outperform" status.
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.
Roth Capital Reaffirms Buy Rating on Farmer Bros, Reduces Price Target to $3
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders, helping them stay informed and make timely decisions in the stock market.
Exclusive Content: The platform provides exclusive stories and insights generated by Benzinga reporters, enhancing the trading experience for its users.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, indicating a robust network for sharing market intelligence.
Market Winning Tools: Benzinga Pro is designed to equip traders with the tools and information necessary to succeed in the markets daily.
Fresh Strong Sell Stocks for November 7
Stocks Added to Zacks Rank #5: DraftKings Inc., Farmer Bros. Co., and Golden Entertainment, Inc. have been added to the Zacks Rank #5 (Strong Sell) List due to significant downward revisions in their earnings estimates over the past 60 days.
Earnings Estimate Revisions: DraftKings' earnings estimate was revised down by 22.1%, Farmer Bros. by 7.3%, and Golden Entertainment by 16.2%.
Top Stock Recommendations: Zacks Investment Research has revealed their Top 5 stock recommendations, highlighting one that could significantly outperform previous successful picks.
Access to Stock Analysis Reports: Free stock analysis reports for Farmer Bros. Co., Golden Entertainment, and DraftKings are available for those interested in further insights.
Farmer Brothers anticipates gross margin challenges in the high 30s for 2026 due to increasing green coffee prices.
Management Insights: CEO John Moore reported significant operational and financial improvements for Farmer Bros. Co. in Q4 2025, including a gross margin above 43% and a $14 million year-over-year increase in adjusted EBITDA, despite challenges such as a 10% decrease in coffee volumes and rising green coffee prices.
Financial Performance: The company recorded net sales of $85.1 million for Q4 and a net loss of $4.7 million, with operating expenses rising to $150.4 million due to fewer asset sales. Management anticipates continued pressure on gross margins in fiscal 2026, projecting a drop into the high 30s range.
Today's Options Volatility and Implied Earnings Movements - September 11, 2025
Earnings Reports Today: Major companies reporting earnings today include Adobe, Farmer Brothers, Kroger, Vera Bradley, RH, KalVista Pharmaceuticals, The Lovesac Company, and IBEX.
Expected Earnings Moves: Investors can track expected stock movements based on options prices, with notable implied moves for companies reporting before and after market close, such as Kroger (+/- 6.53%) and Adobe (+/- 9.77%).
Anticipated Insights from Farmer Bros Co (FARM) Q4 2025 Earnings Report
Earnings Release and Estimates: Farmer Bros Co (NASDAQ:FARM) is set to release its Q4 2025 earnings on September 11, 2025, with revenue estimates at $81.66 million and expected earnings of -$0.19 per share. For the full year 2025, revenue is projected at $338.80 million with earnings of -$0.64 per share.
Recent Performance and Analyst Ratings: In the previous quarter, Farmer Bros Co reported revenue of $82.05 million, missing expectations, and saw a significant drop in stock price. Analysts have set an average target price of $3.75 for the stock, indicating a potential upside, while the consensus recommendation is an "Outperform" status.
