Farmer Bros
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Farmer Bros (FARM) investor relations material

Farmer Bros Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary13 Feb, 2026

Executive summary

  • Net sales for the quarter ended December 31, 2025, decreased 1.2% year-over-year to $88.9 million, primarily due to declining volumes despite higher average unit prices.

  • Gross margin fell to 36.3% from 43.1% year-over-year, driven by increased green coffee commodity costs and higher inventory costs.

  • Net loss for the quarter was $4.9 million, compared to net income of $0.2 million in the prior year.

  • Adjusted EBITDA was $484,000, a significant decline from $5.9 million in the prior year.

  • Operating expenses decreased to $36.4 million, including a $700,000 reduction in general and administrative costs.

Financial highlights

  • Six-month net sales decreased 2.6% year-over-year to $170.5 million.

  • Six-month gross margin declined to 37.9% from 43.5% year-over-year.

  • Adjusted EBITDA for the quarter was $484,000 (0.5% margin), down from $5.9 million (6.6% margin) year-over-year.

  • Net cash used in operating activities for the six months was $5.8 million, compared to $5.0 million provided in the prior year.

  • As of December 31, 2025, unrestricted cash and equivalents were $4.2 million, with $24.6 million available under the revolver.

Outlook and guidance

  • Gross margins are expected to remain pressured and average in the high 30s for fiscal 2026, with potential improvement starting in Q4 2026 if commodity trends continue.

  • Management expects capital expenditures for fiscal 2026 to be between $9.0 million and $11.0 million, funded by operations and credit facility.

  • The company believes current liquidity and credit facility availability are sufficient for the next 12 months and beyond.

  • Focus remains on growing top-line revenue, coffee pounds, and customer counts in the second half of fiscal 2026.

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Frequently asked questions

Farmer Brothers Co. engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products. The company also markets its own brand of instant coffee and cappuccino. Its products include flavored creamers, peanut butter, cinnamon, nutmeg, powdered mixes for gravy and desserts, chocolate syrups, salad dressings, barbecue sauces, vegetable oils national brand vegetables and canned vegetables. Farmer Brothers Co. is based in Northlake, Texas.

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