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
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