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.
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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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