Group 1 - Alico, Inc. will present at the 19th annual LD Micro Main Event from October 19-21, 2025, in San Diego, California [1][3] - The presentation by Alico's CEO, John Kiernan, is scheduled for October 20, 2025, at 2:30 PM ET, with one-on-one investor meetings on October 20 and 21 [2] - The LD Micro Main Event XIX will feature around 120 companies presenting in half-hour increments, along with private meetings with investors [3] Group 2 - Alico, Inc. is a Florida-based agribusiness and land management company with over 125 years of experience, operating approximately 51,300 acres across 8 Florida counties [4] - The company focuses on strategic land development opportunities and diversified agricultural operations, aiming to create long-term shareholder value while committing to responsible land stewardship [4] Group 3 - LD Micro is dedicated to providing resources in the small-cap space, hosting influential events and offering access and insight for investors seeking emerging companies [5]

Understanding how to analyze Alico (NASDAQ: ALCO ) means understanding what it can do with its land, that is, with the sales of acres and agricultural leases, rather than with the recurrenceWith a degree in Finance and Accounting and previous experience in financial advisory, I use The Sharpe Quest to share my path as an independent investor and market analyst. My approach mixes long-term conviction holdings with tactical sector rotations, driven by the belief that investing isn’t about being right, it’s ab ...

Group 1 - The core focus of Alico (NASDAQ: ALCO) is on the utilization of its land through sales of acres and agricultural leases rather than relying on recurring revenue streams [1] - The investment strategy emphasizes a mix of long-term conviction holdings and tactical sector rotations, highlighting the importance of making money over merely being right in investment decisions [1] - The approach targets undercovered opportunities and momentum-driven sectors, indicating a strategic focus on identifying potential growth areas in the market [1]

Financial Data and Key Metrics Changes - For Q3 FY2025, revenue decreased by 38% to $8.4 million compared to $13.6 million in the prior year period [11] - For the nine months ended June 30, 2025, revenue decreased by 5% to $43.3 million compared to $45.7 million in the prior year period [11] - Net loss attributable to common stockholders for Q3 FY2025 was $18.3 million, compared to a loss of $2 million in the same period last year [14] - EBITDA for Q3 FY2025 was $19.2 million, compared to $1.3 million for Q3 FY2024 [16] - Cash and cash equivalents increased to $42.1 million as of June 30, 2025, from $3.2 million at the end of FY2024 [16] Business Line Data and Key Metrics Changes - Citrus harvest volumes for Q3 FY2025 were approximately 2.1 million pound solids, down from 4.3 million pound solids in Q3 FY2024 [11] - Land Management and other operations revenue increased by 5768% for Q3 FY2025, primarily due to increased rock and sand royalty income and sod sales [12] - The company completed its last major citrus harvest in April 2025, marking a shift away from capital-intensive citrus operations [5][18] Market Data and Key Metrics Changes - The company achieved $9.3 million from combined land and equipment sales in Q3 FY2025, with year-to-date land sales reaching $23.5 million, exceeding the original guidance of $20 million [6][20] - The estimated present value of near-term real estate development projects is between $335 million and $380 million, representing significant value from just 10% of land holdings [9] Company Strategy and Development Direction - The company is transitioning to a diversified land company model, focusing on land development and diversified usage strategies [5][18] - The approval of House Bill 4,041 for the Corkscrew Grove Stewardship District is a significant regulatory milestone that supports the company's development strategy [7][19] - The company is maintaining a balance between high-value property development and diversified agricultural operations [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver enhanced long-term returns for shareholders, with expectations of approximately $20 million in adjusted EBITDA for FY2025 [20][21] - The company is positioned to end the fiscal year with at least $25 million in cash and sufficient liquidity to fund operations through FY2027 [20] Other Important Information - The company has no significant debt maturities until 2029, with total debt at $85.2 million and net debt at $43.2 million as of June 30, 2025 [17] Q&A Session Summary Question: Are you currently in discussions for additional land sales? - Management indicated that discussions are ongoing, but the timing for closing these transactions is uncertain, potentially rolling into FY2026 [25][26] Question: What are potential milestones to watch for regarding Corkscrew? - Management noted that external variables could affect the entitlement process, but they remain confident in the timeline for securing permits [27][28] Question: Will Alico partner with other groups on development? - Currently, Alico is handling the entitlement process independently, with no immediate need for partners, but they have options for future partnerships [29][30][31]

Company Performance - Alico reported a quarterly loss of $2.39 per share, significantly worse than the Zacks Consensus Estimate of a loss of $1.09, and compared to a loss of $0.27 per share a year ago, indicating a surprise of -119.27% [1] - The company posted revenues of $8.39 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 5.73%, and down from $13.61 million in the same quarter last year [2] - Over the last four quarters, Alico has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Outlook - Alico shares have increased by approximately 25% since the beginning of the year, outperforming the S&P 500's gain of 8.4% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates for the upcoming quarter at -$0.38 on $0.3 million in revenues, and -$10.41 on $44 million in revenues for the current fiscal year [4][7] - The estimate revisions trend for Alico was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Agriculture - Operations industry, to which Alico belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8] - Another company in the same industry, Limoneira, is expected to report quarterly earnings of $0.19 per share, reflecting a year-over-year decline of 54.8%, with revenues projected at $54.7 million, down 13.6% from the previous year [9]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Presents Alico, Inc.'s unaudited condensed consolidated financial statements and notes for Q2 and YTD 2025 and 2024, covering financial position, operations, equity, and cash flows Condensed Consolidated Balance Sheets | (in thousands) | June 30, 2025 | September 30, 2024 | | :--------------------------------- | :------------ | :----------------- | | Cash and cash equivalents | $42,073 | $3,150 | | Total current assets | $55,957 | $40,627 | | Property and equipment, net | $149,460 | $352,733 | | Total assets | $210,560 | $398,719 | | Total current liabilities | $5,969 | $10,651 | | Long-term debt, net | $81,320 | $82,313 | | Total liabilities | $93,860 | $142,424 | | Total stockholders' equity | $116,700 | $256,295 | Condensed Consolidated Statements of Operations | (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Total operating revenues | $8,390 | $13,610 | $43,264 | $45,708 | | Gross loss | $(28,056) | $(4,287) | $(185,991) | $(36,700) | | Loss from operations | $(30,923) | $(6,728) | $(194,832) | $(44,734) | | Net (loss) income attributable to Alico, Inc. common stockholders | $(18,289) | $(2,044) | $(138,841) | $25,097 | | Basic (Loss) earnings per common share | $(2.39) | $(0.27) | $(18.18) | $3.29 | | Diluted (Loss) earnings per common share | $(2.39) | $(0.27) | $(18.18) | $3.29 | | Cash dividends declared per common share | $0.05 | $0.05 | $0.15 | $0.15 | Condensed Consolidated Statements of Changes in Equity | (in thousands) | Balance at Sept 30, 2024 | Net income (loss) | Dividends ($0.15/share) | Stock-based compensation | Balance at June 30, 2025 | | :--------------- | :----------------------- | :---------------- | :---------------------- | :----------------------- | :----------------------- | | Common stock | $8,416 | — | — | — | $8,416 | | Paid In Capital | $20,184 | — | — | $149 | $20,333 | | Treasury Stock | $(26,694) | — | — | $410 | $(26,284) | | Retained Earnings| $249,253 | $(138,841) | $(1,146) | — | $109,266 | | Total Alico, Inc. Equity | $251,159 | $(138,841) | $(1,146) | $559 | $111,731 | | Noncontrolling Interest | $5,136 | $(167) | — | — | $4,969 | | Total Equity | $256,295 | $(139,008) | $(1,146) | $559 | $116,700 | Condensed Consolidated Statements of Cash Flows | (in thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------ | :------------------------------ | | Net cash provided by (used in) operating activities | $22,841 | $(18,720) | | Net cash provided by investing activities | $24,693 | $70,088 | | Net cash used in financing activities | $(8,097) | $(45,954) | | Net increase in cash and cash equivalents and restricted cash | $39,437 | $5,414 | | Cash and cash equivalents and restricted cash at end of the period | $42,835 | $9,106 | Notes to Condensed Consolidated Financial Statements Note 1. Description of Business and Basis of Presentation - Alico, Inc. is a Florida agribusiness and land management company owning approximately **50,570 acres** of land and **46,200 acres** of mineral rights, operating in two segments: Alico Citrus and Land Management and Other Operations[30](index=30&type=chunk) - On January 6, 2025, the Company announced a Strategic Transformation to wind down its Alico Citrus division due to financial challenges from citrus greening disease and environmental factors, focusing instead on diversified land usage and real estate development, involving a workforce reduction of up to **172 employees**[31](index=31&type=chunk) - In May 2025, the Company terminated its agreement with Tropicana following the fulfillment of all obligations for the 2024/2025 Crop Year[31](index=31&type=chunk) - The Company's Board of Directors approved a stock repurchase program on March 25, 2025, authorizing repurchases of up to **$50.0 million** of common stock, expiring April 1, 2028[36](index=36&type=chunk) Note 2. Summary of Significant Accounting Policies - Revenue is primarily derived from the sale of processed fruit, fresh fruit, and grove management services, recognized when control is transferred to customers, typically upon delivery and acceptance[39](index=39&type=chunk)[40](index=40&type=chunk) Disaggregated Revenue (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Alico Citrus | $7,805 | $13,237 | $41,384 | $44,591 | | Land Management and Other Operations | $585 | $373 | $1,880 | $1,117 | | Total Revenues | $8,390 | $13,610 | $43,264 | $45,708 | - The Company recognized **$1,116 thousand** and **$2,911 thousand** in grant monies from the CRAFT program for citrus greening combat for the nine months ended June 30, 2025 and 2024, respectively[54](index=54&type=chunk) - For the nine months ended June 30, 2025, the Company recognized an impairment of long-lived assets totaling **$24,966 thousand**, primarily affecting young trees and assets at one grove, due to the Strategic Transformation[56](index=56&type=chunk) Note 3. Inventories | (in thousands) | June 30, 2025 | September 30, 2024 | | :--------------- | :------------ | :----------------- | | Unharvested fruit crop on the trees | $2,428 | $28,921 | | Other | $567 | $1,163 | | Total inventories| $2,995 | $30,084 | - Inventory adjustments to net realizable value were **$9,895 thousand** for the nine months ended June 30, 2025, primarily due to a lower than anticipated harvest caused by Hurricane Milton, a significant decrease from **$28,549 thousand** in the prior year, which was impacted by Hurricane Ian[68](index=68&type=chunk) - The Company received **$20,010 thousand** in insurance proceeds related to Hurricane Milton for the nine months ended June 30, 2025[69](index=69&type=chunk) Note 4. Assets Held for Sale | (in thousands) | June 30, 2025 | September 30, 2024 | | :--------------- | :------------ | :----------------- | | Alico Citrus | $6,659 | $3,037 | | Total assets held for sale | $6,659 | $3,106 | - During the nine months ended June 30, 2025, the Company sold approximately **2,794 acres** of land for **$23,502 thousand**[72](index=72&type=chunk) - In the prior year (nine months ended June 30, 2024), the Company sold approximately **18,354 acres** of land for **$86,217 thousand**, including **17,229 acres** of the Alico Ranch to the State of Florida, recognizing a gain of **$81,246 thousand**[73](index=73&type=chunk) Note 5. Property and Equipment, Net | (in thousands) | June 30, 2025 | September 30, 2024 | | :--------------- | :------------ | :----------------- | | Citrus trees | $54,364 | $319,149 | | Equipment and other facilities | $39,015 | $58,293 | | Buildings and improvements | $5,212 | $6,515 | | Land and land improvements | $112,896 | $114,862 | | Property and equipment, net | $149,460 | $352,733 | - Due to the Strategic Transformation, the Company recognized an impairment of young trees and long-lived assets at one grove totaling **$24,966 thousand** for the nine months ended June 30, 2025[75](index=75&type=chunk)[76](index=76&type=chunk) - The estimated useful life of citrus trees was changed to **4-16 months**, resulting in accelerated depreciation of approximately **$160,526 thousand** for the nine months ended June 30, 2025, impacting net income by **$126,816 thousand** and diluted EPS by a loss of **$16.61**[79](index=79&type=chunk) Note 6. Accrued Liabilities | (in thousands) | June 30, 2025 | September 30, 2024 | | :--------------- | :------------ | :----------------- | | Ad valorem taxes | $1,182 | $1,898 | | Accrued employee wages and benefits | $964 | $1,727 | | Accrued interest | $549 | $554 | | Accrued dividends| $382 | $381 | | Professional fees| $163 | $275 | | Accrued insurance| $73 | $124 | | Other accrued liabilities | — | $407 | | Total accrued liabilities | $3,313 | $5,366 | Note 7. Restructure and Other Charges - The Board approved a workforce reduction of up to **172 employees** as part of the Strategic Transformation, with **135 employees** affected by January 6, 2025, and **34 more** between April 1 and May 30, 2025[81](index=81&type=chunk) | (in thousands) | Personnel | Other | Total | | :--------------- | :-------- | :---- | :---- | | Restructure expense | $2,261 | $313 | $2,574| | Restructure payments | $(2,121) | $(313) | $(2,434)| | Balance at June 30, 2025 | $140 | — | $140 | Note 8. Long-Term Debt and Lines of Credit | (in thousands) | June 30, 2025 | September 30, 2024 | | :--------------- | :------------ | :----------------- | | Met Fixed-Rate Term Loans | $70,000 | $70,000 | | Pru Loans A & B | $9,587 | $10,457 | | Met Citree Term Loan | $3,513 | $3,700 | | Long-term debt | $81,320 | $82,313 | | (in thousands) | June 30, 2025 | September 30, 2024 | | :--------------- | :------------ | :----------------- | | RLOC | $2,500 | $8,394 | | Line of Credit | $1,761 | $7,723 | - On March 31, 2025, the Company entered into a Seventh Amendment to its Credit Agreement with Met, removing previous restrictive covenants and replacing them with a Quarterly Liquidity Covenant requiring maintenance of cash and cash equivalents equal to **1.5 times** the cumulative sum of scheduled principal and interest payments due to Met and Prudential, plus projected interest payments on the Amended RLOC, and maintaining Working Capital in excess of this Minimum Liquidity Requirement[88](index=88&type=chunk)[169](index=169&type=chunk) - As of June 30, 2025, the Minimum Liquidity Requirement was **$7,400 thousand**, and the Company was in compliance with all financial covenants[88](index=88&type=chunk)[92](index=92&type=chunk) Note 9. Income Taxes Effective Tax Rate | Period | Effective Tax Rate | | :----- | :----------------- | | Three Months Ended June 30, 2025 | 29.9% (benefit) | | Nine Months Ended June 30, 2025 | 21.0% (benefit) | | Three Months Ended June 30, 2024 | (31.1)% (benefit) | | Nine Months Ended June 30, 2024 | 28.4% (provision) | - The effective tax rate for the three and nine months ended June 30, 2025, differed from the federal statutory rate primarily due to a change in the valuation allowance, as management determined it was not 'more likely than not' that deferred tax assets would be realized, mainly due to anticipated cumulative three-year loss from accelerated book depreciation on citrus assets[97](index=97&type=chunk) - The H.R. 1 - One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, and the Company is evaluating its potential impact on financial position, results of operations, and cash flows[99](index=99&type=chunk) Note 10. Segment Information Segment Revenues (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Alico Citrus | $7,805 | $13,237 | $41,384 | $44,591 | | Land Management and Other Operations | $585 | $373 | $1,880 | $1,117 | | Total operating revenues | $8,390 | $13,610 | $43,264 | $45,708 | Segment Gross (Loss) Profit (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Alico Citrus | $(28,499) | $(4,576) | $(187,638) | $(37,471) | | Land Management and Other Operations | $443 | $289 | $1,647 | $771 | | Total gross (loss) profit | $(28,056) | $(4,287) | $(185,991) | $(36,700) | Segment Assets (in thousands) | Segment | June 30, 2025 | September 30, 2024 | | :-------------------------- | :------------ | :----------------- | | Alico Citrus | $196,596 | $383,777 | | Land Management and Other Operations | $12,491 | $13,134 | | Other Corporate Assets | $1,473 | $1,808 | | Total Assets | $210,560 | $398,719 | Note 11. Leases - The Company's leases primarily consist of operating lease arrangements for office space, tractor leases, and IT facilities, with lease costs recorded in general and administrative expenses of **$37 thousand** for both the three months ended June 30, 2025 and 2024, and **$111 thousand** for both the nine months ended June 30, 2025 and 2024[103](index=103&type=chunk)[106](index=106&type=chunk) - The weighted-average remaining lease term for operating leases as of June 30, 2025, was **1.2 years**, with a weighted-average discount rate of **5.34%**[106](index=106&type=chunk) Note 12. Stock-based Compensation - Total stock-based compensation expense recognized in general and administrative expense was **$195 thousand** for the three months ended June 30, 2025 (vs. **$175 thousand** in 2024) and **$559 thousand** for the nine months ended June 30, 2025 (vs. **$544 thousand** in 2024)[117](index=117&type=chunk) - On December 23, 2024, the Company granted Market-based Restricted Stock Units (MRSUs) to an executive, eligible to be earned if the average 30-day closing stock price exceeds specified thresholds (**$35, $40, $45 per share**) by September 30, 2027[114](index=114&type=chunk) Market-based Restricted Stock Units (MRSUs) at June 30, 2025 | Metric | Value | | :-------------------------------- | :------ | | Shares Outstanding | 38,000 | | Weighted Average Grant Date Fair Value | $12.32 | | Weighted Average Remaining Contractual Term | 2.8 years | | Aggregate Intrinsic Value Expected to Vest | $1,134 | Note 13. Commitments and Contingencies - The Company is involved in litigation arising from normal business operations but believes no current legal proceedings will have a material adverse effect on its financial condition[118](index=118&type=chunk) Note 14. Related Party Transactions - On June 10, 2024, Citree operating partners received a funding notice for a **$750 thousand** Cash Capital Contribution due to limited revenue from hurricane-affected trees, with Alico's portion being **$382 thousand**, funded on July 11, 2024[119](index=119&type=chunk) Note 15. Subsequent Events - No additional events requiring disclosure were identified between June 30, 2025, and the financial statements' issuance date[120](index=120&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion of Alico, Inc.'s financial condition and results of operations for Q2 and YTD 2025 and 2024 Business Overview - Alico's operating revenues are primarily from citrus product sales, third-party grove management, and grazing/hunting leasing, with the Alico Citrus segment winding down operations post-2024/2025 harvest to focus on diversified land usage and real estate development[122](index=122&type=chunk) Key Financial Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Operating revenue | $8,390 | $13,610 | $43,264 | $45,708 | | Loss from operations | $(30,923) | $(6,728) | $(194,832) | $(44,734) | | Net loss attributable to common stockholders | $(18,289) | $(2,044) | $(138,841) | $25,097 | | Net cash provided by (used in) operating activities | N/A | N/A | $22,841 | $(18,720) | - For the three months ended June 30, 2025, Alico Citrus generated **93.0%** of consolidated revenues, while Land Management and Other Operations generated **7.0%**, with these figures being **95.7%** and **4.3%**, respectively, for the nine months[125](index=125&type=chunk)[126](index=126&type=chunk) Recent Developments - The Corkscrew Grove Stewardship District was created on June 25, 2025, to finance infrastructure, manage natural areas, and oversee master-planned communities in eastern Collier County, assisting Alico's land development efforts[128](index=128&type=chunk) - During the quarter ended June 30, 2025, the Company sold approximately **694 acres** of land for **$6,247 thousand** (**$9,000 per acre**)[129](index=129&type=chunk) - The Company received **$15,970 thousand** in crop insurance proceeds related to Hurricane Milton during the three months ended June 30, 2025, bringing the nine-month total to **$20,010 thousand**[130](index=130&type=chunk) - Grant monies of **$1,116 thousand** were received from the CRAFT Program during the three months ended June 30, 2025[131](index=131&type=chunk) Condensed Consolidated Results of Operations | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | Change ($) | Change (%) | | :--------------------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | :------------------------------ | :------------------------------ | :--------- | :--------- | | Total operating revenues | $8,390 | $13,610 | $(5,220) | (38.4)% | $43,264 | $45,708 | $(2,444) | (5.3)% | | Total gross (loss) profit | $(28,056) | $(4,287) | $(23,769) | 554.4% | $(185,991) | $(36,700) | $(149,291) | 406.8% | | Loss from operations | $(30,923) | $(6,728) | $(24,195) | 359.6% | $(194,832) | $(44,734) | $(150,098) | 335.5% | | Total other income, net | $4,799 | $3,958 | $841 | 21.2% | $18,950 | $78,969 | $(60,019) | (76.0)% | | (Loss) income before income taxes | $(26,124) | $(2,770) | $(23,354) | NM | $(175,882) | $34,235 | $(210,117) | NM | | Net loss attributable to Alico, Inc. common stockholders | $(18,289) | $(2,044) | $(16,245) | NM | $(138,841) | $25,097 | $(163,938) | NM | Operating Revenue - Total operating revenue decreased by **38.4%** for the three months and **5.3%** for the nine months ended June 30, 2025, primarily due to earlier citrus harvests and a **26.4%** decrease in total pound solids produced (impacted by Hurricane Milton)[134](index=134&type=chunk)[136](index=136&type=chunk) - These decreases were partially offset by a **28.5%** increase in Valencia crop price per pound solids for the three months and a blended **30.2%** increase for the nine months, driven by favorable Tropicana contract pricing[135](index=135&type=chunk)[136](index=136&type=chunk) - Land Management and Other Operations revenue increased by **56.8%** and **68.3%** for the three and nine months, respectively, mainly due to higher rock and sand royalty income and sod sales, despite lower farm, grazing, and hunting lease revenues from the Alico Ranch sale[137](index=137&type=chunk) Operating Expenses - Operating expenses increased by **$18,549 thousand** for the three months and **$146,847 thousand** for the nine months ended June 30, 2025, primarily driven by accelerated depreciation of approximately **$40,586 thousand** and **$159,941 thousand** on citrus trees, respectively, due to the Strategic Transformation, and a **$24,966 thousand** impairment of young trees and long-lived assets[138](index=138&type=chunk) - Offsetting these increases were lower inventory adjustments (**$9,895 thousand** for nine months vs. **$28,549 thousand** prior year) and **$20,010 thousand** in crop insurance proceeds from Hurricane Milton for the nine months[138](index=138&type=chunk) General and Administrative Expense - General and administrative expense increased by **$426 thousand** for the three months and **$807 thousand** for the nine months ended June 30, 2025, due to accelerated depreciation on administrative assets, higher employee costs (bonus accruals), and increased legal fees related to the Strategic Transformation[139](index=139&type=chunk)[140](index=140&type=chunk) Other Income (Expense), net - Other income (expense), net increased by **$841 thousand** for the three months ended June 30, 2025, driven by the sale of **694 acres** of land and a **$1,275 thousand** gain from equipment and vehicle sales[141](index=141&type=chunk) - For the nine months, other income (expense), net decreased by **$60,019 thousand**, primarily due to fewer land sales compared to the prior year when the Alico Ranch was sold to the State of Florida[142](index=142&type=chunk) Income Taxes - The income tax benefit increased by **$6,939 thousand** for the three months ended June 30, 2025, due to a higher pre-tax loss from accelerated depreciation of citrus assets[143](index=143&type=chunk) - For the nine months, the change to a tax benefit from a tax provision (a **$46,595 thousand** shift) was driven by decreased earnings from accelerated depreciation, contrasting with the prior year's tax expense from the Alico Ranch sale[144](index=144&type=chunk)[145](index=145&type=chunk) Alico Citrus Segment Alico Citrus Segment Operating Revenues (in thousands) | Operating Revenues | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | :------------------------------ | :------------------------------ | :--------- | :--------- | | Valencias | $7,795 | $12,183 | $(4,388) | (36.0)% | $24,088 | $26,915 | $(2,827) | (10.5)% | | Grove Management Services | $7 | $946 | $(939) | (99.3)% | $888 | $2,341 | $(1,453) | (62.1)% | | Total | $7,805 | $13,237 | $(5,432) | (41.0)% | $41,384 | $44,591 | $(3,207) | (7.2)% | Alico Citrus Segment Production Metrics | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (%) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :------------------------------ | :------------------------------ | :--------- | | Total Processed Boxes Harvested | 420 | 843 | (50.2)% | 2,249 | 3,049 | (26.2)% | | Total Pound Solids Produced | 2,134 | 4,294 | (50.3)% | 10,846 | 14,729 | (26.4)% | | Valencia Price per Pound Solids | $3.65 | $2.84 | 28.5% | $3.64 | $2.87 | 26.8% | - The decrease in Alico Citrus revenue was primarily due to a **50.3%** and **26.4%** decrease in total pound solids produced for the three and nine months, respectively, largely caused by fruit drop from Hurricane Milton, with Grove Management Services revenue also significantly decreasing due to the expiration of the Grove Owners contract[149](index=149&type=chunk)[150](index=150&type=chunk) - Cost of Sales for Alico Citrus increased significantly due to accelerated depreciation on citrus trees and the impairment of young trees and long-lived assets, partially offset by lower inventory adjustments and crop insurance proceeds[151](index=151&type=chunk) Land Management and Other Operations Segment Land Management and Other Operations Segment Revenues (in thousands) | Revenue From: | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | :------------------------------ | :------------------------------ | :--------- | :--------- | | Land and Other Leasing | $496 | $302 | $194 | 64.2% | $1,649 | $894 | $755 | 84.5% | | Other | $89 | $71 | $18 | 25.4% | $231 | $223 | $8 | 3.6% | | Total | $585 | $373 | $212 | 56.8% | $1,880 | $1,117 | $763 | 68.3% | - Revenue for Land Management and Other Operations increased by **56.8%** and **68.3%** for the three and nine months, respectively, primarily due to higher rock and sand royalty income and sod sales, partially offset by reduced farm, grazing, and hunting lease revenues following the sale of Alico Ranch[156](index=156&type=chunk) - Operating expenses for this segment increased by **69.0%** for the three months due to sod sales but decreased by **32.7%** for the nine months, mainly attributable to lower property and real estate taxes after the Alico Ranch sale[157](index=157&type=chunk) Seasonality - Historically, Alico's citrus business was seasonal, with most annual revenue generated in the second and third fiscal quarters, but due to lower production and shifting harvest cycles, working capital requirements are now greater in the third and fourth quarters[158](index=158&type=chunk) - The Strategic Transformation and the termination of the Tropicana agreement are expected to diminish these seasonal patterns as the Company winds down citrus operations[160](index=160&type=chunk) Liquidity and Capital Resources Comparative Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | September 30, 2024 | Change ($) | | :--------------------------------- | :------------ | :----------------- | :--------- | | Cash and cash equivalents | $42,073 | $3,150 | $38,923 | | Total current assets | $55,957 | $40,627 | $15,330 | | Total current liabilities | $5,969 | $10,651 | $(4,682) | | Working capital | $49,988 | $29,976 | $20,012 | | Total assets | $210,560 | $398,719 | $(188,159) | | Principal amount of term loans and lines of credit | $85,600 | $92,551 | $(6,951) | | Current ratio | 9.37 to 1 | 3.81 to 1 | | | Minimum Liquidity Requirement | $7,400 | N/A | NM | - Management believes current cash, cash from operations, asset sales, and RLOC availability will provide sufficient liquidity for debt service, working capital, and capital expenditures for at least the next twelve months and long-term[166](index=166&type=chunk) - The Company has a **$95,000 thousand** RLOC, with **$92,500 thousand** available as of June 30, 2025, and the Amended Credit Agreement includes a **55.0%** Loan To Value Cap on term loans and RLOC capacity[167](index=167&type=chunk)[171](index=171&type=chunk) Cash Flows Cash Flow Summary (in thousands) | (in thousands) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | Change ($) | | :------------------------------------------ | :------------------------------ | :------------------------------ | :--------- | | Net cash provided by (used in) operating activities | $22,841 | $(18,720) | $41,561 | | Net cash provided by investing activities | $24,693 | $70,088 | $(45,395) | | Net cash used in financing activities | $(8,097) | $(45,954) | $37,857 | | Net increase in cash and cash equivalents and restricted cash | $39,437 | $5,414 | $34,023 | - The **$41,561 thousand** change in net cash from operating activities was driven by lower caretaking spending due to the winding down of Citrus operations[174](index=174&type=chunk) - Net cash from investing activities decreased by **$45,395 thousand**, primarily due to fewer land sales in the current nine-month period[175](index=175&type=chunk) - Net cash used in financing activities decreased by **$37,857 thousand**, mainly due to lower debt repayments compared to the prior year's repayment of Met Life Variable-Rate Term debt and WCLC balance from Alico Ranch sale proceeds[176](index=176&type=chunk) Contractual Obligations - Material cash requirements from contractual obligations include principal and interest payments on long-term debt, operating leases, and purchase commitments, as detailed in the financial statement notes[178](index=178&type=chunk) Critical Accounting Policies and Estimates - There have been no material changes to the Company's Critical Accounting Policies and Estimates from those reflected in the 2024 Annual Report on Form 10-K[181](index=181&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Alico, Inc. is exempt from providing quantitative and qualitative disclosures about market risk - Alico, Inc. is a smaller reporting company and is not required to provide quantitative and qualitative disclosures about market risk[182](index=182&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Discusses Alico, Inc.'s disclosure controls and procedures and remediation of a material weakness in internal controls over financial reporting Limitations on effectiveness of controls and procedures - Management acknowledges that controls and procedures, regardless of design, can only provide reasonable assurance of achieving control objectives due to inherent limitations like resource constraints and the need for judgment[183](index=183&type=chunk) Evaluation of Disclosure Controls and Procedures - As of June 30, 2025, management, with the participation of the principal executive and financial officers, concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level[184](index=184&type=chunk) Remediation of Material Weakness - The material weakness in internal controls over financial reporting, previously disclosed in the 2024 Form 10-K, related to spreadsheet controls for inventory net realizable value calculation, has been remediated as of June 30, 2025[185](index=185&type=chunk)[186](index=186&type=chunk) Changes in Internal Control over Financial Reporting - Other than the remediation of the material weakness, there have been no other changes in internal controls over financial reporting during the quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect them[187](index=187&type=chunk) [PART II - OTHER INFORMATION](index=43&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) Alico, Inc. is involved in normal course litigation but expects no material adverse effect on its financial position or results - The Company is not currently a party to any legal proceedings that it believes will have a material adverse effect on its financial position, results of operations, or cash flows[189](index=189&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) Outlines numerous risks and uncertainties that could materially affect Alico, Inc.'s business, financial condition, and results Risks Related to our Business - Failure to successfully develop and execute strategic growth initiatives, particularly the shift to diversified land usage and real estate development after winding down citrus operations, could adversely affect the business[191](index=191&type=chunk)[192](index=192&type=chunk) - The workforce reduction of up to **172 employees** may lead to unintended consequences such as loss of institutional knowledge, decreased morale, and difficulties in pursuing new opportunities[195](index=195&type=chunk)[196](index=196&type=chunk) - Adverse weather conditions, natural disasters (especially hurricanes and tropical storms in Florida), and climate change effects pose significant risks, potentially causing crop losses, increased costs, and inventory impairments[197](index=197&type=chunk)[198](index=198&type=chunk) - A significant portion of future revenues is expected to shift from citrus to land usage and real estate development, and adverse events in these new areas could negatively impact financial results[201](index=201&type=chunk) - Other risks include intense competition in agricultural operations, unpredictable supply and demand pricing, product contamination liability, water use regulations, changes in immigration laws, harm to reputation, and potential adverse effects from significant corporate transactions[203](index=203&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[214](index=214&type=chunk) - Macroeconomic conditions (inflation, conflicts in Ukraine/Israel), public company costs, system security risks, data protection breaches, and complex privacy laws could also adversely affect the business[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk)[247](index=247&type=chunk) Risks Related to Our Indebtedness - The Company maintains significant indebtedness (**$85,600 thousand** principal outstanding as of June 30, 2025), which could adversely affect financial condition, limit operational flexibility, and increase vulnerability to economic downturns[251](index=251&type=chunk) - Failure to generate sufficient cash flow to service debt obligations, which depend on economic conditions and various business factors, could force the Company to reduce capital expenditures, sell assets, or restructure debt[252](index=252&type=chunk) - Variable interest rates on credit facilities could lead to higher interest expenses if rates increase, potentially reducing profitability and causing breaches of debt covenants[253](index=253&type=chunk) Risks Related to our Common Stock - The market price of Alico's common stock may be volatile or decline due to various factors, including operating performance, research reports, corporate announcements, and general market conditions[256](index=256&type=chunk) - The Company may not be able to continue paying or maintaining cash dividends, and any reduction or elimination of dividends could negatively affect the stock price[257](index=257&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the reporting period, Alico, Inc. did not engage in any unregistered sales of equity securities or issuer repurchases of its equity securities - There were no sales of unregistered equity securities during the period covered by this Quarterly Report[258](index=258&type=chunk) - There were no issuer repurchases of the Company's equity securities during the period covered by this Quarterly Report[259](index=259&type=chunk) [Item 3. Defaults Upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Alico, Inc. reported no defaults upon senior securities during the period - There were no defaults upon senior securities[261](index=261&type=chunk) [Item 4. Mine Safety Disclosure](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) This item is not applicable to Alico, Inc. - Mine Safety Disclosure is not applicable to the Company[262](index=262&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[263](index=263&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Quarterly Report on Form 10-Q, including organizational documents, contracts, and certifications - The report includes various exhibits such as the Restated Certificate of Incorporation, amendments to Articles of Incorporation, Second Amended By-Laws, Purchase and Sale Agreement, Letter Agreement, CEO and CFO certifications (Sections 302 and 1350), and Inline XBRL Instance Document and Taxonomy Extension documents[264](index=264&type=chunk)

Core Viewpoint - Alico, Inc. has completed its final major citrus harvest, marking a significant step in its strategic transformation into a diversified land company, with a focus on land development and diversified usage strategies [2][25]. Financial Performance - The company reported third-quarter revenues of $8.39 million, a decrease of 38.4% from $13.61 million in the same quarter of 2024 [3]. - Alico experienced a net loss attributable to common stockholders of $18.29 million for the third quarter, compared to a loss of $2.04 million in the prior year, reflecting a 794.8% increase in losses [3][5]. - EBITDA for the third quarter was $19.20 million, significantly up from $1.34 million in the same quarter of 2024 [5]. - The company generated $9.3 million from asset sales in the third quarter, exceeding its land sales target [1]. Strategic Developments - The Florida Legislature approved the creation of the Corkscrew Grove Stewardship District, which will aid in financing infrastructure and managing natural areas for Alico's Corkscrew Grove Villages development project [2][21]. - Alico's working capital was reported at $50 million with a current ratio of 9.37 to 1 as of June 30, 2025 [19]. - The company plans to develop Corkscrew Grove Villages on approximately 4,660 acres, which will include residential, commercial, and conservation areas [18][20]. Land Management and Other Operations - Revenue from Land Management and Other Operations increased by 56.8% for the third quarter compared to the previous year, driven by higher rock and sand royalty income [10]. - Operating expenses in this segment rose by 69.0% for the third quarter, primarily due to increased sod sales [11]. Harvest and Production - Alico Citrus harvested approximately 2.1 million pound solids of fruit in the third quarter, down from 4.3 million in the same period last year, largely due to fruit drop from Hurricane Milton [7][8]. - The average price per pound solids increased by $0.81 for the third quarter compared to the previous year, attributed to favorable pricing in contracts with Tropicana [8]. Corporate Governance and Financial Health - General and administrative expenses increased by $0.4 million for the third quarter, mainly due to higher employee costs and legal fees related to the strategic transformation [13]. - The company paid a cash dividend of $0.05 per share on July 11, 2025 [17].

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) [Management Comments](index=1&type=section&id=Management%20Comments) Alico, Inc. successfully completed its final major citrus harvest, marking a significant step in its strategic transformation to a diversified land company - Completed final major citrus harvest, signifying a key milestone in the strategic transformation to a diversified land company[3](index=3&type=chunk) - Generated over **$9 million** from combined land and equipment sales during the third quarter[3](index=3&type=chunk) - Received **$16 million** in crop insurance proceeds, enhancing financial flexibility for transformation initiatives[3](index=3&type=chunk) - Florida Legislature approved the bill to create the Corkscrew Grove Stewardship District, a crucial step for the Corkscrew Grove Villages development project[3](index=3&type=chunk) [Financial Performance Highlights](index=2&type=section&id=Financial%20Performance%20Highlights) [Key Financial Metrics (Summary)](index=2&type=section&id=Key%20Financial%20Metrics%20(Summary)) Alico reported a significant increase in net loss and loss per diluted share for Q3 and YTD 2025, primarily due to accelerated depreciation and lower revenues, while net cash provided by operating activities and EBITDA improved significantly in Q3 2025 Key Financial Metrics (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | % Change | | :----------------------------------- | :------------------------------- | :------------------------------- | :------- | :------------------------------ | :------------------------------ | :------- | | Revenue | $8,390 | $13,610 | (38.4)% | $43,264 | $45,708 | (5.3)% | | Net (loss) income attributable to Alico, Inc. common stockholders | $(18,289) | $(2,044) | (794.8)% | $(138,841) | $25,097 | NM | | (Loss) earnings per diluted common share | $(2.39) | $(0.27) | (785.2)% | $(18.18) | $3.29 | NM | | EBITDA | $19,204 | $1,343 | NM | $(2,210) | $48,686 | (104.5)% | | Adjusted EBITDA | $19,273 | $1,343 | NM | $25,330 | $48,686 | (48.0)% | | Net cash provided by (used in) operating activities | $23,412 | $1,021 | NM | $22,841 | $(18,720) | 222.0 % | [Net Loss Analysis](index=2&type=section&id=Net%20Loss%20Analysis) The net loss attributable to Alico common stockholders significantly increased in Q3 2025, primarily driven by approximately $40.7 million in accelerated depreciation and lower revenues, partially offset by crop insurance proceeds and a tax benefit - Net loss attributable to Alico common stockholders increased to **$(18.3) million** in Q3 2025 from $(2.0) million in Q3 2024, a **794.8% increase**[4](index=4&type=chunk) - Loss per basic and diluted common share was **$(2.39)** in Q3 2025, compared to $(0.27) in Q3 2024[4](index=4&type=chunk) - The increase in net loss was primarily due to **$40.7 million** of accelerated depreciation on citrus trees (due to strategic transformation) and lower revenues from Hurricane Milton, partially offset by **$16.0 million** in crop insurance proceeds and a **$7.8 million** tax benefit[4](index=4&type=chunk) [EBITDA and Adjusted EBITDA](index=2&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) For Q3 2025, Alico reported a substantial increase in both EBITDA and Adjusted EBITDA compared to the prior year, reaching $19.2 million and $19.3 million respectively, though year-to-date figures decreased EBITDA and Adjusted EBITDA (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | | EBITDA | $19,204 | $1,343 | | Adjusted EBITDA | $19,273 | $1,343 | | Metric | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :------------- | :------------------------------ | :------------------------------ | | EBITDA | $(2,210) | $48,686 | | Adjusted EBITDA | $25,330 | $48,686 | [Seasonal Business Impact](index=3&type=section&id=Seasonal%20Business%20Impact) Alico's business is seasonal, with most citrus harvest and gross profit historically recognized in Q2 and Q3, but these patterns are expected to diminish as citrus operations wind down - The majority of the Company's citrus crop is typically harvested in the second and third quarters of the fiscal year, historically recognizing most gross profit and cash flows from operating activities in those quarters[6](index=6&type=chunk) - Due to previous year harvest timing, more citrus crop was harvested in Q1 and Q2 of the prior fiscal year, shifting working capital requirements to Q3 and Q4[6](index=6&type=chunk) - Seasonal patterns are expected to diminish as the Company winds down citrus operations and will not allocate additional material capital to them, as part of the Strategic Transformation[6](index=6&type=chunk) [Segment Results](index=3&type=section&id=Segment%20Results) [Alico Citrus](index=3&type=section&id=Alico%20Citrus) Alico Citrus experienced a significant decrease in pound solids harvested for both Q3 and YTD 2025 due to Hurricane Milton, despite an increase in blended price per pound solids Citrus Production Summary (in thousands, except per box and per pound solids data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (Unit) | Change (%) | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | Change (Unit) | Change (%) | | :------------------------ | :------------------------------- | :------------------------------- | :------------ | :--------- | :------------------------------ | :------------------------------ | :------------ | :--------- | | **Boxes Harvested:** | | | | | | | | | | Valencias | 420 | 843 | (423) | (50.2)% | 1,305 | 1,855 | (550) | (29.6)% | | Total Processed | 420 | 843 | (423) | (50.2)% | 2,249 | 3,049 | (800) | (26.2)% | | Total | 420 | 843 | (423) | (50.2)% | 2,286 | 3,084 | (798) | (25.9)% | | **Pound Solids Produced:** | | | | | | | | | | Valencias | 2,134 | 4,294 | (2,160) | (50.3)% | 6,622 | 9,365 | (2,743) | (29.3)% | | Total | 2,134 | 4,294 | (2,160) | (50.3)% | 10,846 | 14,729 | (3,883) | (26.4)% | | **Price per Pound Solids:** | | | | | | | | | | Valencias | $3.65 | $2.84 | $0.81 | 28.5 % | $3.64 | $2.87 | $0.77 | 26.8 % | - The decrease in pound solids harvested was primarily due to fruit drop caused by Hurricane Milton in October 2024[8](index=8&type=chunk) - Blended price per pound solids increased by **$0.81** (Q3) and **$0.85** (YTD) compared to the prior year, driven by more favorable pricing in a Tropicana contract[9](index=9&type=chunk) [Land Management and Other Operations](index=4&type=section&id=Land%20Management%20and%20Other%20Operations) Revenue for Land Management and Other Operations increased significantly in Q3 and YTD 2025 due to higher rock and sand royalty income and sod sales, partially offset by reduced lease revenues - Land Management and Other Operations revenue increased **56.8%** (Q3) and **68.3%** (YTD) compared to the prior year, primarily due to increased rock and sand royalty income and sod sales[11](index=11&type=chunk) - The increase in revenue was partially offset by lower farm, grazing, and hunting lease revenues due to the sale of the Alico Ranch[11](index=11&type=chunk) - Operating expenses for Land Management and Other Operations increased **69.0%** in Q3 2025 due to an increase in Sod sales, but decreased **32.7%** for the nine months ended June 30, 2025, primarily due to lower property and real estate taxes from the Alico Ranch sale[12](index=12&type=chunk) [Other Corporate Financial Information](index=4&type=section&id=Other%20Corporate%20Financial%20Information) [General and Administrative Expenses](index=4&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased in both Q3 and YTD 2025, primarily due to accelerated depreciation on administrative assets and higher legal fees related to the Strategic Transformation - General and administrative expense increased **$0.4 million** for Q3 2025, mainly due to accelerated depreciation on administrative assets, higher employee costs (bonus accruals), and increased legal fees related to the Strategic Transformation[13](index=13&type=chunk) - General and administrative expense increased **$0.8 million** for the nine months ended June 30, 2025, due to accelerated depreciation on administrative assets and increased legal fees related to the Strategic Transformation, partially offset by lower employee costs[14](index=14&type=chunk) [Other Income (Expense), Net](index=4&type=section&id=Other%20Income%20(Expense),%20Net) Other income (expense), net, increased in Q3 2025 due to asset sales, but significantly decreased YTD 2025 primarily due to fewer land sales compared to the prior year - Other income (expense), net, increased **$0.8 million** for Q3 2025, driven by the sale of approximately 694 acres of land and a **$1.3 million** gain from equipment and vehicle sales[15](index=15&type=chunk) - Other income (expense), net, decreased **$60.0 million** for the nine months ended June 30, 2025, principally due to fewer acres of land being sold compared to the prior year, which included the sale of the Alico Ranch[16](index=16&type=chunk) [Dividend Information](index=4&type=section&id=Dividend%20Information) Alico, Inc. paid a third-quarter cash dividend of $0.05 per share on its outstanding common stock on July 11, 2025 - The Company paid a third quarter cash dividend of **$0.05 per share** on its outstanding common stock on July 11, 2025[17](index=17&type=chunk) [Balance Sheet and Liquidity & Real Estate Development](index=5&type=section&id=Balance%20Sheet%20and%20Liquidity%20%26%20Real%20Estate%20Development) [Key Balance Sheet Metrics](index=5&type=section&id=Key%20Balance%20Sheet%20Metrics) Alico demonstrated strong financial strength with working capital of $50.0 million and a current ratio of 9.37 to 1.00 at June 30, 2025, alongside significant reductions in total and net debt - Working capital was **$50.0 million** at June 30, 2025, representing a **9.37 to 1.00 current ratio**[20](index=20&type=chunk) - Total debt was **$85.2 million** at June 30, 2025, down from $92.1 million at September 30, 2024[20](index=20&type=chunk) - Net debt was **$43.2 million** at June 30, 2025, a significant reduction from $89.0 million at September 30, 2024[20](index=20&type=chunk) - Available borrowings under the Company's line of credit were approximately **$92.5 million** at June 30, 2025[20](index=20&type=chunk) [Real Estate Development & Conservation Efforts](index=5&type=section&id=Real%20Estate%20Development%20%26%20Conservation%20Efforts) Alico is actively pursuing its Corkscrew Grove Villages development project, which includes extensive residential and commercial plans alongside significant permanent conservation areas, supported by the newly established Corkscrew Grove Stewardship District [Corkscrew Grove Villages Project](index=5&type=section&id=Corkscrew%20Grove%20Villages%20Project) The Corkscrew Grove Villages project, spanning approximately 4,660 acres, is envisioned to include two 1,500-acre villages with up to 9,000 homes and 560,000 square feet of commercial space, alongside over 6,000 acres of permanent conservation - Corkscrew Grove Villages project is located on approximately **4,660 acres** in Collier County, envisioning two 1,500-acre villages[18](index=18&type=chunk) - The plan includes approximately **9,000 homes** in total (4,500 per village), with about **375 affordable housing units** per village, and **560,000 square feet** of total commercial space[18](index=18&type=chunk) - More than **6,000 acres** of sensitive land will be permanently protected as conservation areas within the project[18](index=18&type=chunk)[22](index=22&type=chunk) - The entitlement approval process for the East Village is anticipated to take approximately one year, with a final decision expected in 2026, and construction potentially beginning in **2028 or 2029**[19](index=19&type=chunk) - The Corkscrew Grove Stewardship District was established to assist in financing infrastructure, restoring natural areas, and overseeing the administration of the master planned communities[3](index=3&type=chunk)[21](index=21&type=chunk) [Conservation Strategy](index=6&type=section&id=Conservation%20Strategy) Alico maintains a strong commitment to regional conservation, having transferred over 46,807 acres for protection over the past 40 years, with the Corkscrew Grove Villages project dedicating another 6,000 acres to permanent conservation - Alico has a long history of regional conservation efforts, having transferred lands that became part of the Corkscrew Regional Ecosystem Watershed (CREW), Tiger Creek Preserve, and Okaloacoochee Slough Wildlife Management Area[22](index=22&type=chunk) - Since 2003, Alico has sold or entered into easements to protect over **46,807 acres**, including the **17,000-acre** Devil's Garden to the Florida Department of Environmental Protection[23](index=23&type=chunk) - The **6,000 acres** expected to be placed in conservation as part of the Corkscrew Grove Villages proposal support the implementation of the Florida Wildlife Corridor[23](index=23&type=chunk) - Alico's regional conservation strategy is consistent with the Collier Rural Land Stewardship Area (RLSA), an incentive-based approach to sustainable growth[24](index=24&type=chunk) [Fiscal Year 2025 Guidance](index=6&type=section&id=Fiscal%20Year%202025%20Guidance) Alico completed its final significant citrus harvest in April 2025 and has already exceeded its fiscal year 2025 land sales target, anticipating ending FY2025 with approximately $20 million in Adjusted EBITDA, $25 million in cash, and $60 million in net debt - The Company completed its last significant citrus harvest in April 2025[25](index=25&type=chunk) - The Company has exceeded its **$20 million** land sales guidance for fiscal year 2025[25](index=25&type=chunk) - The Company expects to end fiscal year 2025 with enough cash to meet its operating expenses through fiscal year 2027[25](index=25&type=chunk) Fiscal Year 2025 Financial Guidance | Metric | Expected FY2025 | | :---------------- | :-------------- | | Adjusted EBITDA | ~$20 million | | Cash (year-end) | ~$25 million | | Net Debt (year-end) | ~$60 million | | Revolving line of credit balance | $2.5 million (minimum required) | [Additional Information](index=8&type=section&id=Additional%20Information) [Conference Call Information](index=8&type=section&id=Conference%20Call%20Information) Alico, Inc. will host a conference call on August 13, 2025, at 8:30 am Eastern Time to discuss its financial results, with replay information provided - Conference call to discuss financial results scheduled for **August 13, 2025, at 8:30 am Eastern Time**[27](index=27&type=chunk) - A telephone replay will be available from approximately three hours after the call until August 27, 2025[27](index=27&type=chunk) [About Alico](index=8&type=section&id=About%20Alico) Alico, Inc. is a Florida-based agribusiness and land management company with over 125 years of experience, now operating as a diversified land company focusing on strategic land development and diversified agricultural operations across approximately 51,300 acres - Alico, Inc. is a Florida-based agribusiness and land management company with over **125 years of experience**[28](index=28&type=chunk) - Following its strategic transformation in 2025, Alico operates as a diversified land company[28](index=28&type=chunk) - The Company manages approximately **51,300 acres** across 8 Florida counties, focusing on strategic land development and diversified agricultural operations[28](index=28&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding Alico's strategic transformation, financial projections, and land development plans, which involve inherent risks and uncertainties that could cause actual results to differ materially - Forward-looking statements cover expectations regarding Strategic Transformation, anticipated Adjusted EBITDA, cash flow, debt, future land use and value, profitable growth, land sales, and commercial/residential development (e.g., Corkscrew Grove Villages)[29](index=29&type=chunk) - These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions, including securing regulatory approvals, managing resources for new initiatives, market fluctuations, economic conditions, maintaining lender relationships, and addressing environmental/zoning issues[30](index=30&type=chunk)[31](index=31&type=chunk) - The Company does not undertake an obligation to publicly update or revise any forward-looking statement, except as required by law[31](index=31&type=chunk) [Investor Contact](index=9&type=section&id=Investor%20Contact) Contact information for investor inquiries is provided, including details for John Mills of ICR and Brad Heine, Alico's Chief Financial Officer - Investor Contact: John Mills (ICR) at **(646) 277-1254** or InvestorRelations@alicoinc.com[33](index=33&type=chunk) - Investor Contact: Brad Heine (Chief Financial Officer) at **(239) 226-2000** or bheine@alicoinc.com[33](index=33&type=chunk) [Condensed Consolidated Financial Statements](index=10&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets present Alico's financial position at June 30, 2025, and September 30, 2024, showing a significant increase in cash and cash equivalents and a substantial reduction in property and equipment Condensed Consolidated Balance Sheets (in thousands) | ASSETS | June 30, 2025 (Unaudited) | September 30, 2024 | | :-------------------------------- | :------------------------ | :----------------- | | Current assets: | | | | Cash and cash equivalents | $42,073 | $3,150 | | Accounts receivable, net | 1,610 | 771 | | Inventories | 2,995 | 30,084 | | Income tax receivable | 1,062 | 1,958 | | Assets held for sale | 6,659 | 3,106 | | Prepaid expenses and other current assets | 1,558 | 1,558 | | Total current assets | 55,957 | 40,627 | | Restricted cash | 762 | 248 | | Property and equipment, net | 149,460 | 352,733 | | Goodwill | 2,246 | 2,246 | | Other non-current assets | 2,135 | 2,865 | | Total assets | $210,560 | $398,719 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Current liabilities: | | | | Accounts payable | $916 | $3,362 | | Accrued liabilities | 3,313 | 5,366 | | Current portion of long-term debt | 1,410 | 1,410 | | Other current liabilities | 330 | 513 | | Total current liabilities | 5,969 | 10,651 | | Long-term debt, net | 81,320 | 82,313 | | Lines of credit | 2,500 | 8,394 | | Deferred income tax liabilities, net | 4,004 | 40,873 | | Other liabilities | 67 | 193 | | Total liabilities | 93,860 | 142,424 | | Stockholders' equity: | | | | Common stock | 8,416 | 8,416 | | Additional paid in capital | 20,333 | 20,184 | | Treasury stock, at cost | (26,284) | (26,694) | | Retained earnings | 109,266 | 249,253 | | Total Alico stockholders' equity | 111,731 | 251,159 | | Noncontrolling interest | 4,969 | 5,136 | | Total stockholders' equity | 116,700 | 256,295 | | Total liabilities and stockholders' equity | $210,560 | $398,719 | [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations show a decrease in total operating revenues for both Q3 and YTD 2025, with substantially increased operating expenses leading to a significant gross loss and net loss Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Operating revenues: | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Alico Citrus | $7,805 | $13,237 | $41,384 | $44,591 | | Land Management and Other Operations | 585 | 373 | 1,880 | 1,117 | | Total operating revenues | 8,390 | 13,610 | 43,264 | 45,708 | | Operating expenses: | | | | | | Alico Citrus | 36,304 | 17,813 | 229,022 | 82,062 | | Land Management and Other Operations | 142 | 84 | 233 | 346 | | Total operating expenses | 36,446 | 17,897 | 229,255 | 82,408 | | Gross loss | (28,056) | (4,287) | (185,991) | (36,700) | | General and administrative expenses | 2,867 | 2,441 | 8,841 | 8,034 | | Loss from operations | (30,923) | (6,728) | (194,832) | (44,734) | | Total other income, net | 4,799 | 3,958 | 18,950 | 78,969 | | (Loss) income before income taxes | (26,124) | (2,770) | (175,882) | 34,235 | | Income tax (benefit) provision | (7,800) | (861) | (36,874) | 9,721 | | Net (loss) income | (18,324) | (1,909) | (139,008) | 24,514 | | Net (loss) income attributable to Alico, Inc. common stockholders | $(18,289) | $(2,044) | $(138,841) | $25,097 | | (Loss) earnings per common share: Basic | $(2.39) | $(0.27) | $(18.18) | $3.29 | | (Loss) earnings per common share: Diluted | $(2.39) | $(0.27) | $(18.18) | $3.29 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows for the nine months ended June 30, 2025, show a significant positive shift in net cash provided by operating activities compared to the prior year, resulting in a substantial net increase in cash and cash equivalents Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :---------------------------------------------------------------- | :------------------------------ | :------------------------------ | | Net (loss) income | $(139,008) | $24,514 | | Depreciation, depletion and amortization | 170,800 | 11,317 | | Gain on sale of property and equipment | (21,400) | (81,520) | | Impairment of long-lived assets | 24,966 | — | | Inventory net realizable value adjustment | 9,895 | 28,549 | | Deferred income tax (benefit) provision | (36,869) | 458 | | Net cash provided by (used in) operating activities | 22,841 | (18,720) | | Purchases of property and equipment | (4,049) | (15,931) | | Net proceeds from sale of property and equipment | 28,172 | 86,394 | | Net cash provided by investing activities | 24,693 | 70,088 | | Repayments on revolving lines of credit | (25,194) | (44,032) | | Borrowings on revolving lines of credit | 19,300 | 19,310 | | Principal payments on term loans | (1,057) | (20,089) | | Dividends paid | (1,146) | (1,143) | | Net cash used in financing activities | (8,097) | (45,954) | | Net increase in cash and cash equivalents and restricted cash | 39,437 | 5,414 | | Cash and cash equivalents and restricted cash at end of the period | $42,835 | $9,106 | [Non-GAAP Financial Measures](index=14&type=section&id=Non-GAAP%20Financial%20Measures) [Non-GAAP Definitions and Revisions](index=14&type=section&id=Non-GAAP%20Definitions%20and%20Revisions) Alico utilizes non-GAAP financial measures, including EBITDA, Adjusted EBITDA, and Net Debt, to assess business performance and liquidity, with Adjusted EBITDA revised to better reflect underlying business performance post-Strategic Transformation - Alico uses non-GAAP financial measures: EBITDA, Adjusted EBITDA, and Net Debt, to evaluate business performance and liquidity[40](index=40&type=chunk) - The calculation of Adjusted EBITDA has been revised to better reflect underlying business performance post-Strategic Transformation, now adjusting for impairment of long-lived assets and restructuring/other charges[40](index=40&type=chunk) - The revision to Adjusted EBITDA increased the reported figures by **$4.6 million** for the three months and **$61.2 million** for the nine months ended June 30, 2024[40](index=40&type=chunk) - EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion, and amortization. Adjusted EBITDA further adjusts for impairment of long-lived assets and restructuring and other charges. Net Debt is defined as total debt less cash[41](index=41&type=chunk) [EBITDA and Adjusted EBITDA Reconciliation](index=15&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) The reconciliation shows that for Q3 2025, both EBITDA and Adjusted EBITDA significantly increased, while for the nine months ended June 30, 2025, EBITDA was negative and Adjusted EBITDA decreased EBITDA and Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net (loss) income attributable to Alico, Inc. common stockholders | $(18,289) | $(2,044) | $(138,841) | $25,097 | | Interest expense, net | 754 | 533 | 2,705 | 2,551 | | Income tax (benefit) provision | (7,800) | (861) | (36,874) | 9,721 | | Depreciation, depletion and amortization | 44,539 | 3,715 | 170,800 | 11,317 | | **EBITDA** | **$19,204** | **$1,343** | **$(2,210)** | **$48,686** | | Non-GAAP Adjustments: | | | | | | Impairment of long-lived assets | — | — | 24,966 | — | | Restructuring and other charges | 69 | — | 2,574 | — | | **Adjusted EBITDA** | **$19,273** | **$1,343** | **$25,330** | **$48,686** | [Net Debt Reconciliation](index=15&type=section&id=Net%20Debt%20Reconciliation) The Net Debt reconciliation illustrates a significant reduction in net debt from $88.967 million at September 30, 2024, to $43.157 million at June 30, 2025, with a forecasted net debt of $59.859 million for September 30, 2025 Net Debt Reconciliation (in thousands) | Metric | June 30, 2025 (Unaudited) | September 30, 2024 | September 30, 2025 (Forecasted) | | :-------------------------- | :------------------------ | :----------------- | :------------------------------ | | Current portion of long-term debt | $1,410 | $1,410 | $1,410 | | Long-term debt, net | 81,320 | 82,313 | 80,949 | | Lines of credit | 2,500 | 8,394 | 2,500 | | **Total Debt** | **85,230** | **92,117** | **84,859** | | Less: Cash and cash equivalents | (42,073) | (3,150) | (25,000) | | **Net Debt** | **$43,157** | **$88,967** | **$59,859** |

Core Viewpoint - Alico, Inc. is set to release its financial results for the third quarter ended June 30, 2025, on August 12, 2025, after market close [1] Financial Results Announcement - The financial results will be discussed in a conference call on August 13, 2025, at 8:30 am Eastern Time [2] - Interested parties can join the call by dialing specific numbers for the United States and international participants [2] Replay Information - A telephone replay of the conference call will be available approximately three hours after the call concludes, lasting until August 27, 2025 [3] Company Overview - Alico, Inc. is a Florida-based agribusiness and land management company with over 125 years of experience [4] - The company operates approximately 51,300 acres across 8 Florida counties, focusing on strategic land development and diversified agricultural operations [4] - Alico aims to create long-term shareholder value while maintaining a commitment to responsible land stewardship and conservation [4]

Industry Overview - The Zacks Agriculture – Operations industry is expected to benefit from continuous innovation and rising demand for health-conscious products, particularly alternative proteins [1] - The industry includes companies involved in the production, transportation, storage, processing, and distribution of agricultural commodities, as well as those engaged in dairy operations and food ingredient development [3] Growth Drivers - Key growth drivers include acquisitions, joint ventures, expansion strategies, advances in food processing, enhanced grain-handling techniques, and strong demand from emerging markets [1][5] - The U.S. Department of Agriculture projects agricultural exports of $170.5 billion for fiscal 2025, driven by stronger grain and feed exports, particularly corn [4] Challenges - The industry faces headwinds such as volatile commodity prices, rising input costs, trade uncertainties, and escalating operational expenses, which are squeezing margins and disrupting productivity [2][6] - Companies are managing higher selling, general, and administrative (SG&A) expenses due to performance-related compensation and technology investments [7] Market Performance - The Zacks Agriculture – Operations industry has outperformed the Zacks Consumer Staples sector with a collective gain of 9.3% over the past year, while underperforming the S&P 500, which gained 11.5% [11] - The industry currently carries a Zacks Industry Rank of 229, placing it in the bottom 7% of over 250 Zacks industries, indicating dull near-term prospects [9][10] Company Highlights - **Mission Produce**: Engaged in sourcing and distributing avocados, mangoes, and blueberries, with a Zacks Consensus Estimate for fiscal 2025 earnings up 18% in the past 30 days [17][18] - **Corteva**: Positioned for above-market growth through innovation and a strong product pipeline, with a Zacks Consensus Estimate for 2025 earnings suggesting a 16.7% increase [21][23] - **Archer Daniels Midland (ADM)**: Focused on nutrition and sustainable materials, with a Zacks Consensus Estimate for 2025 earnings declining by 0.5% [25][26] - **Alico**: Benefits from strong consumption of not-from-concentrate orange juice, with a Zacks Consensus Estimate for current fiscal-year sales suggesting a 20.5% growth [29][30]