Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2] - The individual has a background in auditing with PricewaterhouseCoopers before transitioning to day trading [2]

Core Insights - Pop Mart International Group's Labubu doll series is experiencing declining popularity in mainland China, leading to a significant drop in the net worth of its founder, Wang Ning, by nearly $6 billion in less than a month [1][2]. Company Performance - Wang Ning's current net worth stands at $21.6 billion, down from $27.5 billion in late August, reflecting a shift in market sentiment and consumer interest [2]. - Pop Mart's shares have fallen over 20% since the release of the Labubu 4.0 series on August 28, which retails for 79 yuan ($11) each [3][5]. - The transaction price for the latest Labubus has decreased by 14.3% to 150 yuan each post-release, raising concerns about demand and growth outlook [4]. Investor Sentiment - Investor sentiment has been negatively impacted by JPMorgan Chase's downgrade of Pop Mart's stock to neutral, citing declining product popularity, which resulted in a 6.4% drop in share price [5]. - A spokesperson from Pop Mart attributed the price decline in resale markets to increased production aimed at meeting consumer demand, suggesting that greater accessibility may have influenced pricing [6]. Future Outlook - Despite recent setbacks, Pop Mart's stock is still up over 180% year-to-date, although growth may slow down in 2026 due to a high base effect [7]. - Wang Ning had previously forecasted that Pop Mart could achieve 30 billion yuan in sales for the year, following a nearly 400% rise in profit in the first half of the year [7].

Financial Data and Key Metrics Changes - Fiscal 2025 showed significant operational and financial improvements with gross margins above 43% and a more than $14 million year-over-year improvement in adjusted EBITDA [4][12] - 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 [12][14] - Gross margin in the fourth quarter was 44.9%, a year-over-year increase of 610 basis points, while for the full fiscal year, gross margins were 43.5%, a 420 basis point increase compared to the prior year [12][13] - Net sales during the fourth quarter were $85.1 million compared to $84.4 million during the prior year period, with full fiscal year net sales slightly up to $342.3 million compared to $341.1 million in the prior year [13][14] - Operating expenses increased by $14.3 million to $150.4 million for the year, primarily due to a decrease in net gains related to asset sales [14][15] - 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 [16] Business Line Data and Key Metrics Changes - The company launched the SOME1 specialty brand, which has shown encouraging early responses and opportunities in the pipeline [4][5] - Total coffee volumes decreased by 10% year-over-year to just shy of 20 million lbs in 2025, reflecting challenges in the coffee industry [8][9] Market Data and Key Metrics Changes - The U.S. food services sector experienced weaker growth than during the COVID-19 pandemic, with restaurants and bars seeing one of the weakest six-month periods of sales growth in the past decade [8][9] - Green coffee prices rose over 65% in the past year, contributing to a challenging market environment [9][10] Company Strategy and Development Direction - The company is focused on driving top-line revenue growth, increasing coffee volumes, and enhancing customer retention and expansion efforts [17] - A strategy committee has been formed to explore growth opportunities, with a commitment to addressing customer and coffee pound degradation [10][11] - The company aims to leverage its DSD network to drive product penetration and acquire new customers [10][38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant challenges in the macroeconomic environment and the coffee industry, including rising costs and potential tariffs [9][10] - Despite these challenges, management expressed confidence in the company's ability to generate long-term value for shareholders under more favorable market conditions [16][17] Other Important Information - The company made meaningful progress in strengthening its balance sheet, ending the year with $6.8 million of unrestricted cash and a $10 million decrease in net debt [15][16] - The Revive services team was fully reintegrated into field operations to enhance customer service and retention efforts [6][7] Q&A Session Summary Question: Congratulations on the execution over the past year - Management appreciated the acknowledgment of their efforts in a tough macro backdrop [20][21] Question: Areas of focus for operational efficiency and margin improvements - Management indicated a pivot from pricing action to performance and execution, emphasizing customer-focused service [22][23] Question: Customer churn levels and order fulfillment progress - Management reported significant improvements in order fulfillment and addressed challenges in customer churn due to macroeconomic factors [25][27] Question: Opportunities to drive better penetration and stabilize volumes - Management acknowledged the difficult macro environment but emphasized the potential for growth through engagement with larger restaurant groups and improved service levels [35][36] Question: Traction with larger restaurant groups - Management confirmed existing work with larger restaurant groups and the opportunity for growth in that area [39][40] Question: Ability to focus on larger restaurant groups with new leadership - Management affirmed that the new leadership structure allows for more focused efforts on larger restaurant groups [42][43] Question: Opportunities to leverage allied products - Management indicated that allied goods are a significant part of the business and that they are always looking to drive interest in specific segments [45][46]

Financial Data and Key Metrics Changes - Fiscal 2025 showed significant operational and financial improvements with gross margins above 43% and a more than $14 million year-over-year improvement in adjusted EBITDA [4][12] - 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 [12][14] - Gross margin in the fourth quarter was 44.9%, a year-over-year increase of 610 basis points, while for the full fiscal year, gross margins were 43.5%, a 420 basis point increase compared to the prior year [12][13] - Net sales during the fourth quarter were $85.1 million compared to $84.4 million during the prior year period, with full fiscal year net sales slightly up to $342.3 million compared to $341.1 million in the prior year [13][14] - Operating expenses increased by $14.3 million to $150.4 million for the year, primarily due to a decrease in net gains related to asset sales [14][15] - 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 [16] Business Line Data and Key Metrics Changes - Total coffee volumes decreased by 10% year-over-year to just shy of 20 million pounds in 2025, reflecting challenges in the coffee industry [8] - The company launched the SOME1 specialty brand, which has shown encouraging early responses and opportunities in the pipeline [4][5] Market Data and Key Metrics Changes - The U.S. food services sector experienced weaker growth than during the COVID-19 pandemic, with one of the weakest six-month periods of sales growth in the past decade [8][9] - Green coffee prices rose over 65% in the past year, contributing to a challenging market environment [9][10] Company Strategy and Development Direction - The company is focused on driving top-line revenue growth, increasing coffee volumes, and enhancing customer retention and expansion efforts in fiscal 2026 [10][18] - A strategy committee has been formed to explore growth opportunities, with a commitment to leveraging the DSD network for better product penetration and customer acquisition [10][11] - The company aims to differentiate itself through a comprehensive set of coffee solutions and a strong customer service commitment [5][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant challenges in the macro and microeconomic environments, particularly in the coffee industry, and anticipates pressure on gross margins and overall financial results in fiscal 2026 [9][10][16] - Despite these challenges, management expressed confidence in the company's ability to generate long-term value for shareholders under more favorable market conditions [16][17] Other Important Information - The company made meaningful progress in strengthening its balance sheet, ending the year with $6.8 million of unrestricted cash and a $10 million decrease in net debt [15][16] - The Revive services team was fully reintegrated into field operations, enhancing customer service efforts [6][7] Q&A Session Summary Question: Congratulations on the execution over the past year - Management appreciated the acknowledgment of their efforts [22] Question: Areas of focus for operational efficiency and margin improvements - Management indicated a pivot from pricing action to performance and execution, emphasizing customer-focused service and fulfillment [24][25] Question: Customer churn levels and order fulfillment progress - Management reported significant improvements in order fulfillment and addressed challenges related to out-of-stock situations [29][30] Question: Opportunities to drive better penetration and stabilize volumes - Management acknowledged the difficult macro environment but emphasized the potential for growth through customer engagement and activation of the DSD network [39][40] Question: Traction with larger restaurant groups - Management confirmed existing work with larger restaurant groups and the opportunity for growth in that space [41][42] Question: Ability to focus on larger restaurant groups with new leadership - Management affirmed that the new leadership structure allows for more focused efforts on larger accounts [44][45] Question: Opportunities to leverage allied products - Management indicated ongoing initiatives to drive interest in allied goods and maximize sales opportunities [47][48]

Financial Data and Key Metrics Changes - Fiscal 2025 showed significant operational and financial improvements, with gross margins above 43% and a more than $14 million year-over-year improvement in adjusted EBITDA [4][13] - Adjusted EBITDA for Q4 was $5.8 million, and for the full fiscal year, it was $14.8 million, marking a year-over-year improvement of over $7 million for the quarter and over $14 million for the year [13] - Gross margin in Q4 was 44.9%, a year-over-year increase of 610 basis points, while for the full fiscal year, gross margins were 43.5%, a 420 basis point increase compared to the prior year [13][14] - Net sales during Q4 were $85.1 million, slightly up from $84.4 million in the prior year, and for the full fiscal year, net sales increased to $342.3 million from $341.1 million [14] - Operating expenses increased by $14.3 million to $150.4 million for the year, primarily due to a decrease in net gains from asset sales [15] - Free cash flow for Q4 was $7.5 million, and for the full fiscal year, it was $6.5 million, representing a year-over-year increase of $12.1 million for the quarter and $34.5 million for the year [17] Business Line Data and Key Metrics Changes - The company launched the SOME1 specialty brand, which has received encouraging early responses and is expected to create new opportunities [4][5] - Total coffee volumes decreased by 10% year-over-year to just shy of 20 million pounds in 2025, reflecting challenges in the coffee industry [8] Market Data and Key Metrics Changes - The U.S. food services sector showed weaker growth than during the COVID-19 pandemic, with restaurants and bars experiencing one of the weakest sales growth periods in a decade [8][9] - Green coffee prices rose over 65% in the past year, contributing to a challenging market environment [9] Company Strategy and Development Direction - The company is focused on driving growth through customer retention, expanding its DSD network, and enhancing its white glove service value proposition [10][11] - A strategy committee has been formed to explore growth opportunities, with a commitment to addressing customer and coffee pound degradation [10][12] - The company aims to leverage its core coffee capabilities and expand its white label customer portfolio [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant challenges in the macro and microeconomic environments, particularly in the coffee industry, and anticipates pressure on gross margins and overall financial results in fiscal 2026 [9][17] - Despite these challenges, management expressed confidence in the company's ability to generate long-term value for shareholders under more favorable market conditions [18] Other Important Information - The company made meaningful progress in strengthening its balance sheet, with a $10 million decrease in net debt and $32.6 million of additional borrowing capacity under its credit facility [16] Q&A Session Summary Question: Operational efficiency and margin improvements focus areas - Management indicated a pivot from pricing optimization to performance and execution, emphasizing customer-focused service and fulfillment [25][26] Question: Customer churn levels and order fulfillment progress - Management reported significant improvements in order fulfillment and noted that customer churn is influenced by macroeconomic headwinds [30][31] Question: Opportunities for growth and customer acquisition - Management acknowledged the difficult macro environment but emphasized the potential for better penetration and customer acquisition through their DSD network [38][39] Question: Engagement with larger restaurant groups - Management confirmed existing work with larger restaurant groups and highlighted the opportunity for growth in this area [41] Question: Potential for adding allied products - Management stated that they already offer allied goods and are continuously looking for opportunities to leverage their distribution channels [47]

Market Performance - U.S. equities experienced a robust rally on September 11, 2025, with all three major indices closing at record highs, driven by optimism over a potential Federal Reserve interest rate cut [1][2] - The S&P 500 rose 0.9% to approximately 6586 points, marking a 17.69% increase year-over-year [2] - The Dow Jones Industrial Average surged 1.3%, closing above 46,000 for the first time, adding over 500 points [2] - The Nasdaq Composite climbed 0.7%, achieving a new record high, influenced by mixed performances among technology stocks [2] Economic Indicators - The Consumer Price Index (CPI) report for August indicated a headline annual inflation of 2.9% and core inflation steady at 3.1%, with a monthly rise of 0.4% in headline CPI [3] - Initial jobless claims reached a near four-year high, signaling a softening labor market, which reinforced expectations for a Federal Reserve rate cut [3] - Treasury yields eased in response to the economic reports, as traders anticipated the Fed's first rate cut of the year [3] Upcoming Events - The Federal Reserve's meeting on September 17, 2025, is highly anticipated, with expectations for the first interest rate cut of the year [4] - Key economic data releases are scheduled, including the Michigan Consumer Sentiment report and Retail Sales, Industrial Production, and Housing Starts [5] Corporate News - Oracle (ORCL) shares fell 3.6% after a previous surge of nearly 36% due to excitement over AI-related contracts [6] - Tesla (TSLA) gained 6%, while Apple (AAPL) rose over 1%, and Microsoft (MSFT) and Alphabet (GOOGL) saw slight increases [7] - Warner Bros. Discovery (WBD) shares soared 29% following news of a potential takeover bid from Paramount Skydance [8] - Synopsys Inc. (SNPS) plummeted 35.8% after missing earnings estimates, while GameStop Corp. (GME) rose 3.3% after beating expectations [10] Earnings Announcements - Adobe Inc. (ADBE) is expected to report earnings with a forecasted EPS of $4.21, a 10.50% increase year-over-year [11] - Other companies reporting include RH and RF Industries, with RF Industries expected to show a significant 200% increase in EPS year-over-year [11]

[PART I](index=5&type=section&id=PART%20I) This section provides an overview of the company's business, including its operations, strategies, risk factors, cybersecurity posture, properties, and legal matters [ITEM 1. Business](index=5&type=section&id=ITEM%201.%20Business) Farmer Bros. Co. is a leading coffee roaster, wholesaler, and distributor, focusing on quality products, sustainable sourcing, and strategic operational enhancements - Farmer Bros. Co. is a leading coffee roaster, wholesaler, equipment servicer, and distributor of coffee, tea, and other allied products, founded in 1912 and reincorporated in Delaware in 2004[18](index=18&type=chunk) - The company serves a wide variety of customers, including small independent restaurants, large institutional buyers (restaurant, department, convenience store chains, hotels, casinos, healthcare facilities), gourmet coffee houses, grocery chains (private brand and consumer-branded products), and foodservice distributors[18](index=18&type=chunk) - Key business strategies include executing manufacturing and network optimization, leveraging its nationwide Direct-Store-Delivery (DSD) network for growth, enhancing product innovation, driving customer satisfaction, and improving service excellence through its Revive Service & Restoration program[21](index=21&type=chunk)[25](index=25&type=chunk) [Overview](index=5&type=section&id=Overview) The company is a Delaware corporation, operating as a leading coffee roaster, wholesaler, and distributor of coffee, tea, and allied products - Farmer Bros. Co. is a Delaware corporation, including its consolidated subsidiaries, operating as a leading coffee roaster, wholesaler, equipment servicer, and distributor of coffee, tea, and other allied products[18](index=18&type=chunk) - The company serves a wide variety of customers, from small independent restaurants to large institutional buyers and grocery chains, offering a breadth of high-quality products and value-added services like market insight, beverage planning, and equipment placement and service[18](index=18&type=chunk) [Products and Services](index=5&type=section&id=Products%20and%20Services) The company offers diverse coffee, tea, and culinary products, alongside comprehensive equipment installation, repair, and lifecycle management services - The company's product categories include roast and ground coffee (organic, Direct Trade, Fair Trade Certified, sustainably-produced), frozen and ambient liquid coffee, flavored and unflavored iced and hot teas (organic, Rainforest Alliance Certified), culinary products (spices, mixes, gravies, sauces, syrups), and other beverages (cappuccino, cocoa, granitas, cold brew)[19](index=19&type=chunk)[22](index=22&type=chunk) - Services include installation, repair, and refurbishment for coffee, tea, and juice equipment, managing the full equipment lifecycle, and providing enhanced service capabilities[22](index=22&type=chunk) [Business Strategy](index=5&type=section&id=Business%20Strategy) The company aims to optimize cash and margins through growth, operational efficiency, product innovation, and enhanced customer satisfaction - The company aims to increase cash optimization and improve margins by growing existing capabilities and developing new ones, focusing on delivering value to customers who prioritize quality, service, and sustainable sourcing[20](index=20&type=chunk)[21](index=21&type=chunk) - Strategic initiatives include manufacturing and network optimization (utilizing facilities in Portland, Oregon, and distribution centers in Rialto, California, to improve production efficiencies and balance volume), leveraging its nationwide Direct-Store-Delivery (DSD) network for growth, and enhancing product innovation[21](index=21&type=chunk)[23](index=23&type=chunk)[25](index=25&type=chunk) - Other key strategies involve driving customer satisfaction through improved service metrics, enhancing Revive Service & Restoration capabilities, implementing IT applications for supply chain optimization and customer analytics, and providing market insights and comprehensive coffee programs to key accounts[25](index=25&type=chunk) [Sustainability Leadership](index=7&type=section&id=Sustainability%20Leadership) The company is committed to sustainability, focusing on environmental impact reduction, supply chain stability, and responsible sourcing through programs like Project D.I.R.E.C.T - The company is committed to sustainability, focusing on measuring social and environmental impact, reducing waste, water, and energy, and promoting supply chain stability and food security[32](index=32&type=chunk) - Key programs include Project D.I.R.E.C.T., a direct trade sourcing model based on long-term partnerships with coffee growing communities, transparent pricing, and consumer education, verified as responsibly sourced through Enveritas[32](index=32&type=chunk) - Efforts also include green coffee traceability to ensure sustainably-sourced coffees and working with suppliers who adhere to the company's Supplier Standards of Engagement[32](index=32&type=chunk) [Charitable Activities](index=7&type=section&id=Charitable%20Activities) Charitable involvement is a core corporate responsibility, supporting communities and focusing on supply chain stability and food security through donations and volunteerism - Charitable involvement is a core part of corporate responsibility, supporting communities where customers, team members, businesses, and suppliers reside, with an emphasis on supply chain stability and food security[28](index=28&type=chunk) - Donations, including corporate cash, product, employee volunteerism, and workplace giving, are directed to organizations like Feeding America, Ronald McDonald House, and local food banks[29](index=29&type=chunk)[33](index=33&type=chunk) [Human Capital](index=7&type=section&id=Human%20Capital) As of June 30, 2025, the company employed approximately 865 employees, with a focus on a culture embracing family, service, quality, and sustainability - As of June 30, 2025, the company employed approximately **865 employees**, with **198** subject to collective bargaining agreements expiring by January 31, 2028[30](index=30&type=chunk) - The human capital management philosophy focuses on developing a culture that embraces values of family, service, quality, collaboration, simplicity, and sustainability, supported by a Total Rewards Program and a 'Safety First Culture'[31](index=31&type=chunk)[34](index=34&type=chunk) [Raw Materials and Supplies](index=8&type=section&id=Raw%20Materials%20and%20Supplies) Green coffee is the primary raw material, subject to price fluctuations, sourced globally, with derivative instruments used to mitigate price risk - Green coffee is the primary raw material, an exchange-traded agricultural commodity subject to price fluctuations, sourced globally from multiple regions, including Arabica beans purchased on a negotiated basis from brokers, exporters, and growers (Direct Trade, Fair Trade Certified, Rainforest Alliance Certified)[35](index=35&type=chunk)[36](index=36&type=chunk) - The company uses derivative instruments and customer/vendor arrangements to mitigate the impact of green coffee price fluctuations on financial results and stabilize margins[36](index=36&type=chunk) - Other principal materials include carton board, corrugate, plastic for packaging, and significant amounts of electricity, natural gas, and other energy sources for operations[35](index=35&type=chunk) [Intellectual Property](index=8&type=section&id=Intellectual%20Property) The company owns numerous trademarks, service marks, licenses, copyrights, and trade secrets, which are integral to product identification and competitive position - The company owns numerous registered and applied-for United States trademarks and service marks, which are considered integral to customer identification of its products[37](index=37&type=chunk) - It also holds licenses for certain trademarks and product formulas outside the U.S., along with copyrights, registered domain names, and proprietary trade secrets, technology, and know-how[37](index=37&type=chunk) [Seasonality](index=8&type=section&id=Seasonality) The company experiences seasonal sales patterns, with winter months typically strongest, though product and geographic diversity provide some stability - The company experiences seasonal influences, with winter months historically being the strongest sales period[38](index=38&type=chunk) - Product line and geographic diversity provide some sales stability during warmer months when coffee consumption typically decreases, with increases also seen in summer/early fall from seasonal businesses and retailers stocking for winter[38](index=38&type=chunk) [Distribution](index=8&type=section&id=Distribution) The company operates production and distribution facilities, primarily utilizing a nationwide Direct-Store-Delivery (DSD) network and third-party logistics providers - The company operates production and distribution facilities in Portland, Oregon, and additional distribution centers in Northlake, Illinois; Rialto, California; and Moonachie, New Jersey[39](index=39&type=chunk) - Products are primarily distributed through a nationwide Direct-Store-Delivery (DSD) network of over **200 delivery routes** and over **90 storage locations** as of June 30, 2025, utilizing a large fleet of trucks and third-party logistics (3PL) providers for long-haul distribution[39](index=39&type=chunk)[40](index=40&type=chunk) [Customers](index=9&type=section&id=Customers) The company serves a diverse customer base, from independent restaurants to large institutional buyers and grocery chains, with no single customer accounting for a significant portion of sales - The customer base is diverse, ranging from small independent restaurants to large institutional buyers, grocery chains, foodservice distributors, and e-commerce consumers[41](index=41&type=chunk) - In fiscal 2025, the top five customers accounted for approximately **3% of net sales**, indicating a diversified customer portfolio[41](index=41&type=chunk) - The company offers a full return policy and extended terms for qualified customers, with historically insignificant product returns[42](index=42&type=chunk) [Competition and Trends](index=9&type=section&id=Competition%20and%20Trends) The coffee industry is highly competitive, with the company differentiating itself through quality, distribution, service, and sustainability leadership - The coffee industry is highly competitive, facing competition from large multi-national manufacturers, wholesale foodservice distributors, regional and national coffee roasters, specialty coffee suppliers, and retail brand beverage manufacturers[43](index=43&type=chunk) - The company differentiates itself through longevity, product quality, national distribution, equipment service network, industry and sustainability leadership, market insight, and superior customer service[44](index=44&type=chunk) - Competition also arises from growth in single-serve, ready-to-drink, and cold-brewed coffee channels, as well as other beverages like soft drinks, juices, and bottled water[43](index=43&type=chunk) [Regulatory Environment](index=9&type=section&id=Regulatory%20Environment) The company's operations are subject to various federal, state, and local laws concerning product production, safety, labeling, and environmental protection - The company's operations are subject to various federal, state, and local laws and regulations concerning product production, storage, distribution, sale, labeling, quality, safety, and occupational health and safety practices[45](index=45&type=chunk) - Facilities are also subject to environmental laws regarding material release and environmental protection[45](index=45&type=chunk) [Other](index=9&type=section&id=Other) The business does not rely on a sales backlog and has no material foreign operations or long-lived assets abroad - The business does not rely on a sales backlog, has no material revenues from foreign operations, and no long-lived assets in foreign countries[46](index=46&type=chunk) [Available Information](index=9&type=section&id=Available%20Information) The company provides SEC filings and corporate governance documents free of charge on its investor relations website - The company makes its SEC filings, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, available free of charge on its investor relations website (http://www.farmerbros.com)[47](index=47&type=chunk) - Additional documents like Corporate Governance Guidelines, committee charters, and the Code of Conduct and Ethics are also available on the website[48](index=48&type=chunk) [ITEM 1A. Risk Factors](index=10&type=section&id=ITEM%201A.%20Risk%20Factors) The company faces diverse risks including economic downturns, intense competition, raw material cost volatility, regulatory compliance, and cybersecurity threats - Global economic conditions, including inflation, rising interest rates, and geopolitical uncertainties, may adversely affect customer and consumer spending, impacting demand for products[50](index=50&type=chunk) - The company's success depends on retaining key personnel and a consistent workforce; unexpected loss or difficulty in recruitment could materially affect operations[53](index=53&type=chunk) - Increases in the cost of green coffee, an exchange-traded agricultural commodity, due to factors like climate change, crop disease, or speculative trading, could reduce gross margins and increase volatility[64](index=64&type=chunk)[66](index=66&type=chunk) [Risks Related to our Business and Industry](index=10&type=section&id=Risks%20Related%20to%20our%20Business%20and%20Industry) Economic disruptions, personnel dependency, intense competition, and commodity cost fluctuations pose significant risks to the company's business and industry - Economic disruptions, including recession, high inflation, and rising interest rates, can negatively impact customer and consumer spending, affecting product demand[50](index=50&type=chunk) - Dependence on key personnel and the ability to recruit and retain qualified staff is crucial; labor cost increases and leadership changes pose significant risks[53](index=53&type=chunk)[56](index=56&type=chunk) - The highly competitive coffee industry, coupled with potential inability to anticipate customer preferences or successfully develop new products, could harm profitability and competitive position[57](index=57&type=chunk)[60](index=60&type=chunk) - Fluctuations in green coffee and other commodity costs, supply chain disruptions, and severe weather conditions (exacerbated by climate change) could increase expenses, damage facilities, and impair production/distribution capabilities[64](index=64&type=chunk)[71](index=71&type=chunk)[78](index=78&type=chunk) [Risks Related to Governance, Regulatory, Legislative and Legal Matters](index=17&type=section&id=Risks%20Related%20to%20Governance%2C%20Regulatory%2C%20Legislative%20and%20Legal%20Matters) The company faces risks from evolving government regulations, potential multiemployer pension plan withdrawal liabilities, and ongoing legal proceedings - Government regulations affecting business conduct, including food safety, labeling, and environmental laws, could increase operating costs, reduce demand, or lead to litigation[95](index=95&type=chunk) - The company faces potential significant withdrawal liability if it withdraws from multiemployer pension plans[96](index=96&type=chunk) - Ongoing legal proceedings and the company's partial self-insurance model could expose it to substantial liabilities and reputational damage if claims exceed coverage or reserves[97](index=97&type=chunk)[99](index=99&type=chunk) [Risks Related to our Capital Structure and Ownership of Our Common Stock](index=18&type=section&id=Risks%20Related%20to%20our%20Capital%20Structure%20and%20Ownership%20of%20Our%20Common%20Stock) Increased debt leverage, non-compliance with credit facility covenants, and equity market volatility pose risks to the company's capital structure and financial stability - Increased debt leverage could adversely affect liquidity and results of operations by requiring a substantial portion of cash flow for payments, limiting funds for capital expenditures, and increasing vulnerability to adverse economic conditions[102](index=102&type=chunk)[104](index=104&type=chunk) - Non-compliance with Credit Facility covenants could lead to immediate debt repayment and termination of commitments, severely impacting financial position[105](index=105&type=chunk)[106](index=106&type=chunk) - Volatility in equity markets or interest rate fluctuations could substantially increase pension funding requirements, negatively impacting financial position[115](index=115&type=chunk) [Risks Related to Cybersecurity and Data Privacy](index=21&type=section&id=Risks%20Related%20to%20Cybersecurity%20and%20Data%20Privacy) Failure to comply with privacy laws, information system breaches, and inadequate intellectual property protection pose significant cybersecurity and data privacy risks - Failure to comply with evolving privacy and data protection laws and regulations could result in substantial financial penalties, enforcement actions, and damage to brand reputation[119](index=119&type=chunk)[120](index=120&type=chunk) - Reliance on information technology and software means any material failure, inadequacy, interruption, or security breach could disrupt business operations, lead to data loss, reputational damage, and significant remediation costs[121](index=121&type=chunk)[122](index=122&type=chunk) - Inability to adequately protect intellectual property, including trademarks and trade secrets, could harm brand value and competitive position, potentially leading to costly rebranding or litigation[123](index=123&type=chunk)[124](index=124&type=chunk) [ITEM 1B. Unresolved Staff Comments](index=22&type=section&id=ITEM%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments to report - Not applicable[125](index=125&type=chunk) [ITEM 1C. Cybersecurity](index=22&type=section&id=ITEM%201C.%20Cybersecurity) The company maintains a robust cybersecurity program aligned with NIST and PCI standards, featuring continuous risk management, employee training, and Board-level oversight - The company has developed and maintained policies, procedures, and controls to mitigate material cybersecurity risks, including robust protocols for incident assessment and disclosure[126](index=126&type=chunk) - Cybersecurity processes align with the NIST Cybersecurity Framework and PCI compliance, including periodic risk assessments, security monitoring tools, vulnerability testing, and employee awareness training[127](index=127&type=chunk)[129](index=129&type=chunk) - Cybersecurity governance is led by a Director of Infrastructure & Security, reporting to the VP of IT, with oversight from the Board of Directors via a designated Technology Liaison who receives quarterly updates on significant risks and incidents[133](index=133&type=chunk)[135](index=135&type=chunk) [Overview](index=22&type=section&id=Overview) The company prioritizes cybersecurity to ensure the confidentiality, integrity, and availability of its systems and data - The company recognizes the importance of cybersecurity for maintaining confidentiality, integrity, and availability of systems and data[126](index=126&type=chunk) - Policies, procedures, and controls are in place to mitigate cybersecurity threats, including protocols for assessing and disclosing material incidents[126](index=126&type=chunk) [Risk Management and Strategy](index=23&type=section&id=Risk%20Management%20and%20Strategy) The company's cybersecurity framework aligns with NIST and PCI standards, employing periodic risk assessments, continuous monitoring, and employee training - The company's cybersecurity framework aligns with NIST's Cybersecurity Framework and maintains PCI compliance[127](index=127&type=chunk) - Processes include periodic risk assessments, continuous security monitoring, vulnerability testing, employee awareness testing, and incident-specific cybersecurity alerts[129](index=129&type=chunk) - Third parties are engaged to assess, test, and assist with implementing risk management strategies, policies, and procedures[131](index=131&type=chunk) [Cybersecurity Governance](index=23&type=section&id=Cybersecurity%20Governance) Cybersecurity governance is led by the Director of Infrastructure & Security, with Board oversight provided by a Technology Liaison receiving regular updates - The Director of Infrastructure & Security, reporting to the VP of IT, leads the cybersecurity program, managing a team of professionals with expertise in incident response, forensics, and threat intelligence[133](index=133&type=chunk) - The Board of Directors oversees the Enterprise Risk Management program, with a designated Technology Liaison providing regular updates on cybersecurity risks and incidents to the Board[135](index=135&type=chunk)[136](index=136&type=chunk) [ITEM 2. Properties](index=24&type=section&id=ITEM%202.%20Properties) The company operates production and distribution facilities, with **86% leased**, and coffee roasting utilization at **43%** in fiscal 2025, providing adequate capacity Key Facilities as of June 30, 2025 | Location | Approximate Area (Square Feet) | Purpose | Status | | :--- | :--- | :--- | :--- | | Fort Worth, TX | 25,000 | Corporate headquarters and product development lab | Leased | | Portland, OR | 220,000 | Manufacturing and distribution, product development lab | Leased | | Oklahoma City, OK | 81,105 | Equipment repair center | Leased | | Rialto, CA | 156,586 | Distribution and warehouse | Leased | | Northlake, IL | 89,837 | Distribution and warehouse | Leased | | Moonachie, NJ | 41,404 | Distribution and warehouse | Leased | - The company stages products in over **90 storage locations** throughout the contiguous United States, with approximately **86%** of facilities being leased[137](index=137&type=chunk)[138](index=138&type=chunk) - Utilization rates for coffee roasting facilities were approximately **43%** in fiscal 2025, a decrease from **67%** in fiscal 2024, but existing facilities are believed to provide adequate capacity[139](index=139&type=chunk)[140](index=140&type=chunk) [ITEM 3. Legal Proceedings](index=24&type=section&id=ITEM%203.%20Legal%20Proceedings) The company is involved in various legal and administrative proceedings, with management's opinion that the outcomes will not materially impact its financial position, results of operations, or cash flows - The company is a party to various pending legal and administrative proceedings[141](index=141&type=chunk) - Management believes the outcome of these proceedings will not have a material impact on the company's financial position, results of operations, or cash flows[141](index=141&type=chunk) [ITEM 4. Mine Safety Disclosures](index=24&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) The company has no mine safety disclosures to report - Not applicable[142](index=142&type=chunk) [PART II](index=24&type=section&id=PART%20II) This section details the company's common equity market, financial performance, liquidity, capital resources, and internal controls [ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=24&type=section&id=ITEM%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "FARM," with **176 shareholders**; no cash dividends are expected, and no equity securities were repurchased in Q4 fiscal 2025 - The company's common stock is listed for trading on the Nasdaq Global Select Market under the symbol "**FARM**"[144](index=144&type=chunk) - As of September 2, 2025, there were approximately **176 shareholders of record**[144](index=144&type=chunk) - The company has not recently declared or paid cash dividends and intends to retain future earnings for business operations and expansion, not expecting to pay cash dividends in the foreseeable future[145](index=145&type=chunk) - Neither the company nor any affiliated purchaser bought back any equity securities during the quarter ended June 30, 2025, and no unregistered securities were sold during fiscal 2025[146](index=146&type=chunk)[147](index=147&type=chunk) [ITEM 6. Reserved](index=24&type=section&id=ITEM%206.%20Reserved) This item is reserved and contains no information [ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=ITEM%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2025 saw net sales rise **0.3%** to **$342.3 million** and gross margins improve to **43.5%**, despite a **$14.5 million** net loss, with liquidity strengthened by reduced debt and increased cash - Net sales in fiscal 2025 increased by **$1.2 million**, or **0.3%**, to **$342.3 million** from **$341.1 million** in fiscal 2024, primarily due to higher pricing partially offset by a decline in sales volume[154](index=154&type=chunk)[164](index=164&type=chunk) - Gross margins improved by **4.2 percentage points** to **43.5%** in fiscal 2025 from **39.3%** in fiscal 2024, driven by price increases[155](index=155&type=chunk)[166](index=166&type=chunk) - The company reported a net loss of **$14.5 million** in fiscal 2025, compared to a net loss of **$3.9 million** in fiscal 2024, primarily due to a decrease in gain on sale of assets and pension settlement charges[156](index=156&type=chunk)[163](index=163&type=chunk)[169](index=169&type=chunk) - Outstanding debt on the Revolver Credit Facility decreased by **$9.0 million** to **$14.3 million** as of June 30, 2025, and cash increased by **$1.0 million** to **$7.0 million**[157](index=157&type=chunk) [Our Business](index=25&type=section&id=Our%20Business) Farmer Bros. Co. is a leading coffee roaster, wholesaler, and distributor, offering diverse products and value-added services through its DSD network - Farmer Bros. Co. is a leading coffee roaster, wholesaler, equipment servicer, and distributor of coffee, tea, and other allied products, serving a wide variety of customers from small independent restaurants to large institutional buyers[150](index=150&type=chunk)[151](index=151&type=chunk) - The company offers a robust line of roast and ground coffee, liquid coffee, teas, culinary products, and other beverages, along with value-added services like market insight, beverage planning, and equipment placement and service[152](index=152&type=chunk) - Distribution is primarily through a nationwide Direct-Store-Delivery (DSD) network and third-party logistics (3PL) providers for long-haul distribution[153](index=153&type=chunk) [Summary Overview of Fiscal 2025 Results](index=25&type=section&id=Summary%20Overview%20of%20Fiscal%202025%20Results) Fiscal 2025 saw net sales increase by **0.3%** to **$342.3 million** and gross margins improve to **43.5%**, while debt decreased and cash increased - Net sales increased by **$1.2 million (0.3%)** to **$342.3 million** in fiscal 2025, driven by higher pricing, partially offset by a decline in sales volume[154](index=154&type=chunk) - Gross margins improved by **4.2 percentage points** to **43.5%** in fiscal 2025 from **39.3%** in fiscal 2024, due to implemented price increases[155](index=155&type=chunk) - Operating expenses increased by **$14.2 million** in fiscal 2025, primarily due to a **$20.2 million** decrease in gain on sale of assets, partially offset by decreases in selling and general and administrative expenses[156](index=156&type=chunk) - Capital expenditures decreased by **$4.3 million** to **$9.6 million** in fiscal 2025, mainly due to reduced coffee brewing equipment spend[157](index=157&type=chunk) - Outstanding debt on the Revolver Credit Facility decreased by **$9.0 million** to **$14.3 million**, and cash increased by **$1.0 million** to **$7.0 million** as of June 30, 2025[157](index=157&type=chunk) [Financial Data Highlights](index=26&type=section&id=Financial%20Data%20Highlights) Key financial highlights for fiscal 2025 include a slight increase in net sales, improved gross margin, and a significant net loss, with coffee pounds decreasing Financial Data Highlights (in thousands, except per share data and percentages) | | 2025 | 2024 | Favorable (Unfavorable) Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Income Statement Data:** | | | | | | Net sales | $342,281 | $341,094 | $1,187 | 0.3 | | Gross margin | 43.5 % | 39.3 % | 4.2 % | 10.7 | | Operating expenses as a % of sales | 43.9 % | 39.9 % | (4.0)% | (10.0)| | Net loss | $(14,516) | $(3,875) | $(10,641) | NM | | Net loss available to common stockholders per common share—basic and diluted | $(0.68) | $(0.19) | $(0.49) | NM | | **Operating Data:** | | | | | | Coffee pounds | 19,984 | 22,169 | (2,185) | (9.9)| | EBITDA(1) | $(381) | $10,718 | $(11,099) | (103.6)| | EBITDA Margin(1) | (0.1)% | 3.1 % | (3.2)% | NM | | Adjusted EBITDA(1) | $14,832 | $558 | $14,274 | NM | | Adjusted EBITDA Margin(1) | 4.3 % | 0.2 % | 4.1 % | NM | | **Percentage of Total Net Sales By Product Category** | | | | | | Coffee (Roasted) | 48.1 % | 46.4 % | 1.7 % | 3.7 | | Tea & Other Beverages (2) | 27.0 % | 26.4 % | 0.6 % | 2.3 | | Culinary | 17.6 % | 19.3 % | (1.7)% | (8.8)| | Spices | 6.0 % | 6.4 % | (0.4)% | (6.3)| | Delivery Surcharge | 1.3 % | 1.5 % | (0.2)% | NM | | Net sales | 100.0 % | 100.0 % | | | | **Other data:** | | | | | | Total capital expenditures | 9,591 | 13,843 | 4,252 | 30.7 | | Depreciation & amortization expense | 11,448 | 11,588 | 140 | 1.2 | [Factors Affecting Our Business](index=26&type=section&id=Factors%20Affecting%20Our%20Business) Business success hinges on manufacturing investment, supply chain efficiency, new product development, green coffee price management, and comprehensive equipment service - Key factors include investment in the Portland, Oregon manufacturing facility to produce high-quality coffee and ensure reliable production while managing costs[160](index=160&type=chunk) - Supply chain efficiencies and competition are critical, requiring cost reduction initiatives, supply chain streamlining, and the ability to attract and retain a skilled workforce[160](index=160&type=chunk) - Success depends on developing new products in response to demographic and market trends, particularly in premium coffee and tea, and managing fluctuations in green coffee prices through sourcing and hedging strategies[160](index=160&type=chunk) - The Revive equipment service program differentiates the company by offering comprehensive equipment support and 24/7 nationwide service[161](index=161&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Fiscal 2025 saw a slight net sales increase and improved gross profit, but higher operating expenses and a pension settlement charge led to a significant net loss Consolidated Results of Operations (in thousands) | | 2025 | 2024 | Favorable (Unfavorable) Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net sales | $342,281 | $341,094 | $1,187 | 0.3 | | Cost of goods sold | 193,371 | 207,201 | 13,830 | 6.7 | | Gross profit | 148,910 | 133,893 | 15,017 | 11.2 | | Selling expenses | 107,749 | 111,371 | 3,622 | 3.3 | | General and administrative expenses | 39,275 | 41,649 | 2,374 | 5.7 | | Net losses (gains) on disposal of assets | 3,347 | (16,877) | (20,224) | NM | | Operating expenses | 150,371 | 136,143 | (14,228) | (10.5)| | Loss from operations | (1,461) | (2,250) | 789 | 35.1 | | Interest expense | (7,480) | (7,835) | 355 | 4.5 | | Pension settlement charge | (7,726) | — | (7,726) | — | | Other, net | 2,267 | 6,224 | (3,957) | NM | | Total other expense | (12,939) | (1,611) | (11,328) | (703.2)| | Loss from operations before taxes | (14,400) | (3,861) | (10,539) | (273.0)| | Income tax expense | 116 | 14 | (102) | (728.6)| | Net loss | $(14,516) | $(3,875) | $(10,641) | (274.6)| | Net loss available to common stockholders per common share, basic and diluted | $(0.68) | $(0.19) | $(0.49) | NM | [Non-GAAP Financial Measures](index=29&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like EBITDA and Adjusted EBITDA to assess operating performance, providing insights into ongoing operations and historical comparisons - The company uses non-GAAP financial measures like EBITDA and Adjusted EBITDA to assess operating performance, provide historical comparisons, and offer insight into ongoing operations[173](index=173&type=chunk)[175](index=175&type=chunk) - EBITDA is defined as net loss excluding income tax expense, interest expense, and depreciation and amortization expense[173](index=173&type=chunk)[177](index=177&type=chunk) - Adjusted EBITDA further excludes 401(k) and share-based compensation, net gains/losses from asset sales, pension settlement charges, strategic initiative costs, and loss related to sale of business[173](index=173&type=chunk)[177](index=177&type=chunk) Reconciliation of Net Loss to EBITDA (non-GAAP) (in thousands) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net loss | $(14,516) | $(3,875) | | Income tax expense | 116 | 14 | | Interest expense (1) | 2,571 | 2,991 | | Depreciation and amortization expense | 11,448 | 11,588 | | **EBITDA** | **$(381)** | **$10,718** | | **EBITDA Margin** | **(0.1)%** | **3.1 %** | Reconciliation of Net Loss to Adjusted EBITDA (non-GAAP) (in thousands) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net loss | $(14,516) | $(3,875) | | Income tax expense | 116 | 14 | | Interest expense (1) | 2,571 | 2,991 | | Depreciation and amortization expense | 11,448 | 11,588 | | 401(k) and share-based compensation expense | 1,999 | 3,762 | | Net losses (gains) on disposal of assets | 2,547 | (18,091) | | Pension settlement charge | 7,726 | — | | Loss related to sale of business (2) | 800 | 1,214 | | Severance costs | 1,882 | 2,955 | | Strategic initiative costs (3) | 259 | — | | **Adjusted EBITDA** | **$14,832** | **$558** | | **Adjusted EBITDA Margin** | **4.3 %** | **0.2 %** | [Liquidity, Capital Resources and Financial Condition](index=30&type=section&id=Liquidity%2C%20Capital%20Resources%20and%20Financial%20Condition) The company's liquidity is supported by cash flows, available cash, and its Credit Facility, with outstanding debt decreasing and operating cash flow improving in fiscal 2025 - The company's primary liquidity sources are cash flows from operations, available cash, and its Credit Facility[187](index=187&type=chunk) - As of June 30, 2025, outstanding borrowings on the Revolver Credit Facility were **$14.3 million**, with **$32.6 million** of availability, and the company was in compliance with all covenants[186](index=186&type=chunk)[184](index=184&type=chunk)[363](index=363&type=chunk)[364](index=364&type=chunk) - Net cash provided by operating activities increased by **$30.2 million** in fiscal 2025 compared to fiscal 2024, driven by decreased inventory and increased margin percentage[190](index=190&type=chunk) - Capital expenditures for fiscal 2025 were **$9.6 million**, a decrease from **$13.8 million** in fiscal 2024, and are projected to be between **$9.0 million** and **$11.0 million** in fiscal 2026[193](index=193&type=chunk) Consolidated Statements of Cash Flows Data (in thousands) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $16,097 | $(14,147) | | Net cash (used in) provided by investing activities | $(5,902) | $14,723 | | Net cash (used in) provided by financing activities | $(9,226) | $10 | | Net increase in cash and cash equivalents | $969 | $586 | [Settlement Agreement](index=31&type=section&id=Settlement%20Agreement) The company executed a Settlement Agreement effective March 27, 2025, related to the sale of its direct ship and private label business, requiring a **$0.8 million** payment - The company executed a Settlement Agreement and Release, effective March 27, 2025, related to the June 30, 2023, sale of its direct ship and private label business assets to TreeHouse Foods, Inc.[194](index=194&type=chunk)[195](index=195&type=chunk) - Under the settlement, the company agreed to pay the buyer an amount equal to **$0.8 million**[195](index=195&type=chunk) [Recent Accounting Pronouncements](index=32&type=section&id=Recent%20Accounting%20Pronouncements) Recent ASUs address improvements to income tax and segment reporting disclosures, with the company evaluating their impact or adopting retrospectively Recent ASUs Applicable to the Company | Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | | :--- | :--- | :--- | :--- | | ASU No. 2023-09, "Income Taxes (Topic 740)", Improvements to Income Tax Disclosures | Addresses investor requests for more transparency about income tax information, primarily related to rate reconciliation and income taxes paid. | Annual periods beginning after December 15, 2024. | Company is still evaluating the impact. | | ASU No. 2023-07, "Segment Reporting (Topic 280)", Improvements to Reportable Segment Disclosures. | Improves disclosures about a public entity's reportable segments and provides more detailed information about segment expenses. | Annual periods beginning after December 15, 2023. | Company adopted retrospectively at the beginning of Q4 fiscal year 2025. | | ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. | Improves disclosures about a public business entity's expenses and provides more detailed information about types of expenses. | Annual reporting periods beginning after December 15, 2026 | Company is still evaluating the impact. | [Off-Balance Sheet Arrangements](index=32&type=section&id=Off-Balance%20Sheet%20Arrangements) The company reported no off-balance sheet arrangements as of June 30, 2025, or June 30, 2024 - The company did not have any off-balance sheet arrangements as of June 30, 2025, or June 30, 2024[197](index=197&type=chunk) [Critical Accounting Estimates](index=32&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates involve significant judgment for coffee-related derivative instruments and single employer pension plans, impacting financial results - Critical accounting estimates involve significant judgment and assumptions about uncertain matters, with potential material impact on financial condition or results of operations if estimates change[198](index=198&type=chunk) - Key estimates include the fair value of coffee-related derivative instruments, which are used to manage commodity price risk and are accounted for as accounting hedges or marked-to-market[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) - Estimates for the single employer pension plan involve actuarial assumptions such as discount rates and expected long-term rates of return on plan assets, with material changes in these assumptions potentially affecting future pension costs[202](index=202&type=chunk)[203](index=203&type=chunk) [ITEM 8. Financial Statements and Supplementary Data](index=33&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data) This item incorporates by reference the consolidated financial statements and accompanying notes found in the F pages of this Form 10-K - The required information is incorporated by reference to the consolidated financial statements and accompanying notes set forth in the F pages of this Form 10-K[204](index=204&type=chunk) [ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=33&type=section&id=ITEM%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with accountants on accounting and financial disclosure - None[205](index=205&type=chunk) [ITEM 9A. Controls and Procedures](index=33&type=section&id=ITEM%209A.%20Controls%20and%20Procedures) As of June 30, 2025, management, with CEO and CFO participation, concluded that the company's disclosure controls and procedures were effective. Management also reported that the internal control over financial reporting was effective as of the same date, with no material changes during the fiscal quarter - As of June 30, 2025, the company's management, including the CEO and CFO, concluded that disclosure controls and procedures were effective[207](index=207&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of June 30, 2025, based on the COSO framework[211](index=211&type=chunk) - There were no material changes in internal control over financial reporting during the fiscal quarter ended June 30, 2025[209](index=209&type=chunk) [ITEM 9B. Other Information](index=34&type=section&id=ITEM%209B.%20Other%20Information) During the fiscal quarter ended June 30, 2025, no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - During the fiscal quarter ended June 30, 2025, none of the company's directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement"[212](index=212&type=chunk) [ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=34&type=section&id=ITEM%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) The company has no disclosures regarding foreign jurisdictions that prevent inspections - Not applicable[213](index=213&type=chunk) [PART III](index=34&type=section&id=PART%20III) This section incorporates by reference information on directors, executive compensation, security ownership, related transactions, and principal accountant fees [ITEM 10. Directors, Executive Officers and Corporate Governance](index=34&type=section&id=ITEM%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance will be incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information for this item is incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders[215](index=215&type=chunk) [ITEM 11. Executive Compensation](index=34&type=section&id=ITEM%2011.%20Executive%20Compensation) Information regarding executive compensation will be incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information for this item is incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders[216](index=216&type=chunk) [ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=34&type=section&id=ITEM%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management, and related stockholder matters, will be incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information for this item is incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders[217](index=217&type=chunk) [ITEM 13. Certain Relationships and Related Transactions, and Director Independence](index=34&type=section&id=ITEM%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships and related transactions, and director independence, will be incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information for this item is incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders[218](index=218&type=chunk) [ITEM 14. Principal Accountant Fees and Services](index=34&type=section&id=ITEM%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services will be incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders - Information for this item is incorporated by reference from the company's definitive proxy statement for the 2025 Annual Meeting of Shareholders[219](index=219&type=chunk) [PART IV](index=34&type=section&id=PART%20IV) This section outlines the exhibits and financial statement schedules included in the Annual Report on Form 10-K [ITEM 15. Exhibits, Financial Statement Schedules](index=34&type=section&id=ITEM%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section details financial statements referenced in Part II, Item 8, and provides a comprehensive index of all exhibits filed with the Form 10-K - This section includes a list of financial statements incorporated in Part II, Item 8, such as Consolidated Balance Sheets, Statements of Operations, Comprehensive Loss, Stockholders' Equity, and Cash Flows for fiscal years 2025 and 2024, along with accompanying notes[221](index=221&type=chunk)[223](index=223&type=chunk) - A detailed index of exhibits is provided, incorporating various agreements (e.g., Asset Purchase Agreement, Credit Agreement), corporate governance documents (e.g., Certificate of Incorporation, Bylaws), employee benefit plans, and certifications (e.g., Principal Executive Officer Certification)[224](index=224&type=chunk)[225](index=225&type=chunk) [ITEM 16. Form 10-K Summary](index=39&type=section&id=ITEM%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K Summary is provided - None[230](index=230&type=chunk) [SIGNATURES](index=40&type=section&id=SIGNATURES) This section contains the signatures of the registrant's authorized officers and directors, certifying the report's submission on behalf of Farmer Bros. Co. as of September 11, 2025 - The report is duly signed on behalf of Farmer Bros. Co. by its President and Chief Executive Officer, John E. Moore III, and other principal officers and directors[233](index=233&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk) - The signing date for the report is September 11, 2025[234](index=234&type=chunk) [INDEX OF CONSOLIDATED FINANCIAL STATEMENTS](index=41&type=section&id=INDEX%20OF%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides an index to the company's consolidated financial statements, including the independent auditor's report, balance sheets, statements of operations, comprehensive income, stockholders' equity, cash flows, and detailed notes [Report of Independent Registered Public Accounting Firm](index=42&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Grant Thornton LLP, the independent registered public accounting firm, issued an unqualified opinion on Farmer Bros. Co.'s consolidated financial statements for the periods ended June 30, 2025, and 2024, affirming their fair presentation in accordance with GAAP. The audit was conducted under PCAOB standards, and no critical audit matters were identified - Grant Thornton LLP, the independent registered public accounting firm, issued an unqualified opinion, stating that the consolidated financial statements of Farmer Bros. Co. as of June 30, 2025, and 2024, and for the two years then ended, present fairly in all material respects the financial position, results of operations, and cash flows in conformity with GAAP[238](index=238&type=chunk) - The audit was conducted in accordance with PCAOB standards, and the firm has served as the company's auditor since 2021[239](index=239&type=chunk)[240](index=240&type=chunk)[243](index=243&type=chunk) - No critical audit matters were identified during the audit[242](index=242&type=chunk) [Consolidated Balance Sheets](index=43&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased by **$24.0 million** to **$161.2 million** in fiscal 2025, while total liabilities decreased by **$22.0 million** to **$117.7 million**, and stockholders' equity slightly declined Consolidated Balance Sheets (in thousands) | ASSETS | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $6,796 | $5,830 | | Accounts and notes receivable, net | 24,758 | 35,147 | | Inventories | 49,839 | 57,230 | | Total current assets | 85,546 | 102,981 | | Property, plant and equipment, net | 27,845 | 34,002 | | Total assets | $161,232 | $185,213 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Accounts payable | 37,669 | 48,478 | | Long-term borrowings under revolving credit facility | 14,300 | 23,300 | | Total liabilities | $117,684 | $139,664 | | Total stockholders' equity | $43,548 | $45,549 | | Total liabilities and stockholders' equity | $161,232 | $185,213 | - Total assets decreased by **$23.98 million (12.9%)** from **$185.21 million** in fiscal 2024 to **$161.23 million** in fiscal 2025[245](index=245&type=chunk) - Total liabilities decreased by **$21.98 million (15.7%)** from **$139.66 million** in fiscal 2024 to **$117.68 million** in fiscal 2025[245](index=245&type=chunk) [Consolidated Statements of Operations](index=44&type=section&id=Consolidated%20Statements%20of%20Operations) Fiscal 2025 net sales increased to **$342.3 million** and gross profit to **$148.9 million**, but increased operating expenses and a pension charge led to a **$14.5 million** net loss Consolidated Statements of Operations (in thousands, except share and per share data) | | For the Years Ended June 30, 2025 | For the Years Ended June 30, 2024 | | :--- | :--- | :--- | | Net sales | $342,281 | $341,094 | | Cost of goods sold | 193,371 | 207,201 | | Gross profit | 148,910 | 133,893 | | Selling expenses | 107,749 | 111,371 | | General and administrative expenses | 39,275 | 41,649 | | Net losses (gains) on disposal of assets | 3,347 | (16,877) | | Operating expenses | 150,371 | 136,143 | | Loss from operations | (1,461) | (2,250) | | Interest expense | (7,480) | (7,835) | | Pension settlement charge | (7,726) | — | | Other, net | 2,267 | 6,224 | | Total other expense | (12,939) | (1,611) | | Loss from operations before taxes | (14,400) | (3,861) | | Income tax expense | 116 | 14 | | Net loss | $(14,516) | $(3,875) | | Net loss available to common stockholders per common share, basic and diluted | $(0.68) | $(0.19) | - Net sales increased by **$1.2 million (0.3%)** from **$341.1 million** in fiscal 2024 to **$342.3 million** in fiscal 2025[247](index=247&type=chunk) - Gross profit increased by **$15.0 million (11.2%)** from **$133.9 million** in fiscal 2024 to **$148.9 million** in fiscal 2025[247](index=247&type=chunk) - Net loss significantly increased to **$14.5 million** in fiscal 2025 from **$3.9 million** in fiscal 2024, primarily due to a **$20.2 million** decrease in net gains on disposal of assets and a **$7.7 million** pension settlement charge[247](index=247&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=45&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Total comprehensive loss was **$4.0 million** in fiscal 2025, a significant shift from **$3.6 million** comprehensive income in fiscal 2024, driven by pension and retiree benefit changes Consolidated Statements of Comprehensive Income (Loss) (in thousands) | | For the Years Ended June 30, 2025 | For the Years Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | $(14,516) | $(3,875) | | Other comprehensive income (loss), net of taxes: | | | | Unrealized gains (losses) on derivatives designated as cash flow hedges | — | 406 | | Loss (gains) on derivatives designated as cash flow hedges reclassified to cost of goods sold | (313) | 615 | | Change in pension and retiree benefit obligations | 10,829 | 6,484 | | Total comprehensive (loss) income | $(4,000) | $3,630 | - Total comprehensive loss was **$4.0 million** in fiscal 2025, a shift from a total comprehensive income of **$3.6 million** in fiscal 2024[250](index=250&type=chunk) - The change was significantly impacted by a **$10.8 million** positive change in pension and retiree benefit obligations in fiscal 2025, compared to **$6.5 million** in fiscal 2024[250](index=250&type=chunk) [Consolidated Statements of Stockholders' Equity](index=46&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity decreased by **$2.0 million** to **$43.5 million** in fiscal 2025, primarily due to a **$14.5 million** net loss, partially offset by postretirement benefits and share-based compensation Consolidated Statements of Stockholders' Equity (in thousands, except share data) | | Common Shares | Common Stock Amount | Additional Paid-in Capital | Accumulated Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at June 30, 2024 | 21,264,327 | $21,265 | $79,963 | $(30,354) | $(25,325) | $45,549 | | Net loss | — | — | — | (14,516) | — | (14,516) | | Cash flow hedges, net of taxes | — | — | — | — | (313) | (313) | | Postretirement benefits curtailment, net of taxes | — | — | — | — | 10,829 | 10,829 | | Share-based compensation | — | — | 1,999 | — | — | 1,999 | | Issuance of common stock and stock option exercises | 296,658 | 296 | (296) | — | — | — | | Balance at June 30, 2025 | 21,560,985 | $21,561 | $81,666 | $(44,870) | $(14,809) | $43,548 | - Total stockholders' equity decreased by **$2.0 million (4.4%)** from **$45.5 million** in fiscal 2024 to **$43.5 million** in fiscal 2025[253](index=253&type=chunk) - The accumulated deficit increased from **$(30.35) million** in fiscal 2024 to **$(44.87) million** in fiscal 2025, reflecting the net loss[253](index=253&type=chunk) - Accumulated other comprehensive loss improved from **$(25.33) million** to **$(14.81) million**, primarily due to changes in postretirement benefit obligations[253](index=253&type=chunk) [Consolidated Statements of Cash Flows](index=47&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly improved to **$16.1 million** in fiscal 2025, while investing activities used **$5.9 million**, and financing activities used **$9.2 million** for debt paydowns Consolidated Statements of Cash Flows (in thousands) | Cash flows from operating activities: | For the Years Ended June 30, 2025 | For the Years Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $16,097 | $(14,147) | | Cash flows from investing activities: | | | | Net cash (used in) provided by investing activities | $(5,902) | $14,723 | | Cash flows from financing activities: | | | | Net cash (used in) provided by financing activities | $(9,226) | $10 | | Net increase in cash and cash equivalents and restricted cash | $969 | $586 | | Cash and cash equivalents and restricted cash at end of period | $6,974 | $6,005 | - Net cash provided by operating activities increased by **$30.2 million**, from **$(14.1) million** in fiscal 2024 to **$16.1 million** in fiscal 2025, primarily due to a decrease in inventory and increased margin percentage[190](index=190&type=chunk)[256](index=256&type=chunk) - Net cash used in investing activities was **$5.9 million** in fiscal 2025, compared to **$14.7 million** provided in fiscal 2024, reflecting lower proceeds from asset sales (**$4.5 million** in 2025 vs. **$29.8 million** in 2024)[191](index=191&type=chunk)[256](index=256&type=chunk) - Net cash used in financing activities was **$9.2 million** in fiscal 2025, mainly due to **$9.0 million** in net paydowns on the Revolver Credit Facility[192](index=192&type=chunk)[256](index=256&type=chunk) [Notes to Consolidated Financial Statements](index=48&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail the company's accounting policies, financial instruments, asset sales, lease and debt obligations, employee benefits, share-based compensation, and income taxes [Note 1. Introduction and Basis of Presentation](index=48&type=section&id=Note%201.%20Introduction%20and%20Basis%20of%20Presentation) Farmer Bros. Co. is a Delaware corporation, operating as a leading coffee roaster, wholesaler, and distributor, primarily through its DSD network - Farmer Bros. Co. is a Delaware corporation, a leading coffee roaster, wholesaler, equipment servicer, and distributor of coffee, tea, and allied products, operating in one business segment[258](index=258&type=chunk) - The company's products reach customers primarily through its DSD network of over **200 delivery routes** and over **90 storage locations** as of June 30, 2025[260](index=260&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=48&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines key accounting policies including fair value measurements, derivative instruments, revenue recognition, inventory valuation, leases, and share-based compensation - The consolidated financial statements are prepared in conformity with U.S. GAAP, and management makes estimates and assumptions that affect reported amounts[261](index=261&type=chunk)[264](index=264&type=chunk) - Key accounting policies cover cash equivalents, allowance for credit losses, fair value measurements (Level 1, 2, 3 hierarchy), derivative instruments (hedge accounting for coffee-related derivatives), and revenue recognition (at a point in time upon delivery)[265](index=265&type=chunk)[266](index=266&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[286](index=286&type=chunk) - Other policies include inventory valuation (lower of cost or net realizable value, FIFO basis), property, plant and equipment depreciation, lease accounting (operating and finance leases), income taxes (deferred taxes, valuation allowance), net loss per common share (two-class method), and share-based compensation (fair value at grant date)[277](index=277&type=chunk)[278](index=278&type=chunk)[281](index=281&type=chunk)[284](index=284&type=chunk)[287](index=287&type=chunk)[290](index=290&type=chunk) [Note 3. Sales of Assets](index=54&type=section&id=Note%203.%20Sales%20of%20Assets) In fiscal 2025, the company sold **2 branch properties** for **$4.6 million**, generating a **$3.9 million** gain, following **13 branch sales** in fiscal 2024 for **$31.7 million** - During fiscal 2025, the company sold **2 branch properties** for a total sales price of **$4.6 million**, resulting in a gain on sale of **$3.9 million**[306](index=306&type=chunk) - In fiscal 2024, **13 branch properties** were sold for **$31.7 million**, yielding a gain on sale of **$21.5 million**[307](index=307&type=chunk) [Note 4. Derivative Instruments](index=54&type=section&id=Note%204.%20Derivative%20Instruments) The company uses forward and option contracts to manage green coffee price risk, with all derivative instruments settled as of March 2025 - The company uses forward and option contracts to manage commodity price risk from green coffee purchase contracts, with some designated as cash flow hedges and others not[308](index=308&type=chunk) - All derivative instruments, both designated and not designated as cash flow hedges, were settled as of March 2025[309](index=309&type=chunk) Fair Values of Derivative Instruments on Consolidated Balance Sheets (in thousands) | | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | Coffee-related derivative instruments (Short-term derivative assets) | $— | $11 | | Coffee-related derivative instruments (Other assets) | $— | $33 | | Coffee-related derivative instruments (Short-term derivative liability) | $— | $730 | | Coffee-related derivative instruments (Other Long-term liabilities) | $— | $1,505 | - Net losses on coffee-related derivative instruments not designated as accounting hedges were **$(3.81) million** in fiscal 2025, compared to net gains of **$0.50 million** in fiscal 2024[315](index=315&type=chunk) [Note 5. Leases](index=56&type=section&id=Note%205.%20Leases) The company holds operating and finance leases for facilities and equipment, with total lease assets of **$38.4 million** and liabilities of **$39.1 million** as of June 30, 2025 - The company has operating and finance leases for building facilities, vehicles, and other equipment, with remaining contractual terms up to **7 years** and options to extend up to an additional **10 years**[320](index=320&type=chunk) Total Lease Assets and Liabilities (in thousands) | | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | Total lease assets | $38,429 | $35,487 | | Total lease liabilities | $39,064 | $36,087 | - Total lease expense for fiscal 2025 was **$19.5 million**, an increase from **$14.0 million** in fiscal 2024, with operating lease expense being the primary component[321](index=321&type=chunk) - The weighted-average remaining lease term for operating leases was **4.0 years** in fiscal 2025, with a weighted-average discount rate of **6.56%**[322](index=322&type=chunk) [Note 6. Fair Value Measurements](index=57&type=section&id=Note%206.%20Fair%20Value%20Measurements) The company classifies fair value assets and liabilities into three levels based on market observability, with all coffee-related derivatives settled by June 30, 2025 - The company classifies assets and liabilities at fair value into three levels based on market observability: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[268](index=268&type=chunk)[271](index=271&type=chunk) - As of June 30, 2024, coffee-related derivative instruments were classified as Level 2, with total derivative assets of **$44 thousand** and liabilities of **$2.235 million**[323](index=323&type=chunk) - There were no coffee-related derivative assets or liabilities for the fiscal year ended June 30, 2025, as all derivatives were settled[324](index=324&type=chunk) [Note 7. Accounts Receivable, Net](index=57&type=section&id=Note%207.%20Accounts%20Receivable%2C%20Net) Accounts receivable, net, decreased by **$10.4 million** to **$24.8 million** in fiscal 2025, with a slight reduction in the allowance for credit losses Accounts Receivable, Net (in thousands) | (In thousands) | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | Trade receivables | $24,332 | $34,438 | | Other receivables | 1,076 | 1,419 | | Allowance for credit losses | (650) | (710) | | **Accounts receivable, net** | **$24,758** | **$35,147** | - Accounts receivable, net, decreased by **$10.39 million (29.6%)** from **$35.15 million** in fiscal 2024 to **$24.76 million** in fiscal 2025[325](index=325&type=chunk) - The allowance for credit losses decreased from **$(710) thousand** in fiscal 2024 to **$(650) thousand** in fiscal 2025[326](index=326&type=chunk) [Note 8. Inventories](index=58&type=section&id=Note%208.%20Inventories) Total inventories decreased by **$7.4 million** to **$49.8 million** in fiscal 2025, primarily due to a reduction in processed tea and culinary products Inventories (in thousands) | (In thousands) | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | Coffee (Processed) | $21,174 | $22,432 | | Coffee (Unprocessed) | 5,813 | 6,105 | | Tea and culinary products (Processed) | 19,807 | 25,166 | | Tea and culinary products (Unprocessed) | 34 | 41 | | Coffee brewing equipment parts | 3,011 | 3,486 | | **Total inventories** | **$49,839** | **$57,230** | - Total inventories decreased by **$7.39 million (12.9%)** from **$57.23 million** in fiscal 2024 to **$49.84 million** in fiscal 2025[327](index=327&type=chunk) - The decrease was primarily driven by a reduction in processed tea and culinary products, which fell by **$5.36 million**[327](index=327&type=chunk) [Note 9. Property, Plant and Equipment](index=58&type=section&id=Note%209.%20Property%2C%20Plant%20and%20Equipment) Net prop

Exhibit 99.1 Farmer Brothers Coffee Reports Fourth Quarter and Full Year Fiscal 2025 Financial Results Fiscal year 2025 gross margin increase of 420 basis points year-over-year to 43.5% Reported full year net loss of $14.5 million, increase in year-over-year adjusted EBITDA of more than $14 million 1 Fiscal 2025 net sales of $342.3 million Fort Worth, Texas, Sept. 11, 2025 – Farmer Brothers Coffee Co. (NASDAQ: FARM), a leading roaster, wholesaler and distributor of coffee, tea and allied products, announced ...

Fiscal year 2025 gross margin increase of 420 basis points year-over-year to 43.5% Reported full year net loss of $14.5 million, increase in year-over-year adjusted EBITDA1 of more than $14 million Fiscal 2025 net sales of $342.3 million FORT WORTH, Texas, Sept. 11, 2025 (GLOBE NEWSWIRE) -- Farmer Brothers Coffee Co. (NASDAQ: FARM), a leading roaster, wholesaler and distributor of coffee, tea and allied products, announced today its fourth quarter and full year fiscal 2025 financial results for the period e ...

Core Viewpoint - Farmer Brothers Coffee Co. will release its fiscal fourth quarter and full year 2025 financial results on September 11, 2025, after market close [1] Group 1: Financial Results Announcement - The company will file its 10-K and issue its earnings results release, both available on the Investor Relations section of its website [1] - An audio-only investor conference call and webcast will be held at 5 p.m. Eastern on September 11 to review the quarter and full fiscal year [2] - The live audio webcast and press release will also be accessible on the company's Investor Relations website [2] Group 2: Company Overview - Founded in 1912, Farmer Brothers Coffee Co. is a national coffee roaster, wholesaler, equipment servicer, and distributor of coffee, tea, and culinary products [3] - The company's product lines include organic, Direct Trade, and sustainably produced coffee, as well as tea, cappuccino mixes, spices, and baking/biscuit mixes [3] - Farmer Brothers serves a diverse range of U.S.-based customers, including independent restaurants, foodservice operators, and large institutional buyers [4] Group 3: Brand Portfolio - The company's primary brands include Farmer Brothers, Boyd's Coffee, SUM>ONE Coffee Roasters, West Coast Coffee, Cain's, and China Mist [4]