Financial Performance - Net sales for the second quarter of fiscal 2026 were $88.9 million, a decrease of $1 million, or 1%, compared to the prior year period[11]. - Gross profit was $32 million, representing a gross margin of 36.3%, down from $38.8 million and 43.1% in the second quarter of fiscal 2025[11]. - The net loss for the second quarter of fiscal 2026 was $4.9 million, compared to a net income of $200,000 in the prior year period[11]. - Adjusted EBITDA was $484,000 for the second quarter of fiscal 2026, down from $5.9 million in the second quarter of fiscal 2025[11]. - Net loss for the six months ended December 31, 2025, was $8,891,000, compared to a net loss of $4,792,000 for the same period in 2024[21]. - EBITDA for the six months ended December 31, 2025, was $(2,487,000), with an EBITDA margin of (1.5)%, compared to $2,335,000 and an EBITDA margin of 1.3% for the same period in 2024[27]. - Adjusted EBITDA for the six months ended December 31, 2025, was $1,848,000, with an Adjusted EBITDA margin of 1.1%, compared to $7,317,000 and an Adjusted EBITDA margin of 4.2% for the same period in 2024[29]. Operating Expenses - Operating expenses were $36.4 million, or 40.9% of net sales, compared to $37.8 million, or 42%, in the second quarter of fiscal 2025, including a $700,000 decrease in general and administrative expenses[11]. Cash and Liquidity - As of December 31, 2025, the company had $4.2 million in unrestricted cash and cash equivalents and $24.6 million available under its revolving credit facility[5]. - Cash flows from operating activities resulted in a net cash used of $5,793,000 for the six months ended December 31, 2025, compared to net cash provided of $5,046,000 for the same period in 2024[21]. - Cash and cash equivalents at the end of the period were $4,364,000, down from $5,734,000 at the end of the same period in 2024[21]. - Proceeds from credit facilities amounted to $7,000,000, with no repayments on credit facilities during the six months ended December 31, 2025[21]. Assets and Liabilities - Total assets as of December 31, 2025, were $151.5 million, down from $161.2 million as of June 30, 2025[19]. - Total liabilities were $115.8 million as of December 31, 2025, compared to $117.7 million as of June 30, 2025[19]. - The company reported an accumulated deficit of $53.8 million as of December 31, 2025[19]. Depreciation and Provisions - The company incurred depreciation and amortization expenses of $5,208,000 for the six months ended December 31, 2025, compared to $5,817,000 for the same period in 2024[21]. - The company recognized a provision for credit losses of $464,000 for the six months ended December 31, 2025, compared to $322,000 for the same period in 2024[21]. - Right-of-use assets obtained in exchange for new operating lease liabilities amounted to $3,356,000 for the six months ended December 31, 2025[21]. Future Outlook - Farmer Brothers Coffee expects gross margin to remain above 35% for the remainder of fiscal 2026 despite current economic pressures[3].

Core Insights - Farmer Brothers Coffee Co. reported a challenging second quarter for fiscal 2026, with a focus on improving operational costs and maintaining a gross margin above 35% despite economic pressures [2][11]. Financial Performance - Net sales for the second quarter were $88.9 million, a decrease of $1 million or 1% compared to the same period last year [11]. - Gross profit was $32 million, representing a gross margin of 36.3%, down from $38.8 million or 43.1% in the prior year [11]. - Operating expenses totaled $36.4 million, accounting for 40.9% of net sales, a reduction from $37.8 million or 42% in the same quarter of the previous year [11]. - The company reported a net loss of $4.9 million, compared to a net income of $200,000 in the prior year [11]. - Adjusted EBITDA was $484,000, significantly lower than $5.9 million in the second quarter of fiscal 2025 [11]. Balance Sheet and Liquidity - As of December 31, 2025, the company had $4.2 million in unrestricted cash and cash equivalents, with an additional $24.6 million available under its revolving credit facility [4]. Company Overview - Farmer Brothers Coffee Co. is a national coffee roaster and distributor, offering a range of products including organic and sustainably produced coffee, tea, and culinary products [8][9]. - The company serves a diverse customer base, including independent restaurants, large institutional buyers, and grocery chains [9].

Core Viewpoint - Farmer Brothers Coffee Co. is set to release its second quarter 2026 financial results on February 13, 2026, after market close, which will include a 10-Q filing and earnings results release [1] Group 1: Financial Results Announcement - The financial results for the period ending December 31, 2025, will be published on the Investor Relations section of the company's website [1] - An audio-only investor conference call and webcast will be held on February 13, 2026, at 5 p.m. Eastern, where management will review the quarter and provide a business update [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 offers a variety of products including organic, Direct Trade, and sustainably produced coffee, as well as tea, cappuccino mixes, spices, and baking/biscuit mixes [3] Group 3: Customer Base and Brands - Farmer Brothers Coffee Co. serves a diverse range of U.S.-based customers, from small independent restaurants to large institutional buyers such as hotels, casinos, and grocery chains [4] - The company's primary brands include Farmer Brothers, Boyd's Coffee, SUM>ONE Coffee Roasters, West Coast Coffee, Cain's, and China Mist [4]

Core Viewpoint - Deveron Corp. has successfully held a special meeting of shareholders where all proposed resolutions were approved, marking significant changes for the company, including a major asset sale and a name change [1][2][3][4][5][6]. Group 1: Approval of Key Resolutions - Shareholders approved the sale of substantially all of the company's assets, with 97.922% of shareholders in favor, and 97.542% of minority shareholders supporting the resolution [2]. - A name change from "Deveron Corp." to "Finis Holdings Inc." was approved by 97.921% of shareholders present [3]. - The delisting of the company's common shares from the TSX Venture Exchange received approval from 97.922% of shareholders and 97.361% of minority shareholders [4]. - Shareholders approved the application to cease being a reporting issuer, with 97.922% in favor [5]. - A resolution for the voluntary winding up of the company was approved by 97.922% of shareholders and 97.542% of minority shareholders [6]. Group 2: Transaction and Future Outlook - The completion of the asset sale transaction is subject to the satisfaction of all conditions precedent, with an anticipated closing date around January 15, 2026 [7].

Core Points - The company has filed its Form 10-Q and released its first quarter results for Fiscal Year 2026, which are accessible on its Investor Relations website [2] - The financial information presented during the call is unaudited, and management's remarks may include forward-looking statements that should not be relied upon for future expectations [3] - Management will reference non-GAAP financial measures such as adjusted EBITDA and adjusted EBITDA margin to assess operating performance, with reconciliations provided in the company's release and SEC filings [4]

Core Insights - Farmer Brothers reported a quarterly loss of $0.19 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, marking an earnings surprise of -111.11% [1] - The company's revenues for the quarter ended September 2025 were $81.6 million, missing the Zacks Consensus Estimate by 4.34% and down from $85.07 million a year ago [2] - Farmer Brothers has underperformed the market, with shares down about 2.2% year-to-date compared to the S&P 500's gain of 15.6% [3] Financial Performance - Over the last four quarters, Farmer Brothers has surpassed consensus EPS estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $91.5 million, and for the current fiscal year, it is -$0.44 on revenues of $354.5 million [7] Industry Context - The Food - Natural Foods Products industry, to which Farmer Brothers belongs, is currently in the bottom 8% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Farmer Brothers' stock performance [5][6]

Financial Data and Key Metrics Changes - Revenue decreased by 4% to $81.6 million compared to $85.1 million in the prior year period [4][11] - Adjusted EBITDA remained flat year-over-year at $1.4 million [4][11] - Gross margins were approximately 39.7%, a decline of about 400 basis points from the previous year [12] - Operating expenses decreased by $4.5 million to $35.6 million, representing 43.6% of net sales compared to 47.2% in the prior year [12] Business Line Data and Key Metrics Changes - The company is focusing on reenergizing its Direct Store Delivery (DSD) network through sales and operational initiatives [5] - There is a renewed focus on growing the white label customer portfolio, leveraging the Portland roasting and manufacturing facility [5][6] Market Data and Key Metrics Changes - The average price of a cup of coffee has increased by 20% compared to the previous year, impacting consumer spending [7] - The National Restaurant Association reported a decline in restaurant foot traffic for the seventh consecutive month, indicating a shift in consumer dining habits due to economic uncertainty [7] Company Strategy and Development Direction - The company aims to drive top-line revenue and address customer and coffee pound degradation in fiscal 2026 [4] - There is a commitment to leveraging core coffee capabilities and enhancing customer service while managing costs [14] - The company is working with industry organizations to seek exemptions from tariffs on coffee imports [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant challenges due to unprecedented green coffee market conditions and inflation impacting costs [11] - The company expects continued pressure on gross margins and revenue performance throughout fiscal 2026 [10][12] - Despite these challenges, management remains optimistic about creating shareholder value once market conditions improve [10][14] Other Important Information - The company recorded a net loss of $4 million for the quarter, an improvement from a $5 million net loss in the prior year [12] - As of September 30, 2025, the company had $3.8 million in unrestricted cash and $31.2 million available under its revolving credit facility [12] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries [16]

Financial Performance - Net sales for the three months ended September 30, 2025, decreased by $3.5 million, or 4.1%, to $81.6 million compared to $85.1 million in the same period of 2024[110]. - Gross profit decreased to $32.4 million for the three months ended September 30, 2025, down from $37.3 million in the prior year, with gross margin declining to 39.7% from 43.9%[112]. - Net loss for the three months ended September 30, 2025, was $4.0 million, a 19.5% improvement from a net loss of $5.0 million in the same period of 2024[109]. - EBITDA improved by $0.7 million to a loss of $0.8 million for the three months ended September 30, 2025, compared to a loss of $1.4 million in the prior year[105]. - For the three months ended September 30, 2025, the company reported a net loss of $4.025 million, an improvement from a net loss of $5.002 million in the same period of 2024[123]. - Adjusted EBITDA for the three months ended September 30, 2025, was $1.364 million, compared to $1.417 million in 2024, with an Adjusted EBITDA Margin of 1.7% for both periods[124]. Operating Expenses - Operating expenses decreased by $4.5 million to $35.6 million, representing 43.6% of net sales, down from 47.2% in the prior year[113]. - Selling expenses decreased by $1.4 million, while general and administrative expenses decreased by $2.5 million in the three months ended September 30, 2025[113]. - Interest expense decreased by $0.5 million to $1.3 million for the three months ended September 30, 2025, primarily due to lower pension-related interest costs[115]. Sales and Pricing - Average unit price increased by 7.7% while unit sales decreased by 10.9% in the three months ended September 30, 2025, contributing to the overall decline in net sales[111]. - The company did not introduce any new product categories that materially impacted net sales during the three months ended September 30, 2025[111]. Cash Flow and Capital Expenditures - Net cash used in operating activities was $5.007 million for the three months ended September 30, 2025, a decrease of $7.5 million compared to net cash provided of $2.493 million in 2024[138]. - Total capital expenditures for the three months ended September 30, 2025, were $1.9 million, a decrease of 42.0% from $3.3 million in the prior year[105]. - Capital expenditures for the three months ended September 30, 2025, were $1.9 million, down from $3.3 million in the same period of 2024[141]. - The company anticipates paying between $9.0 million to $11.0 million in capital expenditures in fiscal 2026, financed through cash flows from operations and borrowings[141]. Inventory and Borrowings - The company had outstanding borrowings of $18.3 million on its Revolver Credit Facility as of September 30, 2025, with a weighted average interest rate of 6.15%[132]. - The company had committed to purchase green coffee inventory totaling $31.6 million under fixed-price contracts as of September 30, 2025[143]. - As of September 30, 2025, the company had $3.8 million in unrestricted cash and cash equivalents, and $31.2 million available on its Revolver Credit Facility[136]. Market Conditions - The company continues to monitor macroeconomic trends, including product cost inflation and tariff impacts, which may adversely affect net sales and profitability[130]. - The company operates a nationwide DSD network with over 200 delivery routes and over 90 storage locations as of September 30, 2025[129].

Financial Performance - Net sales for the first quarter of fiscal 2026 were $81.6 million, a decrease of $3.5 million, or 4.1%, compared to the first quarter of fiscal 2025[10] - Gross profit was $32.4 million, representing a gross margin of 39.7%, down from 43.9% in the same quarter last year[10] - The company reported a net loss of $4 million for the first quarter of fiscal 2026, an improvement from a net loss of $5 million in the first quarter of fiscal 2025[10] - Adjusted EBITDA remained flat at $1.4 million for both the first quarter of fiscal 2026 and the first quarter of fiscal 2025[10] - Operating expenses decreased to $35.6 million, or 43.6% of net sales, compared to $40.1 million, or 47.2%, in the first quarter of fiscal 2025[10] - Net loss for the three months ended September 30, 2025, was $4,025,000, an improvement from a net loss of $5,002,000 in the same period of 2024[20] - EBITDA for the same period was $(751,000), compared to $(1,408,000) in 2024, resulting in an EBITDA margin of (0.9)%[26] - Adjusted EBITDA for the three months ended September 30, 2025, was $1,364,000, consistent with an Adjusted EBITDA margin of 1.7%[28] Cash Flow and Assets - The company had $3.8 million in unrestricted cash and cash equivalents as of September 30, 2025[5] - Cash flows from operating activities showed a net cash used of $5,007,000, a decline from net cash provided of $2,493,000 in 2024[20] - Cash and cash equivalents at the end of the period were $3,999,000, down from $5,138,000 at the end of the same period in 2024[20] - The company experienced a net decrease in cash and cash equivalents of $2,975,000, compared to a decrease of $867,000 in the prior year[20] - As of September 30, 2025, total assets were $158.8 million, a decrease from $161.2 million as of June 30, 2025[18] Strategic Initiatives - Farmer Brothers announced a partnership with Eurest to open 50 Sum>One Coffee Roasters-branded cafes across the country[10] - The company maintained a focus on driving top-line revenue and customer growth in 2026 despite a challenging economic environment[3] - The company incurred $587,000 in strategic initiative costs during the quarter, which were not present in the previous year[28] Expenses - There was a nearly $4 million improvement in sales, general, and administrative (SG&A) expenses compared to the first quarter of fiscal 2025[10] - Depreciation and amortization expense for the quarter was $2,614,000, compared to $2,897,000 in 2024[26] - The company reported a net cash used in investing activities of $1,919,000, an improvement from $3,304,000 in the prior year[20] - Proceeds from credit facilities amounted to $4,000,000, compared to $3,000,000 in the same period of 2024[20]

Core Insights - Farmer Brothers Coffee Co. reported a net loss of $4 million for the first quarter of fiscal 2026, an improvement from a net loss of $5 million in the same period last year [8][14] - Net sales decreased by 4.1% year-over-year to $81.6 million, down from $85.1 million [8][14] - The gross margin decreased by 400 basis points year-over-year to 39.7%, compared to 43.9% in the first quarter of fiscal 2025 [8][14] Financial Performance - Adjusted EBITDA remained flat at $1.4 million for the first quarter of fiscal 2026, consistent with the previous year [8][14] - Operating expenses were reduced to $35.6 million, or 43.6% of net sales, down from $40.1 million, or 47.2% of net sales, in the first quarter of fiscal 2025 [8][14] - The company achieved a gross profit of $32.4 million in the first quarter of fiscal 2026, compared to $37.3 million in the same quarter of fiscal 2025 [8][14] Operational Highlights - The company realized a nearly $4 million improvement in sales, general, and administrative (SG&A) expenses compared to the first quarter of fiscal 2025 [8] - Farmer Brothers announced a partnership with Eurest to open 50 Sum>One Coffee Roasters-branded cafes across the country [8] - The company emphasized its focus on driving top-line revenue and customer growth in fiscal 2026 [3][8] Balance Sheet and Liquidity - As of September 30, 2025, Farmer Brothers had $3.8 million in unrestricted cash and cash equivalents, with an additional $31.2 million available under its revolving credit facility [5][8] - Total current assets amounted to $87.3 million, while total liabilities were reported at $118.8 million [16][17] Market Position - Farmer Brothers Coffee Co. is a national coffee roaster and distributor, serving a diverse range of customers including independent restaurants, foodservice operators, and large institutional buyers [9] - The company's product lines include organic, Direct Trade, and sustainably produced coffee, as well as tea and culinary products [9]