Farmer Bros. (FARM) - 2026 Q1 - Quarterly Results

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]