Farmer Bros. (US:FARM)2026-02-13 21:20Financial 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].