Farmer Brothers Coffee Reports Fourth Quarter and Full Year Fiscal 2025 Financial Results

Core Insights - Farmer Brothers Coffee Co. reported significant operational and financial improvements in fiscal year 2025, despite facing market challenges [3] - The company achieved a gross margin increase of 420 basis points year-over-year, reaching 43.5% [14] - Adjusted EBITDA for fiscal 2025 increased by more than $14 million year-over-year, totaling $14.8 million [14] Financial Performance - Fiscal 2025 net sales were $342.3 million, reflecting a slight increase of $1.2 million, or 0.3%, compared to fiscal 2024 [14] - The company reported a full-year net loss of $14.5 million, which is an increase from a net loss of $3.9 million in fiscal 2024 [14] - Gross profit for fiscal 2025 was $148.9 million, an increase of $15 million, or 11.2%, compared to fiscal 2024 [14] Fourth Quarter Highlights - In the fourth quarter of fiscal 2025, net sales were $85.1 million, up by $745,000, or 1%, compared to the same quarter in fiscal 2024 [7] - Gross profit for the fourth quarter was $38.3 million, representing a gross margin of 44.9%, compared to 38.8% in the fourth quarter of fiscal 2024 [7] - Adjusted EBITDA for the fourth quarter was $5.8 million, an increase of $7.4 million compared to the fourth quarter of fiscal 2024 [7] Operational Improvements - The company enhanced its leadership team and completed brand and SKU rationalization initiatives to improve operational efficiencies [7] - Farmer Brothers launched a new specialty coffee brand, Sum>One Coffee Roasters, and upgraded its technology infrastructure for better customer service and inventory management [7] - The company formed a strategy committee to explore potential strategic alternatives aimed at maximizing shareholder value [7] Balance Sheet and Liquidity - As of June 30, 2025, the company had $6.8 million in unrestricted cash and cash equivalents, with $14.3 million in outstanding borrowings [8] - The total assets of the company were $161.2 million, down from $185.2 million in the previous year [22] - Total liabilities decreased to $117.7 million from $139.7 million in the prior year [22]