Financial Data and Key Metrics Changes - Total net revenue for Q3 FY2025 was $47.5 million, down from $63.3 million in Q3 FY2024 [11] - Agribusiness revenue decreased to $45.9 million from $61.8 million year-over-year [11] - Operating loss for Q3 FY2025 was $600,000 compared to operating income of $9 million in Q3 FY2024 [15] - Net loss applicable to common stock for Q3 FY2025 was $1 million, down from net income of $6.5 million in Q3 FY2024 [15] - Adjusted net loss for diluted EPS was $400,000 or $0.02 per diluted share, compared to adjusted net income of $7.8 million or $0.42 per diluted share in Q3 FY2024 [16] - Non-GAAP adjusted EBITDA for Q3 FY2025 was $3 million, down from $13.8 million in Q3 FY2024 [16] Business Line Data and Key Metrics Changes - Fresh-packed lemon sales were $23.8 million in Q3 FY2025, down from $25.8 million in Q3 FY2024, with 1.4 million cartons sold at an average price of $17.02 per carton compared to $18.43 in the prior year [12] - Avocado revenue was $8.5 million in Q3 FY2025, down from $13.9 million in Q3 FY2024, with 5.7 million pounds sold at an average price of $1.50 per pound compared to $1.57 in the previous year [13] - Orange revenue increased to $1.7 million in Q3 FY2025 from $1.2 million in Q3 FY2024, with 94,000 cartons sold at an average price of $18 per carton [14] - Farm management revenues dropped to $100,000 in Q3 FY2025 from $3.2 million in Q3 FY2024 due to the termination of a farm management agreement [14] Market Data and Key Metrics Changes - The company experienced pricing pressures in the lemon market during the first two months of Q3 FY2025, but saw improvements in July [5] - The California avocado crop typically experiences alternating years of high and low production, impacting volumes [13] - The company expects fresh lemon volumes for FY2025 to be in the range of 4.5 million to 5 million cartons, while avocado volume is anticipated to be approximately 7 million pounds [18] Company Strategy and Development Direction - The company is focused on a two-part value creation strategy: agriculture production optimization and land and water value creation [5] - A strategic partnership with Sunkist is expected to drive $5 million in annual cost savings and EBITDA enhancements starting in FY2026 [6] - The company is exploring development options for the Linco del Mar property to address housing shortages in Ventura County [8] - The company anticipates significant increases in avocado production as newly planted acreage matures in FY2027 and beyond [7] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving volume goals for both lemons and avocados in FY2025 despite current challenges [5] - The company expects pricing to improve in FY2026 due to anticipated shortages in several international areas [5] - Management highlighted the importance of the Sunkist partnership in enhancing resilience to market volatility [12] - The company is optimistic about long-term growth opportunities through real estate development and agricultural production [19] Other Important Information - Long-term debt as of July 31, 2025, was $63.3 million, up from $40 million at the end of FY2024 [17] - The company expects future distributions from real estate projects to total approximately $155 million over the next five fiscal years [8] Q&A Session Summary Question: Expectations of costs associated with Linco del Mar development - Management indicated that costs would be similar to previous developments, estimating $3 million to $5 million over three to five years, with most costs capitalized [24][25] Question: Vision for Linco del Mar development - Management stated that Limoneira is currently leading the project and is open to partnerships similar to the Lewis Group for future development [25][27] Question: Normalized pricing for lemons and supply constraints - Management noted that lemon prices rebounded in August and expect supply constraints from Spain and Turkey to support pricing in the upcoming year [30][31] Question: Expectations for avocado volumes in 2026 - Management indicated it is too early to predict avocado volumes for 2026 but expects a significant breakout year in 2027 [33]