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]

Core Viewpoint - Farmer Bros. Co. has initiated a strategic review process to explore options for maximizing shareholder value, engaging independent financial and legal advisors to assist in this evaluation [1][3]. Group 1: Strategic Review Process - The company has formed a strategy committee composed of independent directors to evaluate a range of strategic alternatives aimed at enhancing shareholder value [3]. - North Point Mergers and Acquisitions, Inc. has been engaged as the financial advisor, while Winston & Strawn LLP will serve as legal counsel during this process [3]. - There is no set timetable for the review process, and the company will not disclose further developments until deemed appropriate [4]. Group 2: Operational Improvements - Over the past two years, Farmer Bros. has made significant strides in transforming its operations and improving business performance, particularly following the 2023 sale of its direct ship business [2]. - The company believes that the current timing is suitable for exploring additional options to maximize shareholder value [2]. Group 3: Company Overview - Founded in 1912, Farmer Bros. Co. is a national coffee roaster, wholesaler, and distributor of coffee, tea, and culinary products, with a diverse product line including organic and sustainably produced coffee [5]. - The company serves a wide range of U.S.-based customers, from small independent restaurants to large institutional buyers, and its primary brands include Farmer Brothers, Boyd's Coffee, and others [6].