Core Insights - Westrock Coffee reported record revenue of $280.9 million for Q2 2025, a 34.8% increase year-over-year, exceeding analyst estimates of $238.3 million [1][2] - Despite strong revenue growth, the company faced a net loss of $0.23 per share, which was deeper than the expected loss of $0.15 per share, primarily due to higher facility scale-up costs and rising interest expenses [1][2] Financial Performance - Revenue for Q2 2025 was $280.9 million, compared to $238.3 million estimated and $208.4 million in Q2 2024, reflecting a 34.8% year-over-year increase [2] - Consolidated Adjusted EBITDA was $15.3 million, up 23.4% from $12.4 million in Q2 2024 [2] - Beverage Solutions revenue reached $208.8 million, a 27.8% increase from $163.3 million in Q2 2024 [2] - Beverage Solutions Segment Adjusted EBITDA was $19.7 million, a significant increase of 48.5% from $13.2 million in Q2 2024 [2] Business Strategy - Westrock Coffee focuses on integrated beverage solutions for large commercial clients, including roasted coffee, tea, and ready-to-drink formats [3] - The company targets high-growth beverage formats and has been expanding its vertically integrated supply chain while developing proprietary technology for sustainable sourcing [4] Operational Highlights - The ramp-up of two major facilities in Conway, Arkansas, contributed to high production utilization, operating near 85% capacity [6] - The company achieved record performance in both Beverage Solutions and Sustainable Sourcing & Traceability segments, with the latter seeing a 59.6% increase in sales [5] Cost and Profitability Challenges - The net loss widened to $21.6 million, with scale-up costs for new facilities totaling $7.6 million, significantly higher than $1.2 million in Q2 2024 [7] - Interest expenses rose from $7.5 million in Q2 2024 to $13.1 million in Q2 2025 [7] - Gross profit remained flat due to elevated coffee prices and new U.S. tariffs on coffee imports affecting working capital [8] Cash Flow and Balance Sheet - The company used $29.1 million in operating cash in the first half of 2025, up from $15.7 million in the same period of 2024 [9] - Capital expenditures were $61.8 million in the first half of 2025, reflecting ongoing investments in plant and equipment [9] - Cash and equivalents increased to $43.96 million from $26.15 million at the end of 2024, while total debt rose to $469.2 million [9] Future Outlook - Management reaffirmed guidance for fiscal 2025 and 2026, indicating strong performance in key metrics like consolidated adjusted EBITDA [11] - The company warned that U.S. coffee tariffs would impact results in Q3 2025, although costs are expected to be passed on to customers [12]