Farmer Bros Co (NASDAQ:FARM) Reports Mixed Q4 and Fiscal 2025 Results with Significant EPS Beat

Farmer Brothers Coffee Co. (NASDAQ:FARM) reported its fourth quarter and full-year fiscal 2025 results, delivering a mixed financial performance that has drawn notable market attention. The company’s latest figures reveal both operational improvements and persistent challenges, influencing investor sentiment and stock movement following the announcement.

Earnings and Revenue Performance

For the fourth quarter, Farmer Brothers posted revenue of $85.1 million, a modest increase of 0.9% year-over-year. This figure surpassed analyst estimates, which had projected sales of approximately $83.3 million. The company’s non-GAAP earnings per share came in at -$0.02, significantly better than the anticipated -$0.19. This outperformance on the bottom line reflects effective cost management and operational adjustments during the period.

Full-year sales reached $342.3 million, marking a slight uptick of 0.3% compared to fiscal 2024. Despite the marginal revenue growth, the company reported a net loss of $14.5 million for the year. However, it achieved a substantial improvement in adjusted EBITDA, which increased by over $14 million to $14.8 million.

Key quarterly and annual financial highlights include:

• Q4 Revenue: $85.1M (actual) vs. $83.3M (estimate)
• Q4 EPS: -$0.02 (actual) vs. -$0.19 (estimate)
• Full-Year Revenue: $342.3M, up 0.3% year-over-year
• Full-Year Net Loss: $14.5M
• Gross Margin Expansion: 420 basis points to 43.5%

Market Reaction and Price Action

The market responded positively to the earnings release, with the stock showing an after-hours gain of approximately 12%. Over recent periods, the stock has also demonstrated strength, rising 21.47% over the past two weeks and 33.33% over the last month. This bullish momentum suggests that investors are encouraged by the company’s improved profitability metrics and better-than-expected quarterly results, particularly the significant beat on EPS estimates.

Operational and Strategic Highlights

During fiscal 2025, Farmer Brothers undertook several strategic initiatives aimed at enhancing operational efficiency and strengthening its market position. Notable actions included the rationalization of its coffee SKUs, the launch of a new specialty coffee brand named Sum>One Coffee Roasters, and upgrades to its technology infrastructure. Management emphasized these efforts as part of a broader turnaround strategy designed to create a stronger foundation for future growth.

President and CEO John Moore acknowledged the challenging market conditions but expressed confidence in the company’s strategic direction. He highlighted gross margins above 43%, reduced SG&A expenses, and significant debt reduction as evidence of the company’s operational progress.

Balance Sheet and Liquidity

As of June 30, 2025, Farmer Brothers reported $6.8 million in unrestricted cash and cash equivalents, with $14.3 million in outstanding borrowings and $32.6 million available under its revolving credit facility. The company’s efforts to pay down debt and manage liquidity appear to be yielding positive results, providing it with greater financial flexibility.

Outlook and Analyst Estimates

Looking ahead, analysts project a full-year fiscal 2026 EPS of -$0.31 on sales of $361.2 million. For the first quarter of fiscal 2026, estimates stand at an EPS of -$0.05 with revenue expected to be $91.7 million. While the company did not provide specific forward guidance in the press release, its stated focus on driving top-line growth and improving customer retention aligns with a cautious but optimistic view toward recovery and expansion.

Conclusion

Farmer Brothers’ latest earnings reflect a company in transition, making tangible progress in profitability and operational efficiency despite a competitive and challenging market. The better-than-expected quarterly results, particularly the earnings beat, have resonated well with investors, as evidenced by the positive stock performance.

For more detailed earnings data and analyst estimates, readers can review the information available here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.