Farmer Bros (NASDAQ:FARM) Q1 2026 Earnings Miss Estimates, Revenue Falls Short

Farmer Brothers Coffee (NASDAQ:FARM) reported financial results for the first quarter of fiscal 2026, revealing a performance that fell short of analyst expectations on the top and bottom lines. The market's immediate reaction was negative, with the stock trading lower following the announcement.

Earnings and Revenue Versus Estimates

The company's results for the quarter ended September 30, 2025, missed key analyst projections. The primary figures are outlined below:

• Revenue: The company reported net sales of $81.6 million. This fell short of the analyst consensus estimate of approximately $87.99 million.
• Earnings Per Share (EPS): Farmer Brothers posted a net loss per share of $0.19. This was wider than the estimated loss of $0.11 per share that analysts had forecast.

The dual miss on both revenue and earnings highlights the challenges the company faced during the quarter, particularly in driving top-line growth.

Market Reaction

The market's response to the earnings release was decisively negative. In after-hours trading following the announcement, the stock price declined by over 4%. This price action suggests that investors were disappointed by the company's inability to meet quarterly expectations and are likely concerned about the pressures impacting profitability.

Key Takeaways from the Quarterly Report

Beyond the headline earnings and revenue figures, the press release detailed several other critical financial and operational developments.

Operational Highlights:

• The company announced a significant new partnership with Eurest, which includes plans to open 50 SUM>ONE Coffee Roasters-branded cafes across the country.
• Management emphasized continued benefits from operational efficiency and cost management initiatives, which led to a nearly $4 million improvement in sales, general and administrative (SG&A) expenses compared to the same quarter last year.

Financial Performance Details:

• Net sales decreased by 4.1% year-over-year, from $85.1 million in Q1 fiscal 2025.
• Gross margin contracted to 39.7%, a decrease of 400 basis points from the 43.9% margin reported in the prior-year period.
• Despite the revenue decline, the company held its Adjusted EBITDA steady at $1.4 million, flat compared to the first quarter of fiscal 2025.
• The net loss for the quarter was $4.0 million, an improvement from the $5.0 million net loss in the same period last year.

Outlook and Forward Estimates

In the press release, CEO John Moore stated the company would "remain focused on driving top line revenue and customer growth in 2026." However, no specific quantitative financial guidance for the coming quarters or the full year was provided. This lack of forward-looking numerical targets means investors must rely on external analyst estimates for future performance benchmarks.

Analysts are currently projecting the following for Farmer Brothers:

• Q2 Fiscal 2026: An estimated loss per share of $0.07 on sales of $94.56 million.
• Full Year Fiscal 2026: An estimated loss per share of $0.51 on sales of $360.32 million.

For a detailed view of historical earnings and future analyst estimates, you can review the data here.

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Disclaimer: This article is for informational purposes only and is not intended as investment advice. The information presented should not be construed as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.