S&W Seed Company's Q3 2025: Navigating Contradictions in Tariffs, Sorghum Acres, and Revenue Expectations

Tariff impact on the sorghum market, sorghum acres and market potential, strategic review and market uncertainty, sorghum acres and market conditions, VBO and revenue expectations are the key contradictions discussed in S&W Seed Company's latest 2025Q3 earnings call.



Sorghum Market Impact and Strategic Adjustments:
- S&W Seed Company reported positive adjusted EBITDA in Q3 after facing tariff-related disruptions.
- The pre-tariff environment showed positive results, while post-tariff impacts led to a decline in US sorghum exports to China and increased domestic inventories.

Revenue and Financial Performance:
- Q3 revenue was reported at $9.5 million, compared to $9.4 million in Q3 of last year, excluding Australian operations.
- Full-year revenue expectations were revised to $29 million to $31 million, down from the previous guidance of $34.5 million to $38 million.

Gross Margin Improvement:
- Gross profit margin for Q3 was 37.7%, up significantly from 24.6% in the same period last year.
- The improvement was driven by better lifecycle management, higher margins from Prussic Acid Free sorghum, and increased international margins.

Strategic Review and Future Outlook:
- The company announced the commencement of exploring strategic alternatives to enhance shareholder value.
- Despite short-term tariff disruptions, S&W remains optimistic about long-term growth opportunities in the sorghum market.