Farmer Bros 2025 Q4 Earnings Slight Revenue Growth Amid Widening Losses

Farmer Bros (FARM) reported its fiscal 2025 Q4 earnings on Sep 11th, 2025, delivering modest revenue growth but worsening losses. The report indicated a 0.9% increase in revenue year-over-year, though the company’s net loss expanded by 3.4%. Despite these financial headwinds, CEO John Moore emphasized operational progress and strategic initiatives aimed at positioning the company for long-term growth.

Revenue
Farmer Bros reported total revenue of $85.14 million in fiscal 2025 Q4, representing a 0.9% increase compared to the $84.40 million recorded in the same period in 2024. This slight growth reflects the company’s ongoing efforts to stabilize its core business amid challenging market conditions.

Earnings/Net Income
Despite a marginal improvement in top-line performance, Farmer Bros saw its losses deepen in the quarter. The company posted a net loss of $-4.75 million in 2025 Q4, a 3.4% increase in the loss compared to $-4.59 million in the same period in 2024. On a per-share basis, the loss widened to $0.22 from $0.22 in the prior-year quarter. The results highlight continued pressure from cost inflation and declining sales volumes.

The company reported a widening net loss, with earnings per share and net income reflecting a deteriorating financial performance, underscoring the persistent challenges in the coffee market.

Price Action
Shares of Farmer Bros experienced a strong post-earnings rally, with the stock price jumping 14.22% on the latest trading day. The positive momentum continued into the week and the month, with the stock surging 21.99% and 35.47% respectively. These gains may reflect investor optimism around the company's operational improvements and strategic direction.

Post-Earnings Price Action Review
John Moore, CEO of Farmer Bros, highlighted significant operational and financial progress in 2025 despite challenging market conditions. The company achieved gross margins above 43%, a $14 million year-over-year increase in adjusted EBITDA, and reduced SG&A and debt. The successful launch of Sum>One and SKU rationalization efforts positioned Farmer Bros for differentiation in the market. Leveraging core competencies in sourcing, roasting, and manufacturing, the CEO emphasized the company’s ability to offer tailored coffee solutions and enhance resilience in volatile green coffee markets. Leadership changes in sales and field operations were cited as key drivers for improved execution and customer retention through Revive’s service network. Although Moore acknowledged challenges such as soft consumer demand, declining coffee volumes, and rising green coffee costs, he expressed cautious optimism for fiscal 2026. Strategic initiatives including DSD network optimization, white-glove service, and brand pyramid growth are expected to drive long-term value creation.

Additional News
In the three weeks leading up to Farmer Bros’ earnings report, several notable developments in the business sector caught investors' attention. A major news story involved the Nigerian newspaper Punch reporting on a self-proclaimed “Obi of Lagos,” Chibuike Azubike, who admitted to orchestrating a fraudulent installation scheme. This case highlights ongoing concerns over fraudulent claims and self-styled leadership in the region. Additionally, a Nigerian teenager who was trafficked to Mali reportedly rejected a life of prostitution after being rescued, drawing attention to the persistent issue of human trafficking in the country. In the corporate space, Dangote Refinery emphasized that union membership is voluntary and not compulsory, sparking a public debate on labor rights and obligations in large industrial operations. These stories, though unrelated to Farmer Bros directly, reflect broader economic and social dynamics in the markets the company operates within.

Guidance
John Moore and CFO Vance Fisher provided cautious guidance for fiscal 2026, citing continued margin pressure due to elevated green coffee costs and potential tariffs. They expect gross margins to decline into the high 30s. The leadership team noted no immediate plans for pricing increases and emphasized a focus on top-line growth through DSD expansion, customer retention, and executional improvements. Fisher confirmed that the company does not provide revenue growth guidance but highlighted plans to manage operating expenses and leverage improved cash flow. With $32.6 million in additional borrowing capacity under the credit facility, Farmer Bros aims to maintain operational flexibility while navigating a challenging market environment. The company remains committed to long-term value creation through operational resilience and strategic customer engagement.