Farmer Bros. Co. Q4 2025 Earnings Call Transcript: Key Takeaways

Farmer Bros. Co. (FARM) reported Q4 2025 earnings with CEO John Moore and CFO Vance Fisher discussing the results. The company's FY 2025 revenue increased 4.5% to $722.8 million, with net income at $11.7 million, up from $7.1 million in the prior year. Adjusted EBITDA rose 5.7% to $43.4 million, and the adjusted EBITDA margin expanded 100 basis points to 6.0%. The company plans to continue investing in its growth strategy, including expanding its presence in the foodservice and retail channels.

Farmer Bros. Co. (FARM) released its Q4 2025 earnings report, with CEO John Moore and CFO Vance Fisher providing insights into the company's performance. The company reported a 4.5% increase in full-year (FY) 2025 revenue to $722.8 million, compared to $692.4 million in FY 2024. This growth was driven by a 0.8% increase in Q4 revenue to $85.1 million, up from $84.4 million in Q4 2024 Farmer Bros. Gross Margin Up 45% in Q4^[3].

The company's net income for FY 2025 was $11.7 million, a significant improvement from the $7.1 million reported in FY 2024. This was primarily due to an increase in adjusted EBITDA, which rose 5.7% to $43.4 million, and an expansion of the adjusted EBITDA margin by 100 basis points to 6.0% Farmer Bros. Gross Margin Up 45% in Q4^[3].

John Moore, CEO of Farmer Bros., highlighted the company's strategic focus on operational efficiency and product portfolio rationalization. The company completed its company-wide SKU rationalization, removed redundant coffee products, and streamlined its distribution network to improve procurement and inventory management. Additionally, the company finalized its "brand pyramid" strategy to better position itself in both value and specialty segments. The launch of SumOne Coffee Roasters, a specialty coffee brand, aligns with the company's intent to offer differentiated products and appeal to shifting consumer tastes Farmer Bros. Gross Margin Up 45% in Q4^[3].

Despite the improvements, the company's net loss for Q4 FY2025 was $4.7 million, primarily due to a $7.7 million pension settlement charge and $3.3 million in net losses from asset sales. This contrasts with the previous year's one-time gain of $16.9 million from asset disposals. The company continues to face challenges in revenue growth and customer retention, with sales performance remaining flat in Q4 FY2025 Farmer Bros. Gross Margin Up 45% in Q4^[3].

Looking forward, the company plans to continue investing in its growth strategy, including expanding its presence in the foodservice and retail channels. Management expects challenging market conditions to continue throughout FY 2026 and has not provided formal quantitative guidance for the upcoming quarter or fiscal year. Investors should watch for meaningful movement on top-line growth, coffee volumes, and the pace of customer wins or retention as future improvement in results will require evidence of these factors Farmer Bros. Gross Margin Up 45% in Q4^[3].

Farmer Bros. Co. remains unprofitable on a net basis, but the company's focus on cost controls and restructuring efforts has led to significant improvements in operational metrics. The company's gross margin reached 44.9% in Q4 FY2025, up from 38.8% a year earlier, and adjusted EBITDA turned positive year over year. The company's balance sheet also improved, with unrestricted cash and cash equivalents increasing to $6.8 million and outstanding borrowings decreasing to $14.3 million Farmer Brothers GAAP EPS of -$0.22 misses by $0.04, revenue of $85.1M beats by $3.44M^[2].

Farmer Bros. Co. is a major U.S. provider of coffee, tea, and culinary products to foodservice and retail customers. The company's focus on operational efficiency, product portfolio rationalization, and cost reduction has led to improvements in financial performance, but continued challenges in revenue growth and customer retention remain. Investors should closely monitor the company's progress in these areas as it continues to execute its growth strategy.