Farmer Brothers Coffee Reports Fourth Quarter and Full Year Fiscal 2025 Financial Results

Fiscal year 2025 gross margin increase of 420 basis points year-over-year to 43.5%

Reported full year net loss of $14.5 million, increase in year-over-year adjusted EBITDA¹ of more than $14 million

Fiscal 2025 net sales of $342.3 million

FORT WORTH, Texas, Sept. 11, 2025 (GLOBE NEWSWIRE) — Farmer Brothers Coffee Co. (NASDAQ:FARM), a leading roaster, wholesaler and distributor of coffee, tea and allied products, announced today its fourth quarter and full year fiscal 2025 financial results for the period ended June 30, 2025. The company filed its Form 10-K, which will be posted on the Investor Relations section of its website after the close of market on Thursday, Sept. 11.

“Fiscal 2025 was a year of significant improvement for Farmer Brothers despite significant market headwinds. We realized substantial operational and financial improvement, including gross margins above 43%, a more than $14 million year-over-year improvement in adjusted EBITDA, continued decreases in overall SG&A expenses and significantly paid down debt,” said President and Chief Executive Officer John Moore. “Although we do expect challenging market conditions to continue throughout fiscal 2026, we believe the changes we have made over recent years has created a strong foundation from which we can grow. We remain committed to driving top-line revenue growth, increasing overall coffee volumes and strengthening our customer retention efforts as we focus on delivering long-term value in fiscal 2026 and beyond.”

Fiscal 2025 business highlights

• Enhanced the company’s leadership team with the addition of Vice President of Sales Brian Miller and promotion of Travis Young to vice president of field operations.
• Completed the company’s brand pyramid and coffee SKU rationalization initiatives, removing redundancies, enhancing operational efficiencies, reducing costs and improving procurement and inventory management capabilities.
• Launched new specialty coffee brand, Sum>One Coffee Roasters.
• Upgraded technology infrastructure to enhance digital marketing efforts, customer service and behavior tracking and inventory management capabilities.
• Formed a strategy committee to evaluate a broad range of potential strategic alternatives aimed at maximizing shareholder value.

Fourth quarter fiscal 2025 financial results

• Net sales were $85.1 million in the fourth quarter of fiscal 2025, an increase of $745,000, or 1%, compared to the fourth quarter of fiscal 2024.
• Gross profit was $38.3 million, or 44.9%, during the fourth quarter of fiscal 2025, compared to gross profit of $32.8 million, or 38.8%, in the fourth quarter of fiscal 2024.
• Operating expenses were $34.3 million in the fourth quarter of fiscal 2025 compared to $36.9 million in the fourth quarter of fiscal 2024. The $2.6 million decrease was driven by a $1.4 million decrease in selling and general and administrative expenses and a $1.2 million increase in net gain from the sale of assets due primarily to branch sales in each period.
• Net loss for the fourth quarter of fiscal 2025 was $4.7 million, compared to a net loss of $4.6 million for the fourth quarter of fiscal 2024. The $4.7 million net loss for the fourth quarter of fiscal 2025 included a $7.7 million loss related to pension settlement and $2.3 million of net gain from the sale of assets. The $4.6 million net loss for the fourth quarter of fiscal 2024 included a $1.1 million net gain from the sale of assets.
• Adjusted EBITDA was $5.8 million for the fourth quarter of fiscal 2025, an increase of $7.4 million, compared to the fourth quarter of fiscal 2024.

Full year fiscal 2025 financial results

• Net sales for fiscal 2025 were $342.3 million, an increase of $1.2 million, or 0.3%, compared to fiscal 2024.
• Gross profit for fiscal 2025 was $148.9 million, an increase of $15 million, or 11.2%, compared to fiscal 2024. Gross margins increased 420 basis points in fiscal 2025 to 43.5%, compared to 39.3% in fiscal 2024.
• Operating expenses were $150.4 million in fiscal 2025 compared to $136.1 million in fiscal 2024. The $14.3 million increase was primarily driven by a $20.2 million decrease in net gains related to asset disposals as there were fewer branch sales in fiscal 2025. Excluding net gains/losses related to asset disposals, operating expenses decreased $6 million.
• Net loss for fiscal 2025 was $14.5 million, compared to a net loss of $3.9 million in fiscal 2024. Fiscal 2025 included a loss of $7.7 million related to pension settlement and $3.3 million associated with net loss from the sale of assets. The $3.9 million net loss in fiscal 2024 included a $16.9 million net gain from the sale of assets.
• Adjusted EBITDA was $14.8 million for fiscal 2025, an increase of $14.3 million, compared to fiscal 2024.

Balance Sheet and Liquidity
As of June 30, 2025, the company had $6.8 million of unrestricted cash and cash equivalents, $14.3 million in outstanding borrowings and $32.6 million of borrowing availability under its revolving credit facility.

Investor Conference Call
Farmer Brothers will publish its fourth quarter and full year fiscal 2025 financial results for the period ended June 30, 2025 with the filing of its 10-K and the issuing of its earnings results release, both of which will be posted on the Investor Relations section of its website after the close of market on Thursday, Sept. 11.

The company will also host an audio-only investor conference call and webcast at 5 p.m. Eastern on Thursday, Sept. 11 to provide a review of the quarter and full fiscal year, as well as a business update. An audio-only replay of the webcast will be archived for at least 30 days on the Investor Relations section of farmerbros.com and will be available approximately two hours after the end of the live webcast.

About Farmer Brothers
Founded in 1912, Farmer Brothers Coffee Co. is a national coffee roaster, wholesaler, equipment servicer and distributor of coffee, tea and culinary products. The company’s product lines include organic, Direct Trade and sustainably produced coffee, as well as tea, cappuccino mixes, spices and baking/biscuit mixes.

Farmer Brothers Coffee Co. delivers extensive beverage planning services and culinary products to a wide variety of U.S.-based customers, ranging from small independent restaurants and foodservice operators to large institutional buyers, such as restaurant, department and convenience store chains, hotels, casinos, healthcare facilities and gourmet coffee houses, as well as grocery chains with private brand coffee and consumer branded coffee and tea products and foodservice distributors. The company’s primary brands include Farmer Brothers, Boyd’s Coffee, SUM>ONE Coffee Roasters, West Coast Coffee, Cain’s and China Mist. You can learn more at farmerbros.com.

Forward-looking Statements
This press release and other documents we file with the Securities and Exchange Commission (the “SEC”) contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, that are based on current expectations, estimates, forecasts and projections about us, our future performance, our financial condition, our products, our business strategy, our beliefs and our management’s assumptions. In addition, we, or others on our behalf, may make forward-looking statements in press releases or written statements, or in our communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls and conference calls. These forward-looking statements can be identified by the use of words, like “anticipates,” “estimates,” “projects,” “expects,” “plans,” “believes,” “intends,” “will,” “could,” “may,” “assumes” and other words of similar meaning. These statements are based on management’s beliefs, assumptions, estimates and observations of future events based on information available to our management at the time the statements are made and include any statements that do not relate to any historical or current fact. These statements are not guarantees of future performance and they involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed, implied or forecast by our forward-looking statements due in part to the risks, uncertainties and assumptions set forth in this press release and Part I, Item 1A. Risk Factors as well as Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 filed with the SEC on Sept. 12, 2024, as amended by the Amendment No. 1 on Form 10-K/A filed with the SEC on Oct. 25, 2024 (as amended, the 2024 Form 10-K), and in our Quarterly Reports on Form 10-Q for the fiscal quarters ended Sept. 30, 2024, Dec. 31, 2024 and March 31, 2025, as well as those discussed elsewhere in this press release and other factors described from time to time in our filings with the SEC.

Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, severe weather, levels of consumer confidence in national and local economic business conditions, developments related to pricing cycles and volumes, the impact of labor market shortages, the increase of costs due to inflation, an economic downturn caused by any pandemic, epidemic or other disease outbreak, the success of our turnaround strategy, the impact of capital improvement projects, the adequacy and availability of capital resources to fund our existing and planned business operations and our capital expenditure requirements, our ability to meet financial covenant requirements in our credit facility, which could impact, among other things, our liquidity, the relative effectiveness of compensation-based employee incentives in causing improvements in our performance, the capacity to meet the demands of our customers, the extent of execution of plans for the growth of our business and achievement of financial metrics related to those plans, our success in retaining and/or attracting qualified employees, our success in adapting to technology and new commerce channels, the effect of the capital markets, as well as other external factors on stockholder value, fluctuations in availability and cost of green coffee, competition, organizational changes, the effectiveness of our hedging strategies in reducing price and interest rate risk, changes in consumer preferences, our ability to provide sustainability in ways that do not materially impair profitability, changes in the strength of the economy, including any effects from inflation, business conditions in the coffee industry and food industry in general, our continued success in attracting new customers, variances from budgeted sales mix and growth rates, weather and special or unusual events, as well as other risks, uncertainties and assumptions described in the 2024 Form 10-K, our Quarterly Reports on Form 10-Q for the fiscal quarters ended Sept. 30, 2024, Dec. 31, 2024 and March 31, 2025, and other factors described from time to time in our filings with the SEC.

Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. Any or all of the forward-looking statements contained in this press release and any other public statement made by us, including by our management, may turn out to be incorrect. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise, except as required under federal securities laws and the rules and regulations of the SEC.

Investor Relations and Media Contact
Brandi Wessel
Director of Communications
405-885-5176
bwessel@farmerbros.com