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FORT WORTH, Texas, USA – Farmer Bros. Coffee Co. reported its third quarter fiscal 2025 financial results for the period ended March 31, 2025. The company filed its Form 10-Q, which can be found on the Investor Relations section of the company’s website.
“The third quarter was another solid quarter for Farmer Brothers,” said President and Chief Executive Officer John Moore. “We realized our third straight quarter of positive adjusted EBITDA, maintained gross margins above 42% and saw continued improvement in our cost structure with decreases in our selling and general and administrative expenses. These results are a testament to the work our team continues to do to streamline operations, increase efficiencies and better manage our overall cost structure as we proactively work to navigate this challenging market environment.”
Farmer Bros.: Third quarter 2025 business highlights
- Launch of its new specialty coffee brand, Sum>One Coffee Roasters.
- Completion of the company’s brand pyramid and coffee SKU rationalization initiative.
- Restructuring among its support and corporate leadership teams, including the promotion of Travis Young to vice president of field operations.
Third quarter fiscal 2025 financial results
- Net sales of $82.1 million compared to $85.4 million in the third quarter of fiscal 2024.
- Gross profit of $34.5 million, or 42.1%, compared to $34.2 million, or 40.1%, in the prior year period.
- Operating expenses were $38.1 million compared to $34.7 million in the prior year period. The $3.4 million increase was primarily driven by a $5.3 million decrease in net gains related to asset disposals as there were no branch sales in the third quarter of fiscal 2025.
- Net loss was $5 million, which included a $2.4 million net loss associated with the disposal of assets, compared to a $700,000 net loss in the third quarter of fiscal 2024, which included a $2.9 million net gain associated with disposal of assets.
- Adjusted EBITDA¹ was $1.7 million, an increase of almost $1.5 million, compared to $271,000 in the third quarter of fiscal 2024.
Balance Sheet and Liquidity
As of March 31, 2025, Farmer Brothers had $4.1 million of unrestricted cash and cash equivalents, $200,000 in restricted cash and $23.3 million in outstanding borrowings under its credit facility, with $22.1 million of additional borrowing capacity.
¹ Adjusted EBITDA is a non-GAAP measure. Please refer to “Non-GAAP Financial Measures” below for an explanation and reconciliation of adjusted EBITDA and other related non-GAAP measures to comparable GAAP measures.
