Farmer Brothers Coffee reports net sales for fiscal 2025 of $342.3 million

FORT WORTH, Texas, USA – Farmer Brothers Coffee Co., 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.