Farmer Brothers Co. Reports $4 Million Net Loss and 4.1% Decline in Net Sales for Q3 2025

Farmer Brothers Co. reported a net loss of $4.0 million for the three months ended September 30, 2025, a decrease from a net loss of $5.0 million in the same period last year. The company's net sales fell by 4.1% to $81.6 million, down from $85.1 million, primarily due to a 10.9% decline in unit sales, although average unit prices increased by 7.7%. Gross profit also decreased to $32.4 million, resulting in a gross margin of 39.7%, down from 43.9% in the prior year, largely attributed to rising costs of goods sold driven by increased green coffee commodity prices.

In terms of operational efficiency, Farmer Brothers managed to reduce its operating expenses to $35.6 million, or 43.6% of net sales, compared to $40.1 million, or 47.2% of net sales, in the previous year. This reduction was supported by a decrease in both selling expenses and general and administrative expenses, which fell by $1.4 million and $2.5 million, respectively. The company also reported a loss from operations of $3.2 million, slightly worse than the $2.8 million loss recorded in the same quarter last year.

The company’s balance sheet as of September 30, 2025, showed total assets of $158.8 million, a decrease from $161.2 million at the end of the previous quarter. Current liabilities were reported at $70.2 million, down from $71.0 million, while total liabilities increased slightly to $118.8 million from $117.7 million. The company’s stockholders’ equity decreased to $40.0 million from $43.5 million, reflecting the net loss and changes in equity accounts.

Farmer Brothers continues to focus on strategic initiatives to enhance its market position, including maintaining a diverse product line and optimizing its distribution network. The company operates a production facility in Portland, Oregon, and utilizes a direct-store-delivery network to reach customers across the United States. As of September 30, 2025, the company had 200 delivery routes and over 90 storage locations. Looking ahead, Farmer Brothers anticipates challenges related to commodity cost volatility and economic pressures but believes its current liquidity position, with $3.8 million in cash and $31.2 million available under its revolving credit facility, will support its operational needs in the near term.