Farmer Bros Co
FARM
$1.530 -0.65%
Exchange: NASDAQ | Sector: Consumer Defensive | Industry: Packaged Foods
Q2 2025
Published: Feb 6, 2025

Earnings Highlights

  • Revenue of $90.02M up 0.6% year-over-year
  • EPS of $0.01 decreased by 92.4% from previous year
  • Gross margin of 43.1%
  • Net income of 210.00K
  • "The second quarter was a strong one for Farmer Brothers despite the challenging market environment. Sales were up slightly on a year-over-year basis and up 6% compared to the first quarter of this year to $90 million. We maintained gross margins above 43%, and our selling and G&A expenses also continued to decline." - John Moore
FARM
Company FARM

Executive Summary

Farmer Bros Co delivered a resilient QQ2 2025 with revenue of $90.0 million and a gross margin of 43.1%, supporting an adjusted EBITDA of $5.9 million and a positive free cash flow of $0.52 million. The quarter marks the second consecutive period of margin strength and improving cost discipline, underpinned by ongoing DSD optimization, SKU rationalization, and brand simplification initiatives. Management highlighted top-line growth as a strategic priority, aided by leadership additions in the sales organization, an expanding Allied Goods portfolio, and the rollout of a new specialty coffee tier. The company also advanced its portfolio strategy through price actions to navigate tight coffee markets and is progressing toward a B2B e-commerce platform slated for launch in the latter part of the current year, which should enhance product penetration and customer loyalty, albeit with near-term macro headwinds from elevated coffee prices and consumer softness. While coffee volumes declined 8% year-over-year, management remains confident that the mix shift toward Allied products and efficiency gains will sustain margins above the 40% target and enable continued cash generation as normalization of market conditions occurs over the coming quarters.

Key Performance Indicators

Revenue
Increasing
90.02M
QoQ: 5.82% | YoY: 0.63%
Gross Profit
Increasing
38.84M
43.14% margin
QoQ: 4.08% | YoY: 7.56%
Operating Income
Decreasing
1.02M
QoQ: 136.00% | YoY: -77.13%
Net Income
Decreasing
210.00K
QoQ: 104.20% | YoY: -92.23%
EPS
Decreasing
0.01
QoQ: 104.13% | YoY: -92.38%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q3 2025 82.05 -0.23 -3.9% View
Q2 2025 90.02 0.01 +0.6% View
Q1 2025 85.07 -0.24 +3.9% View
Q4 2024 84.40 -0.22 -1.3% View
Q3 2024 85.36 -0.03 -31.3% View