Farmer Bros Co reported a flat top-line in Q3 FY2024 (quarter ended 2024-03-31) with net sales of $85.4 million, vs. $85.7 million in the prior-year period, as pricing gains offset lower unit volumes. The quarter delivered a meaningful margin expansion, with gross margin up 660 basis points to 40.1% and gross profit of $34.2 million, driven by improved pricing and lower commodity costs. Despite the revenue mix shift, operating expenses declined modestly to $34.7 million, aided by higher net gains from asset sales, yielding a positive Adjusted EBITDA of $0.271 million for the quarter. However, net income from continuing operations remained negative at $0.682 million, reflecting ongoing restructuring costs and capital investments. Management reiterates a multi-quarter DSD transformation and SKU rationalization program intended to simplify the portfolio, increase in-stock accuracy, and improve route execution. They expect to complete the SKU rationalization by the end of FY2025 Q1 and project free cash flow positivity in early FY2025, supported by a targeted capital plan of $12â$15 million for FY2024. The company remains focused on expanding high-value growth through SHOTT and Boyd's, strengthening pricing discipline via an AI-driven engine, and increasing route density with a more efficient Portland footprint. Growth remains contingent on completing operational improvements and sustaining favorable input-cost dynamics.