Farmer Brothers Reports Significant Q2 Loss and Plunging Adjusted EBITDA Amid Challenging Quarter
FARM is trading near its 52-week low of $1.335 (4.9% above the low) on elevated volume (4.2× avg).
Summary
Farmer Brothers Co. announced its Q2 fiscal 2026 results, reporting a net loss of $4.9 million and a sharp decline in Adjusted EBITDA, signaling significant operational and financial challenges.
Key Events · Earnings and Guidance · FARM
-
Swing to Net Loss
The company reported a net loss of $4.9 million for Q2 FY26, a significant reversal from a net income of $0.2 million in the prior-year period.
-
Adjusted EBITDA Plummets
Adjusted EBITDA dramatically decreased to $484,000 in Q2 FY26, down from $5.9 million in Q2 FY25, indicating a sharp decline in operational profitability.
-
Gross Profit Margin Compression
Gross profit margin fell to 36.3% in Q2 FY26 from 43.1% in the prior year, contributing to the overall decline in profitability.
-
Increased Borrowings
Long-term borrowings under the revolving credit facility increased to $21.3 million as of December 31, 2025, up from $14.3 million on June 30, 2025.
Analysis · FARM · Manufacturing
Farmer Brothers Co. reported a substantial deterioration in its financial performance for the second fiscal quarter, swinging to a net loss of $4.9 million from a prior-year net income. This significant decline, coupled with a drastic drop in Adjusted EBITDA from $5.9 million to $484,000, indicates severe operational challenges. The company's net sales also saw a slight decrease, and gross profit margin compressed considerably. These results are particularly concerning given the company is trading near its 52-week low, highlighting increased pressure on its financial stability and ability to generate profit. The increase in long-term borrowings under its revolving credit facility further underscores the need for capital amidst these operational headwinds.
How filings like this one have moved
In the 30 days to Sep 16, 2026, 34.9% of the 1159 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, FARM was trading at $1.40 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $33.3M. The 52-week trading range was $1.34 to $3.29. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.