Farmer Bros. Co. (FARM) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 09 2025
0mins
Should l Buy FARM?
Source: SeekingAlpha
Adjusted EBITDA $1.7 million, an increase of approximately $1.5 million compared to the third quarter of last year.
Gross Margin 42.1%, a year-over-year increase of 200 basis points compared to 40.1% in the third quarter of last year.
Net Sales $82.1 million, down from $85.4 million during the prior year period.
Operating Expenses $38.1 million, compared to $34.7 million in the prior year period, with a $3.4 million increase primarily driven by a $5.3 million decrease in net gains related to asset disposals.
Net Loss $5 million, compared to a $700,000 net loss in the third quarter of last year, which included a $2.4 million net loss associated with the disposal of assets.
Cash Flow from Operating Activities $1.3 million, an increase of $3.6 million compared to the same period last year.
Free Cash Flow Negative $0.7 million for the quarter, a $5 million improvement over the third quarter of last year.
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Analyst Views on FARM
Wall Street analysts forecast FARM stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 1.510
Low
1.50
Averages
2.25
High
3.00
Current: 1.510
Low
1.50
Averages
2.25
High
3.00
About FARM
Farmer Bros. Co. is a coffee roaster, wholesaler, equipment servicer and distributor of coffee, tea and culinary products. Its product lines include organic, Direct Trade and sustainably produced coffee, as well as tea, cappuccino mixes, spices and baking/biscuit mixes. It delivers beverage-planning services and culinary products to a variety of U.S.-based customers, ranging from small independent restaurants and foodservice operators to institutional buyers, such as restaurant, department and convenience store chains, hotels, casinos, healthcare facilities and gourmet coffee houses, as well as grocery chains with private brand coffee and consumer branded coffee and tea products and foodservice distributors. Its primary brands include Farmer Brothers, Boyd’s, Cain’s, China Mist and West Coast Coffee. It distributes its products from its Portland, Oregon production facility, as well as separate distribution centers in Northlake, Illinois; Moonachie, New Jersey, and Rialto, California.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Royal Cup to Acquire Farmer Brothers for $1.29 Per Share in All-Cash Transaction
- Acquisition Announcement: Farmer Bros Co. is set to acquire Farmer Brothers for $1.29 per share in an all-cash deal.
- Financial Details: The transaction is valued at approximately $100 million, reflecting a strategic move in the coffee and foodservice industry.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Investigation Focus: Halper Sadeh LLC is investigating Farmer Brothers Coffee Co. (NASDAQ: FARM) for its sale to Royal Cup Coffee and Tea at $1.29 per share, potentially violating fiduciary duties to shareholders.
- Shareholder Rights: The firm encourages Farmer shareholders to reach out to discuss their rights and options, indicating possible unfavorable terms in the transaction that could limit shareholder benefits.
- Additional Investigations: Kennedy-Wilson Holdings, Inc. (NYSE: KW) is being scrutinized for its sale to a consortium led by CEO William McMorrow for $10.90 per share in cash, with Halper Sadeh LLC potentially seeking increased consideration and additional disclosures.
- Legal Support: Halper Sadeh LLC represents investors globally, focusing on recovering losses from securities fraud and corporate misconduct, highlighting its proactive role in protecting investor rights.
See More
Farmer Brothers Coffee to be Acquired by Royal Cup Coffee & Tea
- Acquisition Agreement: Farmer Brothers Coffee has entered into an agreement with Royal Cup Coffee to be acquired for $1.29 per share in an all-cash deal valued at approximately $28 million, reflecting a 15% discount to Tuesday's closing price, indicating market caution regarding the transaction.
- Stock Price Plunge: Following the acquisition announcement, shares of Farmer Brothers Coffee fell nearly 18%, hitting their lowest point since March 1978, which reflects investor concerns about the company's future, especially given a more than 55% decline over the past year.
- Transaction Timeline: The deal is expected to close by June 30, 2026, after which Farmer Brothers will no longer trade on the NASDAQ Global Select Market, potentially impacting liquidity and investor confidence.
- Industry Consolidation Opportunity: CEO John Moore stated that the acquisition will leverage over 250 years of coffee expertise to enhance manufacturing capabilities and distribution networks, creating greater economies of scale and ultimately better serving customers, highlighting the strategic significance of industry consolidation.
See More
Investigation into Farmer Brothers for Possible Violations
- Transaction Investigation: Ademi LLP is investigating Farmer Brothers (NASDAQ:FARM) for potential breaches of fiduciary duty and other legal violations related to its transaction with Royal Cup Coffee and Tea, which could impact shareholder rights.
- Cash Transaction Details: In this transaction, Farmer Brothers shareholders will receive $1.29 per share in an all-cash deal, a price that may not reflect the company's true value, potentially harming shareholder interests.
- Competition Transaction Restrictions: The transaction agreement imposes significant penalties on Farmer Brothers for accepting competing bids, which could undermine shareholder options and potential returns.
- Board Responsibility Investigation: We are examining whether the Farmer Brothers board is fulfilling its fiduciary duties to all shareholders, ensuring that their decisions align with the best interests of the shareholders.
See More
Halper Sadeh Investigates Farmer Brothers Coffee Sale to Royal Cup
- Investigation Background: Halper Sadeh LLC is investigating the sale of Farmer Brothers Coffee Co. to Royal Cup Coffee and Tea for $1.29 per share, focusing on potential violations of federal securities laws.
- Shareholder Rights: The firm encourages Farmer shareholders to learn about their rights and options, potentially seeking increased consideration or additional disclosures to ensure shareholders can adequately evaluate the transaction.
- Board Responsibilities: The investigation centers on whether Farmer's board failed to secure the best price for shareholders, if there were conflicts of interest during the sales process, and whether all material information was disclosed.
- Potential Legal Action: Halper Sadeh LLC may take legal action on behalf of shareholders to seek increased transaction consideration, additional disclosures, or other relief measures to protect shareholder interests.
See More
Royal Cup Coffee to Acquire Farmer Brothers in All-Cash Deal
- Acquisition Agreement: Royal Cup Coffee has entered into a definitive agreement to acquire Farmer Brothers Coffee for $1.29 per share in an all-cash transaction, expected to close in Q2 2026, enhancing its integrated beverage solutions capabilities.
- Strategic Expansion Support: This acquisition builds on Royal Cup's partnership with Braemont Capital, which provided additional capital and operational support in December 2025, aimed at advancing the company's strategic expansion initiatives and improving market competitiveness.
- Operational Integration Benefits: The acquisition will allow Royal Cup to combine its roasting expertise, route-based distribution, and equipment service into a unified operating structure, thereby improving customer service efficiency and market responsiveness.
- Future Outlook: Upon completion of the transaction, Royal Cup is expected to further solidify its position in the beverage industry and lay the groundwork for future growth, particularly in the increasingly competitive coffee market.
See More
Royal Cup to Acquire Farmer Brothers for $1.29 Per Share in All-Cash Transaction
- Acquisition Announcement: Farmer Bros Co. is set to acquire Farmer Brothers for $1.29 per share in an all-cash deal.
- Financial Details: The transaction is valued at approximately $100 million, reflecting a strategic move in the coffee and foodservice industry.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Investigation Focus: Halper Sadeh LLC is investigating Farmer Brothers Coffee Co. (NASDAQ: FARM) for its sale to Royal Cup Coffee and Tea at $1.29 per share, potentially violating fiduciary duties to shareholders.
- Shareholder Rights: The firm encourages Farmer shareholders to reach out to discuss their rights and options, indicating possible unfavorable terms in the transaction that could limit shareholder benefits.
- Additional Investigations: Kennedy-Wilson Holdings, Inc. (NYSE: KW) is being scrutinized for its sale to a consortium led by CEO William McMorrow for $10.90 per share in cash, with Halper Sadeh LLC potentially seeking increased consideration and additional disclosures.
- Legal Support: Halper Sadeh LLC represents investors globally, focusing on recovering losses from securities fraud and corporate misconduct, highlighting its proactive role in protecting investor rights.
See More
Farmer Brothers Coffee to be Acquired by Royal Cup Coffee & Tea
- Acquisition Agreement: Farmer Brothers Coffee has entered into an agreement with Royal Cup Coffee to be acquired for $1.29 per share in an all-cash deal valued at approximately $28 million, reflecting a 15% discount to Tuesday's closing price, indicating market caution regarding the transaction.
- Stock Price Plunge: Following the acquisition announcement, shares of Farmer Brothers Coffee fell nearly 18%, hitting their lowest point since March 1978, which reflects investor concerns about the company's future, especially given a more than 55% decline over the past year.
- Transaction Timeline: The deal is expected to close by June 30, 2026, after which Farmer Brothers will no longer trade on the NASDAQ Global Select Market, potentially impacting liquidity and investor confidence.
- Industry Consolidation Opportunity: CEO John Moore stated that the acquisition will leverage over 250 years of coffee expertise to enhance manufacturing capabilities and distribution networks, creating greater economies of scale and ultimately better serving customers, highlighting the strategic significance of industry consolidation.
See More
Investigation into Farmer Brothers for Possible Violations
- Transaction Investigation: Ademi LLP is investigating Farmer Brothers (NASDAQ:FARM) for potential breaches of fiduciary duty and other legal violations related to its transaction with Royal Cup Coffee and Tea, which could impact shareholder rights.
- Cash Transaction Details: In this transaction, Farmer Brothers shareholders will receive $1.29 per share in an all-cash deal, a price that may not reflect the company's true value, potentially harming shareholder interests.
- Competition Transaction Restrictions: The transaction agreement imposes significant penalties on Farmer Brothers for accepting competing bids, which could undermine shareholder options and potential returns.
- Board Responsibility Investigation: We are examining whether the Farmer Brothers board is fulfilling its fiduciary duties to all shareholders, ensuring that their decisions align with the best interests of the shareholders.
See More
Halper Sadeh Investigates Farmer Brothers Coffee Sale to Royal Cup
- Investigation Background: Halper Sadeh LLC is investigating the sale of Farmer Brothers Coffee Co. to Royal Cup Coffee and Tea for $1.29 per share, focusing on potential violations of federal securities laws.
- Shareholder Rights: The firm encourages Farmer shareholders to learn about their rights and options, potentially seeking increased consideration or additional disclosures to ensure shareholders can adequately evaluate the transaction.
- Board Responsibilities: The investigation centers on whether Farmer's board failed to secure the best price for shareholders, if there were conflicts of interest during the sales process, and whether all material information was disclosed.
- Potential Legal Action: Halper Sadeh LLC may take legal action on behalf of shareholders to seek increased transaction consideration, additional disclosures, or other relief measures to protect shareholder interests.
See More
Royal Cup Coffee to Acquire Farmer Brothers in All-Cash Deal
- Acquisition Agreement: Royal Cup Coffee has entered into a definitive agreement to acquire Farmer Brothers Coffee for $1.29 per share in an all-cash transaction, expected to close in Q2 2026, enhancing its integrated beverage solutions capabilities.
- Strategic Expansion Support: This acquisition builds on Royal Cup's partnership with Braemont Capital, which provided additional capital and operational support in December 2025, aimed at advancing the company's strategic expansion initiatives and improving market competitiveness.
- Operational Integration Benefits: The acquisition will allow Royal Cup to combine its roasting expertise, route-based distribution, and equipment service into a unified operating structure, thereby improving customer service efficiency and market responsiveness.
- Future Outlook: Upon completion of the transaction, Royal Cup is expected to further solidify its position in the beverage industry and lay the groundwork for future growth, particularly in the increasingly competitive coffee market.
See More
