Farmer Brothers (NASDAQ:FARM) Issues Quarterly Earnings Results, Misses Expectations By $0.08 EPS

Farmer Brothers (NASDAQ:FARM) announced its earnings results on Friday. The company reported ($0.22) earnings per share for the quarter, missing the consensus estimate of ($0.14) by ($0.08), Zacks reports. Farmer Brothers had a negative net margin of 4.00% and a negative return on equity of 13.80%. The business had revenue of $88.92 million for the quarter, compared to the consensus estimate of $90.47 million.

Here are the key takeaways from Farmer Brothers’ conference call:

• We expect improving gross margins beginning in Q4 FY2026 and further benefits in FY2027 due to recent declines in Arabica/Robusta prices and tariff reductions, with gross margin this quarter at 36.3% and remaining above 35%.
• Adjusted EBITDA was only $484,000 for the quarter while the company recorded a $4.9 million net loss versus prior-year net income, reflecting margin and cost pressures.
• Top-line demand softened with net sales down 1% to $88.9 million and total coffee pounds declining just under 3%, amid weak consumer confidence.
• Management reduced operating costs by $1.4 million (including about $700,000 lower G&A and reduced personnel costs), demonstrating continued cost discipline.
• Liquidity included $4.2 million of unrestricted cash and $24.6 million available under the revolver, and a strategic committee remains actively evaluating options to maximize shareholder value.

Farmer Brothers Price Performance

Shares of Farmer Brothers stock opened at $1.54 on Friday. Farmer Brothers has a 52 week low of $1.34 and a 52 week high of $3.29. The company has a current ratio of 1.24, a quick ratio of 0.46 and a debt-to-equity ratio of 0.46. The stock has a market cap of $33.26 million, a PE ratio of -1.79 and a beta of 1.27. The company’s 50-day moving average price is $1.56 and its two-hundred day moving average price is $1.68.

Key Stories Impacting Farmer Brothers

Here are the key news stories impacting Farmer Brothers this week:

• Positive Sentiment: Some sell-side support and price-target cushion remain: at least one firm (Roth Capital) still has a Buy rating and recent median price targets (~$2.75) are well above the stock’s current level, providing upside if execution recovers. Farmer Brothers Company (FARM) Stock Falls on Q2 2026 Earnings
• Neutral Sentiment: Company released formal results, filed its 10‑Q and hosted an earnings call (prepared remarks/transcript available) — useful for deeper detail on drivers and any guidance changes but not an immediate catalyst by itself. Farmer Bros. Co. (FARM) Q2 2026 Earnings Call Prepared Remarks Transcript
• Neutral Sentiment: Short-interest reporting in syndicated feeds appears to show anomalies (zeros/NaN) for mid‑February; the published short-interest data is unreliable and should not be relied on until exchanges provide corrected reporting. (Data noted in multiple summaries.)
• Negative Sentiment: Q2 EPS missed expectations: reported a loss of $0.22/sh vs. consensus around a smaller loss, widening the company’s negative EPS trend and increasing near-term earnings uncertainty. Farmer Brothers (FARM) Reports Q2 Loss, Beats Revenue Estimates
• Negative Sentiment: Revenue and margins under pressure: revenue (~$88.9M) was roughly in-line to below some estimates and gross profit and margins declined (costs of sales rose materially), producing an operating loss and weaker cash flow — factors that triggered the steep negative price reaction after the print. Farmer Brothers Company (FARM) Stock Falls on Q2 2026 Earnings
• Negative Sentiment: Balance sheet / cash metrics weakened: cash and equivalents declined year-over-year and operating cash used increased, while institutional holdings data show net reductions from several funds in recent quarters — heightening liquidity and sentiment risk until margins and cash generation improve. Farmer Brothers Coffee Reports Second Quarter Fiscal 2026 Financial Results

Institutional Trading of Farmer Brothers

Hedge funds and other institutional investors have recently made changes to their positions in the business. Goldman Sachs Group Inc. boosted its holdings in Farmer Brothers by 253.7% during the first quarter. Goldman Sachs Group Inc. now owns 68,833 shares of the company’s stock worth $153,000 after buying an additional 49,374 shares in the last quarter. Jane Street Group LLC increased its holdings in shares of Farmer Brothers by 152.2% in the first quarter. Jane Street Group LLC now owns 41,129 shares of the company’s stock valued at $91,000 after buying an additional 24,820 shares in the last quarter. XTX Topco Ltd lifted its position in shares of Farmer Brothers by 210.2% during the 2nd quarter. XTX Topco Ltd now owns 42,297 shares of the company’s stock valued at $58,000 after acquiring an additional 28,661 shares during the last quarter. Finally, Gabelli Funds LLC boosted its stake in shares of Farmer Brothers by 2.3% during the 2nd quarter. Gabelli Funds LLC now owns 272,500 shares of the company’s stock worth $373,000 after acquiring an additional 6,000 shares in the last quarter. 64.48% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

FARM has been the topic of a number of recent analyst reports. Zacks Research upgraded shares of Farmer Brothers from a “strong sell” rating to a “hold” rating in a research note on Friday, January 30th. Roth Mkm lowered their target price on shares of Farmer Brothers from $3.50 to $3.00 and set a “buy” rating on the stock in a research note on Wednesday, November 26th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Farmer Brothers in a research report on Monday, December 29th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Farmer Brothers has an average rating of “Hold” and an average price target of $2.75.

About Farmer Brothers

Farmer Brothers Company (NASDAQ: FARM) is a specialty coffee roaster and distributor that serves the foodservice, hospitality and office coffee markets across the United States. The company produces and delivers coffee, tea, single-serve products and beverage equipment, supporting its customers with supply chain solutions, equipment maintenance and barista training services. Its operations are organized to serve commercial accounts ranging from national restaurant chains and convenience stores to independent coffee shops and corporate offices.

Founded in 1912 in Texas, Farmer Brothers has grown from a regional roaster into a national supplier with a network of manufacturing and distribution facilities.