Farmer Brother Financials
This page shows Farmer Brother (FARM) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Gross-margin repair and working-capital release are improving cash flow faster than the income statement reflects.
Between FY2023 and FY2025, gross margin rose from33.7% to43.5% even though sales barely moved, so the business is capturing more gross profit from each dollar of revenue rather than relying on higher volume. Cash conversion improved even faster: FY2025 operating cash flow was$16.1M while net income remained-$14.5M , a sign that balance-sheet release did more work than accounting profitability.
The gross profit engine looks healthier than the bottom line suggests, because gross margin reached
The balance sheet is smaller and somewhat tighter: total assets fell to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Farmer Brother's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Farmer Brother has an operating margin of -0.4%, meaning the company retains $-0 of operating profit per $100 of revenue. This results in a moderate score of 34/100, indicating healthy but not exceptional operating efficiency. This is up from -0.7% the prior year.
Farmer Brother's revenue grew a modest 0.3% year-over-year to $342.3M. This slow but positive growth earns a score of 33/100.
Farmer Brother has elevated debt relative to equity (D/E of 2.70), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 23/100, reflecting increased financial risk.
Farmer Brother's current ratio of 1.20 is below the typical benchmark, resulting in a score of 29/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Farmer Brother generates a -33.3% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 27/100. This is down from -8.5% the prior year.
Farmer Brother scores 1.95, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Farmer Brother passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
For every $1 of reported earnings, Farmer Brother generates $-1.11 in operating cash flow ($16.1M OCF vs -$14.5M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Farmer Brother earns $-0.2 in operating income for every $1 of interest expense (-$1.5M vs $7.5M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Farmer Brother generated $342.3M in revenue in fiscal year 2025. This represents an increase of 0.3% from the prior year.
Farmer Brother's EBITDA was $10.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 7.0% from the prior year.
Farmer Brother reported -$14.5M in net income in fiscal year 2025. This represents a decrease of 274.6% from the prior year.
Farmer Brother earned $-0.68 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 257.9% from the prior year.
Cash & Balance Sheet
Farmer Brother held $6.8M in cash against $0 in long-term debt as of fiscal year 2025.
Farmer Brother had 22M shares outstanding in fiscal year 2025. This represents an increase of 1.4% from the prior year.
Margins & Returns
Farmer Brother's gross margin was 43.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 4.3 percentage points from the prior year.
Farmer Brother's operating margin was -0.4% in fiscal year 2025, reflecting core business profitability. This is up 0.2 percentage points from the prior year.
Farmer Brother's net profit margin was -4.2% in fiscal year 2025, showing the share of revenue converted to profit. This is down 3.1 percentage points from the prior year.
Farmer Brother's ROE was -33.3% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 24.8 percentage points from the prior year.
Capital Allocation
FARM Income Statement
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $88.9M+9.0% | $81.6M-4.2% | $85.1M+3.8% | $82.1M-8.9% | $90.0M+5.8% | $85.1M+0.8% | $84.4M-1.1% | $85.4M |
| Cost of Revenue | $56.7M+15.2% | $49.2M+4.8% | $46.9M-1.4% | $47.5M-7.1% | $51.2M+7.2% | $47.7M-7.5% | $51.6M+1.0% | $51.1M |
| Gross Profit | $32.3M-0.5% | $32.4M-15.2% | $38.2M+10.9% | $34.5M-11.2% | $38.8M+4.1% | $37.3M+13.9% | $32.8M-4.3% | $34.2M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $8.8M+0.1% | $8.8M-11.5% | $9.9M+16.2% | $8.6M-10.3% | $9.5M-15.3% | $11.3M+17.4% | $9.6M0.0% | $9.6M |
| Operating Income | -$4.1M-30.0% | -$3.2M-181.3% | $3.9M+209.8% | -$3.6M-450.0% | $1.0M+136.0% | -$2.8M+31.8% | -$4.1M-785.7% | -$468K |
| Interest Expense | $1.2M-9.4% | $1.3M-27.9% | $1.8M-4.8% | $1.9M+0.4% | $1.9M+7.3% | $1.8M-3.6% | $1.9M+0.4% | $1.8M |
| Income Tax | $0 | $0+100.0% | -$123K-165.8% | $187K+330.9% | -$81K-160.9% | $133K+838.9% | -$18K | $0 |
| Net Income | -$4.9M-20.9% | -$4.0M+15.2% | -$4.7M+4.6% | -$5.0M-2469.5% | $210K+104.2% | -$5.0M-9.0% | -$4.6M-573.0% | -$682K |
| EPS (Diluted) | $-0.22 | $-0.19 | N/A | $-0.23-2400.0% | $0.01 | $-0.24 | N/A | $-0.03 |
FARM Balance Sheet
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $151.4M-4.6% | $158.8M-1.5% | $161.2M-1.2% | $163.2M-8.9% | $179.1M-1.6% | $182.0M-1.7% | $185.2M+3.4% | $179.1M |
| Current Assets | $83.6M-4.2% | $87.3M+2.0% | $85.5M+1.2% | $84.6M-15.3% | $99.8M-2.8% | $102.7M-0.3% | $103.0M+2.3% | $100.7M |
| Cash & Equivalents | $4.2M+9.6% | $3.8M-43.8% | $6.8M+67.6% | $4.1M-26.1% | $5.5M+67.2% | $3.3M-43.7% | $5.8M+5.5% | $5.5M |
| Inventory | $49.4M-10.5% | $55.2M+10.7% | $49.8M-2.8% | $51.3M-2.9% | $52.8M-8.4% | $57.6M+0.7% | $57.2M+5.2% | $54.4M |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Liabilities | $115.8M-2.5% | $118.8M+0.9% | $117.7M-6.5% | $125.9M-8.5% | $137.6M-2.4% | $141.1M+1.0% | $139.7M+2.7% | $136.0M |
| Current Liabilities | $66.0M-6.0% | $70.2M-1.2% | $71.0M+9.4% | $64.9M-16.6% | $77.9M0.0% | $77.9M+1.2% | $77.0M+8.9% | $70.7M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $35.7M-10.9% | $40.0M-8.1% | $43.5M+16.9% | $37.3M-10.2% | $41.5M+1.4% | $40.9M-10.1% | $45.5M+5.6% | $43.1M |
| Retained Earnings | -$53.8M-10.0% | -$48.9M-9.0% | -$44.9M-11.8% | -$40.1M-14.2% | -$35.1M+0.6% | -$35.4M-16.5% | -$30.4M-17.8% | -$25.8M |
FARM Cash Flow Statement
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$786K+84.3% | -$5.0M-151.4% | $9.7M+646.2% | $1.3M-48.8% | $2.6M+2.4% | $2.5M+350.6% | -$995K+56.5% | -$2.3M |
| Capital Expenditures | $1.8M-5.3% | $1.9M | N/A | $2.0M-2.1% | $2.0M-39.0% | $3.3M | N/A | $3.4M |
| Free Cash Flow | -$2.6M+62.3% | -$6.9M | N/A | -$684K-231.3% | $521K+162.2% | -$837K | N/A | -$5.7M |
| Investing Cash Flow | -$1.8M+6.6% | -$1.9M-193.4% | $2.1M+174.4% | -$2.8M-45.7% | -$1.9M+42.7% | -$3.3M-343.5% | $1.4M+45.0% | $936K |
| Financing Cash Flow | $2.9M-25.5% | $4.0M+143.6% | -$9.1M-18383.7% | -$49K+23.4% | -$64K-14.3% | -$56K0.0% | -$56K+5.1% | -$59K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
FARM Financial Ratios
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.3%-3.5pp | 39.8%-5.2pp | 44.9%+2.9pp | 42.0%-1.1pp | 43.1%-0.7pp | 43.9%+5.0pp | 38.8%-1.3pp | 40.1% |
| Operating Margin | -4.7%-0.8pp | -3.9%-8.5pp | 4.6%+8.9pp | -4.3%-5.5pp | 1.1%+4.5pp | -3.3%+1.6pp | -4.9%-4.4pp | -0.5% |
| Net Margin | -5.5%-0.5pp | -4.9%+0.7pp | -5.6%+0.5pp | -6.1%-6.3pp | 0.2%+6.1pp | -5.9%-0.4pp | -5.4%-4.6pp | -0.8% |
| Return on Equity | -13.7%-3.6pp | -10.1%+0.8pp | -10.9%+2.4pp | -13.4%-13.9pp | 0.5%+12.7pp | -12.2%-2.1pp | -10.1%-8.5pp | -1.6% |
| Return on Assets | -3.2%-0.7pp | -2.5%+0.4pp | -2.9%+0.1pp | -3.0%-3.2pp | 0.1%+2.9pp | -2.8%-0.3pp | -2.5%-2.1pp | -0.4% |
| Current Ratio | 1.27+0.0 | 1.24+0.0 | 1.20-0.1 | 1.30+0.0 | 1.28-0.0 | 1.32-0.0 | 1.34-0.1 | 1.42 |
| Debt-to-Equity | 3.25+0.3 | 2.97+0.3 | 2.70-0.7 | 3.38+0.1 | 3.32-0.1 | 3.45+0.4 | 3.07-0.1 | 3.15 |
| FCF Margin | -2.9%+5.6pp | -8.5% | N/A | -0.8%-1.4pp | 0.6%+1.6pp | -1.0% | N/A | -6.7% |
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Frequently Asked Questions
What is Farmer Brother's annual revenue?
Farmer Brother (FARM) reported $342.3M in total revenue for fiscal year 2025. This represents a 0.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Farmer Brother's revenue growing?
Farmer Brother (FARM) revenue grew by 0.3% year-over-year, from $341.1M to $342.3M in fiscal year 2025.
Is Farmer Brother profitable?
No, Farmer Brother (FARM) reported a net income of -$14.5M in fiscal year 2025, with a net profit margin of -4.2%.
What is Farmer Brother's EBITDA?
Farmer Brother (FARM) had EBITDA of $10.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Farmer Brother's gross margin?
Farmer Brother (FARM) had a gross margin of 43.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Farmer Brother's operating margin?
Farmer Brother (FARM) had an operating margin of -0.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Farmer Brother's net profit margin?
Farmer Brother (FARM) had a net profit margin of -4.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Farmer Brother's return on equity (ROE)?
Farmer Brother (FARM) has a return on equity of -33.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Farmer Brother's operating cash flow?
Farmer Brother (FARM) generated $16.1M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Farmer Brother's total assets?
Farmer Brother (FARM) had $161.2M in total assets as of fiscal year 2025, including both current and long-term assets.
What is Farmer Brother's current ratio?
Farmer Brother (FARM) had a current ratio of 1.20 as of fiscal year 2025, which is considered adequate.
What is Farmer Brother's debt-to-equity ratio?
Farmer Brother (FARM) had a debt-to-equity ratio of 2.70 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Farmer Brother's return on assets (ROA)?
Farmer Brother (FARM) had a return on assets of -9.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Farmer Brother's Altman Z-Score?
Farmer Brother (FARM) has an Altman Z-Score of 1.95, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Farmer Brother's Piotroski F-Score?
Farmer Brother (FARM) has a Piotroski F-Score of 4 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Farmer Brother's earnings high quality?
Farmer Brother (FARM) has an earnings quality ratio of -1.11x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Farmer Brother cover its interest payments?
Farmer Brother (FARM) has an interest coverage ratio of -0.2x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Farmer Brother?
Farmer Brother (FARM) scores 24 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.