Westrock Coffee Company Reports Fourth Quarter and Full Year 2025 Results and Updates 2026 Outlook
Rhea-AI Summary
Westrock Coffee (Nasdaq: WEST) reported FY2025 net sales of $1.2 billion (up 39.8%) and Consolidated Adjusted EBITDA of $69.7 million, which included $15.3 million of Conway scale-up costs. FY2025 net loss widened to $90.4 million. Q4 net sales were $339.5 million (up 48.3%) and Q4 Adjusted EBITDA was $23.0 million. The company set 2026 Consolidated Adjusted EBITDA guidance of $90–$100 million, representing ~29%–44% growth over 2025, and will discuss details on today’s earnings call.
Positive
- Full year net sales +39.8% to $1.2 billion (FY2025)
- Consolidated Adjusted EBITDA rose to $69.7 million (FY2025)
- SS&T Segment Adjusted EBITDA increased to $16.5 million (FY2025)
- 2026 guidance: Consolidated Adjusted EBITDA $90–$100 million
Negative
- Net loss widened to $90.4 million (FY2025)
- Gross profit declined 2.0% year-over-year (FY2025)
- Scale-up costs of $15.3 million included in FY2025 Adjusted EBITDA
- Company cannot reconcile 2026 Adjusted EBITDA forecast to GAAP without unreasonable effort
News Market Reaction – WEST
On the day this news was published, WEST declined 3.96%, reflecting a moderate negative market reaction. Argus tracked a peak move of +4.8% during that session. Argus tracked a trough of -10.5% from its starting point during tracking. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $17M from the company's valuation, bringing the market cap to $410M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
WEST slipped 0.51% while key packaged food and beverage peers like LWAY, OTLY, USNA, MAMA, and SENEA all showed gains between 0.71% and 1.97%, pointing to a stock-specific move rather than a sector-wide shift.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 06 | Q3 2025 earnings | Positive | -1.3% | Strong Q3 sales and EBITDA growth with higher losses and updated guidance. |
| Aug 07 | Q2 2025 earnings | Positive | +5.0% | Robust revenue growth, stronger segment EBITDA and reaffirmed 2025–2026 outlook. |
| May 08 | Q1 2025 earnings | Neutral | +18.1% | Mixed margins with higher losses but solid SS&T growth and reaffirmed guidance. |
| Mar 11 | FY 2024 earnings | Negative | -10.9% | Full-year sales decline, wider net loss and higher leverage despite EBITDA growth. |
| Nov 07 | Q3 2024 earnings | Negative | -1.2% | Minimal revenue growth, swing from profit to loss and cautious updated guidance. |
Earnings releases have usually produced price moves roughly in line with the tone of results and outlook, though the Q3 2025 report showed a negative reaction despite strong growth metrics.
Over the past five earnings cycles, Westrock Coffee has moved from flat 2024 sales of $850.7M with a wider net loss, to accelerating 2025 growth. Q1–Q3 2025 showed strong net sales increases but persistent losses, as Conway Facility scale-up costs weighed on profitability while supporting future capacity. Management repeatedly reaffirmed or updated multi-year guidance as new lines came online. Against this backdrop, the latest full-year 2025 results and 2026 EBITDA outlook extend an established growth-and-investment narrative.
Historical Comparison
In the past year, WEST’s five earnings reports averaged a ±1.91% move, with reactions generally tracking whether results and guidance skewed positive or negative.
Earnings have shown a transition from flat 2024 sales and widening losses to stronger 2025 revenue growth, improving segment EBITDA, and repeated confirmation or refinement of multi-year guidance as the Conway facility ramps.
Market Pulse Summary
This announcement highlights record 2025 net sales of $1.2 billion, improving Adjusted EBITDA of $69.7 million, and a 2026 EBITDA outlook of $90.0–$100.0 million, even as the net loss widened to $90.4 million. Historically, earnings have reflected the same trade-off between growth and Conway Facility scale-up costs. Investors may watch margin trends, progress in Beverage Solutions and SS&T, and how management updates guidance relative to prior earnings cycles.
Key Terms
consolidated adjusted ebitda financial
segment adjusted ebitda financial
non-gaap financial measure financial
fasb accounting standards codification 280 regulatory
AI-generated analysis. Not financial advice.
LITTLE ROCK, Ark., March 10, 2026 (GLOBE NEWSWIRE) -- Westrock Coffee Company (Nasdaq: WEST) (“Westrock Coffee” or the “Company”) today reported financial results for the fourth quarter and full year ended December 31, 2025 and updates its outlook for 2026.
Full Year 2025 Highlights1
- Consolidated Results
- Net sales were
$1.2 billion , an increase of39.8% - Gross profit was
$150.8 million , a decrease of2.0% - Net loss was
$90.4 million , compared to a net loss of$80.3 million in the prior year period - Consolidated Adjusted EBITDA2 was
$69.7 million and included$15.3 million of scale-up costs associated with our Conway Facility, compared to Consolidated Adjusted EBITDA of$47.2 million and$12.8 million of scale-up costs in the prior year period
- Net sales were
- Segment Results
- Beverage Solutions
- Net sales were
$908.4 million , an increase of37.8% - Segment Adjusted EBITDA3 was
$68.5 million , an increase of27.7%
- Net sales were
- Sustainable Sourcing & Traceability (“SS&T”)
- Net sales were
$280.5 million , an increase of46.6% - Segment Adjusted EBITDA3 was
$16.5 million compared to$6.4 million for the prior year period
- Net sales were
- Beverage Solutions
Commenting on our results, Scott T. Ford, CEO and Co-founder stated, "As we turn the page on 2025, we are pleased with the progress made toward becoming the premiere integrated, strategic supplier to the pre-eminent global coffee, tea and energy beverage brands, as evidenced by our record results. With the build-out and commercialization of our Conway extracts and ready-to-drink facility in our rearview mirror, our focus shifts to driving volume, optimizing our product mix and maximizing margin across our platform.”
Fourth Quarter Highlights1
- Consolidated Results
- Net sales were
$339.5 million , an increase of48.3% - Gross profit was
$38.9 million , an increase of2.3% - Net loss was
$22.6 million , compared to a net loss of$24.6 million in the prior year period - Consolidated Adjusted EBITDA2 was
$23.0 million and included$1.4 million of scale-up costs associated with our Conway Facility, compared to Consolidated Adjusted EBITDA of$13.3 million and$7.6 million of scale-up costs in the prior year period
- Net sales were
- Segment Results
- Beverage Solutions
- Net sales were
$272.5 million , an increase of56.6% - Segment Adjusted EBITDA3 was
$18.8 million , an increase of5.4%
- Net sales were
- SS&T
- Net sales were
$66.9 million , an increase of21.9% - Segment Adjusted EBITDA3 was
$5.5 million compared to$3.1 million for the prior year period
- Net sales were
- Beverage Solutions
________________________
1 Unless otherwise indicated, all comparisons are to the prior year period.
2 Consolidated Adjusted EBITDA is a non-GAAP financial measure. The definition of Consolidated Adjusted EBITDA is included under the section titled “Non-GAAP Financial Measures” and a reconciliation of Consolidated Adjusted EBITDA to the most directly comparable GAAP measure is provided in the tables that accompany this release.
3 Segment Adjusted EBITDA is a segment performance measure, which is required by U.S. GAAP to be disclosed in accordance with FASB Accounting Standards Codification 280, Segment Reporting. Segment Adjusted EBITDA is defined consistently with Consolidated Adjusted EBITDA, except that it excludes scale-up costs related to our Conway Facility.
Financial Outlook
The Company is updating its 2026 outlook for its Consolidated Adjusted EBITDA, which represents growth of
The guidance presented is an estimate of what the Company believes is realizable as of the date of this release and excludes any impacts of future acquisitions or capital markets activities. As such, actual results may vary from this guidance and the variations may be material. Management will provide additional details regarding the 2026 outlook on its earnings call to be held today.
Consolidated Guidance
| 2026 | ||||||
| (Millions) | Low | High | ||||
| Consolidated Adjusted EBITDA | $ | 90.0 | $ | 100.0 | ||
The Company is not readily able to provide a reconciliation of forecasted Consolidated Adjusted EBITDA to forecasted GAAP net income (loss) without unreasonable effort because certain items that impact such figure are uncertain or outside the Company’s control and cannot be reasonably predicted. Such items include the impact of non-cash gains or losses resulting from market-to-market adjustments, among others.
Conference Call Details
Westrock Coffee will host a conference call and webcast at 4:30 p.m. ET today to discuss this release. To participate in the live earnings call and question and answer session, please register HERE and dial-in information will be provided directly to you. The live audio webcast will be accessible in the “Events and Presentations” section of the Company’s Investor Relations website at https://investors.westrockcoffee.com. An archived replay of the webcast will be available shortly after the live event has concluded and will be available for a minimum of 14 days.
About Westrock Coffee
Westrock Coffee is a leading integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the United States, providing coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries around the world. With offices in 10 countries, the Company sources coffee and tea from numerous countries of origin.
Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended from time to time. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, our 2026 financial outlook, the plans, objectives, expectations, and intentions of Westrock Coffee, and other statements that are not historical facts. These statements are based on information available to Westrock Coffee as of the date hereof and Westrock Coffee is not under any duty to update any of the forward-looking statements after the date of this communication to conform these statements to actual results. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of the management of Westrock Coffee as of the date hereof and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and should not be relied on by an investor, or others, as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Westrock Coffee. These forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, changes in domestic and foreign business, market, financial, political, and legal conditions; our inability to secure an adequate supply of key raw materials, including green coffee and tea, or a disruption in our supply chain, including from tariffs or trade restrictions or global conflicts (including the ongoing conflicts in Europe, the Middle East and Latin America); risks relating to the uncertainty of the projected financial information with respect to Westrock Coffee; risks related to the rollout of Westrock Coffee's business and the timing of expected business milestones; the effects of competition and industry consolidation on Westrock Coffee's business; the ability of Westrock Coffee to issue equity or equity-linked securities or obtain, refinance or extend the maturities of debt financing in the future; Westrock Coffee’s future level of indebtedness, which may reduce funds available for other business purposes and reduce the Company’s operational flexibility; Westrock Coffee’s inability to comply with the financial covenants in our credit agreement; the risk that Westrock Coffee fails to attract, motivate or retain qualified personnel; the risk that Westrock Coffee fails to fully realize the potential benefits of acquisitions or joint ventures or has difficulty successfully integrating acquired companies; the loss of significant customers or delays in bringing their products to market; litigation or legal disputes, which could lead us to incur significant liabilities and costs or harm our reputation; the risk of incurring additional costs if Westrock Coffee no longer qualifies as an emerging growth company (as defined in the JOBS Act); and those factors discussed in Westrock Coffee’s Annual Report on Form 10-K, which was filed with the United States Securities and Exchange Commission (the “SEC”) on March 12, 2025, in Part I, Item 1A “Risk Factors” and other documents Westrock Coffee has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Westrock Coffee does not presently know, or that Westrock Coffee currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, the forward-looking statements reflect Westrock Coffee's expectations, plans, or forecasts of future events and views as of the date of this communication. Westrock Coffee anticipates that subsequent events and developments will cause Westrock Coffee's assessments to change. However, while Westrock Coffee may elect to update these forward-looking statements at some point in the future, Westrock Coffee specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as a representation of Westrock Coffee's assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Contacts
Media:
PR@westrockcoffee.com
Investor Contact:
IR@westrockcoffee.com
| Westrock Coffee Company Consolidated Balance Sheets (Unaudited) | ||||||||
| (Thousands, except par value) | December 31, 2025 | December 31, 2024 | ||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 49,875 | $ | 26,151 | ||||
| Restricted cash | 21,164 | 9,413 | ||||||
| Accounts receivable, net of allowance for credit losses of | 94,099 | 99,566 | ||||||
| Inventories | 199,802 | 163,323 | ||||||
| Derivative assets | 15,049 | 19,746 | ||||||
| Prepaid expenses and other current assets | 16,370 | 15,444 | ||||||
| Total current assets | 396,359 | 333,643 | ||||||
| Property, plant and equipment, net | 483,606 | 467,011 | ||||||
| Goodwill | 116,111 | 116,111 | ||||||
| Intangible assets, net | 107,141 | 114,879 | ||||||
| Operating lease right-of-use assets | 60,310 | 63,380 | ||||||
| Other long-term assets | 12,451 | 6,756 | ||||||
| Total Assets | $ | 1,175,978 | $ | 1,101,780 | ||||
| LIABILITIES, CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' EQUITY | ||||||||
| Current maturities of long-term debt | $ | 19,281 | $ | 14,057 | ||||
| Short-term debt | 82,640 | 54,659 | ||||||
| Accounts payable | 91,175 | 84,255 | ||||||
| Supply chain finance program | 96,594 | 78,838 | ||||||
| Derivative liabilities | 28,600 | 11,966 | ||||||
| Accrued expenses and other current liabilities | 95,340 | 34,095 | ||||||
| Total current liabilities | 413,630 | 277,870 | ||||||
| Long-term debt, net | 360,703 | 325,880 | ||||||
| Convertible notes payable - related party, net | 60,839 | 49,706 | ||||||
| Deferred income taxes | 10,160 | 14,954 | ||||||
| Operating lease liabilities | 58,146 | 60,692 | ||||||
| Other long-term liabilities | 865 | 1,346 | ||||||
| Total liabilities | 904,343 | 730,448 | ||||||
| Commitments and contingencies | ||||||||
| Series A Convertible Preferred Shares, | 273,503 | 273,850 | ||||||
| Shareholders' Equity | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 969 | 942 | ||||||
| Additional paid-in-capital | 544,567 | 519,878 | ||||||
| Accumulated deficit | (534,370 | ) | (442,922 | ) | ||||
| Accumulated other comprehensive income (loss) | (13,034 | ) | 19,584 | |||||
| Total shareholders' equity (deficit) | (1,868 | ) | 97,482 | |||||
| Total Liabilities, Convertible Preferred Shares and Shareholders' Equity | $ | 1,175,978 | $ | 1,101,780 | ||||
| Westrock Coffee Company Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| (Thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net sales | $ | 339,472 | $ | 228,977 | $ | 1,188,952 | $ | 850,726 | ||||||||
| Costs of sales | 300,578 | 190,965 | 1,038,188 | 696,952 | ||||||||||||
| Gross profit | 38,894 | 38,012 | 150,764 | 153,774 | ||||||||||||
| Selling, general and administrative expense | 44,198 | 42,955 | 185,469 | 185,137 | ||||||||||||
| Transaction, restructuring and integration expense | 2,178 | 3,896 | 9,475 | 13,797 | ||||||||||||
| Impairment charges | — | 3,690 | — | 5,686 | ||||||||||||
| Loss (gain) on disposal of property, plant and equipment | 1,263 | (2,687 | ) | 1,278 | (1,722 | ) | ||||||||||
| Total operating expenses | 47,639 | 47,854 | 196,222 | 202,898 | ||||||||||||
| Loss from operations | (8,745 | ) | (9,842 | ) | (45,458 | ) | (49,124 | ) | ||||||||
| Other (income) expense | ||||||||||||||||
| Interest expense | 16,006 | 11,935 | 55,747 | 33,856 | ||||||||||||
| Change in fair value of warrant liabilities | — | 119 | — | (7,015 | ) | |||||||||||
| Other, net | (125 | ) | 190 | (4,087 | ) | 413 | ||||||||||
| Loss before income taxes and equity in earnings from unconsolidated entities | (24,626 | ) | (22,086 | ) | (97,118 | ) | (76,378 | ) | ||||||||
| Income tax expense (benefit) | (3,084 | ) | 2,474 | (1,748 | ) | 3,728 | ||||||||||
| Equity in (earnings) loss from unconsolidated entities | 1,019 | 47 | (4,925 | ) | 192 | |||||||||||
| Net loss | $ | (22,561 | ) | $ | (24,607 | ) | $ | (90,445 | ) | $ | (80,298 | ) | ||||
| Amortization of Series A Convertible Preferred Shares | 87 | 87 | 347 | 349 | ||||||||||||
| Net loss attributable to common shareholders | $ | (22,474 | ) | $ | (24,520 | ) | $ | (90,098 | ) | $ | (79,949 | ) | ||||
| Loss per common share: | ||||||||||||||||
| Basic | $ | (0.23 | ) | $ | (0.26 | ) | $ | (0.94 | ) | $ | (0.89 | ) | ||||
| Diluted | $ | (0.23 | ) | $ | (0.26 | ) | $ | (0.94 | ) | $ | (0.89 | ) | ||||
| Weighted-average number of shares outstanding: | ||||||||||||||||
| Basic | 96,848 | 94,188 | 95,351 | 89,795 | ||||||||||||
| Diluted | 96,848 | 94,188 | 95,351 | 89,795 | ||||||||||||
| Westrock Coffee Company Consolidated Statements of Cash Flows (Unaudited) | ||||||||
| Year Ended December 31, | ||||||||
| (Thousands) | 2025 | 2024 | ||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (90,445 | ) | $ | (80,298 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 55,836 | 34,745 | ||||||
| Impairment charges | — | 5,686 | ||||||
| Equity-based compensation | 14,552 | 11,608 | ||||||
| Provision for credit losses | 1,890 | 2,316 | ||||||
| Amortization of deferred financing fees included in interest expense | 4,638 | 3,224 | ||||||
| Write-off of unamortized deferred financing fees | 137 | — | ||||||
| (Gain) loss on disposal of property, plant and equipment | 1,278 | (1,722 | ) | |||||
| Gain on de-consolidation of Rwanda Trading Company | (2,291 | ) | — | |||||
| Mark-to-market adjustments | 629 | (4,622 | ) | |||||
| Change in fair value of warrant liabilities | — | (7,015 | ) | |||||
| Foreign currency transactions | (141 | ) | 598 | |||||
| Deferred income tax expense (benefit) | (3,088 | ) | 3,287 | |||||
| Other | (3,347 | ) | 1,257 | |||||
| Change in operating assets and liabilities: | ||||||||
| Accounts receivable | (6,960 | ) | (2,766 | ) | ||||
| Inventories | (46,903 | ) | (6,558 | ) | ||||
| Derivative assets and liabilities | (6,010 | ) | 16,383 | |||||
| Prepaid expense and other assets | 3,349 | 1,983 | ||||||
| Accounts payable | 34,454 | 5,693 | ||||||
| Accrued liabilities and other | 23,408 | 2,958 | ||||||
| Net cash used in operating activities | (19,014 | ) | (13,243 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Additions to property, plant and equipment | (88,800 | ) | (159,625 | ) | ||||
| Additions to intangible assets | (174 | ) | (173 | ) | ||||
| Proceeds from sale of equity method investments and non-marketable securities | 500 | — | ||||||
| Acquisition of equity method investments and non-marketable securities, inclusive of cash contributed | (2,952 | ) | — | |||||
| Proceeds from sale of property, plant and equipment | 462 | 13,875 | ||||||
| Proceeds from deferred purchase price of sold trade receivables | 8,788 | — | ||||||
| Net cash used in investing activities | (82,176 | ) | (145,923 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments on debt | (126,487 | ) | (181,242 | ) | ||||
| Proceeds from debt | 185,853 | 278,141 | ||||||
| Payments on supply chain financing program | (181,513 | ) | (163,869 | ) | ||||
| Proceeds from supply chain financing program | 199,269 | 164,631 | ||||||
| Proceeds from convertible notes payable | 18,500 | 22,000 | ||||||
| Proceeds from convertible notes payable - related party | 11,500 | 50,000 | ||||||
| Payment of debt issuance costs | (4,016 | ) | (3,329 | ) | ||||
| Payment of convertible notes payable issuance costs | (1,175 | ) | (511 | ) | ||||
| Net proceeds from (repayments of) repurchase agreements | 11,209 | (7,706 | ) | |||||
| Net change in unremitted cash collections from servicing factored receivables | 13,756 | — | ||||||
| Proceeds from exercise of stock options | — | 12 | ||||||
| Proceeds from issuance of common stock | 12,097 | 635 | ||||||
| Payment of equity issuance costs | (181 | ) | (10 | ) | ||||
| Payment for taxes for net share settlement of equity awards | (2,098 | ) | (2,122 | ) | ||||
| Net cash provided by financing activities | 136,714 | 156,630 | ||||||
| Effect of exchange rate changes on cash | (49 | ) | 260 | |||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | 35,475 | (2,276 | ) | |||||
| Cash and cash equivalents and restricted cash at beginning of period | 35,564 | 37,840 | ||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 71,039 | $ | 35,564 | ||||
The total cash and cash equivalents and restricted cash at December 31, 2025 and 2024 is as follows:
| (Thousands) | December 31, 2025 | December 31, 2024 | ||||
| Cash and cash equivalents | $ | 49,875 | $ | 26,151 | ||
| Restricted cash | 21,164 | 9,413 | ||||
| Total | $ | 71,039 | $ | 35,564 | ||
| Westrock Coffee Company Summary of Segment Results (Unaudited) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| (Thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Beverage Solutions | ||||||||||||
| Net sales | $ | 272,527 | $ | 174,061 | $ | 908,449 | $ | 659,383 | ||||
| Segment Adjusted EBITDA1 | 18,806 | 17,842 | 68,481 | 53,639 | ||||||||
| Sustainable Sourcing & Traceability | ||||||||||||
| Net sales2 | $ | 66,945 | $ | 54,916 | $ | 280,503 | $ | 191,343 | ||||
| Segment Adjusted EBITDA1 | 5,525 | 3,130 | 16,523 | 6,366 | ||||||||
| _____________________________ | ||||||||||||
| 1 - Segment Adjusted EBITDA is a segment performance measure, which is required by U.S. GAAP to be disclosed in accordance with FASB Accounting Standards Codification 280, Segment Reporting. Segment Adjusted EBITDA is defined consistently with Consolidated Adjusted EBITDA, except that it excludes scale-up costs related to our Conway Facility. Refer to the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for additional information regarding our segments and a reconciliation of Segment Adjusted EBITDA to loss before income taxes and equity in earnings from unconsolidated entities. 2 - Net of intersegment revenues. | ||||||||||||
| Westrock Coffee Company Calculation of Beverage Solutions Credit Agreement Secured Net Leverage Ratio (Unaudited) | ||||
| (Thousands, except leverage ratio) | Trailing Twelve-Months | |||
| Beverage Solutions Segment Adjusted EBITDA | $ | 68,481 | ||
| Permissible credit agreement adjustments1 | 6,668 | |||
| Trailing Twelve-Months Credit Agreement Adjusted EBITDA | $ | 75,149 | ||
| End of period: | ||||
| Term loan facility | $ | 145,469 | ||
| Delayed draw term loan facility | 45,313 | |||
| Revolving credit facility | 145,000 | |||
| Letters of credit outstanding | 1,980 | |||
| Secured debt | 337,762 | |||
| Beverage Solutions unrestricted cash and cash equivalents | (48,232 | ) | ||
| Secured net debt | $ | 289,530 | ||
| Beverage Solutions Credit Agreement secured net leverage ratio | 3.85x | |||
| _____________________________ | ||||
| 1 – Primarily consists of | ||||
The Company is required to maintain compliance with, among other things, a secured net leverage ratio under the terms of its credit agreement (the “Credit Agreement”) among the Company, Westrock Beverage Solutions, LLC, as the borrower, Wells Fargo Bank, N.A., as administrative agent, collateral agent, and swingline lender, Wells Fargo Securities, LLC, as sustainability structuring agent, and each issuing bank and lender party thereto. The secured net leverage ratio is calculated as secured net debt divided by Adjusted EBITDA for the trailing twelve-month period, each as defined in the Credit Agreement, and is applicable only to our Beverage Solutions segment.
Management believes that our secured net leverage ratio provides useful information to investors and other users of our financial data regarding the Company’s compliance with its material financial covenants. Failure to comply with the covenants in the Credit Agreement or make payments when due could result in an event of default, which, if not cured or waived, could accelerate our repayment obligations under the Credit Agreement and could result in a default and acceleration under other agreements containing cross-default provisions. Under these circumstances, we might not have sufficient funds or other resources to satisfy all of our obligations. As of the date of this press release, the Company is in compliance with its financial covenants.
| Westrock Coffee Company Reconciliation of Net (Loss) Income to Non-GAAP Consolidated Adjusted EBITDA (Unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (Thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net loss | $ | (22,561 | ) | $ | (24,607 | ) | $ | (90,445 | ) | $ | (80,298 | ) | ||||
| Interest expense | 16,006 | 11,935 | 55,747 | 33,856 | ||||||||||||
| Income tax expense (benefit) | (3,084 | ) | 2,474 | (1,748 | ) | 3,728 | ||||||||||
| Depreciation and amortization | 15,167 | 11,549 | 55,836 | 34,745 | ||||||||||||
| EBITDA | 5,528 | 1,351 | 19,390 | (7,969 | ) | |||||||||||
| Transaction, restructuring and integration expense | 2,178 | 3,896 | 9,475 | 13,797 | ||||||||||||
| Change in fair value of warrant liabilities | — | 119 | — | (7,015 | ) | |||||||||||
| Equity-based compensation | 2,843 | 3,100 | 14,552 | 11,608 | ||||||||||||
| Impairment charges | — | 3,690 | — | 5,686 | ||||||||||||
| Conway extract and ready-to-drink facility pre-production costs | 5,959 | 5,429 | 24,725 | 35,544 | ||||||||||||
| Mark-to-market adjustments | 1,612 | (1,930 | ) | 629 | (4,622 | ) | ||||||||||
| Loss (gain) on disposal of property, plant and equipment | 1,263 | (2,687 | ) | 1,278 | (1,722 | ) | ||||||||||
| Other | 3,573 | 366 | (373 | ) | 1,873 | |||||||||||
| Consolidated Adjusted EBITDA | $ | 22,956 | $ | 13,334 | $ | 69,676 | $ | 47,180 | ||||||||
Non-GAAP Financial Measures
We refer to EBITDA and Consolidated Adjusted EBITDA in our analysis of our results of operations, which are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). While we believe that net (loss) income, as defined by GAAP, is the most appropriate earnings measure, we also believe that EBITDA and Consolidated Adjusted EBITDA are important non-GAAP supplemental measures of operating performance as they contribute to a meaningful evaluation of the Company’s future operating performance and comparisons to the Company’s past operating performance. The Company believes that providing these non-GAAP financial measures helps investors evaluate the Company’s operating performance, profitability and business trends in a way that is consistent with how management evaluates such performance.
We define “EBITDA” as net (loss) income, as defined by GAAP, before interest expense, provision for income taxes and depreciation and amortization. We define “Consolidated Adjusted EBITDA” as EBITDA before equity-based compensation expense and the impact, which may be recurring in nature, of transaction, restructuring and integration related costs, impairment charges, changes in the fair value of warrant liabilities, non-cash mark-to-market adjustments, certain non-capitalizable costs necessary to place the Conway extract and ready-to-drink facility into commercial production, the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, gains or losses on dispositions, and other similar or infrequent items (although we may not have had such charges in the periods presented). We believe EBITDA and Consolidated Adjusted EBITDA are important supplemental measures to net (loss) income because they provide additional information to evaluate our operating performance on an unleveraged basis.
Since EBITDA and Consolidated Adjusted EBITDA are not measures calculated in accordance with GAAP, they should be viewed in addition to, and not be considered as alternatives for, net (loss) income determined in accordance with GAAP. Further, our computations of EBITDA and Consolidated Adjusted EBITDA may not be comparable to that reported by other companies that define EBITDA and Consolidated Adjusted EBITDA differently than we do.
| Westrock Coffee Company 2025 Outlook Versus Actual Results (Unaudited) | |||||||||
| Below is a summary of the Company’s performance for the year ended December 31, 2025 compared to the outlook provided in the November 6, 2025 earnings release. | |||||||||
| 2025 | 2025 Outlook | ||||||||
| (Millions) | Actual | Low | High | ||||||
| Consolidated Adjusted EBITDA | $ | 69.7 | $ | 60.0 | $ | 65.0 | |||
| Segment Adjusted EBITDA | |||||||||
| Beverage Solutions | $ | 68.5 | $ | 63.0 | $ | 68.0 | |||
| SS&T | 16.5 | 14.0 | 16.0 | ||||||
| December 31, 2025 | |||||||||
| Actual | Outlook | ||||||||
| Beverage Solutions Credit Agreement secured net leverage ratio | 3.85x | 4.50x | |||||||
FAQ
What were Westrock Coffee (WEST) full year 2025 net sales and growth?
How did Westrock Coffee (WEST) perform on profitability in FY2025?
What is Westrock Coffee’s (WEST) 2026 Consolidated Adjusted EBITDA guidance and implied growth?
How did Westrock Coffee’s (WEST) Q4 2025 results compare to the prior year quarter?
What drove the increase in SS&T segment results for Westrock Coffee (WEST) in 2025?
