Willamette Valley Vineyards Posts Results for Q2 2025

Rhea-AI Summary

Willamette Valley Vineyards (NASDAQ:WVVI), a leading Oregon Pinot Noir producer, reported challenging Q2 2025 results. The company posted a loss per share of $0.09 after preferred dividends, compared to a $0.07 loss in Q2 2024. Sales declined by 1.3% to $10.2 million, with direct sales dropping $223,199, partially offset by an $86,604 increase in distributor sales.

Gross profit decreased by 3.9% to $6.2 million, while operating expenses reduced by 2.0% to $5.8 million. Net income fell 52.7% to $92,795. The company's new CEO Mike Osborn is focusing on improving wholesale distribution and sales performance amid current distribution challenges.

Positive

• Operating expenses decreased by 2.0% to $5.8 million
• Distributor sales increased by $86,604
• Maintained strong brand reputation with high wine reviews
• Achieved highest rated Tasting Room by USA Today readers for second consecutive year

Negative

• Net income declined 52.7% to $92,795
• Sales revenue decreased 1.3% to $10.2 million
• Direct sales dropped by $223,199
• Gross profit fell 3.9% to $6.2 million
• Loss per share increased to $0.09 from $0.07 year-over-year

Insights

Financial Analyst

Willamette Valley Vineyards' Q2 shows widening losses, declining sales, and challenged distribution despite cost-cutting efforts.

Willamette Valley Vineyards' Q2 2025 results reveal concerning trends across multiple financial metrics. The company posted a loss per common share of $0.09 after preferred dividends, worsening from $0.07 in Q2 2024. Total revenue declined by 1.3% to $10.2 million, with direct sales dropping by $223,199, only partially offset by a modest $86,604 increase in distributor sales.

The deteriorating profitability is particularly notable. Gross profit fell by 3.9% to $6.2 million, indicating margin compression despite management's cost control efforts. While the company reduced selling, general and administrative expenses by 2.0%, this wasn't enough to counter the revenue decline. The most alarming metric is the 52.7% decrease in net income to just $92,795 from $195,978 in the prior year period.

The six-month figures paint an even more challenging picture, with a $636,186 net loss compared to a $325,827 loss in the first half of 2024. The company's wholesale distribution challenges appear systemic rather than seasonal, as acknowledged by management. Interest expenses continue to rise while revenue declines, creating negative operational leverage. The wider loss of $0.36 per share for the half-year (vs. $0.29 in 2024) suggests the company's financial trajectory is worsening despite bringing on a new CEO focused on improving distribution and sales. The brand's reputation remains strong according to management, but this hasn't translated to financial performance improvement.

SALEM, Ore., Aug. 12, 2025 /PRNewswire/ -- Willamette Valley Vineyards, Inc. (NASDAQ: WVVI) (the "Company"), a leading Oregon producer of Pinot Noir, generated a loss per common share after preferred dividends of $0.09 and  $0.07 for the three months ended June 30, 2025 and 2024 respectively, an increase of $0.02, for the three month period ended June 30, 2025 over the same three month period in the prior year. 

Sales revenue for the three months ended June 30, 2025 and 2024 were $10,195,763 and $10,332,358, respectively, a decrease of $136,595, or 1.3%, in the current year period over the prior year period. This decrease was caused by a decrease in direct sales of $223,199, partly offset by an increase in sales through distributors of $86,604 in the current year three-month period over the prior year period.

Gross profit for the three months ended June 30, 2025 and 2024 was $6,216,618 and $6,471,690, respectively, a decrease of $255,072, or 3.9%, in the second quarter of 2025 over the same quarter in the prior year.

Selling, general and administrative expenses for the three months ended June 30, 2025 and 2024 was $5,818,454 and $5,934,784 respectively, a decrease of $116,330, or 2.0%, in the current quarter over the same quarter in the prior year. This decrease was primarily the result of a decrease in selling and marketing expenses of $144,536, or 3.3% being partially offset by an increase in general and administrative expenses of $28,206, or 1.8% in the current quarter compared to the same quarter last year.

Net income for the three months ended June 30, 2025 and 2024 was $92,795 and $195,978, respectively, a decrease of $103,183, or 52.7%, in the second quarter of 2025 over the same quarter in the prior year.

Jim Bernau, Founder and President of the Company said "The first half of 2025 continues to reflect the current challenges in national distribution through our wholesalers.  Our management team, led by our new CEO Mike Osborn, is focused on improving wholesale distribution and sales.  We believe our brand's reputation in the market continues to remain strong with high wine reviews and achieving, for the second year in a row, the highest rated Tasting Room by readers of USA Today as an example."

For a complete discussion of the Company's financial condition and operating results for the second quarter 2025, see our Form 10-Q for the three months ended June 30, 2025, as filed with the United States Securities and Exchange Commission on EDGAR. 

Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon.  The Company's common stock is traded on NASDAQ (WVVI).

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, referred to as the "Securities Act", and Section 21E of the Securities Exchange Act of 1934, as amended, referred to as the "Exchange Act". These forward-looking statements involve risks and uncertainties that are based on current expectations, estimates and projections about the Company's business, and beliefs and assumptions made by management. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates", "predicts," "potential," "should," or "will" or the negative thereof and variations of such words and similar expressions are intended to identify such forward-looking statements. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but not limited to: availability of financing for growth, availability of adequate supply of high quality grapes, successful performance of internal operations, impact of competition, changes in wine broker or distributor relations or performance, impact of possible adverse weather conditions, impact of reduction in grape quality or supply due to disease or smoke from forest fires, changes in consumer spending, the reduction in consumer demand for premium wines, and the revenues or costs for any of our tasting rooms and restaurants exceeding our expectations. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic economic conditions.

Many of these risks as well as other risks that may have a material adverse impact on our operations and business, are identified in Item 1A "Risk Factors" in our Annual Report on Form 10-K. 

The following is the Company's Statement of Operations for the three months and six months ended June, 30, 2025 compared to the three and six months ended June 30, 2024:

					Three months ended				Six months ended
					June 30,				June 30,
					2025		2024		2025		2024
SALES, NET					$    10,195,763		$    10,332,358		$    17,737,346		$    19,135,438
COST OF SALES					3,979,145		3,860,668		6,761,620		7,391,026
GROSS PROFIT					6,216,618		6,471,690		10,975,726		11,744,412
OPERATING EXPENSES
	Sales and marketing				4,193,635		4,338,171		8,161,345		8,365,953
	General and administrative				1,624,819		1,596,613		3,286,195		3,444,130
		Total operating expenses			5,818,454		5,934,784		11,447,540		11,810,083
INCOME (LOSS) FROM OPERATIONS					398,164		536,906		(471,814)		(65,671)
OTHER INCOME (EXPENSE)
	Interest expense, net				(270,145)		(263,694)		(568,366)		(493,381)
	Other income, net				2,550		2,541		145,026		100,593
INCOME (LOSS) BEFORE INCOME TAXES					130,569		275,753		(895,154)		(458,459)
INCOME TAX (EXPENSE) BENEFIT					(37,774)		(79,775)		258,968		132,632
NET INCOME (LOSS)					92,795		195,978		(636,186)		(325,827)
Accrued preferred stock dividends					(563,176)		(563,249)		(1,126,353)		(1,126,426)
LOSS APPLICABLE TO COMMON SHAREHOLDERS					$       (470,381)		$       (367,271)		$    (1,762,539)		$    (1,452,253)
Loss per common share after preferred dividends,
	basic and diluted				$              (0.09)		$              (0.07)		$              (0.36)		$              (0.29)
Weighted-average number of
	common shares outstanding, basic and diluted				4,964,529		4,964,529		4,964,529		4,964,529

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SOURCE Willamette Valley Vineyards

FAQ

What were Willamette Valley Vineyards (WVVI) Q2 2025 earnings results?

WVVI reported a loss of $0.09 per share, with sales of $10.2 million, down 1.3% year-over-year. Net income was $92,795, a 52.7% decrease from Q2 2024.

How did WVVI's direct sales perform in Q2 2025?

WVVI's direct sales decreased by $223,199 in Q2 2025 compared to the same period last year, though this was partially offset by an increase in distributor sales of $86,604.

What is Willamette Valley Vineyards' strategy to improve performance?

Under new CEO Mike Osborn, WVVI is focusing on improving wholesale distribution and sales to address current challenges in national distribution through wholesalers.

How did WVVI's operating expenses change in Q2 2025?

Operating expenses decreased by 2.0% to $5.8 million, primarily due to a $144,536 reduction in selling and marketing expenses, partially offset by a $28,206 increase in general and administrative expenses.

What was WVVI's gross profit for Q2 2025?

WVVI reported a gross profit of $6.2 million for Q2 2025, representing a 3.9% decrease from $6.5 million in Q2 2024.