Willamette Valley Vineyards Posts Results for Q2 2026

Rhea-AI Summary

Willamette Valley Vineyards (NASDAQ: WVVI) reported a Q2 2026 loss per common share after preferred dividends of $0.40, versus a loss of $0.09 in Q2 2025. Net sales were $10.0 million, down 1.6% from $10.2 million, as lower direct sales, particularly outpost sales, were partly offset by higher distributor sales.

Gross profit declined 7.1% to $5.8 million, while selling, general and administrative expenses rose 22.5% to $7.1 million, mainly due to a higher allowance for credit losses tied to the bankruptcy filing of Republic National Distributing Company, a distributor. Net income swung to a loss of $1.39 million from income of $92,795. For the first six months of 2026, net sales increased to $18.3 million from $17.7 million, but the net loss widened to $2.0 million from $0.6 million, with loss per share after preferred dividends at $0.64 versus $0.36.

Positive

• Six-month net sales increased to $18,292,428 from $17,737,346 year over year
• Distributor channel sales in Q2 2026 grew by $103,005 versus Q2 2025
• Per-customer spending at retail locations increased in Q2 2026, partly offsetting fewer visitations

Negative

• Q2 2026 net loss of $1,389,876 versus net income of $92,795 in Q2 2025
• Loss per common share after preferred dividends worsened to $0.40 from $0.09 in Q2
• Gross profit in Q2 fell 7.1% to $5,773,725 from $6,216,618
• Selling, general and administrative expenses rose 22.5% to $7,127,694 in Q2 2026
• Six-month net loss widened to $1,954,948 from $636,186 year over year
• Loss applicable to common shareholders for six months increased to $3,167,090 from $1,762,539

News Explained

For the second quarter, Willamette Valley Vineyards accrued $606,071 in preferred dividends, leaving a $1,995,947 loss attributable to common shareholders and a $0.40 loss per common share.

Market Context

WVVI's Q1 2026 earnings report was followed by a 5.8% 24-hour reaction, adding an earnings-specific ...

Analysis

WVVI's Q1 2026 earnings report was followed by a 5.8% 24-hour reaction, adding an earnings-specific historical reference. This quarter's distributor credit exposure warrants monitoring alongside revenue trends; low short positioning was a separate risk context.

Key Figures

Loss per common share: $0.40 Sales revenue: $10,036,275 Revenue change: 1.6% decrease +5 more

8 metrics

Loss per common share $0.40 Q2 2026 after preferred dividends, versus $0.09 in Q2 2025

Sales revenue $10,036,275 Three months ended June 30, 2026, versus $10,195,763 in 2025

Revenue change 1.6% decrease Q2 2026 compared with the prior-year period

Gross profit $5,773,725 Q2 2026, versus $6,216,618 in Q2 2025

Gross profit change 7.1% decrease Q2 2026 compared with the same quarter in 2025

SG&A expenses $7,127,694 Q2 2026, versus $5,818,454 in Q2 2025

Net income (loss) ($1,389,876) Q2 2026, versus $92,795 net income in Q2 2025

Loss applicable to common shareholders $1,995,947 Q2 2026, versus $470,381 in Q2 2025

Historical Context

5 past events · Latest: Aug 04 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 04	Preferred stock offering	Neutral	+0.4%	Company launched a limited preferred stock offering with scheduled pricing periods.
Jul 29	Tasting room award	Positive	+4.9%	Company received top national rankings for its tasting room and wine club.
May 21	CFO appointment	Positive	+5.8%	Company appointed John Hazlett as chief financial officer effective immediately.
May 13	Q1 2026 earnings	Positive	+5.8%	First-quarter revenue increased while net loss narrowed year over year.
Mar 24	2025 earnings report	Negative	+1.0%	Annual sales declined and losses widened amid weaker sales and higher costs.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Positive company announcements were generally followed by positive reactions, while the 2025 annual results diverged with a positive price reaction despite weaker reported results.

Key Terms

preferred dividends, allowance for credit losses, basic and diluted, form 10-q

4 terms

preferred dividends financial

"loss per common share after preferred dividends of $0.40 and $0.09"

Preferred dividends are regular payments a company makes to holders of preferred stock before any dividends go to common shareholders. Think of preferred shareholders as having a reserved seat at the payment table: they usually receive a fixed amount like a steady paycheck, which makes these dividends important for income-focused investors and affects how much cash remains for common-stock holders and reinvestment.

allowance for credit losses financial

"increase in the allowance for credit losses associated with the bankruptcy"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

basic and diluted financial

"loss per common share after preferred dividends, basic and diluted"

Basic and diluted are two ways companies report earnings per share: basic divides a company's profit by the number of shares currently outstanding, while diluted assumes all potential shares from options, warrants or convertible securities are issued and reduces the per-share amount. Investors care because diluted gives a more conservative, 'what-if' view of profit per share if future claims dilute ownership—like comparing cake slices now versus after more people claim pieces—which affects valuation, dividends and comparisons between companies.

form 10-q regulatory

"see our Form 10-Q for the three months ended June 30, 2026"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SALEM, Ore., Aug. 12, 2026 /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 $0.40 and $0.09 for the three months ended June 30, 2026 and 2025 respectively, an increase of $0.31, for the three month period ended June 30, 2026 over the same three month period in the prior year. 

Sales revenue for the three months ended June 30, 2026 and 2025 were $10,036,275 and $10,195,763, respectively, a decrease of $159,488, or 1.6%, in the current year period over the prior year period. This decrease was caused by a decrease in direct sales of $262,493, partly offset by an increase in sales through distributors of $103,005 in the current year three-month period over the prior year period. The decrease in revenue from direct sales was primarily related to lower outpost sales.

Gross profit for the three months ended June 30, 2026 and 2025 was $5,773,725 and $6,216,618, respectively, a decrease of $442,893, or 7.1%, in the second quarter of 2026 over the same quarter in the prior year.

Selling, general and administrative expenses for the three months ended June 30, 2026 and 2025 was $7,127,694 and $5,818,454 respectively, an increase of $1,309,240, or 22.5%, in the current quarter over the same quarter in the prior year. This increase was primarily the result of an increase in the allowance for credit losses associated with the bankruptcy filing of Republic National Distributing Company, a distributor of the Company.

Net income (loss) for the three months ended June 30, 2026 and 2025 was ($1,389,876) and $92,795, respectively, a decrease of $1,482,671, in the second quarter of 2026 over the same quarter in the prior year.

Jim Bernau, Founder and President of the Company "I believe this second quarter reflects the negative impact of our largest distributor's bankruptcy filing and the sizable amount our winery is owed by them. We are taking steps to reduce the adverse impact on our cash flow as well as training new distributors to be successful with our brands. We are pleased that the reduction in the aggregate number of customer visitations at our retail locations during the second quarter was nearly offset by increased spending on a per customer basis during this period."

For a complete discussion of the Company's financial condition and operating results for the second quarter 2026, see our Form 10-Q for the three months ended June 30, 2026, 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 or not meeting 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 and six months ended June, 30, 2026 compared to the three and six months ended June 30, 2025:

 

					Three months ended				Six months ended
					June 30,				June 30,
					2026		2025		2026		2025
SALES, NET					$    10,036,275		$    10,195,763		$    18,292,428		$    17,737,346
COST OF SALES					4,262,550		3,979,145		7,489,639		6,761,620
GROSS PROFIT					5,773,725		6,216,618		10,802,789		10,975,726
OPERATING EXPENSES
	Sales and marketing				4,423,814		4,193,635		8,507,658		8,161,345
	General and administrative				2,703,880		1,624,819		4,326,894		3,286,195
		Total operating expenses			7,127,694		5,818,454		12,834,552		11,447,540
INCOME (LOSS) FROM OPERATIONS					(1,353,969)		398,164		(2,031,763)		(471,814)
OTHER INCOME (EXPENSE)
	Interest expense, net				(267,994)		(270,145)		(555,307)		(568,366)
	Other income, net				2,550		2,550		209,170		145,026
INCOME (LOSS) BEFORE INCOME TAXES					(1,619,413)		130,569		(2,377,900)		(895,154)
INCOME TAX (EXPENSE) BENEFIT					229,537		(37,774)		422,952		258,968
NET INCOME (LOSS)					(1,389,876)		92,795		(1,954,948)		(636,186)
Accrued preferred stock dividends					(606,071)		(563,176)		(1,212,142)		(1,126,353)
LOSS APPLICABLE TO COMMON SHAREHOLDERS					$    (1,995,947)		$       (470,381)		$    (3,167,090)		$    (1,762,539)
Loss per common share after preferred dividends,
	basic and diluted				$              (0.40)		$              (0.09)		$              (0.64)		$              (0.36)
Weighted-average number of
	common shares outstanding, basic and diluted				4,979,529		4,964,529		4,979,529		4,964,529

 

 

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SOURCE Willamette Valley Vineyards

FAQ

How did Willamette Valley Vineyards (NASDAQ: WVVI) perform financially in Q2 2026?

Willamette Valley Vineyards reported a Q2 2026 net loss of $1,389,876 and loss per common share after preferred dividends of $0.40. According to Willamette Valley Vineyards, Q2 net sales were $10,036,275, a 1.6% decrease from the prior-year quarter.

What caused the earnings decline for Willamette Valley Vineyards (WVVI) in Q2 2026?

The earnings decline was driven by higher expenses and lower gross profit. According to Willamette Valley Vineyards, selling, general and administrative expenses rose 22.5%, largely from increased allowance for credit losses linked to the bankruptcy filing of distributor Republic National Distributing Company.

How did Willamette Valley Vineyards’ Q2 2026 revenue compare to Q2 2025?

Q2 2026 net sales were $10,036,275, down from $10,195,763 in Q2 2025, a 1.6% decline. According to Willamette Valley Vineyards, this mainly reflected lower direct sales, particularly outpost sales, partially offset by higher distributor channel sales.

What were Willamette Valley Vineyards’ results for the first six months of 2026 (WVVI)?

For the first six months of 2026, net sales were $18,292,428, up from $17,737,346 a year earlier. According to Willamette Valley Vineyards, the net loss widened to $1,954,948, with loss per common share after preferred dividends at $0.64 versus $0.36.

How did the distributor bankruptcy affect Willamette Valley Vineyards’ Q2 2026 results?

The bankruptcy filing of Republic National Distributing Company increased credit loss allowances and impacted earnings. According to Willamette Valley Vineyards, this contributed to the 22.5% rise in selling, general and administrative expenses and negatively affected cash flow expectations and Q2 profitability.