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what it is
It roasts, wholesales, services, and distributes coffee, tea, and related products through 243 delivery routes.
how it gets paid
Last year Farmer Brothers made $342M in revenue. Roasted coffee was the main engine at $188M, or 55% of sales.
why it's growing
Revenue grew 0.3% last year. Revenue was up 92% vs. prior year. Gross margin was 37.9%.
what just happened
Farmer Brothers posted $171M in revenue, but -$0.41 EPS kept the quarter red.
At a glance
C+ balance sheet — struggling to keep the lights on
30/100 earnings predictability — expect surprises
0.1% return on capital — nothing to write home about
-$0.68 fy2025 eps est
$6M fy2024 rev est
xvary composite: 17/100 — weak
What they do
It roasts, wholesales, services, and distributes coffee, tea, and related products through 243 delivery routes.
You are buying a truck route system, not a logo. Farmer Brothers reaches customers through 243 delivery routes and 104 branch warehouses. DSD network → trucks deliver straight to stores → switching suppliers means reworking your coffee, tea, and equipment logistics.
How they make money
$342M
annual revenue · their business grew +0.3% last year
Roasted coffee
$188M
Private-label coffee
$54M
Foodservice distribution
$48M
Tea and allied products
$34M
Equipment service and other
$18M
The products that matter
foodservice coffee brand
Sum>One
brand asset
it is one of the company’s core coffee brands sold into the foodservice channel. the page gives no standalone revenue, which tells you the stock is trading on deal terms, not brand-level disclosures.
coffee
regional coffee brand
Metropolitan
brand asset
it sits inside the much larger Coffee & Tea bucket, which is ~88% of the revenue mix shown here. in plain English: the brands matter, but they are not separately moving the valuation now.
within ~88% mix
legacy coffee brand
Boyd's
brand asset
it is another label inside the company’s coffee portfolio. with the stock trading above the $1.29 cash offer, you are effectively underwriting deal completion rather than trying to assign a premium to Boyd’s on its own.
deal-driven
Key numbers
$342M
annual revenue
That is the top line investors are paying for. On a $27M market cap, the market is pricing in very little stability.
$39M
long-term debt
Debt equals 59% of capital, so the balance sheet still has real gravity.
3.9%
operating margin
The business makes 3.9 cents on each sales dollar. That is thin, even for food.
0.1%
return on capital
You get 0.1 cents back for each dollar invested. That is the opposite of a money machine.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $39M (59% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for FARM right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Farmer Brothers posted $171M in revenue, but -$0.41 EPS kept the quarter red.
Revenue was up 92% vs. prior year. Gross margin was 37.9%, so more sales did not turn into profit.
$171M
revenue
-$0.41
eps
37.9%
gross margin
gross margin
37.9% gross margin mattered because it shows how much of each sales dollar survived beans, labor, and trucking.
source: company earnings report, 2026
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What could go wrong
the top risk is the Royal Cup deal failing or dragging past the outside date. that is not a side risk. that is the whole trade.
high
deal failure
the signed $1.29-per-share acquisition could fail to close by the June 30, 2026 deadline or be terminated before then.
the page itself points to pre-deal levels near $1.00. that implies roughly 32% downside from $1.47.
high
operating deterioration before closing
q2 gross margin fell to 36.3% from 43.5% a year ago, and the company posted a $4.9M net loss. if performance keeps slipping, the buyer has more room to push back or renegotiate.
the business only had $4.2M in cash against $39M of long-term debt. there is not much cushion here.
med
sale-process litigation or delay
Ademi LLP’s investigation does not automatically kill the deal, but it can complicate timing, paperwork, and shareholder approval optics.
even if the transaction still closes at $1.29, delay matters when the stock is already trading above the cash consideration.
a failed deal leaves you with a loss-making coffee distributor carrying $39M in debt, only $4.2M of cash, and gross margin that just fell from 43.5% to 36.3%.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
june 30, 2026 outside date
this is the key date on the page. if the deal is not closed by then, the spread stops being theoretical.
metric
gross margin
36.3% versus 43.5% vs. prior year is a sharp deterioration. if that keeps sliding, you should assume the buyer notices too.
risk
legal and filing updates
watch merger filings, amendments, and any litigation updates around the sale process. event-driven names move on paperwork more than product launches.
trend
share price versus $1.29 cash
as long as the stock sits above the signed deal price, the market is telling you this is not a plain-vanilla cash-close setup.
Analyst rankings
earnings predictability
30 / 100
earnings are hard to trust quarter to quarter. in human-speak: the business is noisy, and the merger matters more than the estimate sheet.
risk rank
5
safer than only 5% of stocks in the dataset. that is a warning label, not a compliment.
source: institutional data
Institutional activity
institutional ownership data for FARM is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$1
current price
n/a
target midpoint · n/a from current
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