FARM

• Fiscal 2025 was strong with improved gross margins, adjusted EBITDA, SG&A decreases, and debt paydown. - Launched Sum>One specialty brand, completed SKU rationalization and brand pyramid initiatives. - Leveraged coffee sourcing, quality control, and manufacturing capabilities. - Appointed new leadership in sales and field operations, reintegrated customer service team. - Upgraded technology platforms, including hardware for Route Sales Representatives and a new CRM tool. - Addressed macro challenges like coffee volume decrease, green coffee price increase, and tariff impacts.

• Expect pressure on top line and gross margin in fiscal 2026 due to rising green coffee costs and tariffs. - Committed to addressing customer and coffee pound degradation, driving top line revenue. - Focused on unlocking DSD network potential, with Travis Young driving field operations for accountability and product penetration. - Brian Miller leading unified sales team with training and KPIs, leveraging core coffee capability for white label customers. - Believes past changes create a strong foundation for growth despite 2026 market challenges.

In the fourth quarter, adjusted EBITDA was $5.8 million, net sales were $85.1 million, and gross margin was 44.9%. For the full fiscal year, adjusted EBITDA was $14.8 million, net sales were $342.3 million, and gross margin was 43.5%. Adjusted EBITDA improved by over $7 million in the quarter and over $14 million for the full year. Gross margin in the fourth quarter increased 610 basis points year-over-year, and for the full year, it increased 420 basis points. Net sales in the fourth quarter were slightly up from the prior year, and full year net sales were marginally higher. Operating expenses increased due to fewer asset sales, but excluding asset sales, SG&A expenses decreased by $6 million or 190 basis points as a percentage of net sales.

• Macro challenges in the coffee industry including softness in food services, 65%+ rise in green coffee prices, and 50% tariff on Brazil imports. - Expected increase in cost of goods in fiscal 2026, pressure on top line and gross margin.

Q: Could you rank order areas of focus for operational efficiency and margin improvements now?

A: Categorized as pivot from pricing to performance and execution, focusing on core competency areas like DSD network, customer-focused white-glove service, and leveraging green coffee sourcing, roasting, and manufacturing.

Q: Comment on order fulfillment progress and customer churn dynamics?

A: Planning and procurement team addressed out-of-stock issues, field operations and communication improved, order fulfillment mostly solved, with focus on customer-focused white-glove service.

Q: Traction with larger restaurant groups and allied products?

A: Farmer Brothers works with large and small restaurant groups, has allied products business, and runs initiatives to drive interest in different product segments, leveraging DSD network activation.