0001342423-26-000013
SEC filingLimoneira Company reported a net loss of $9.3 million for Q1 2026, compared to a net loss of $3.1 million in Q1 2025. Total net revenues declined 47% year-over-year to $18.2 million, primarily driven by a 49% decrease in agribusiness revenue to $16.8 million. The company experienced an operating loss of $10.6 million, significantly wider than the $5.3 million operating loss in the prior year quarter. Cash flow from operations was negative $11.7 million, while financing activities provided $15.3 million primarily through net borrowings of $17.4 million. The company ended the quarter with $1.3 million in cash and total debt of $89.9 million. Key factors impacting results included lower lemon volumes and pricing, increased costs, and the transition to Sunkist for lemon sales and marketing operations effective November 1, 2025.
Limoneira Company reported disappointing Q1 2026 results with total net revenues of $18.2 million, representing a 47% decline from $34.3 million in Q1 2025. The company recorded a net loss of $9.3 million, significantly wider than the $3.1 million net loss in the prior year quarter. Operating loss expanded to $10.6 million from $5.3 million year-over-year. Basic and diluted net loss per common share were $(0.53), compared to $(0.18) in Q1 2025. The poor performance was primarily attributed to lower lemon volumes and pricing, increased costs, and the transition of lemon sales and marketing operations to Sunkist effective November 1, 2025. Agribusiness revenue declined 49% to $16.8 million, while other operations revenue remained relatively flat at $1.4 million.
Revenue declined across all major segments. Fresh lemons revenue decreased 47% to $8.7 million from $16.4 million in the prior year quarter. Lemon packing revenue fell 41% to $7.0 million from $11.8 million. Other agribusiness revenue declined 76% to $1.1 million from $4.4 million, with oranges revenue dropping from $1.6 million to just $10,000. The company noted that 80% of total revenues for the quarter came from lemon sales conducted through Sunkist, representing a significant concentration following the November 2025 transition. Corporate and other revenue, primarily from rental operations, remained stable at $1.4 million. The revenue decline was driven by lower lemon volumes and pricing, as well as reduced orange and specialty citrus sales.
Profitability deteriorated significantly with operating loss margin expanding to 58% of revenue compared to 16% in the prior year quarter. Total costs and expenses were $28.8 million, representing 158% of revenue. Agribusiness costs were $23.0 million, exceeding agribusiness revenue by $6.2 million. Selling, general and administrative expenses decreased to $4.6 million from $6.5 million in the prior year quarter. The company recorded a loss on disposal of assets of $73,000. Other expense totaled $1.5 million, primarily consisting of interest expense of $779,000 and other expense of $863,000. Income tax benefit was $2.7 million, reducing the net loss. Segment analysis shows fresh lemons and lemon packing segments both reported operating losses of $2.3 million and $2.0 million respectively.
Cash flow from operations was negative $11.7 million, compared to negative $12.9 million in the prior year quarter. The company used $3.4 million in investing activities, primarily for capital expenditures of $3.0 million. Financing activities provided $15.3 million, with $38.0 million in borrowings offset by $20.6 million in debt repayments and $1.4 million in common dividends. The company ended the quarter with $1.3 million in cash, down from $1.5 million at the beginning of the period. Total assets were $307.5 million, with property, plant and equipment of $173.5 million and equity in investments of $72.7 million. Total liabilities were $126.9 million, including long-term debt of $89.9 million. Stockholders' equity was $169.8 million with an accumulated deficit of $12.0 million.
The company faces ongoing challenges including lower lemon volumes and pricing, increased costs, and the transition to Sunkist for sales and marketing operations. Management noted that 78% of the company's domestic lemon supply came from third-party growers during the quarter. The company has a $30 million share repurchase program authorized in March 2025 but has not repurchased any shares as of January 31, 2026. Subsequent to quarter end, the company received $939,000 in insurance proceeds and expects to receive an additional $1.4 million related to a packinghouse incident. The company maintains compliance with its debt covenants, including a debt to capitalization ratio covenant of no greater than 45%, which it was in compliance with as of January 31, 2026. No specific financial guidance was provided in the filing.