0001495240-26-000016
SEC filingMixed Q1: operating cash flow doubled on higher crop sales and lower interest, but net income swung to a loss due to absence of prior-year property gains.
Revenue for the first quarter of 2026 was $16.6 million, down 1.5% from $16.8 million in the prior-year period. The decline was primarily due to lower lease revenue, partially offset by higher crop sales. Other income decreased as a result of lower interest patronage from Farm Credit and reduced interest earned on short-term investments.
Net income swung to a loss of $4.3 million from a profit of $15.1 million in the prior year. The prior-year period benefited from a $15.4 million gain on asset sales that did not recur. Diluted EPS was -$0.24 compared to $0.25. The company continues to monitor developments related to the conflict in the Middle East, tariffs, and trade policy, though the ultimate impact on crop pricing and grower economics remains uncertain.
Net cash provided by operating activities more than doubled to $9.3 million from $4.5 million, driven by higher crop inventory and lower interest payments. Production volumes on farms exceeded internal expectations, contributing to inventory build. Crop inventory is stated at the lower of cost or net realizable value, with costs capitalized including irrigation, pest management, fertilization, and labor.
While international trade developments influence sentiment in export-oriented crop markets, pricing for almonds and pistachios remains driven by supply and demand fundamentals. The company continues to monitor geopolitical and trade policy risks, though the ultimate impact remains uncertain.