Revenue was virtually flat on a quarter-over-quarter basis, reflecting significant increases in realized price largely offset by lower pound volumes.

Gross profit for the quarter decreased 22.7% to $27.8 million with a margin of 32.5%.

General and administrative expenses fell 9.3% to $10.3 million. The operating loss for the quarter expanded to $(10.1) million from $(705,000) last year.

The adjusted EBITDA loss was $(7.2) million compared to an income of $7.1 million last year.

The company held $5.4 million in cash and equivalents as of June 30, 2023.

EPS of $(0.84) missed the consensus estimate of $(0.61).

Farmer Brothers Chief Executive Officer Deverl Maserang said, "While transitional impacts from the divestiture and our DSD reorganization will impact the first quarter of fiscal 2024 profitability, we are making steady progress toward an inflection to positive free cash flow in the coming quarters."

Price Action: FARM shares closed lower by 6.67% at $1.82 on Tuesday.