Coffee Holding (JVA) Q3 2025 earnings summary

Executive summary

• Net sales increased 20% year-over-year for the nine months ended July 31, 2025, and reached $23.9M for Q3, up 27% year-over-year.

• Gross profit margin remained flat at 19.4% for the nine-month period, but Q3 margin dropped to 12.2% due to higher costs and trading losses.

• Net income for the nine months was $591,898, while Q3 saw a net loss of $1,205,413, primarily due to a $2.2M negative impact from derivative positions.

• The acquisition of Empire Coffee Company contributed to higher operating expenses and added $3.2 million in revenue but resulted in a $694,130 loss; Second Empire recorded a profit in July and is expected to be accretive.

• Operations remained strong despite market volatility and challenging industry conditions.

Financial highlights

• Net sales for the nine months ended July 31, 2025: $68.5 million, up from $57.3 million year-over-year; Q3 net sales: $23.9M, up 27% year-over-year.

• Gross profit for the nine months: $13.3 million (19.4% margin); Q3 gross profit: $2.9 million (12.2% margin).

• Net income for nine months: $591,898 ($0.10 per share); Q3 net loss: $1,205,413 ($0.21 loss per share), driven by $2.2M in derivative losses.

• Operating expenses rose to $11.9 million for nine months, up $2.1 million year-over-year, mainly due to the Empire Coffee acquisition.

• Cash used in operations for nine months: $5.4 million, compared to $5.2 million provided in the prior year.

Outlook and guidance

• Management expects to fund operations for at least the next twelve months through operating cash flow and credit facility availability.

• Inventory increases are intended to support anticipated sales growth and have secured positions through 2025.

• Expectation of a reversal of unrealized derivative losses in Q4, potentially boosting profits; anticipated dividend based on year-end profits.