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Jul 31
Limoneira Q3 2025 Earnings Report
Limoneira Company reported its financial results for the third quarter ended July 31, 2025, with a decrease in total net revenues and a shift from operating income to operating loss compared to the prior year.
Key Takeaways
Limoneira Company experienced a challenging third quarter of fiscal year 2025, with total net revenues decreasing to $47.5 million from $63.3 million in the prior year. The company reported a net loss of $1.0 million and an operating loss of $0.6 million, primarily due to pricing pressure in the lemon market and lower fresh utilization. Despite these challenges, the company is making strategic moves, including a partnership with Sunkist and exploring housing development on its Limco Del Mar Ranch, to drive future profitability and unlock long-term value.
Total net revenues for Q3 2025 were $47.5 million, a significant decrease from $63.3 million in Q3 2024.
The company reported a net loss applicable to common stock of $1.0 million, compared to a net income of $6.5 million in the same period last year.
Operating income shifted to an operating loss of $0.6 million in Q3 2025, down from an operating income of $9.0 million in Q3 2024.
Adjusted diluted net loss per common share was $0.02, a decrease from an adjusted net income per diluted share of $0.42 in Q3 2024.
Limoneira
Limoneira
Limoneira Revenue by Segment
Revenue by Segment
Agribusiness Revenue
CapyFin.comOther Operations Revenue
CapyFin.com Forward Guidance
Limoneira Company anticipates improved profitability in fiscal year 2026, driven by strategic initiatives and maturing avocado acreage. The company expects to achieve its lemon and avocado volume goals for fiscal year 2025 and is actively pursuing land monetization opportunities.
Positive Outlook
- Strategic partnership with Sunkist for citrus sales and marketing is expected to drive $5 million in annual cost savings and EBITDA enhancement starting in fiscal year 2026.
- Avocado production is expected to improve in the coming years as newly planted acreage matures.
- Lemons are expected to return to profitability with more normalized lemon prices and fresh utilization levels in fiscal year 2026.
- The Harvest at Limoneira project continues to sell homes ahead of schedule, with plans to divest additional land assets in fiscal year 2026.
- Exploration of providing housing on the Limco Del Mar Ranch addresses Ventura County's housing needs and offers potential for economic growth.
Challenges Ahead
- Lemon market continued to face pricing pressure during the first two months of the third quarter of fiscal year 2025.
- Fresh utilization for lemons was lower due to holding lemons in storage longer to capture higher prices.
- Fiscal year 2025 avocado volume was lower compared to fiscal year 2024 due to the alternate bearing nature of avocado trees.
- The company's long-term debt increased to $63.3 million as of July 31, 2025, compared to $40.0 million at the end of fiscal year 2024.
- Net cash used in operating activities was $7.0 million for the nine months ended July 31, 2025, compared to net cash provided by operating activities of $11.3 million in the same period of the prior fiscal year.