Coffee Holding Company Reports Second Quarter Results.
Coffee Holding Co. (Nasdaq: JVA) reported fiscal Q2 ended April 30, 2026. Net sales fell 5.1% to $22.13M from $23.32M, driven by a rapid decline in green coffee prices. Cost of sales was $18.64M (84.2% of sales). Gross profit dropped to $3.49M; net income was $262,489 ($0.05/share) vs $644,055 ($0.11) a year earlier.
Earnings print highlights margin pressure and demand softness tied to a rapid decline in green coffee prices, with management citing inventory reduction plans.
Coffee Holding reported Q2 results for the quarter ended April 30, 2026, with net sales down 5.1% and net income down to $262k.
Near-term downside bias as investors may reprice earnings power given lower sales volumes and gross margin compression; watch for stabilization if coffee prices firm.
Background
Coffee Holding Co., Inc. (JVA) released operating results for the fiscal quarter ended April 30, 2026, attributing performance to a steep decline in green coffee prices starting late January.
Why it matters
Net sales fell 5.1% year over year and net income dropped to $262,489, with gross margin slipping to 15.8% from 16.0%. Management linked the decline to lower realizable prices for green coffee inventory and a customer “wait and see” approach, while noting increased promotions and selective cost reductions.
Market relevance
Traders can use the earnings datapoints and management’s commodity linkage to reassess near-term earnings sensitivity to green coffee price moves and hedging outcomes.
Market effects
Reinforces that integrated coffee roasters/dealers are highly sensitive to green coffee price swings, with promotional activity and margin compression when commodity prices fall.
Limited direct regional spillover; impacts primarily US consumer/wholesale coffee supply chain participants.
Commodity-driven read-through to global green coffee pricing and hedging effectiveness for coffee importers/roasters.
Alternative perspectives
Management suggests a “silver lining” from newly awarded business and expects improved margins on lower input costs, which could offset some near-term volume weakness.
Inventory reduction could improve working capital and reduce future carrying costs; also, cost of sales as a % of sales rose slightly despite lower volume, implying mix/packaging dynamics worth monitoring.
Key entities
- companyCoffee Holding Co., Inc.
Integrated wholesale coffee roaster and dealer; reported Q2 results and commodity-driven margin/volume impacts.
- personAndrew Gordon
President and CEO who attributed results to the rapid decline in green coffee prices and discussed inventory reduction and new business.